e.l.f. Beauty reported on February 4, 2026 that net sales for its fiscal third quarter, ended December 31, 2025, rose 38 percent to $489.5 million, beating the analyst estimate of $460.2 million compiled by LSEG. Per Reuters, the company also raised its full-year fiscal 2026 sales outlook to a range of $1.60 billion to $1.612 billion, up from the prior $1.55 billion to $1.57 billion.
The quarter continued a long run of growth for the California-based company, whose cosmetics sell at mass-market prices and are carried by major US retailers. Per the company's earnings release, adjusted earnings per share reached $1.24, and growth came from both its core e.l.f. Cosmetics line and the skincare-adjacent products it has added in recent years, alongside contribution from the rhode brand it acquired in 2025.
Why are budget cosmetics growing this fast?
Per Reuters, e.l.f. credits demand from shoppers trading down to affordable products that still deliver current trends. The company builds products quickly, often releasing versions of prestige items at a fraction of the price, and markets heavily on social platforms where its beginner-friendly tutorials travel well. Its rack space at national retailers has also widened, which puts the brand in front of shoppers who never search for it online.
What does the raised forecast mean?
The new full-year range of $1.60 billion to $1.612 billion implies continued double-digit growth for the fiscal year ending March 31, 2026. Per the company, international expansion remains a priority alongside its US retail business. Analysts quoted by Reuters noted that the results suggest mass-market makeup demand stayed healthy through the 2025 holiday quarter, even as some premium beauty brands reported slower growth over the same period.
What this changes for your routine
For someone learning makeup, a strong budget segment is good news in a practical way: the products you practice with cost less, so experimenting and throwing out a wrong shade match hurts less. Expect even more low-priced dupes of prestige launches on drugstore shelves through 2026, and more retailer shelf space for them. The basics still decide how a product performs on you, though. Check the shade in daylight, read ingredient lists if your skin is reactive, and remember that technique, not price, does most of the work in a beginner routine.
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