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Elf Beauty Soars with Strong Q3 Earnings; Raises Outlook

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 2/15/2026, 11:22 am ET 2/15/2026, 11:22 am ET | 5 min 5 min read
Elf Beauty Soars with Strong Q3 Earnings; Raises Outlook Thumbnail

e.l.f. Beauty Inc.’s stocks have been trading up by 9.46 percent following positive financial outlook announcements.

Consumer Staples industry expert:

Analyst sentiment – positive

e.l.f. Beauty’s (ELF) strong market position is underscored by its robust financial fundamentals. The company’s gross margin stands at an impressive 70.3%, indicative of efficient cost management and pricing power in the market. Despite a challenging macroeconomic environment, e.l.f. has delivered a commendable revenue growth of 38% over the past five years, culminating in revenues of $1.31 billion. Its profitability metrics, with an EBIT margin of 11.3% and a profit margin of 6.84%, remain solid. The P/E ratio at 46.05 is relatively high, yet within range for high-growth consumer companies. e.l.f. maintains sound financial strength, as reflected by its low total debt-to-equity ratio of 0.79 and a current ratio of 2.8, ensuring liquidity and operational flexibility.

Technically, ELF’s recent weekly price pattern illustrates a strong bullish trend, closing from $74.8183 to $81.5 in recent trading sessions. Notably, the rapid ascent in share price since the close on February 13 reflects growing investor confidence following an exceptional earnings report. Volume spikes aligned with breakout levels corroborate the bullish sentiment. A potential trading strategy would focus on buying on dips towards $74, with a stop-loss just below the $73 level, since this price range provided prior resistance that has now turned into support. With the stock breaking its recent high, a near-term price target of $85 is foreseeable as market momentum continues.

e.l.f. Beauty is well-positioned for continued growth amid favorable market developments. Surpassing analyst expectations with a Q3 EPS of $1.24 bodes well for its fiscal outlook. The company has effectively leveraged media campaigns and broadened its consumer reach, particularly within the Latin and Hispanic communities. Recent strategic expansions, like the UK launch in Sephora, have bolstered market share, pushing revenue forecasts to $1.60B-$1.612B, a considerable upgrade from previous guidance. Analyst upgrades from major institutions such as Citi and JPMorgan suggest sustained upward momentum. The raised FY26 guidance, complemented by market enthusiasm, supports potential gains towards a resistance level of $115, while the support rests around $100. Overall, e.l.f. Beauty demonstrates a strong competitive position with promising catalytic events fueling its upward trajectory.

Candlestick Chart

Weekly Update Feb 09 – Feb 13, 2026: On Sunday, February 15, 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

Elf Beauty’s recent financial results paint a promising picture, highlighting a significant leap in its earnings and revenue. In the third quarter of fiscal 2026, the company’s net sales soared by 38%, prompting a raised financial forecast for the full year. This uplift not only underscores the company’s strategic maneuvers but also speaks to the resilience and adaptability in its operations.

The remarkable earnings per share (EPS) of $1.24 stands out starkly against analysts’ projections of $0.72. Such performance has solidified investor trust and set the tone for potential future gains. Revenues reached an impressive $489.5M, outpacing estimated targets and reflecting a well-executed growth strategy that has kept the company ahead in the competitive cosmetic market.

Fiscal prudence was evident as profit margins showed considerable strength. With a gross margin of 70.3%, Elf Beauty demonstrated an effective cost management strategy while maintaining high-quality product standards. This combination of revenue growth and profitability has encouraged analysts like those at Citi and JPMorgan to positively reassess their outlooks, raising price targets to $115 and $105, respectively.

From a strategic standpoint, the company’s enhanced market share, achieved through initiatives like the rhode launch at Sephora, lays the groundwork for continued expansion, both domestically and internationally. This growth trajectory, coupled with the raised fiscal 2026 EPS guidance of $3.05 to $3.10, suggests a robust performance expected in the near term.

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.

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* 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 .

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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”