By Joshua Kirby

French beauty giant L'Oreal said it is confident of netting further gains in revenue and earnings as the French cosmetics giant looks to strengthen its dominant position in the beauty market.

"We are optimistic about the outlook for the global beauty market," Chief Executive Nicolas Hieronimus said in an earnings update Thursday. "And confident in our ability to keep outperforming it."

Last year, L'Oreal, whose brands include L'Oreal Paris, Maybelline and Garnier, made total sales of 44.05 billion euros ($52.29 billion), up 1.3% from a year earlier on a like-for-like basis, the company said. In the last quarter of the year, sales grew 1.5% to 11.245 billion euros.

"As we had promised, organic top-line growth accelerated quarter after quarter, boosted by the step-up in our launch plan and supported by a gradually improving beauty market," Hieronimus said.

Investors will be looking out for more detailed insight into the company's expectations for the growth in the market at a presentation due Friday, analysts at RBC Capital Markets wrote in a note following the update.

Operating profit for 2025 meanwhile rose 2.4% on year to 8.89 billion euros, a hair ahead of analyst estimates of 8.88 billion euros. The operating margin expanded to 20.2% from 20.0% a year earlier as efficiency measures helped offset a blow from trade tariffs and currency effects, L'Oreal said.

Skincare, hair care, cosmetics and fragrances are expected to grow around 5% a year as an industry, hitting a total value of some $590 billion by the end of the decade, according to a McKinsey report published last year. L'Oreal is the market's dominant player with annual sales that far outstrip U.S. rivals like Estee Lauder or Johnson & Johnson's beauty division.

L'Oreal has in recent months moved to cement its position at the top of beauty, adding to its portfolio as it notes growing global demand for cosmetics and perfumes. In October, the group agreed a deal to acquire Gucci-owner Kering's beauty business for around $4.7 billion, including cologne label House of Creed and the rights to develop fragrances and beauty products for Kering brands like Balenciaga and Saint Laurent, as well as Gucci, once its existing license with Coty expires.

At the end of the year, L'Oreal continued its expansion in the sector by doubling its stake in Swiss dermatology group Galderma to around 20%, a deal worth around $4.9 billion according to Galderma's share price at the time. In June, it acquired a majority stake in British skincare firm Medik8.

"We are set up for further acceleration," Hieronimus said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

February 12, 2026 12:46 ET (17:46 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.