Ulta Beauty Stock Climbs 1.66% After Beating Earnings Estimates, Placing 479th with $290M in Trading Volume

Market Overview

On February 26, 2026, Ulta Beauty (ULTA) ended the day up by 1.66%, surpassing its recent trading patterns. The stock saw a trading volume of $290 million, placing it 479th in daily activity rankings. Although shares dipped by 2.02% during regular hours, they bounced back in after-hours trading, signaling investor confidence ahead of the upcoming fourth-quarter and fiscal 2025 earnings announcement set for March 12. Ulta has delivered a 14.98% return since the start of the year and an impressive 89.68% gain over the past twelve months, highlighting its strength despite market fluctuations.

Main Growth Factors

Ulta Beauty’s strong recent results are largely attributed to its outstanding third-quarter 2025 performance, where both earnings and revenue exceeded expectations. The company posted an earnings per share (EPS) of $5.14, beating the anticipated $4.52, and generated $2.86 billion in revenue, surpassing the forecasted $2.7 billion. Net sales climbed 12.9% year-over-year to $2.9 billion, with comparable sales up 6.3%. These achievements reflect Ulta’s success in leveraging its omnichannel approach and broadening its product range, including its own brands and professional beauty services.

A significant driver behind Ulta’s upward momentum is its strategic growth initiatives. In the third quarter of 2025, Ulta opened 28 new locations, bringing its total store count to 1,500. The company also improved its gross margin by 70 basis points to 40.4%. With a profit margin of 9.93%, Ulta demonstrates effective pricing and cost control. Analysts point to Ulta’s expansion and margin improvement as key advantages in the competitive beauty retail landscape, especially as it continues to outperform rivals such as Bed Bath & Beyond and Sally Beauty.

Leadership’s optimistic outlook has further strengthened investor confidence. CEO Kecia Steelman highlighted Ulta’s capacity to “capture additional market share” through strategies like international growth and new product introductions. For fiscal 2025, the company anticipates net sales of $12.3 billion and projects full-year EPS between $25.20 and $25.50. These targets are consistent with Ulta’s track record of double-digit revenue growth since 2024, including a 16.52% EPS beat in Q2 2025 and a remarkable 139.63% surprise in Q1 2024.

Despite these strengths, Ulta’s stock has experienced volatility. In the second quarter of 2025, shares dropped 7.7% after a 15.83% EPS beat, due to uncertainty around future guidance. This underscores the market’s sensitivity to management’s communication of strategic direction. Recent positive momentum, including a 7.2% gain over the past month, reflects renewed faith in Steelman’s leadership and the company’s emphasis on customer loyalty and personalized services.

Outlook

The upcoming March 12 earnings release will be a key event. With guidance for fourth-quarter comparable sales growth of 2.5–3.5% and full-year growth of 4.4–4.7%, Ulta needs to show continued demand despite broader economic challenges. TD Cowen analysts recently increased their price target to $775 from $725, citing Ulta’s “strong execution and lasting competitive edge in beauty retail.” However, with a forward P/E of 25.19 and a debt-to-equity ratio of 97.78%, investors will be watching closely how the company manages its leverage and capital allocation.

In conclusion, Ulta Beauty’s share performance is fueled by consistent earnings beats, operational efficiency, and strategic leadership. While short-term fluctuations remain, the company’s solid fundamentals and clear direction make it a prominent force in the beauty industry, with future growth hinging on its ability to sustain momentum and expand internationally.