Investing.com -- The Estée Lauder Companies Inc. (NYSE: EL) reported third-quarter results that exceeded analyst expectations, with the company also raising its full-year outlook, sending shares up 13.7% premarket.

The beauty giant posted adjusted earnings per share of $0.91 for the quarter ended March 31, beating the analyst consensus of $0.65 by $0.26. Revenue reached $3.71 billion, surpassing the $3.69 billion estimate and representing a 5% increase from $3.55 billion in the prior-year period. Organic net sales grew 2% YoY.

The company’s full-year fiscal 2026 adjusted EPS guidance is now in a range of $2.35 to $2.45, above the consensus estimate of $2.22, while organic net sales growth expectations are approximately 3%, at the high end of its prior range.

"Our third quarter results extend strong year-to-date performance, driven by Beauty Reimagined," said Stéphane de La Faverie, President and CEO. "In the first nine months of fiscal 2026, organic sales for Fragrance rose double-digits, while three of four regions grew, led by high single-digit growth in Mainland China where we outperformed prestige beauty to gain share."

The company’s adjusted operating margin expanded 360 basis points to 15.0% from 11.4% in the prior-year period, driven by gross margin expansion and operating leverage from its Profit Recovery and Growth Plan. Adjusted gross margin improved 140 basis points to 76.4%.

Fragrance led product category performance with organic net sales growth of 10%, driven by double-digit gains across its Luxury Brands including Le Labo, KILIAN PARIS, BALMAIN Beauty and TOM FORD. Skin Care net sales were virtually flat, while Makeup and Hair Care each saw flat organic growth.

Geographically, Mainland China delivered 6% organic growth, with the company outperforming prestige beauty for the third consecutive quarter. The company’s Priority Emerging Markets posted double-digit growth.

Estée Lauder also provided a preliminary view for fiscal 2027, projecting organic net sales growth of 3% to 5% and adjusted operating margin of 12.5% to 13.0%.

Reacting to the report, analysts at Vital Knowledge said that "the real standout in the EL report are op. margins."

"The firm benefits from aggressive cost-cutting, and investors will be relieved with the healthy preliminary outlook on F27," they added. "This is the second pretty favorable report from a global beauty company after L’Oreal."