Coty Inc. ( COTY ) shares tumbled 16.46%, to $4.06 in after-hours trading on Wednesday, following mixed fourth-quarter fiscal results that saw revenue beat expectations while earnings fell short of analyst estimates.

Check out the current price of COTY ( COTY ) stock here. 

Revenue Beats Amid Market Headwinds

The global beauty company reported fourth quarter revenue of $1.25 billion, surpassing Wall Street estimates of $1.20 billion. However, total revenue declined 8% year-over-year, reflecting ongoing market challenges including U.S. consumer softness and retailer destocking pressures.

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Earnings Miss Weighs on Investor Sentiment

Coty ( COTY ) posted an adjusted loss of 5 cents per share for the quarter, missing analyst expectations for positive earnings of 2 cents per share. The earnings shortfall contributed to the sharp after-hours decline, with shares falling to $4.06 from the closing price of $4.86.

Cash Flow Remains Positive Despite Challenges

The New York City-based company generated $83.2 million in operational cash flow and $34.9 million in free cash flow during the quarter. Coty ( COTY ) ended the period with $257.1 million in cash and cash equivalents against $4.01 billion in total debt, maintaining a debt-heavy balance sheet structure.

Management Outlook Points to Recovery Path

CEO Sue Nabi acknowledged current headwinds, including “U.S. softness, retailer destocking, fragrance phasing off a strong FY24, and pressure in mass cosmetics.”

Despite challenges, Nabi emphasized that consumer demand for beauty products continues growing at a solid pace. For fiscal 2026’s first half, Coty ( COTY ) expects adjusted earnings between 33-36 cents per share, signaling management’s confidence in recovery momentum.

Price Action: COTY ( COTY ) shares closed at $4.86 on Wednesday, down 0.61% on the day. The stock has traded between $4.46 and $10.30 over the past year, according to Benzinga Pro data.

Benzinga's Edge Stock Rankings indicates COTY ( COTY ) stock has a negative trend across all time frames. Know the stock value of other cosmetic sector players.

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