EL ESTEE LAUDER COMPANIES INC

Overview and Growth

ESTEE LAUDER COMPANIES INC generated $15.05B of revenue in fiscal 2026, with net income of $182.00M and an operating cash inflow of $1.77B. At $15.05B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $14.33B in fiscal 2025, revenue recorded a 5.0% year-over-year increase. The company reported diluted EPS of $0.50, adding a shareholder-level measure to the absolute income figures considered below. Revenue equaled 0.76x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $11.36B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 75.5% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $780.00M of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 5.2%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $182.00M, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 1.2% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $517.00M of earnings, providing a bridge between the operating result and final net income. Pretax income represented 3.4% of revenue, placing earnings before tax in the context of the company’s operating scale. The company recognized $335.00M of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 64.8%, quantifying the portion of pre-tax earnings paid in income tax. The relationship between net income and period-end equity was 4.8%, indicating the profitability achieved on book capital. Return on period-end assets was 0.9%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

At period end, the $19.76B asset base was financed through $15.96B of liabilities and $3.81B of equity. At period end, current assets of $7.61B compared with current liabilities of $6.23B, defining the company’s short-term resource position. Current assets covered current liabilities by 1.22x, leaving a positive buffer for near-term obligations. The company held $3.50B in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 56.1% of current liabilities, showing how much near-term coverage came from cash alone. Relative to total assets, liabilities measured 80.7%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 17.7%, a balance-sheet composition measure rather than a liquidity forecast. The asset base changed 0.7% from $19.89B in fiscal 2025, leaving current total assets lower year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $1.77B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 9.74x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $457.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 25.8%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $1.32B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 8.7% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.7% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.