Beauty products company Coty (NYSE: COTY) reported Q1 CY2026 results exceeding the market’s revenue expectations, but sales fell by 1.3% year on year to $1.28 billion. Its non-GAAP loss of $0.03 per share was $0.02 below analysts’ consensus estimates.
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Coty (COTY) Q1 CY2026 Highlights:
- Revenue: $1.28 billion vs analyst estimates of $1.27 billion (1.3% year-on-year decline, 0.6% beat)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.01 ($0.02 miss)
- Operating Margin: -29%, down from -21.6% in the same quarter last year
- Free Cash Flow was -$248.7 million compared to -$168.4 million in the same quarter last year
- Organic Revenue fell 7% year on year (miss)
- Market Capitalization: $2.13 billion
Company Overview
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $5.79 billion in revenue over the past 12 months, Coty carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Coty’s sales grew at a sluggish 2.5% compounded annual growth rate over the last three years. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
This quarter, Coty’s revenue fell by 1.3% year on year to $1.28 billion but beat Wall Street’s estimates by 0.6%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a slight deceleration versus the last three years. This projection is underwhelming and suggests its products will face some demand challenges.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
Coty’s demand has been falling over the last eight quarters, and on average, its organic sales have declined by 5.2% year on year. 
In the latest quarter, Coty’s organic sales fell by 7% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track.
Key Takeaways from Coty’s Q1 Results
Organic revenue growth and EPS both missed, although reported revenue beat slightly. Overall, this quarter could have been better. The stock remained flat at $2.59 immediately following the results.
Is Coty an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
