timothy sykes logo

Stock News

e.l.f. Beauty Stock Soars After Smashing Q3 Earnings Beat

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 2/14/2026, 11:24 am ET 2/14/2026, 11:24 am ET | 6 min 6 min read
e.l.f. Beauty Stock Soars After Smashing Q3 Earnings Beat Thumbnail

e.l.f. Beauty Inc.’s stocks have been trading up by 9.46 percent, signaling positive market sentiment and investor confidence.

Consumer Staples industry expert:

Analyst sentiment – positive

e.l.f. Beauty (ELF) displays a notable market position with impressive financial metrics. The company’s gross margin of 70.3% highlights significant cost efficiency, while its EBIT margin of 11.3% and EBITDA margin of 15.8% point to strong operational management. ELF’s revenue growth rate over three and five years—45.19% and 38.32% respectively—demonstrates consistent sales expansion. With a robust Return on Equity of 12.33% and Return on Capital of 10.84%, management effectiveness is evident, despite a substantial debt load as reflected by a 0.79 Total Debt to Equity ratio. However, strategic stock repurchasing and capable debt handling, as per the positive interest coverage ratio of 8.9, underline fiscal prudence.

Analysis of ELF’s recent weekly price patterns reveals a bullish trend, with prices closing higher within consecutive sessions and breaking significant levels. For instance, a notable leap occurred from a low of 74.5 to closing at 81.5, indicating strong upward momentum bolstered by volume spikes that suggest institutional buying. Given this pattern, a trading strategy focused on riding the momentum uptrend is advisable. Entry could be considered on pullbacks near support levels around 74.33, using a stop just below the low of the prior range. A price target around $90, reflecting anticipated continuation in price strength, is achievable as investor confidence grows.

e.l.f. Beauty’s recent performance, with Q3 results surpassing expectations, bolsters a positive future outlook. The company revised its fiscal 2026 guidance upwards, anticipating revenues between $1.60B-$1.612B and EPS in the range of $3.05-$3.10. The robust quarter was underscored by a 130 basis point market share gain—indicative of solid brand penetration. Analyst sentiment exhibits strong confidence, with multiple price target upgrades such as Citi’s increase from $110 to $115, reflecting recognition of ELF’s strategic execution. With recent trading above support at $83 and targets pinpointed near $113, ELF’s trajectory appears aligned with sector outperformance benchmarks within the Consumer Staples domain.

  • Citi and JPMorgan have both increased their target prices for ELF, with Citi moving from $110 to $115 and JPMorgan from $103 to $105, reflecting positive sentiment post-earnings.

  • With a rising market share, Elf Beauty saw an increase of 130 basis points for its e.l.f. Cosmetics brand, further enhanced by the successful launch of rhode in Sephora in the U.K.

  • Following these developments, e.l.f. Beauty has revised its FY26 EPS and revenue forecasts upward, with new expectations set at $3.05-$3.10 for EPS and $1.60B-$1.612B for revenue.

  • Following strong financial performance and improved forecasts, UBS raised its price target for e.l.f. Beauty to $102, a movement that highlights continued confidence in the company’s growth trajectory.

Candlestick Chart

Weekly Update Feb 09 – Feb 13, 2026: On Saturday, February 14, 2026 e.l.f. Beauty Inc. stock [NYSE: ELF] is trending up by 9.46%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In its recent financial disclosure, e.l.f. Beauty has reported a notable upturn in its fiscal Q3 revenues and earnings. The current reporting period saw revenues climbing to a robust $489.5M, a leap well above forecasted figures. This performance was instrumental in prompting the company to enhance its full-year financial guidance. Analysts observed that the revenue surge was bolstered by a strengthened market share in cosmetics and strategic product launches, notably the rhode line’s introduction in the U.K.’s Sephora stores.

The company’s EBIT and EBITDA margins further illustrated financial strength, with a clear positioning against market competitors. With EBIT and EBITDA standing at 11.3% and 15.8% respectively, these figures indicate effective operational management and cost-efficiency. From a valuation perspective, e.l.f. Beauty’s price-to-earnings ratio was marked at 41.99, signifying healthy investor demand relative to its earnings potential.

More Breaking News

Financial analysts noted the company’s healthy cash flow and financial strength, with total liabilities manageable at $1,161M against equity valued at $1,161M. Analyst optimism was documented with various rating upgrades, indicating confidence in the firm’s continued ability to expand its footprint in the beauty sector.

Conclusion

e.l.f. Beauty’s current market momentum reflects its adept financial and strategic management capabilities. Following the release of its Q3 earnings, the company has navigated market expectations deftly, reporting superior results that catalyzed increased market enthusiasm and analyst bullishness. As millionaire penny stock trader and teacher Tim Sykes says, “You must adapt to the market; the market will not adapt to you.” This wisdom aligns closely with e.l.f. Beauty’s approach, where the consistent expansion of its market share, combined with successful product rollouts, robust revenue figures, and strategically revised guidance, positions the company as a formidable player in the competitive cosmetics industry landscape. In the wake of analyst optimism and target upgrades, the surrounding trader sentiment remains positive, empowering e.l.f. Beauty to sustain its growth trajectory with confidence and foresight moving into the future.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”