L'Oréal (OR) H1 2026 earnings summary

Executive summary

• Sales reached €23.77 billion in H1 2026, up 6.8% like-for-like and 5.8% reported, with adjusted like-for-like growth of 6.5%, outpacing the global beauty market.

• Record operating margin of 21.3% (+20bps) and gross margin of 74.8% (+10bps), with operating profit up 6.8% to €5.06 billion.

• Net profit excluding non-recurring items rose 4.8% to €3,959.6 million, with EPS at €7.40 (+4.8%).

• Growth was broad-based across all divisions and regions, led by Professional Products and Dermatological Beauty, and supported by strong e-commerce and digital innovation.

• Major acquisitions included Kering Beauté, Creed, and an additional 10% stake in Galderma, with continued acceleration in AI and IT transformation.

Financial highlights

• Gross profit reached €17.78 billion, with a gross margin of 74.8% (+10bps year-over-year).

• Operating profit rose 6.8% to €5,063.0 million; operating margin 21.3% (+20bps year-over-year).

• Net profit excluding non-recurring items: €3,959.6 million (+4.7% year-over-year); net profit attributable to owners (after non-recurring items): €3.5 billion (+5.3%).

• EPS (excluding non-recurring items): €7.40 (+4.8% year-over-year).

• Operating net cash flow was €3.12 billion (+13.9%), with investments totaling €716.1 million (3% of sales).

Outlook and guidance

• Management expects continued strong demand for beauty and aims to outperform the market in sales and profit for the full year, with global beauty market growth of 4.5–5%.

• July started strong; confident in maintaining growth pace in H2, driven by innovation, e-commerce, and new brand rollouts.

• Recent acquisitions, AI-driven innovation, and recovery in North Asia and China are expected to support H2 growth.

• Currency fluctuations expected to have a minor negative impact (-0.6%) on full-year sales if current rates persist.