Ulta Beauty Reports Q4 Earnings Beat Revenue Expectations but Misses EPS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
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: 520.150
Low
450.00
Averages
647.83
High
780.00
Current: 520.150
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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- Product Promotion: Ulta will launch three Supergirl-inspired beauty looks, including Power Glam, Grunge Romance, and Iconic Shimmer, and promote them through an interactive buying guide on its website, thereby increasing consumer engagement and interest.
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- Product Promotion: Ulta will launch three Supergirl-inspired beauty looks, including Power Glam, Grunge Romance, and Iconic Shimmer, and promote them through an interactive buying guide on its website, thereby increasing consumer engagement and interest.
- Market Events: In celebration of the film's world premiere, Ulta will host events in New York City, Los Angeles, Dallas, and Chicago, further boosting brand visibility and attracting more customers to participate in the promotional activities.
- Advertising Campaign: Ulta will run promotional spots featuring Supergirl star Milly Alcock across cinemas, social media, cable TV, and streaming channels, aiming to enhance brand awareness and drive sales through a multi-channel marketing strategy.
See More
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See More
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- Long-Term Competitive Advantages: Analyst Lorraine Hutchinson highlighted that Ulta Beauty's investment cycle is developing long-term competitive advantages, with expected improvements in cost discipline driving operating income growth and healthier free cash flow, thereby strengthening the company's market position.
- FY 2026 Performance Guidance: Ulta Beauty anticipates net sales growth of 6.0% to 7.0% and diluted EPS growth of 9.4% to 11.4% for FY 2026, reflecting the company's confidence in its future performance and positive growth outlook.
- Capital Return Strategy: The company returned $890.5 million of capital to shareholders through planned share repurchases, demonstrating its commitment to shareholder returns while also reflecting robust cash flow management.
See More
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- Baby Boutique Rollout: Target has launched baby boutiques in approximately 200 stores, allowing customers to experience high-end brands like UPPAbaby firsthand, aiming to attract busy family customers and enhance market share.
- Market Share Challenges: Despite holding a 17.6% share in the baby products market, Target has seen a decline compared to Walmart's 27% and Amazon's 24.4%, indicating increased competitive pressure.
- Sales Growth Expectations: Target anticipates a year-over-year net sales increase of about 2% this year, with growth expected in every quarter, signaling efforts to reverse the sales slump experienced over the past four quarters.
- Strategic Investment Plan: Target plans to invest approximately $5 billion in capital expenditures this fiscal year to improve store experiences and product quality, aiming to enhance customer loyalty and address competitive challenges.
See More
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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
Morgan Stanley Sees Potential in Upcoming Earnings Stocks
- Earnings Season Performance: So far, approximately 78% of S&P 500 companies (394 firms) have reported earnings, with nearly 85% exceeding profit expectations and 78% surpassing revenue forecasts, indicating robust overall market performance.
- 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
