Natura & Co reported its first-quarter 2026 earnings with an EPS of $0.136, beating the forecast of $0.082 by 65.85%. However, revenue missed expectations at $4.75 billion versus $4.8 billion.
Despite the positive EPS surprise, the stock dropped 7.3% in after-hours trading to close at $9.91, near its 52-week low. Revenue in Brazil fell 5.5%, with the Natura brand down 3%.
The company attributed the EPS beat to effective cost management. Management reaffirmed 2026 commitments for margin expansion and cash generation, noting that restructuring expenses will decline and operational efficiencies will improve.
During the earnings call, analysts questioned the sustainability of profitability amid revenue challenges. Management emphasized strategic cost management and market share recovery, particularly in Brazil and Argentina.
