Coty (COTY) has just posted Q2 2026 results with revenue of US$1,678.6 million and a basic EPS loss of US$0.14, alongside net income loss excluding extra items of US$126.9 million. The company has seen quarterly revenue move between US$1,252.4 million and US$1,678.6 million over the past six reported periods, while EPS has swung between a loss of US$0.47 and a profit of US$0.09 as profitability has remained uneven. With trailing 12 month figures still in loss territory and forecasts in the provided data pointing to earnings growth ahead, this quarter keeps the spotlight firmly on margins and how quickly the business can tighten them.

With the latest numbers on the table, the next step is to see how they line up with the widely followed narratives around Coty’s growth, profitability, and recovery potential and where those stories might need a rethink.

Losses Persist On US$5.8b Revenue Base

• Over the last twelve months, Coty generated US$5.8b of revenue but recorded a net income loss excluding extra items of US$543.4 million, showing that the current scale of the business has not yet translated into profitability.
• What stands out against the generally bullish view on Coty is that forecasts calling for 80.34% yearly earnings growth and a return to profitability within three years sit beside trailing twelve month losses, with:
  • EPS on a trailing basis at a loss of US$0.62 per share compared with the forecasted improvement path.
  • Net losses shrinking over the past five years at 6.7% per year, which supports the optimistic angle but still leaves the latest twelve month period in loss territory.

Curious how this mix of growth forecasts and ongoing losses stacks up over time for Coty? 📊 Read the full Coty Consensus Narrative.

Q2 Swings Back Into Loss Despite Prior Profit

• Q2 2026 delivered a basic EPS loss of US$0.14 and a net income loss excluding extra items of US$126.9 million, which contrasts with Q1 2026 when Coty reported basic EPS of US$0.07 and net income excluding extra items of US$64.6 million.
• For investors leaning toward a bullish angle that focuses on brand strength and recovery, the jump from a Q1 profit to a Q2 loss keeps execution risk in focus, because:
  • Profitability has flipped between profit and loss several times in the last six reported quarters, from a US$409 million loss in Q3 2025 to modest profits in Q1 and Q2 2025.
  • This choppy pattern means the optimistic story about earnings improving over time has to be balanced against the fact that even a single quarter can move from profit to loss quite quickly.

Low 0.4x P/S Versus DCF Fair Value Gap

• Coty trades on a P/S of 0.4x compared with 1.4x for peers and 1.0x for the US Personal Products industry, while the current share price of US$2.66 sits well below the stated DCF fair value of about US$10.26.
• Bulls often point to this combination of low multiples and a sizeable DCF fair value gap as a value case, yet the trailing unprofitability means:
  • The low P/S multiple and cited ~74.1% discount to DCF fair value are grounded in expectations that the forecast 80.34% yearly earnings growth and return to profitability will be achieved.
  • The same metrics can also be read more cautiously, because the valuation gap is measured against models and comparisons while the latest twelve month figures still show a US$543.4 million loss.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Coty's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Coty is still working through uneven profitability, with trailing twelve month losses and a recent swing back into a quarterly EPS loss keeping risk elevated.

If that volatility makes you cautious, it could be worth checking out 85 resilient stocks with low risk scores to focus on companies where earnings patterns and risk profiles may be more predictable.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.