Estee Lauder's stock plummeted 16.47% during intraday trading on Thursday, as investors reacted negatively to the company's latest quarterly results and forward-looking statements.

The cosmetics giant reported fiscal second-quarter results that revealed significant pressure from its ongoing global restructuring program. While adjusted earnings per share of $0.89 beat analyst estimates, non-adjusted net profit was halved by restructuring charges. The company also reiterated its forecast that tariffs would slice approximately $100 million from its fiscal 2026 profitability, with the impact concentrated in the second half of the year.

Further weighing on sentiment, Estee Lauder's annual sales and profit guidance came in slightly below market expectations. The company forecast third-quarter adjusted operating margins to contract by about 50 basis points, citing a mix of tariff headwinds and consumer-facing investments. These factors collectively drove the sharp selloff, overshadowing the company's reported sales growth and raised full-year adjusted earnings outlook.