By Sabrina Escobar

E.l.f. Beauty's fiscal third-quarter results barreled through Wall Street's estimates, sending the stock surging in after-hour trading Wednesday.

E.l.f. Posted adjusted earnings of $1.24 a share for the quarter ended Dec. 31, well ahead of analysts' estimates for 72 cents a share.

Revenue jumped 38% year over year to $489.5 million, also better than projections for $462 million. The company saw strength across its entire portfolio, from the signature e.l.f cosmetics line to newly acquired beauty brand Rhode, said CEO Tarang Amin on a call with Barron's Wednesday.

This is the 28th consecutive quarter of broad-based market-share gains for e.l.f, he added, noting that the company has acquired new customers across age and income demographics.

"The consumer's search for value is definitely an advantage for us," he said.

E.l.f. stock was up 16% in after-hour trading Wednesday. Shares had gained 11% this year as of Wednesday's close. Barron's named e.l.f. a stock pick last fall.

E.l.f. boosted its outlook for the fiscal year to reflect its stronger-than-expected third quarter. The company now sees net sales ranging from $1.6 billion to $1.612 billion, compared with a prior outlook of $1.55 billion to $1.57 billion. Earnings per share will be between $3.05 and $3.10, higher than past forecasts for $2.80 to $2.85.

Wall Street had penciled in $2.87 a share on $1.57 billion in revenue.

The beat-and-raise quarter is a testament to the brand's growing strength, as well as its ability to navigate a volatile trade environment. E.l.f. imports about 70% of its products from China and has been subject to a tariff rate of about 60%, Amin said. Despite that, the company's gross margin dipped only 0.3 percentage points to 71% in the third quarter.

"If you told me in the beginning of the year, we'd be faced with 60% tariffs and we could still deliver 70% gross margin, I would have said you're crazy," Amin said.

The company's international expansion has helped offset some of those tariff burdens. Although only 20% of e.l.f's business is outside of the U.S., international sales are growing at a clip, Amin said, up 44% in the third quarter.

"It's a much more diversified supply chain, again, mainly to meet the demand that we have across our brand portfolio. And you'll continue to see that diversification," Amin said. "Again, just given how fast we're growing internationally, it makes a lot of sense for us."

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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February 04, 2026 16:19 ET (21:19 GMT)

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