Coty (NYSE:COTY) Releases Earnings Results

Posted by Stanley Muller on Aug 20th, 2026

Coty (NYSE:COTY – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01), Zacks reports. Coty had a negative net margin of 9.20% and a positive return on equity of 4.59%. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the business posted ($0.05) earnings per share. Coty’s revenue for the quarter was up 1.3% compared to the same quarter last year. Coty updated its Q1 2027 guidance to 0.110-0.130 EPS.

Here are the key takeaways from Coty’s conference call:

Q4 like-for-like sales declined 1%, ahead of Coty’s guidance for a mid-single-digit decline, while adjusted EBITDA and EPS landed at the high end of guidance. Prestige cosmetics delivered double-digit growth, and early recovery signs emerged at Sally Hansen, COVERGIRL, and Rimmel.
Underlying sell-out remained below market growth in both divisions, with prestige down 1% and consumer beauty down 2% in the second half. Fiscal 2026 adjusted EBITDA fell 22%, while adjusted gross margin declined 190 basis points amid lower volumes, excess inventory, tariffs, and cost pressures.
Strong cash discipline produced $348 million of fiscal 2026 free cash flow, up approximately $70 million year over year despite the EBITDA decline. Net debt fell nearly $840 million to $2.9 billion, reducing leverage to approximately 3.4 times.
Fiscal 2027 is expected to be a transition year, and Coty is withholding full-year guidance while its Coty.Curated strategy and strategic review progress. Q1 revenue is expected to decline by a low- to mid-single-digit percentage, with EBITDA down by a low-teens percentage and EPS of $0.11 to $0.13.
The early Gucci license transition will provide Coty $400 million in cash proceeds plus inventory proceeds, but Gucci represents a low-double-digit percentage of revenue and its fiscal 2028 exit will create a sizable mechanical profit impact. Coty expects leverage to rise in fiscal 2028 even as net debt declines, while it develops cost savings and new launches to restore underlying growth.

Coty Stock Up 11.1%

Coty stock opened at $3.04 on Thursday. The stock has a 50 day moving average of $2.43 and a two-hundred day moving average of $2.36. Coty has a twelve month low of $1.82 and a twelve month high of $4.93. The stock has a market capitalization of $2.68 billion, a price-to-earnings ratio of -4.91, a PEG ratio of 0.79 and a beta of 0.97. The company has a current ratio of 0.82, a quick ratio of 0.49 and a debt-to-equity ratio of 0.97.

Institutional Trading of Coty

A number of institutional investors have recently modified their holdings of COTY. M&T Bank Corp lifted its stake in shares of Coty by 106.6% in the second quarter. M&T Bank Corp now owns 20,920 shares of the company’s stock valued at $97,000 after purchasing an additional 10,792 shares during the period. EFG International AG acquired a new stake in shares of Coty during the 4th quarter valued at approximately $93,000. Virtu Financial LLC purchased a new stake in shares of Coty during the 3rd quarter worth approximately $84,000. Corient Private Wealth LLC raised its holdings in Coty by 16.6% during the second quarter. Corient Private Wealth LLC now owns 16,062 shares of the company’s stock worth $75,000 after purchasing an additional 2,286 shares during the last quarter. Finally, Focus Partners Wealth acquired a new position in shares of Coty during the 1st quarter worth $73,000. 42.36% of the stock is currently owned by hedge funds and other institutional investors.

Coty News Roundup

Here are the key news stories impacting Coty this week:

Positive Sentiment: Fourth-quarter revenue rose approximately 1% year over year to $1.27 billion, exceeding the $1.19 billion analyst consensus. 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: Coty reported $116 million of fourth-quarter operating cash flow and $72.6 million of free cash flow. For fiscal 2026, operating cash flow reached $537.8 million and free cash flow totaled $348.2 million, highlighting the benefit of cost controls. Coty Announces Fourth Quarter Fiscal Year 2026 Results
Positive Sentiment: The planned transition of the Gucci Beauty license back to Kering is expected to provide Coty with approximately $400 million in proceeds, plus additional inventory proceeds, potentially supporting deleveraging and portfolio restructuring. 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 accompanies a broader operating overhaul intended to bring decisions closer to local markets and simplify research, development and supply-chain operations. Coty Appoints Soraya Benchikh Chief Financial Officer
Negative Sentiment: Adjusted EPS was a $0.02 loss, missing the $0.01-loss consensus, while reported net loss widened to $144.3 million, or $0.16 per diluted share. Fiscal-year revenue fell 2% to $5.81 billion and net loss totaled $618 million. 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. EPS guidance of $0.11–$0.13 is below the $0.14 consensus, reinforcing concerns about weaker demand and the brand-portfolio reset. Coty Looks to Finish Strategic Review
Negative Sentiment: A shareholder litigation firm is investigating whether Coty executives and directors misrepresented slowing growth, margin pressure and weakness in Consumer Beauty and Prestige fragrances, adding a legal overhang. Kuehn Law investigation of Coty

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Coty in a research note on Friday, August 7th. TD Cowen boosted their price objective on shares of Coty from $2.30 to $2.90 and gave the stock a “hold” rating in a research report on Thursday, May 7th. Royal Bank Of Canada restated an “outperform” rating on shares of Coty in a report on Tuesday. Morgan Stanley set a $2.50 price target on shares of Coty in a research note on Thursday, May 7th. Finally, Citigroup upped their price objective on shares of Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $3.70.

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Coty Company Profile

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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.