Ralph Lauren (RL) has just posted its Q3 2026 numbers, with revenue of US$2.4 billion and basic EPS of US$5.92, supported by net income of US$361.6 million. The company has seen revenue move from US$2.1 billion in Q3 2025 to US$2.4 billion in Q3 2026, while basic EPS shifted from US$4.76 to US$5.92 over the same period. This gives investors a clear view of how the top line and per share earnings are tracking together. With net margin sitting at 11.7% versus 10.1% last year, the story this quarter is very much about how efficiently those sales are being turned into profit.

With the headline figures in place, the next step is to see how these results line up against the widely followed growth, risk, and profitability narratives around Ralph Lauren to understand which views hold up and which are being tested by the latest data.

TTM profits climb to US$918.5 million

• On a trailing twelve month view, Ralph Lauren earned US$918.5 million in net income on US$7.8b of revenue, with TTM EPS of US$14.98 compared with US$11.87 a year earlier in the series provided.
• What stands out for a bullish view is that this TTM profit profile lines up with the idea of a resilient global lifestyle brand. However, the more recent forecasts in the data point to slower annual growth of about 6.5% for earnings and 4.4% for revenue, which is a different pace than the 30.4% year over year earnings growth and 28.4% five year annualized rate cited in the analysis.
• Supporters can point to the progression from US$742.9 million to US$918.5 million of TTM net income across the periods shown as evidence that the business has converted more of its US$7.1b to US$7.8b revenue base into profit.
• At the same time, the forecast step down to mid single digit growth means that past TTM momentum and the 28.4% five year earnings growth do not automatically extend forward. This is an important nuance for a bullish narrative built only on history.

Margins at 11.7% put profit quality in focus

• The reported net margin of 11.7% over the last year compared with 10.1% in the prior year data means more of each revenue dollar in the US$7.8b TTM base is currently flowing through to net income.
• Consensus style thinking that a premium brand needs healthy margins is well served by that 11.7% figure. Yet the same data set highlights that revenue is forecast to rise only 4.4% per year while earnings are expected to grow about 6.5% per year, which invites questions about how much of the recent margin level is already reflected in expectations.
• The combination of 30.4% year over year earnings growth and a 1.6 percentage point margin gap versus the 10.1% prior level backs the idea that profitability has been an important driver of recent results rather than just top line expansion.
• However, with future growth rates in the mid single digits and slower than the US market forecasts of 10.2% revenue and 15.6% earnings, investors have to weigh whether an 11.7% margin represents a steady base or a period of outperformance that may not repeat at the same rate.

P/E of 22.6x and price vs DCF are finely balanced

• Ralph Lauren trades on a trailing P/E of 22.6x, above the US luxury industry average of 20.7x but below the peer group average of 38.4x, and the current share price of US$342.89 sits very close to the DCF fair value of US$342.64 in the data.
• Critics who worry about overpaying can point to that industry premium and the tiny gap between price and DCF fair value. Yet those same figures also show the stock pricing in terms that are lower than the 38.4x peer average, so the bearish case that valuation is stretched rests more on the slower 4.4% revenue and 6.5% earnings growth forecasts than on outright extremes in the multiples cited.
• The near match between US$342.89 trading price and US$342.64 DCF fair value suggests the modelled cash flows in the inputs leave little room for error based purely on that framework, which is often a key talking point for more cautious investors.
• At the same time, the 22.6x P/E sits in the middle of the range defined by the 20.7x industry and 38.4x peer averages, so any bearish claim that the company is an outlier on valuation needs to be weighed against its multi year earnings growth history of 28.4% per year cited in the analysis.

Bears who see the 22.6x P/E and US$342.89 price as full should look closely at how that lines up with the near identical DCF fair value of US$342.

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 Ralph Lauren'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

Ralph Lauren is priced close to its DCF estimate with a 22.6x P/E and forecasts of only mid single digit revenue and earnings growth.

If that mix of full pricing and modest growth expectations feels limiting, you may want to look at our 53 high quality undervalued stocks that pairs stronger value cases with solid fundamentals right now.

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.