Ulta Beauty Inc. (NASDAQ: ULTA) reported first-quarter fiscal 2026 results on Tuesday that topped Wall Street expectations, driven by strong performance across fragrance, haircare and beauty categories, as well as continued growth in comparable sales. Ulta Beauty Earnings Beat Expectations
Adjusted earnings came in at $7.74 per share, ahead of analysts' estimates of $6.86.
Revenue increased 11.1% year over year to $3.16 billion, surpassing the consensus estimate of $3.09 billion. Comparable sales rose 5.3%, fueled by a 3.7% increase in average ticket size and a 1.6% increase in transactions.
Ulta Beauty ended the quarter with $221 million in cash and short-term investments. The company repurchased $555 million of its shares during the quarter and increased its fiscal 2026 share repurchase target to $1.5 billion from $1 billion.
Despite reporting strong first-quarter results, Ulta Beauty said consumers continue to face macroeconomic uncertainty, inflationary pressures and higher fuel costs, making value increasingly important.
The company said it is relying on its mass-to-luxury assortment, loyalty program and targeted promotions to help customers maximize value while maintaining engagement.
Fragrance Leads Category Growth
Fragrance was Ulta's strongest-performing category, delivering high-teens comparable sales growth and increasing its share of revenue to 12% from 11% a year earlier.
Haircare posted high-single-digit growth, supported by prestige brands including Amika, Moroccanoil and the exclusive Sacred label.
Makeup sales increased in the low single digits, driven by demand for prestige brands such as Rare Beauty, MAC, Kylie Cosmetics and Estée Lauder. Skincare and wellness also grew in the low single digits, led by Medicube, Tatcha, Peach & Lily, supplements and self-care products.
Services revenue rose in the mid-single digits, supported by salon offerings, ear piercing and makeup services.
Expansion, AI Initiatives And Fulfillment Investments
During the quarter, Ulta opened two new stores in Mexico, including a flagship location in Mexico City. Franchise partner Alshaya Group also opened its third Middle East store at Dubai Mall.
The company's marketplace now features more than 325 brands and over 8,000 SKUs across seven product categories.
Ulta also launched "Ulta AI," a digital assistant designed to improve product discovery and personalization. The retailer is integrating Google's Gemini platform to support future agentic commerce capabilities.
The company announced plans for a new automated regional distribution center in Salt Lake City to enhance fulfillment efficiency and a flagship experiential store in Times Square, expected to open in late 2027.
Ulta Beauty Outlook Raised
Ulta raised its fiscal 2026 GAAP earnings guidance to a range of $28.36 to $28.80 per share, compared with analysts' expectations of $28.42 per share.
The company affirmed its revenue outlook of $13.14 billion to $13.26 billion, compared with the consensus estimate of $13.17 billion. Ulta also maintained its forecast for net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%.
ULTA Price Action: Ulta Beauty shares were up 1.24% at $501.00 during premarket trading on Wednesday, according to Benzinga Pro data.