The Estée Lauder Companies Inc. stock research
FY2026 Q3
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q3
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
- The gross margin weakened marginally from the prior quarter but strengthened notably from the year-ago quarter. The relationship between revenue and cost of revenue drove the year-over-year improvement, as revenue grew while cost of revenue declined.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.4%
Gross profit
$2.8B
Revenue
$3.7B
Cost of revenue
$876.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| Jun 30, 2025 | $3.4B | $2.5B | $955.0M | 72.0% |
| Sep 30, 2025 | $3.5B | $2.6B | $927.0M | 73.4% |
| Dec 31, 2025 | $4.2B | $3.2B | $994.0M | 76.5% |
| Mar 31, 2026 | $3.7B | $2.8B | $876.0M | 76.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.1 pts
Year-over-year change
Mar 31, 2025
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened marginally from the prior quarter but strengthened notably from the year-ago quarter. The relationship between revenue and cost of revenue drove the year-over-year improvement, as revenue grew while cost of revenue declined.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its decline contributed to the year-over-year margin improvement.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Estée Lauder Companies Inc. (EL) | 76.4% |