Fashion brand Ralph Lauren (NYSE:RL) reported Q2 CY2026 results topping the market’s revenue expectations, with sales up 14% year on year to $1.96 billion. Guidance for next quarter’s revenue was better than expected at $2.12 billion at the midpoint, 0.6% above analysts’ estimates. Its non-GAAP profit of $4.59 per share was 6% above analysts’ consensus estimates.
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Ralph Lauren (RL) Q2 CY2026 Highlights:
- Revenue: $1.96 billion vs analyst estimates of $1.87 billion (14% year-on-year growth, 4.9% beat)
- Adjusted EPS: $4.59 vs analyst estimates of $4.33 (6% beat)
- Revenue Guidance for Q3 CY2026 is $2.12 billion at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 17.5%, up from 15.9% in the same quarter last year
- Free Cash Flow was $285.9 million, up from -$11.2 million in the same quarter last year
- Constant Currency Revenue rose 13% year on year (11% in the same quarter last year)
- Market Capitalization: $22.66 billion
Company Overview
Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Ralph Lauren’s sales grew at a weak 9.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Ralph Lauren’s annualized revenue growth of 12.1% over the last two years is above its five-year trend, which is encouraging. 
We can dig further into the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 10.9% year-on-year growth. Because this number aligns with its reported revenue growth, we can see that foreign exchange has not had a meaningful impact on topline. 
This quarter, Ralph Lauren reported year-on-year revenue growth of 14%, and its $1.96 billion of revenue exceeded Wall Street’s estimates by 4.9%. Company management is currently guiding for a 5.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 4.4% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and indicates its products and services will face some demand challenges.
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Operating Margin
Ralph Lauren’s operating margin has risen over the last 12 months and averaged 14.8% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business.
This quarter, Ralph Lauren generated an operating margin profit margin of 17.5%, up 1.6 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Ralph Lauren’s EPS grew at 24.7% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 9.6% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
In Q2, Ralph Lauren reported adjusted EPS of $4.59, up from $3.77 in the same quarter last year. This print beat analysts’ estimates by 6%. Over the next 12 months, Wall Street expects Ralph Lauren’s full-year EPS to grow 9.5% from $17.40 to $19.06.
Key Takeaways from Ralph Lauren’s Q2 Results
We enjoyed seeing Ralph Lauren beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $380.63 immediately after reporting.
Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).