Ulta Beauty Tumbles Over 10% After Solid Q4 as Cautious 2026 Outlook Weighs on Shares

Overview

• Shares dropped more than 10% following the earnings release as investors reacted to conservative full‑year projections and a modest bottom‑line shortfall versus elevated expectations.
• Q4 results topped forecasts with EPS of $8.01, revenue of $3.90 billion up 11.8% year over year, and comparable sales up 5.8% across every major category.
• Fiscal 2026 guidance calls for 2.5%–3.5% comparable sales growth and roughly flat operating margins as higher marketing, incentive pay, and strategic investments weigh on profitability.
• Management set fiscal 2026 EPS guidance at $28.05–$28.55, a range reported as above the current analyst consensus estimate cited in coverage.
• Ulta announced a $1 billion share repurchase plan, while analysts maintain a “Moderate Buy” consensus with a $671.27 average target and institutional ownership stands at 90.39% with some funds increasing stakes.