Coty's Q2 Earnings on the Horizon: Essential Insights for Investors

Coty Inc. COTY is likely to register a decline in the top line when it reports second-quarter fiscal 2026 earnings on Feb. 5. The Zacks Consensus Estimate for revenues is pegged at $1.66 billion, indicating a decrease of 0.3% from the prior-year reported figure. 

The consensus mark for earnings has moved down a penny in the past 30 days to 18 cents per share, implying a 63.6% increase from the year-ago quarter. COTY delivered a trailing four-quarter negative earnings surprise of 187.5%, on average.

Coty Price, Consensus and EPS Surprise

Coty price-consensus-eps-surprise-chart | Coty Quote

Things to Know About COTY’s Upcoming Results

Coty is expected to report modest sequential improvement from the prior quarter, supported by stronger Prestige sell-out trends and easing inventory headwinds. In the fiscal first quarter, management highlighted improving demand patterns in Prestige fragrances and better alignment between sell-in and sell-out, particularly in the United States. These factors, along with favorable seasonal demand for fragrances and a modest foreign exchange tailwind, are likely to support results in the quarter under review, even as broader market conditions remained challenging. We expect organic LFL revenues to decline 3.8% for the second quarter of fiscal 2026.

A mixed operating environment has been shaping Coty’s performance in the upcoming quarter, with both supportive trends and lingering challenges influencing results. A highly promotional beauty market, cautious retailer ordering and tariff-related cost pressures have been constraining revenues and margins. Consumer Beauty has been relatively weaker amid competitive intensity and channel shifts, though recent initiatives are likely to have supported gradual stabilization. 

Nonetheless, Coty’s strategic initiatives have been providing support to performance in the to-be-reported quarter. The company’s fragrance pipeline has been strengthening, U.S. execution has been improving, and expansion into premium and adjacent fragrance categories has been supporting Prestige resilience. Productivity and cost-saving programs have been enhancing operational efficiency and margins. Overall, the upcoming quarter has been shaping up as a transition period, with growth likely to pick up in the second half of fiscal 2026.

Earnings Whispers for COTY Stock

Our proven model does not predict an earnings beat for Coty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

Coty has a Zacks Rank #3 and an Earnings ESP of -0.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With a Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Hershey Company HSY currently has an Earnings ESP of +0.78% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Hershey’s quarterly revenues is pinned at $3 billion, which calls for 4% growth from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.40, which implies a 48% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.

The Estee Lauder Companies Inc. EL currently has an Earnings ESP of +6.62% and a Zacks Rank of 2. The consensus mark for Estee Lauder’s upcoming quarter’s revenues is pegged at $4.22 billion, which indicates an increase of 5.3% from the prior-year quarter. 

The Zacks Consensus Estimate for quarterly earnings per share is pegged at 83 cents, implying a 33.9% increase from the year-ago period. EL delivered a trailing four-quarter earnings surprise of 82.6%, on average.

BJ's Wholesale Club Holdings, Inc. BJ currently has an Earnings ESP of +0.84% and a Zacks Rank of 3. The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s revenues is pegged at $5.61 billion, which implies a 6.2% increase from the prior-year quarter. 

The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly earnings per share is pegged at 92 cents, indicating a 1.1% fall from the year-ago period figure. BJ delivered a trailing four-quarter earnings surprise of 10.3%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research