Estée Lauder's stock plunged more than 12% in morning trading on February 5, 2026, marking its steepest single-day decline in company history, after the beauty giant raised its full-year profit forecast but fell short of Wall Street’s elevated expectations.
- Estée Lauder stock fell 12.3% on February 5, 2026, its worst single-day performance ever.
- Full-year 2026 EPS outlook: $7.05–$7.20, below the $7.35 analyst consensus.
- Q4 adjusted EPS: $1.71, slightly above expectations.
- North American revenue growth slowed to 3.1% YoY in Q4.
- China segment continues to show inconsistent performance.
- Options market saw 270% spike in put volume, indicating rising risk aversion.
Estée Lauder's shares dropped 12.3% to $142.10 in pre-market trading on Thursday, February 5, 2026, after the company reported adjusted earnings per share of $1.71 for the fiscal fourth quarter, slightly above estimates, but announced a full-year 2026 profit outlook of $7.05 to $7.20 per share—lower than the $7.35 consensus forecast. The company had raised its guidance from $6.90 to $7.10 in November, but investors interpreted the latest update as a sign of slowing momentum in key markets, particularly in Asia and North America. Despite a 4.3% year-over-year revenue increase to $2.8 billion in Q4, growth in the North American segment moderated to 3.1%, and China’s performance remained volatile, contributing to cautious sentiment. The stock's collapse reflects heightened investor scrutiny following a string of aggressive buybacks and dividend hikes in 2025, which had fueled expectations of double-digit earnings growth in 2026. Analysts at several major investment firms downgraded the stock post-earnings, with one noting that “the margin improvement story is running out of steam.” The move also triggered wider selloffs in the consumer discretionary sector, with LVMH and Kao Corp. seeing minor dips in Asian markets. Market participants are now reassessing the company’s long-term trajectory, particularly its ability to sustain pricing power amid rising competition from direct-to-consumer brands and digital-first beauty platforms. The decline in investor confidence is reflected in options markets, where put volume surged by 270% above average, signaling heightened hedging activity.