ULTA Stock Slips as Ulta Beauty Posts $6.55 EPS, $3.04 Billion Revenue and Lifts Guidance

ULTA stock slipped on August 28, 2026, despite a strong fiscal second-quarter report from Ulta Beauty. The beauty retailer posted $6.55 in diluted EPS and $3.04 billion in net sales for the quarter ended August 1, beating Wall Street estimates. Ulta also raised its full-year fiscal 2026 outlook. That leaves investors weighing strong earnings against slower comparable-sales growth.

ULTA Stock Falls Despite Q2 Earnings Beat: What Happened?

ULTA Earnings Beat Wall Street Estimates

Ulta Beauty reported a strong fiscal Q2 on August 27, 2026. Net sales increased 8.9% year over year to $3.04 billion. Diluted EPS rose 13.3% to $6.55, compared with $5.78 a year earlier. The results topped analyst expectations of roughly $2.99 billion in revenue and $6.20 EPS. Operating income also increased 10.1% to $379.6 million.

The headline results were solid. The market, though, paid closer attention to the pace of underlying sales growth.

Why Is ULTA Stock Slipping?

Comparable sales rose 3.8%, down from 6.7% in the same quarter last year. That slowdown appears to have weighed on investor sentiment, even with the earnings beat. ULTA shares initially moved higher after the results but later fell about 2.9% in premarket trading on August 28.

Ulta Beauty Q2 Results: Sales, Profit and Margins

Revenue and Comparable Sales Growth

Ulta generated $3.0357 billion in Q2 revenue, up from $2.7885 billion a year earlier. The company attributed the increase to comparable sales, the Space NK acquisition, and sales from newly opened stores.

$ULTA – ULTA STOPPED PRINTING THE HALF OF ITS SAME-STORE NUMBER THAT SAYS HOW MANY PEOPLE CAME IN

Ulta Beauty runs 1,622 stores selling cosmetics, skin care and salon services. Its release this afternoon reports comparable sales up 3.8%, and stops there. The previous six… pic.twitter.com/s3oWNXd8Nh

— Enkhmanal 🟠 (@Enkhmanal) August 27, 2026

Comparable sales also came in above the roughly 2.3% analyst forecast reported by WSJ. Still, the decline from last year’s 6.7% growth shows that Ulta now faces a tougher comparison and slower underlying sales momentum.

Profitability Improves

Gross profit increased 8.7% to $1.2 billion, while operating income rose 10.1% to $379.6 million. The operating margin edged up to 12.5% from 12.4%.

SG&A expenses increased 8.2% to $802.8 million. Ulta said the rise was mainly related to Space NK.

Ulta Beauty Raises Fiscal 2026 Guidance

New ULTA Revenue and EPS Forecast

Ulta lifted several fiscal 2026 targets:

• Sales growth: 6.7% to 7.2%, up from 6% to 7%.
• Comparable sales: 3.2% to 3.7%, up from 2.5% to 3.5%.
• Operating income growth: 8.3% to 9.3%, up from 6.5% to 9%.
• Diluted EPS: $28.70 to $29.00, up from $28.36 to $28.80.

The company also raised its fiscal 2026 share-repurchase plan to $1.8 billion from $1.5 billion.

Why the Guidance Matters for ULTA Stock?

The higher outlook gives investors a stronger earnings-growth case. It also indicates that management expects beauty demand to hold up. Reuters reported that Ulta expects continued spending from younger and higher-income shoppers, with premium beauty and fragrance among the areas seeing demand.

What Is Driving Ulta Beauty’s Growth?

Space NK, New Stores and Exclusive Products

Ulta opened 13 net new U.S. stores during the quarter. Space NK also contributed to reported sales following its acquisition. Nearly half of Ulta’s sales now come from exclusive brands and products, helping the retailer differentiate its product range from competitors.

Ulta is also spending on product launches and marketing. Exclusive celebrity products have become another part of that strategy.

TikTok Shop and Gen-Z Demand

Ulta is expanding on TikTok Shop as it looks to reach younger shoppers. Reuters reported that the channel has supported sales among Gen-Z consumers. Fragrance and premium beauty continue to attract demand. These channels matter as Ulta competes with established retailers as well as digital platforms such as Amazon and TikTok.

ULTA Stock Outlook: What Investors Should Watch Next

ULTA closed at $543.19 on August 26, before the earnings release. The stock was still below its $714.97 52-week high.

Short Stock Details and Forecast

Meyka’s latest available ULTA page shows an AI Score of 79.5/100 and an earlier 12-month AI price forecast of $500.63. Its page also showed an RSI near 60 and a neutral technical condition. These figures can change as the stock moves, so investors should view the forecast as a model signal rather than a fixed price target.

Technical Analysis Summary

Technical signals remain mixed. As of August 27, ULTA traded above its 5-, 10-, 20-, 50-, and 100-day moving averages. Its 200-day simple moving average was $555.56, putting that level near the current trading range. RSI stood at 59.58, while MACD showed a buy signal.

A sustained move above $555 could improve the short-term chart setup. A move below recent moving-average support would weaken it.

What Meyka Says?

Meyka’s AI stock analysis tool gives ULTA an A rating and a 79.5/100 score in its available analysis. Its model had previously projected downside from the then-current price, despite the positive fundamental score. The mixed signals make it useful to compare valuation, earnings momentum, and technical indicators rather than rely on a single forecast.

Supporting Analyst Insights

Wall Street remains broadly positive on ULTA. Jefferies raised its price target to $650 from $630 while maintaining a Buy rating. Raymond James also reiterated a Strong Buy rating with a $700 target. Among 27 analysts tracked by MarketBeat, the stock had a Moderate Buy consensus and an average price target of about $636.41.

Conclusion

ULTA’s latest results point to solid earnings growth, even as investors remain cautious about the slower pace of comparable sales. The higher fiscal 2026 guidance, Space NK expansion and continued beauty demand support the stock’s longer-term case. For ULTA stock, the next focus will be whether sales growth can hold up and whether Ulta can deliver on its upgraded profit targets.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.