Elf Beauty Inc (NYSE:ELF) shares fell more than 5% on Thursday after the company reported third quarter fiscal 2026 results and raised its full-year guidance, with the increase seen as modest relative to analyst expectations.
For the three months ended December 31, 2025, Elf Beauty posted net sales of $489.5 million, surpassing Wall Street’s consensus estimate of roughly $460 million.
Adjusted earnings per share came in at $1.24, above the expected $0.72.
“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the UK, are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters,” Elf CEO Tarang Amin said in a statement.
“We remain confident in our ability to grow market share and deliver best-in-class growth in beauty, as reflected by our raised fiscal 2026 outlook.”
Despite the top-line and EPS beats, shares declined after Elf raised its full-year net sales growth outlook to 22% to 23%, implying roughly $2.55 billion to $2.58 billion in total sales. The midpoint of the range, around $2.565 billion, remained below analysts’ pre-earnings consensus of approximately $2.6 billion.
Much of the guidance increase was driven by Rhode, the company’s recently acquired brand, which is now expected to contribute $260 million to 265 million for the full year, up from a prior forecast of $200 million.
Jefferies highlighted that while Q3 results exceeded expectations across sales, EBITDA, and EPS, investor focus remains on Elf’s core business performance.
The firm noted Rhode’s outsized contribution but emphasized that organic growth of roughly 2% in the second half reflects softer global consumption and a 4-point pipeline headwind. “While Rhode’s strength is notable, sentiment remains centered on core business visibility,” Jefferies wrote.
Analysts also pointed out that Elf’s guidance appears conservative relative to strong US scanner data and ongoing category outperformance, suggesting potential upside from marketing initiatives, geographic expansion, and pipeline normalization.
The firm maintained a price target of $115.