e.l.f. Beauty Inc. (ELF) reminded investors Wednesday why it's been one of the more consistent growth stories in beauty, delivering third-quarter results that beat expectations by a comfortable margin and raising its full-year outlook in the process.

The Numbers Tell a Good Story

The cosmetics company posted third-quarter revenue of $489.51 million, comfortably ahead of the $459.11 million analysts were expecting. But the real standout was earnings: adjusted earnings came in at $1.24 per share, absolutely crushing estimates of 79 cents per share.

Revenue climbed 38% year-over-year, powered by growth in both retailer and e-commerce channels. Gross margin dipped about 30 basis points to 71%, but that's still a healthy number by most standards. The company closed the quarter with $196.8 million in cash and cash equivalents against $816.7 million in long-term debt.

"Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we've delivered over the past 28 quarters," said Tarang Amin, chairman and CEO of e.l.f. Beauty.

Raising the Bar for the Full Year

With strong results in hand, management bumped up its fiscal 2026 guidance. Revenue expectations now sit at $1.60 billion to $1.61 billion, up from the prior range of $1.55 billion to $1.57 billion and ahead of the $1.57 billion consensus estimate.

The earnings outlook got an even bigger lift. The company raised its full-year adjusted earnings guidance from $2.80-$2.85 per share to $3.05-$3.10 per share, well above the $2.87 per share analysts were modeling.

"Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands," Amin added.

Management planned to discuss the quarter further on an earnings call with investors and analysts at 4:30 p.m. ET.

Market Reaction

Investors liked what they saw. e.l.f. Beauty shares surged 14.03% in after-hours trading Wednesday, reaching $96.50.