Q1 2027 results set the stage for Ulta Beauty

Ulta Beauty (ULTA) has opened fiscal 2027 with Q1 revenue of US$3.2b and basic EPS of US$7.78, setting a clear benchmark for how the rest of the year might shape up for the specialty retailer. The company has seen quarterly revenue range from US$2.8b to US$3.9b over the past year, while basic EPS has moved between US$5.16 and US$8.05. This gives investors a solid run of earnings to measure against the latest print. With trailing twelve month net profit margins easing from 10.5% to 9.4%, this update puts the focus squarely on how much profit Ulta can keep converting from its sales base.

See our full analysis for Ulta Beauty.

With the headline numbers on the table, the next step is to see how they compare with the widely followed stories around Ulta, from growth expectations to concerns about pressure on margins.

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Trailing EPS of US$26.75 shows consistent profitability

• Over the last twelve months, Ulta generated basic EPS of US$26.75 on US$12.7b of revenue and US$1.19b of net income, giving you a clearer picture of earnings power beyond a single quarter.
• Consensus narrative highlights wellness expansion, exclusive partnerships and a curated marketplace as key drivers for long term growth, and these ideas line up with the steady trailing revenue base of US$12.7b but need to be weighed against the recent one year decline in earnings flagged in the analysis.
  • The same store sales growth figures provided for 2026, ranging from 2.9% to 6.7%, fit the story of demand support for wellness and new brands, yet the trailing net margin of 9.4% versus 10.5% a year earlier shows that not all of that demand is turning into extra profit.
  • Analysts expecting revenue growth of roughly 5.8% a year and EPS of US$34.64 by 2029 are effectively assuming that this US$12.7b revenue and US$1.19b net income base can support moderate expansion even as cost pressures and competition remain in play.

Net margin slips from 10.5% to 9.4%

• On a trailing basis, Ulta converted US$1.19b of net income from US$12.7b of revenue, which works out to a 9.4% net profit margin compared with 10.5% a year earlier.
• Bears argue that rising store costs, wage inflation and heavier digital spending could keep squeezing profitability, and the step down in margin alongside Q1 2027 net income of US$340.5m on US$3.16b of revenue gives those concerns some support.
  • The bearish narrative talks about ongoing SG&A pressure from a large store base and higher rent and payroll, which fits with margin drifting from 10.5% to 9.4% even though trailing revenue has grown from US$11.3b to US$12.7b over the periods shown.
  • At the same time, the bearish case assumes margins ease only modestly from 9.3% to 9.0% over the coming years, and the current 9.4% level shows Ulta still generates healthy profit per dollar of sales despite these cost headwinds.

Bears who point to margin pressure and rising costs might be underestimating how a still solid 9.4% net margin and trailing EPS of US$26.75 support ongoing investment capacity as Ulta adapts to e commerce and wellness trends. 🐻 Ulta Beauty Bear Case

P/E of 17x and DCF fair value above price

• Ulta trades on a trailing P/E of 17x versus 20.9x for the US specialty retail industry and 27.5x for peers, while the provided DCF fair value of US$538.86 sits above the current share price of US$471.21.
• Bulls point to this relative valuation gap and the DCF fair value as support for upside, and the trailing net income of US$1.19b and EPS of US$26.75 give those arguments a concrete earnings base.
  • The bullish view that revenue could grow around 6.9% a year with margins rising from 9.3% to 9.7% contrasts with the recent slip from 10.5% to 9.4%, so investors need to decide whether current cost pressures are temporary or more persistent.
  • Analysts in the dataset are, on average, projecting meaningful upside from a price of US$471.21 toward a consensus target of US$633.08, which aligns with the idea that a 17x P/E and a DCF fair value above the market price reflect a valuation discount against Ulta’s recent earnings quality.

Bulls who focus on Ulta’s 17x P/E, US$1.19b of trailing earnings and DCF fair value above today’s price see a company that the market prices more cautiously than its recent profitability might suggest. 🐂 Ulta Beauty Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ulta Beauty on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bulls and bears both finding support in the recent numbers, it makes sense to look through the data yourself soon and decide where you stand. To see what investors are currently optimistic about, check the 3 key rewards.

See What Else Is Out There

Ulta’s slip in net margin from 10.5% to 9.4% and recent one year earnings decline highlight that profitability strength is not guaranteed to hold.

If that earnings pressure makes you cautious, it is worth lining up Ulta against companies screened for resilience and consistency by checking the 63 resilient stocks with low risk scores.

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.