e.l.f. Beauty (ELF) Anticipates 18%-20% Revenue Growth for FY 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- Consistent Growth: e.l.f. Beauty has achieved net sales growth for 27 consecutive quarters as of Q2 FY 2026, with management projecting an 18%-20% revenue increase for the current fiscal year, demonstrating strong competitiveness in the cosmetics market.
- Low Pricing Strategy: With an average product price of $7.50 compared to $9.50 for similar brands, e.l.f. Beauty's $1 price increase in August still incentivizes consumer purchases, helping maintain market share.
- Stable Profit Margins: Despite tariff volatility affecting margins, e.l.f. Beauty maintains a five-year average operating margin of about 11% and an average profit margin of 9%, indicating solid profitability under its low-price strategy.
- Market Potential: With trailing-12-month revenue of $1.4 billion, e.l.f. Beauty has significant growth runway, and despite its stock being down over 50% from its 2024 high, the investment thesis remains compelling.
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Analyst Views on ELF
Wall Street analysts forecast ELF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELF is 117.50 USD with a low forecast of 85.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 85.030
Low
85.00
Averages
117.50
High
136.00
Current: 85.030
Low
85.00
Averages
117.50
High
136.00
About ELF
e.l.f. Beauty, Inc. is a multi-brand beauty company. The Company offers inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, Keys Soulcare, and rhode. Its e.l.f. SKIN is an ingredient-focused, dermatologist-developed formulas for every eye, lip and face. The Company operates across beauty categories including eye, lip, and face makeup, beauty tools and accessories, and skincare products. Its color cosmetics and skin care products are broadly sold through food, drug, and mass channels, as well as through department stores and direct and specialty channels. The Company sells its products with retailers in the United States, as well as internationally. It also sells its products online through its own direct e-commerce channels, as well as through other e-commerce Websites.
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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