Coty's stock surged 6.40% during intraday trading on Tuesday, as the company released its third-quarter fiscal year 2026 results that showed better-than-expected profitability metrics and provided encouraging full-year earnings guidance.

The beauty products company reported adjusted EBITDA of $127 million for the quarter, surpassing the Ibes estimate of $116.3 million. More significantly, Coty's adjusted operating income came in at $72.4 million, well above the $52.3 million analysts had anticipated, indicating stronger operational performance than expected.

While revenue of $1.28 billion only slightly exceeded the $1.27 billion estimate, investors focused on the profitability improvements and the company's full-year adjusted EPS guidance of $0.33 to $0.35, which exceeds the $0.27 Ibes estimate. This positive outlook appears to have overshadowed concerns about revenue headwinds from Middle East conflicts and a projected mid-single-digit percentage decline in Q4 like-for-like revenue.