In its fiscal third quarter of 2026, e.l.f. Beauty Inc (NYSE:ELF) disclosed financial outcomes that exceeded the predictions of market analysts, prompting a positive movement in its stock. The company reported a quarterly revenue figure reaching $489.51 million, representing a 38% increase from the comparable period the previous year. This revenue substantially eclipsed analysts' consensus, estimated at $459.11 million, underscoring a solid growth trajectory for the beauty brand.
The surge in revenue largely stemmed from expanded sales through both retailer channels and the company's e-commerce presence, highlighting effective diversification in distribution. Despite the growth in revenue, the company noted a slight decrease in gross margin by approximately 30 basis points, settling at 71% for the quarter.
Adjusted earnings per share for the third quarter surged to $1.24, significantly outperforming the anticipated figure of 79 cents per share. This represents a strong profitability signal from e.l.f. Beauty during this period, reflecting operational efficiencies and sustained demand for its product offerings.
From a balance sheet perspective, the company concluded the quarter with $196.8 million in cash and cash equivalents, supporting liquidity, while carrying long-term debt amounting to $816.7 million.
Tarang Amin, chairman and CEO of e.l.f. Beauty, emphasized the consistent market advancement the brand has achieved, referencing a 130 basis point market share gain for their flagship e.l.f. Cosmetics brand. Amin also noted the notable success of the brand launch under the Rhode label in Sephora stores across the United Kingdom, describing these outcomes as part of a continued pattern of category-leading growth over the past 28 quarters.
Following the quarterly results, e.l.f. Beauty revised its full fiscal year 2026 revenue outlook upward. The previous guidance, set between $1.55 billion and $1.57 billion, has been adjusted to a higher range of $1.60 billion to $1.61 billion, surpassing analyst estimates of $1.57 billion. This adjustment signals growing confidence in sustained top-line growth for the remainder of the fiscal year.
Moreover, the company elevated its forecast for full-year adjusted earnings per share, moving from a prior range of $2.80 to $2.85 to a new projection between $3.05 and $3.10 per share. This increase also exceeds analysts' consensus of $2.87 per share, indicating expectations of improved profitability margins.
Amin attributed this performance to the company's compelling value proposition, pioneering innovation, and an aggressive, disruptive marketing framework, which collectively continue to fortify the strength of their brands in a competitive marketplace.
Investors and analysts will have the opportunity to discuss these results and the company's outlook during a scheduled earnings call held at 4:30 p.m. Eastern Time, where management is expected to provide additional insights.
In response to the earnings publication, e.l.f. Beauty's stock experienced a notable increase during after-hours trading on Wednesday, rising by 14.03% to reach $96.50 per share as reported by market data providers.