Estée Lauder Companies, Inc. (Estée Lauder (EL)) shares are jumping Friday morning as strong quarterly performance and margin expansion overshadow a sweeping restructuring that includes thousands of job cuts.

The beauty giant beat expectations across key segments while reshaping its workforce and strategy to revive growth and profitability.

Quarterly Details

The company reported third-quarter adjusted earnings per share of 91 cents, beating the analyst consensus estimate of 65 cents. Quarterly sales of $3.712 billion (+5% year over year) outpaced the Street view of $3.689 billion.

Skincare sales gained 3% to $1.856 billion, Makeup increased 4%, Fragrance jumped 13%, while Hair Care inched up by 2% in the quarter under review.

Adjusted gross profit jumped 7% year over year to $2.836 billion. Adjusted gross margin expanded to 76.4% from 75% a year ago. Adjusted operating income jumped 38% to $557 million, and adjusted operating margin expanded to 15% from 11.4% a year ago.

Dividend

Today, the company announced a quarterly dividend of 35 cents per share on its Class A and Class B Common Stock, payable in cash on June 15, 2026, to stockholders of record at the close of business on May 29, 2026.

Restructuring Plan Expanded

The company has recorded $1.1 billion in restructuring charges so far and raised its total program estimate to $1.5–$1.7 billion. Expected annual gross benefits increased to $1–$1.2 billion, aimed at improving margins and funding growth initiatives. The plan now includes cutting 9,000–10,000 jobs (prior plan: 5,800–7,000 jobs), mainly from underperforming retail locations, as part of a broader operational overhaul.

Outlook

Estée Lauder lowered its 2026 GAAP EPS guidance to 69 cents–83 cents from 98 cents–$1.22, missing the $1.43 estimate. However, the firm raised its 2026 adjusted EPS guidance from $2.03–$2.23 to $2.33–$2.43, versus the $2.22 analyst estimate. The company narrowed 2026 sales guidance from $14.756 billion–$15.042 billion to $14.899 billion, versus the $14.952 billion estimate.

EL Price Action: Estée Lauder shares are trading higher by 4.37% to $80.07 at publication on Friday.