The Estée Lauder Companies Inc. stock research
FY2026 Q1
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Gross margin improved, reflecting higher revenue and a lower cost of revenue relative to the previous quarter, and a stable cost of revenue year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year. Gross margin improved, reflecting higher revenue and a lower cost of revenue relative to the previous quarter, and a stable cost of revenue year-over-year.
- Revenue growth and a decrease in cost of revenue from the prior quarter are the most notable changes accompanying the gross margin improvement.
- Compared with the prior quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was essentially stable, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.4%
Gross profit
$2.6B
Revenue
$3.5B
Cost of revenue
$927.0M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $4.0B | $3.0B | $957.0M | 76.1% |
| Mar 31, 2025 | $3.5B | $2.7B | $889.0M | 75.0% |
| Jun 30, 2025 | $3.4B | $2.5B | $955.0M | 72.0% |
| Sep 30, 2025 | $3.5B | $2.6B | $927.0M | 73.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.4 pts
Year-over-year change
Sep 30, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth and a decrease in cost of revenue from the prior quarter are the most notable changes accompanying the gross margin improvement.
Compared with the prior quarter, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was essentially stable, and gross margin was higher.
Monitor the trajectory of cost of revenue, which decreased from the prior quarter and remained stable year-over-year.