Ulta Beauty (NASDAQ:ULTA) Issues Quarterly Earnings Results, Beats Estimates By $0.35 EPS

Ulta Beauty (NASDAQ:ULTA) posted its quarterly earnings results on Thursday. The specialty retailer reported $6.55 EPS for the quarter, topping the consensus estimate of $6.20 by $0.35, FiscalAI reports. The company had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.99 billion. Ulta Beauty had a net margin of 9.36% and a return on equity of 44.77%. The firm’s revenue was up 8.9% compared to the same quarter last year. During the same quarter last year, the firm posted $5.78 EPS. Ulta Beauty updated its FY 2026 guidance to 28.700-29.000 EPS.

Here are the key takeaways from Ulta Beauty’s conference call:

• Ulta raised its fiscal 2026 outlook after a strong first half, now expecting net sales growth of 6.7%–7.2%, comparable-sales growth of 3.2%–3.7%, and diluted EPS of $28.70–$29.00. The company also increased its planned fiscal-year share repurchases to $1.8 billion.
• Second-quarter net sales rose 8.9% to $3.0 billion, comparable sales increased 3.8%, operating profit grew 10.1%, and diluted EPS rose 13.3% to $6.55. E-commerce delivered high-teen growth, marking the sixth consecutive quarter of double-digit digital sales growth.
• Fragrance remained the strongest category, with high-teen comparable growth supported by gifting occasions, exclusive launches, and luxury brands; haircare also delivered high-single-digit growth. K-beauty sales grew at a robust double-digit rate, with nearly half of sales from exclusive brands or products.
• Management said the promotional environment intensified modestly as consumers focused more on value, but Ulta used targeted promotions and personalization while balancing market-share gains with profitability. The company has built flexibility into its second-half plan to respond to competitive and macroeconomic changes.
• Ulta expects a slower second half, with sales growth of 4%–5% and comparable-sales growth of 2%–3%, partly because it will be lapping stronger results from the prior year. Gross margin is expected to be roughly flat for the full year, with second-half pressure from fuel costs, channel mix, and the absence of last year’s price-action benefit.

Ulta Beauty Price Performance

Shares of ULTA stock opened at $540.10 on Friday. Ulta Beauty has a 1-year low of $443.60 and a 1-year high of $714.97. The stock’s 50-day moving average is $496.33 and its 200 day moving average is $534.86. The company has a market cap of $23.22 billion, a P/E ratio of 20.25, a PEG ratio of 1.69 and a beta of 0.87.

Key Ulta Beauty News

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Quarterly results exceeded expectations. Ulta reported adjusted earnings of $6.55 per share, above the roughly $6.18–$6.21 consensus, while revenue rose 8.9% year over year to approximately $3.0 billion, also topping estimates. EPS increased 13.3% from $5.78 a year earlier. Ulta Beauty raises annual forecast after quarterly profit beats estimates
• Positive Sentiment: Full-year guidance was raised. Management now expects fiscal 2026 EPS of $28.70–$29.00, up from $28.36–$28.80, and revenue of $13.2–$13.3 billion. The increased outlook reflects continued beauty demand, marketing and product investments, and growth initiatives including international expansion. Ulta Beauty Raises Forecast as Sales Grow
• Neutral Sentiment: Underlying sales growth was solid but not explosive. Comparable sales increased 3.8%, driven primarily by a higher average ticket, while transaction growth was roughly flat. This suggests customers are spending more per visit, but traffic and purchasing frequency remain areas investors may monitor.
• Neutral Sentiment: Analyst sentiment remains broadly favorable, with Ulta carrying an average “Moderate Buy” rating and a reported median price target of $635. However, the wide range of targets indicates uncertainty about the retailer’s growth trajectory and valuation. Ulta Beauty Given Average Rating of Moderate Buy
• Negative Sentiment: Competition and consumer fatigue remain concerns. Management highlighted intensifying competition, while Target is expanding its own prestige beauty offering after its relationship with Ulta ended. Investors may worry that promotional pressure or weaker discretionary spending could limit future comparable-sales and margin gains. Ulta Beauty continues to outperform despite signs of consumer fatigue
• Negative Sentiment: The post-earnings reaction indicates that strong headline results and raised guidance were already anticipated, leaving limited room for upside surprises. Profit-taking and concerns about demand quality likely outweighed the earnings beat in the near term. Ulta Beauty Shares Slide Despite Strong Q2 Earnings Beat and Raised Guidance

Wall Street Analysts Forecast Growth

ULTA has been the topic of a number of research reports. B. Riley Financial reduced their target price on shares of Ulta Beauty from $600.00 to $500.00 and set a “neutral” rating on the stock in a research report on Wednesday, June 3rd. Morgan Stanley reduced their price objective on Ulta Beauty from $700.00 to $630.00 and set an “overweight” rating on the stock in a report on Wednesday, June 3rd. William Blair reaffirmed a “market perform” rating on shares of Ulta Beauty in a research note on Friday, August 21st. Piper Sandler cut their target price on shares of Ulta Beauty from $725.00 to $600.00 and set an “overweight” rating on the stock in a research report on Wednesday, June 3rd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Ulta Beauty in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $631.86.

Insider Transactions at Ulta Beauty

In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $475.84, for a total value of $182,246.72. Following the completion of the transaction, the director directly owned 2,404 shares in the company, valued at approximately $1,143,919.36. The trade was a 13.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ULTA. Wedbush Securities Inc. lifted its position in Ulta Beauty by 0.3% during the fourth quarter. Wedbush Securities Inc. now owns 6,455 shares of the specialty retailer’s stock valued at $3,905,000 after acquiring an additional 21 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Ulta Beauty by 1.1% during the 3rd quarter. NewEdge Advisors LLC now owns 2,235 shares of the specialty retailer’s stock valued at $1,222,000 after purchasing an additional 24 shares during the last quarter. Meeder Advisory Services Inc. lifted its holdings in shares of Ulta Beauty by 4.9% during the 4th quarter. Meeder Advisory Services Inc. now owns 540 shares of the specialty retailer’s stock valued at $327,000 after purchasing an additional 25 shares during the last quarter. Parallel Advisors LLC boosted its position in shares of Ulta Beauty by 5.7% in the 3rd quarter. Parallel Advisors LLC now owns 630 shares of the specialty retailer’s stock worth $344,000 after purchasing an additional 34 shares in the last quarter. Finally, VestGen Advisors LLC boosted its position in shares of Ulta Beauty by 4.5% in the 4th quarter. VestGen Advisors LLC now owns 789 shares of the specialty retailer’s stock worth $477,000 after purchasing an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 90.39% of the company’s stock.

About Ulta Beauty

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.