Ulta Beauty Reports Q4 Earnings Beat Revenue Expectations but Misses EPS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
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Should l Buy ULTA?
Source: Newsfilter
Ulta Beauty's stock fell by 9.37% as it hit a 20-day low amid broader market declines, with the Nasdaq-100 down 1.72% and the S&P 500 down 1.52%.
The company's Q4 earnings report revealed a net sales increase of 11.8%, reaching $3.9 billion, surpassing expectations. However, earnings per share of $8.01 fell short of the anticipated $8.03, raising concerns about profitability. Despite a cautious outlook for fiscal 2026, with projected sales growth of 6% to 7% and EPS estimates slightly below analyst expectations, investor sentiment remains mixed, reflected in the stock's significant drop.
The implications of Ulta's performance indicate a potential struggle with profitability despite strong sales growth. The market's reaction suggests that while sales figures are encouraging, the earnings miss and cautious guidance may lead to continued volatility in the stock price.
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Analyst Views on ULTA
Wall Street analysts forecast ULTA stock price to rise
22 Analyst Rating
15 Buy
6 Hold
1 Sell
Moderate Buy
Current: 526.530
Low
450.00
Averages
647.83
High
780.00
Current: 526.530
Low
450.00
Averages
647.83
High
780.00
About ULTA
Ulta Beauty, Inc. is a specialty United States beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, haircare products and salon services. The Company operates approximately 1,451 retail stores across 50 states and distributes products through its Website, which includes a collection of tips, tutorials, and social content. The Company’s business includes a differentiated assortment of approximately 29,000 beauty products across a variety of categories and price points, as well as a variety of beauty services, including salon services, in more than 1,400 stores predominantly located in convenient, high-traffic locations. It also offers digital experiences delivered through its Website, Ulta.com, and its mobile applications. The Company’s brands include Ulta Beauty Collection, about-face, Ariana Grande, CHANEL, FENTY BEAUTY by Rihanna, It Cosmetics, LolaVie, OUAI, PAT McGRATH LABS, Tula, and NYX Professional Makeup.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Partnership Expansion: Uber Eats has expanded its partnership with Ulta Beauty by adding over 1,500 Ulta stores to its marketplace, aiming to enhance consumer shopping convenience, especially ahead of Mother's Day, to meet immediate beauty product demands.
- Product Diversity: Consumers can now browse thousands of products from over 600 brands on Uber Eats, including makeup, skincare, and fragrances, with same-day delivery, thereby enhancing Ulta Beauty's digital sales channel and attracting more convenience-seeking customers.
- Market Impact: This collaboration not only enriches Uber Eats' retail offerings beyond traditional food delivery but also provides Ulta Beauty with a new digital platform to better reach consumers in a competitive market landscape.
- Stock Market Reaction: Despite Uber Technologies' stock falling 3.2% and Ulta Beauty's down 0.5% on Thursday, the long-term strategic significance of this partnership lies in increasing market share and customer loyalty for both companies.
See More
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- Ulta Beauty Investment Opportunity: Ulta Beauty is expected to report earnings on June 1, and Morgan Stanley analysts believe that after a 12% year-to-date decline, the company's $434 million investment will drive future growth, setting a price target of $685, implying a 29% upside.
- Target Stock Outlook: Retail giant Target will report earnings on May 19; although Citigroup maintains a neutral rating, it raised its price target from $117 to $133, reflecting improved market sentiment, while analysts caution that failure to exceed expectations could be seen as disappointing.
- Applied Materials Strong Expectations: Applied Materials is due to report earnings on May 13, and Morgan Stanley analysts maintain an overweight rating, believing the company will continue to perform strongly alongside peers, raising the price target from $432 to $454, offering nearly 11% future upside.
See More
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- Retail Expansion Plans: The company is set to launch its motion sickness patch and the first-ever lactose intolerance patch in 1,700 Walmart stores, which is expected to enhance brand visibility and market coverage.
- Product Innovation Advantage: Barrière's vitamin patches utilize ultrasmall vitamin particles that deliver ingredients directly into the bloodstream for up to 12 hours, aiming to address absorption and efficacy issues associated with traditional oral supplements.
- Target Customer Demographics: While younger generations are a key market, Barrière's target demographic spans ages 25 to 65, demonstrating broad appeal across different age groups and further driving sales growth.
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- Investment Return Potential: Bank of America upgraded Ulta's rating from neutral to buy with a price target of $685, indicating a 32% upside from Monday's close, reflecting confidence in Ulta's future growth prospects.
- Stock Price Rebound Trend: Ahead of Tuesday's open, Ulta's stock rose nearly 3%, indicating optimistic market expectations for its recent investments, especially after experiencing a nearly 24% price pullback.
- Strategic Investment Impact: Ulta's investment of over $434 million in fiscal 2025 for new store openings, remodeling existing locations, and IT system upgrades is expected to lower future service costs and enhance customer economics, driving profitability growth.
- Market Consensus Support: According to LSEG data, 19 out of 28 analysts covering Ulta have a buy or strong buy rating, indicating widespread market optimism regarding its future performance, which further boosts investor confidence.
See More
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- DuPont Earnings Beat: DuPont reported better-than-expected earnings, with strong performance in healthcare, aerospace, and automotive sectors, although disruptions in the Middle East affected its water market; the organic sales guidance for the year was raised to 4%, indicating resilience against cost pressures, leading to a 2% increase in shares this morning.
- Eaton's Mixed Results: Eaton posted earnings and revenue beats, but shares fell approximately 4.5% due to conservative guidance and a miss in Electrical Americas; however, accelerating sales and order growth, along with backlog increases, suggest underlying strength, making the upcoming earnings call crucial for investor sentiment.
- Amazon Supply Chain Expansion: Amazon announced it would open its supply chain network to other companies, attracting major clients like Procter & Gamble, American Eagle, and 3M, which underscores its ambitions across retail, logistics, and health sectors, further solidifying its market position.
- Norwegian Cruise Line Guidance Cut: Norwegian Cruise Line issued a larger-than-expected guidance cut due to soft pricing, attributing below-optimal bookings to execution issues exacerbated by the Middle East conflict, prompting Goldman Sachs to lower its price target from $18 to $14, reflecting market concerns about its future performance.
See More
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- Full Truck Alliance Initiation: Bank of America initiated coverage on Full Truck Alliance (FTA) with a Buy rating and a price target of $11.3, implying a 33% total return potential, showcasing confidence in its business model.
- Alto Neuroscience Promising Outlook: Bank of America initiated coverage of Alto Neuroscience (ANRO) with a Buy rating and a $35 price target, emphasizing its innovative potential in treating psychiatric disorders, which may attract more investor interest.
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