L'Oreal Q1 2026 Results Lift Shares
L'Oreal Q1 2026 Results topped expectations with 6.7% adjusted like-for-like sales, boosted by the Kering Beauté close; shares jumped about 8-9%.
KEY TAKEAWAYS
- Adjusted like-for-like sales grew 6.7% in Q1 2026.
- Reported like-for-like growth reached 7.6% with a 3.4% IT-phasing boost.
- Shares rose about 8-9% following results and JPMorgan raised full-year sales growth to 4.8%.
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L'Oreal’s first-quarter 2026 results showed stronger-than-expected organic sales growth. After completing the Kering Beauté acquisition on March 31, 2026, management expressed optimism for full-year sales and profit despite geopolitical challenges.
Organic Growth and Division Performance
The company said in a press release on April 22, 2026, that adjusted like-for-like sales growth for the quarter was 6.7%, while reported like-for-like growth reached 7.6%. Total sales rose to €12.2 billion from €11.7 billion a year earlier. The difference between reported and adjusted growth reflected a 3.4% boost from the phasing of an IT-transformation program.
Divisional adjusted like-for-like growth was led by Professional Products at 13.1% and Dermatological Beauty at 10.2%. Luxe increased 5.6%, and Consumer Products grew 4.1%. Fragrances and haircare were the main category drivers, skincare showed early signs of recovery, and e-commerce expanded by double digits across regions.
Acquisition Impact, Outlook, and Market Reaction
The Kering Beauté acquisition, completed on March 31, added about 1.5 percentage points to first-quarter growth. Management highlighted a stepped-up innovation plan and a multi-polar model as drivers of confidence, maintaining optimism for another year of sales and profit growth despite geopolitical and macroeconomic uncertainties. CEO Nicolas Hieronimus said, "L'Oreal is off to a great start."
Currency exchange rates posed a 5.5% headwind in the quarter. The company noted that if rates as of March 31 persist, currency would reduce full-year growth by about 1.3 percentage points.
Shares rose roughly 8–9% on April 23, 2026, marking the strongest single-day gain since 2008. JPMorgan raised its full-year sales-growth forecast to 4.8% from 4.1% after the results. Post-earnings consensus centers near 5.0% organic growth for 2026 with a modest 0.1 percentage point improvement in operating margin.
