Coty (NYSE:COTY) Shares Gap Down After Earnings Miss

Posted by Brian Himes on Aug 20th, 2026

Coty (NYSE:COTY – Get Free Report) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $3.03, but opened at $2.55. Coty shares last traded at $2.7150, with a volume of 4,060,523 shares traded.

The company reported ($0.02) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.01). Coty had a positive return on equity of 4.59% and a negative net margin of 9.20%.The company had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the company earned ($0.05) EPS. The firm’s revenue was up 1.3% on a year-over-year basis. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS.

Key Headlines Impacting Coty

Here are the key news stories impacting Coty this week:

Positive Sentiment: Fiscal fourth-quarter revenue rose 1% year over year to $1.27 billion, exceeding estimates by approximately $70 million. Both Prestige and Consumer Beauty revenue increased 1%, supported by resilient fragrance and cosmetics demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
Positive Sentiment: Cash generation was a key bright spot: fourth-quarter operating cash flow reached $116 million and free cash flow was $72.6 million. Fiscal-year free cash flow totaled $348.2 million, helping support the company during its restructuring. Coty fiscal 2026 results
Positive Sentiment: Coty will transition the Gucci Beauty license back to Kering in a deal expected to provide $400 million, plus additional inventory proceeds. The cash could improve financial flexibility and sharpen management’s focus on core brands. Coty Q4 revenue rises as net loss reaches $144.3 million
Neutral Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1, succeeding Laurent Mercier. The change follows a new operating structure and could influence execution of the company’s transformation strategy. Coty appoints Soraya Benchikh chief financial officer
Negative Sentiment: Adjusted EPS was a loss of $0.02, missing the $0.01-loss consensus, while reported net loss widened to $144.3 million. Fiscal-year revenue fell 2% to $5.81 billion and the company remained unprofitable. Coty stock slips after wider-than-expected Q4 loss
Negative Sentiment: Management called fiscal 2027 a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage. First-quarter EPS guidance of $0.11–$0.13 is below the $0.14 analyst consensus, pressuring the near-term outlook. Coty guides for first-quarter sales decline

Wall Street Analyst Weigh In

COTY has been the subject of several research reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Coty in a research note on Friday, August 7th. Morgan Stanley set a $2.50 target price on shares of Coty in a report on Thursday, May 7th. Citigroup raised their target price on shares of Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a research report on Thursday, May 7th. TD Cowen lifted their price target on shares of Coty from $2.30 to $2.90 and gave the company a “hold” rating in a research note on Thursday, May 7th. Finally, Royal Bank Of Canada cut shares of Coty from an “outperform” rating to a “sector perform” rating and set a $3.00 price target on the stock. in a research report on Thursday. Fourteen research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $3.35.

Check Out Our Latest Stock Report on Coty

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Corient Private Wealth LLC raised its stake in Coty by 16.6% in the 2nd quarter. Corient Private Wealth LLC now owns 16,062 shares of the company’s stock valued at $75,000 after acquiring an additional 2,286 shares during the period. Public Employees Retirement System of Ohio increased its holdings in shares of Coty by 3.2% in the third quarter. Public Employees Retirement System of Ohio now owns 117,781 shares of the company’s stock valued at $476,000 after purchasing an additional 3,616 shares during the last quarter. Osaic Holdings Inc. raised its position in shares of Coty by 30.5% in the second quarter. Osaic Holdings Inc. now owns 15,795 shares of the company’s stock valued at $73,000 after purchasing an additional 3,689 shares during the period. Aigen Investment Management LP lifted its stake in shares of Coty by 6.1% during the 4th quarter. Aigen Investment Management LP now owns 76,048 shares of the company’s stock worth $234,000 after buying an additional 4,357 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its stake in shares of Coty by 23.5% during the 4th quarter. Wells Fargo & Company MN now owns 24,525 shares of the company’s stock worth $76,000 after buying an additional 4,662 shares during the last quarter. 42.36% of the stock is currently owned by institutional investors.

Coty Stock Down 10.4%

The firm has a market cap of $2.39 billion, a P/E ratio of -4.40, a P/E/G ratio of 0.79 and a beta of 0.97. The firm’s fifty day moving average is $2.43 and its 200 day moving average is $2.36. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.49 and a current ratio of 0.82.

About Coty

(Get Free Report)

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty’s portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company’s product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.