Coty Inc. (COTY) shares plummeted 5.34% in after-hours trading on Tuesday, following the release of the beauty company's mixed fiscal third-quarter 2026 results and a cautious outlook for the current quarter.

The company reported an adjusted loss per share of $0.03 for the quarter, missing the analyst consensus estimate of breakeven. While revenue of $1.28 billion slightly exceeded expectations, it represented a 1% year-over-year decline. The results included a significant $362.8 million non-cash impairment charge related to the fair value of its Consumer Beauty business, contributing to a reported net loss of $411.4 million.

Management cited continued headwinds from the conflict in the Middle East, which negatively impacted third-quarter sales by an estimated 1.4%. Looking ahead, the company expects fourth-quarter like-for-like revenue to decline by a mid-single-digit percentage, with the Middle East disruption projected to weigh on sales by 2% to 3%. Coty guided for fourth-quarter adjusted earnings per share, excluding an equity swap, to range from breakeven to a loss of $0.02, signaling potential profitability challenges in the near term.