Ulta’s Q1 Report Primes It for a Beauty of a Rebound

Ulta Beauty delivered a strong Q1 with 11.1% revenue growth to $3.16 billion, beating expectations by 130 basis points. The company expanded margins by 100 bps, grew operating income 11.6%, and raised its 2026 earnings outlook. With institutions accumulating shares, a $651 consensus price target, and the stock trading at only 7X its 10-year earnings outlook, analysts expect significant upside potential as the company executes on store expansion, international growth, and acquisitions.