Coty Q3 revenue edges past estimates; warns of likely Q4 adj EPS loss

Coty

05/05/2026 21:39

Overview

US beauty products maker's Q3 revenue slightly beat analyst expectations despite 1% yr/yr decline

Adjusted EPS for Q3 missed analyst expectations

Q3 adjusted EBITDA and adjusted operating income both beat analyst expectations

Outlook

Coty expects Q4 FY26 like-for-like revenue to decline by a mid-single-digit percentage

Company anticipates Q4 FY26 adjusted EBITDA of $85 mln to $95 mln and adjusted EPS of breakeven to a loss of $0.02

Coty sees FY26 adjusted EBITDA of $838 mln to $848 mln and adjusted EPS of $0.33 to $0.35

Result Drivers

MIDDLE EAST DISRUPTION - Co said conflict in the Middle East weighed on sales, especially in EMEA, with an estimated 1.4% headwind to total Q3 revenue

COST CONTROL & INVESTMENT SHIFT - Profitability ahead of its guidance was supported by tight cost control and shifting some investments to Q4, per management

GROSS MARGIN PRESSURE - Gross margin declined due to supply chain cost under absorption, excess & obsolescence in Consumer Beauty, and higher tariffs

Company press release: ID:nBw6dcfMya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$1.28 bln
$1.27 bln (10 Analysts)
Q3 Adjusted EPS
Miss
-$0.03
-$0.002 (12 Analysts)
Q3 EPS
-$0.47
Q3 Adjusted EBITDA
Beat
$127 mln
$116.30 mln (10 Analysts)
Q3 Adjusted operating income
Beat
$72.40 mln
$52.33 mln (9 Analysts)
Q3 Adjusted Gross Margin
61.80%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the personal products peer group is "hold"

Wall Street's median 12-month price target for Coty Inc is $2.50, about 3.3% above its May 4 closing price of $2.42

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)