Estee Lauder Companies Inc

Company facts

Industry

Perfumes, Cosmetics & Other Toilet Preparations

Headquarters

New York, New York

Most recent report

8-K, filed Sep 8, 2026

Incorporated

Delaware

Filings on record

1,008+ filings

On EDGAR

CIK 1001250

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 4 of 27 sections worth reading, with 2 positive, 14 notable, and 6 negative flags.

• Business (Item 1)

  Contains specific numbers on R&D decline, governance, and headcount reduction.
  Notable

  • Lauder family voting power is 82%, down from 84% in the prior filing, but still controlling.
  • Large Brands now include Jo Malone London and TOM FORD, expanding from 4 to 6 brands with net sales over $1B.
  • Geographic regions were reorganized into four new segments effective Q1 FY2026.
  • Total employees fell to about 55,000 as of June 30, 2026, from about 57,000 a year earlier.
  Negative

  • R&D costs dropped 12% to $278M in FY2026 from $316M in FY2025, a notable cut in innovation investment.

• Risk Factors (Item 1A)

  Lauder family voting power dropped to 82%; concrete changes in restructuring, AI, and litigation risks.
  Notable

  • AI applications described as 'becoming increasingly important,' expanding the risk of AI-related cybersecurity and legal issues.
  • Restructuring under Beauty Reimagined and PRGP continues, with risks of personnel changes and employment claims.
  • Company now explicitly monitors evolving asbestos-related litigation landscape, a new risk flagged this year.
  • Company uses 'controlled company' exemptions; compensation and nominating committees not required to be fully independent.
  Negative

  • Lauder family owns 82% voting power, down from 84% last year, but still controls all major decisions.

• Management's Discussion (Item 7)

  Dense with company-specific results, restructuring, litigation, impairment risks, tariff impacts.
  Positive

  • No goodwill or intangible impairment charges in FY2026 after $1,286M in prior year.
  • Gross margin improved 150 bps to 75.5%, driven by PRGP efficiencies (Table 10).
  Notable

  • Tariff refunds from IEEPA Supreme Court ruling; adverse impact expected on FY2027 profitability.
  • PRGP restructuring expanded to ~10,000 job cuts; total charges estimated at $1,748M.
  • Restructuring program expects $1,200M annual target gross benefits at high end of range.
  • Securities class action settled for $84M loss contingency recorded in Q3 FY2026.
  Negative

  • Dr.Jart+ trademark fair value only 4% above $37M carrying value; high impairment risk.
  • TOM FORD trademark fair value only 19% above $1,805M carrying value; narrow cushion.
  • Long-term debt ratings A- (S&P) and A3 (Moody's) both with negative outlook.
  • Total debt / total capitalization at 66%, up from 65% prior year (Table 25 narrative).

• Security Ownership (Item 12)

  Equity compensation table with dilution % and in-the-money option count.
  Notable

  • Full conversion of all equity awards would increase total shares by 7% as of June 30, 2026.
  • Only 87,460 options have an exercise price below the $78.95 closing price, so few are worth exercising now.

What changed: FY2026 vs. FY2025

About 12% of EL's FY2026 10-K is new information. 132 paragraphs were added, 527 changed, and 290 removed. Below are the most important lines SECSift identified.

• Form 10-K Summary (Item 16) 307
• Management's Discussion (Item 7) 127
• Business (Item 1) 59
• Exhibits (Item 15) 41
• Risk Factors (Item 1A) 17
• Security Ownership (Item 12) 7
• Properties (Item 2) 3
• Other Information (Item 9B) 3
• Cybersecurity (Item 1C) 3