Ulta Beauty Shares Rally 1.66% on Earnings Outperformance Rank 479th in $290M Trading Volume

Market Snapshot

On February 26, 2026, Ulta Beauty (ULTA) closed with a 1.66% increase, outperforming its recent trading trends. The stock’s volume totaled $0.29 billion, ranking it 479th in daily trading activity. Despite a 2.02% decline in regular trading hours, the shares rebounded in after-hours trading, reflecting investor optimism ahead of its upcoming fourth-quarter and fiscal 2025 earnings report scheduled for March 12. The company’s year-to-date return of 14.98% and a 12-month gain of 89.68% underscore its resilience in a volatile market.

Key Drivers

Ulta Beauty’s recent performance is anchored by its strong earnings and revenue growth in Q3 2025, which exceeded expectations. The company reported earnings per share (EPS) of $5.14, surpassing the forecast of $4.52, and revenue of $2.86 billion, outpacing the projected $2.7 billion. Net sales surged 12.9% year-over-year to $2.9 billion, with comparable sales rising 6.3%. These results highlight Ulta’s ability to capitalize on its omnichannel strategy and expanding product offerings, including private-label brands and professional beauty services.

A critical factor behind the stock’s momentum is the company’s strategic expansion. Ulta added 28 new stores in Q3 2025, bringing its total locations to 1,500, and improved gross margin by 70 basis points to 40.4%. This operational efficiency, combined with a 9.93% profit margin, underscores its pricing power and cost management. Analysts have noted that Ulta’s store growth and margin expansion are key differentiators in the competitive beauty retail sector, particularly as it continues to outpace peers like Bed Bath & Beyond and Sally Beauty.

Management’s confidence in Ulta’s long-term prospects further bolstered investor sentiment. CEO Kecia Steelman emphasized the company’s “ability to capture additional market share” through strategic initiatives, including international expansion and new product launches. For fiscal 2025, Ulta projected net sales of $12.3 billion, with full-year EPS guidance of $25.20–$25.50. These forecasts align with its historical performance, as the company has consistently delivered double-digit revenue growth since 2024, including a 16.52% EPS beat in Q2 2025 and a 139.63% surprise in Q1 2024.

However, the stock’s trajectory is not without volatility. In Q2 2025, Ulta’s shares fell 7.7% following a 15.83% EPS beat but a lack of clarity on future guidance. This highlights the market’s sensitivity to management’s communication of strategic priorities. Recent bullish momentum, including a 7.2% return in the past month, reflects renewed confidence in Steelman’s leadership and the company’s focus on customer retention through loyalty programs and personalized services.

Looking ahead, the March 12 earnings report will be pivotal. With Q4 comp growth guidance of 2.5–3.5% and full-year comparable sales growth of 4.4–4.7%, Ulta must demonstrate sustained demand amid macroeconomic headwinds. Analysts at TD Cowen recently raised their price target to $775 from $725, citing the company’s “strong execution and durable moat in beauty retail.” Yet, with a forward P/E ratio of 25.19 and a high debt-to-equity ratio of 97.78%, investors will closely monitor leverage management and capital allocation decisions.

In summary, Ulta Beauty’s stock performance is driven by a combination of earnings outperformance, operational scalability, and leadership vision. While short-term volatility persists, the company’s robust fundamentals and strategic clarity position it as a key player in the beauty sector, with upside potential contingent on its ability to maintain growth and execute its international expansion plans.