News · Coty Inc. (COTY) · Consumer Defensive

Coty rises 12.7% after quarterly results beat expectations

Session of November 5, 2026 · Published November 6, 2026 · 4 min read

What happened

Coty (COTY) rose 12.7% on November 5, 2026, because it reported fiscal Q1 2027 results that beat expectations on revenue and adjusted earnings, according to Seeking Alpha and Zacks Investment Research. The company and analysts described the quarter as ahead of expectations on sales, adjusted EBITDA and EPS, and noted a significant improvement in free cash flow and lower debt. Coty also warned that second-quarter profit is likely to be weak as higher costs are expected to weigh on its turnaround efforts, according to Reuters and Seeking Alpha.

Closing price over the last 30 trading sessions. On November 5, 2026, COTY closed at $3.91, up 12.7% on the day and 47.5% higher than 30 sessions earlier.

How big was the move

The stock closed at $3.91 after it opened 9.5% above the previous close, with trading volume 2.7 times its 20-day average. The day’s rise was 3.4 times a typical daily move for this stock and the session outperformed the Consumer Defensive sector median by 14.4 percentage points. The broader market fell, with the S&P 500 on the day falling 4.4%, and the stock’s beta of 0.99 indicates the stock tends to move about as much as the market. Market value stood at $2.99 billion.

Each bar is one day's price change; the outlined bar is November 5, 2026. A typical daily move over the past year was 3.2%, so the latest move equals 4.0 times that. Moves outside the dashed lines (about 6.4%) are unusual.

The combination of a strong earnings beat and heavy volume suggested investors treated the results as material to the turnaround story. Volume 2.7 times its 20-day average is often taken by traders as confirmation that a price move reflects conviction rather than short-term noise.

The technical picture

Technically, the stock was 20.8% above its 20-day moving average, 34.0% above its 50-day moving average and 54.1% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has been above the 200-day average for 33 consecutive trading days. The Relative Strength Index (14 days) was 77, above 70, a level often called overbought. The stock sat 6.0% below its 52-week high.

Closing price over the past year. COTY ends the period at its 52-week high, above its 50-day average ($2.92) and above its 200-day average ($2.54).

Shorter-term momentum had been strong heading into the report: the stock rose 39.6% over one month and 38.7% over three months, while the one-year change was a rise of 2.1%. Volatility was 59% annualized over 60 days, higher than 91% of its own readings over five years, suggesting larger price swings than the company’s historical norm.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $5.78 billion, a decline of 0.2% from a year earlier, and diluted earnings per share were $-0.65. Gross margin was 58.8% compared with 64.6% a year earlier, while operating margin improved to 4.8% from 3.2% a year earlier. Free-cash-flow margin was 7.3% and return on invested capital was 3.6%.

Quarterly revenue by period end. The latest quarter brought $1.6B, 1.4% less than the same quarter a year earlier.

The balance sheet showed net debt of 26.0 times EBITDA for the period and share count over one year increased by 0.7%. On valuation metrics the stock traded at 12.1 times expected earnings on a price to forward earnings basis and offered a free-cash-flow yield of 14.1%.

Those figures underline a mixed picture: operating margin improvement and a positive free-cash-flow margin point to progress on profitability and cash generation, while a net debt of 26.0 times EBITDA highlights heavy leverage. The valuation metrics suggest the market is pricing a recovery but also reflecting risk tied to the company’s balance sheet and recent profitability.

Earnings and analyst expectations

Coty’s last report, on November 4, 2026, delivered earnings per share of $0.16 against $0.12 expected, 28.7% above estimates. That marked one consecutive quarter beating estimates. The company’s next report is scheduled for February 4, 2027.

Diluted earnings per share by quarter. The latest quarter shows $0.12, against $0.07 in the same quarter a year earlier.

The average surprise over the last four reports is listed as 100.0% below estimates, and the typical two-day reaction after recent reports was the stock rose 1.5%. Among analysts, 27% of analysts rate the stock Buy or Strong Buy, the consensus rating is Hold and the consensus price target is $2.86, which is 26.9% below the closing price. Thirty-three analysts have a rating on the stock.

Those consensus figures imply some skepticism among analysts despite the recent beat. A consensus price target below the stock’s close suggests analysts have not yet incorporated the latest results into their models, or they remain cautious about the company’s ability to sustain margin improvement while reducing leverage.

PromtFinance scores within the sector show momentum as the strongest area at 71 (Positive), while Revisions and Stability were weak at 4 (Very weak) and 5 (Very weak) respectively. Value scored 41 (Weak), Growth 52 (Neutral) and Quality 34 (Weak), reflecting the mixed trade-off between near-term momentum and longer-term fundamentals.

What to watch

November 4, 2026: earnings per share of $0.16 against $0.12 expected, 28.7% above estimates.
February 4, 2027: next report date.
Net debt of 26.0 times EBITDA reported for the four quarters through September 30, 2026.
Free-cash-flow margin of 7.3% and company statements noting a significant improvement in free cash flow.
Management warning that second-quarter profit is likely to be weak as higher costs are expected to weigh on the turnaround.

Full COTY analysis: scores, chart and financials →