Coty’s (NYSE:COTY) Q2 CY2026 Sales Beat Estimates But Stock Drops
Beauty products company Coty (NYSE:COTY) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 1.3% year on year to $1.27 billion. Its non-GAAP loss of $0.02 per share was $0.01 below analysts’ consensus estimates.
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Coty (COTY) Q2 CY2026 Highlights:
- Revenue: $1.27 billion vs analyst estimates of $1.2 billion (1.3% year-on-year growth, 5.7% beat)
- Adjusted EPS: -$0.02 vs analyst estimates of -$0.01 ($0.01 miss)
- Adjusted EBITDA: $93.6 million vs analyst estimates of $88.86 million (7.4% margin, 5.3% beat)
- Next quarter's revenue guidance: "expects 1Q27 LFL revenue to decline by a low- to mid-single-digit percentage" (miss)
- Operating Margin: -3.4%, down from 1.2% in the same quarter last year
- Free Cash Flow Margin: 5.7%, up from 2.8% in the same quarter last year
- Organic Revenue fell 1% year on year (beat)
- Market Capitalization: $2.41 billion
Company Overview
With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $5.81 billion in revenue over the past 12 months, Coty carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Coty grew its sales at a sluggish 1.5% compounded annual growth rate over the last three years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
This quarter, Coty reported modest year-on-year revenue growth of 1.3% but beat Wall Street’s estimates by 5.7%.
Looking ahead, sell-side analysts expect revenue to decline by 1.3% over the next 12 months, a slight deceleration versus the last three years. This projection doesn’t excite us and indicates its products will see some demand headwinds.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
Coty’s demand has been falling over the last eight quarters, and on average, its organic sales have declined by 4.6% year on year. 
In the latest quarter, Coty’s organic sales fell by 1% year on year. This decrease was an improvement from its historical levels. It’s always great to see a business’s demand trends improve.
Key Takeaways from Coty’s Q2 Results
We were impressed by how significantly Coty blew past analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Looking ahead, next quarter's organic revenue guidance missed. Overall, we think this was mixed, although the outlook is weighing on shares. Investors were likely hoping for more, and shares traded down 9% to $2.77 immediately following the results.
So do we think Coty is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).