Coty shares fall 15.25% after-hours as Q2 earnings miss, declining organic sales, and margin pressures weigh on investor confidence.

Coty Inc. (COTY) fell 15.25% in after-hours trading following the release of its Q2 fiscal 2026 earnings report, which revealed a significant earnings miss and deteriorating profitability. The company reported adjusted earnings of $0.14 per share, below the $0.18 consensus estimate, driven by a 3% year-over-year decline in organic revenue and a 370-basis-point contraction in adjusted operating margin. Margins were pressured by elevated promotions, tariffs, and soft demand in Consumer Beauty. Despite revenue narrowly beating expectations, the earnings shortfall and weak margin performance raised concerns about Coty’s ability to reverse its declining trend. The stock’s sharp after-hours drop aligned with broader market reactions to the earnings report and strategic challenges highlighted in recent news, including leadership changes and ongoing portfolio reviews.