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Sally Beauty Reports Solid Q2 Results, Tightens 2026 Outlook

Story Highlights
  • Sally Beauty posted modest Q2 2026 sales growth, higher margins and earnings, strong cash generation and reduced leverage through debt repayment and share buybacks.
  • The company saw mixed segment performance but narrowed full-year sales guidance while reaffirming profit, cash flow and investment targets, underscoring confidence in its growth strategy.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sally Beauty Reports Solid Q2 Results, Tightens 2026 Outlook

Meet Samuel – Your Personal Investing Prophet

An announcement from Sally Beauty ( (SBH) ) is now available.

On May 11, 2026, Sally Beauty Holdings reported that second-quarter fiscal 2026 net sales rose 2.3% year over year to $903 million, with comparable sales up 1.3% and global e-commerce revenue advancing 13% to $108 million. The company expanded its GAAP gross margin by 70 basis points to 52.7%, lifted GAAP diluted EPS 13% to $0.43, generated $73 million in operating cash flow and $44 million in free cash flow, repaid $20 million of term loan debt, and spent $25 million on share repurchases, ending the quarter with net leverage of 1.5x.

Segment results showed low-single-digit sales growth at the Sally Beauty unit and essentially flat revenue at Beauty Systems Group, with both segments posting solid operating margins. Management tightened its full-year 2026 net sales guidance to a narrower range of $3.725 billion to $3.75 billion while reaffirming targets for comparable sales, adjusted operating earnings, adjusted EPS, capital expenditures and free cash flow, signaling confidence in the company’s ability to sustain profitable growth and maintain balance sheet discipline.

The most recent analyst rating on (SBH) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Sally Beauty stock, see the SBH Stock Forecast page.

Spark’s Take on SBH Stock

According to Spark, TipRanks’ AI Analyst, SBH is a Neutral.

SBH scores as a mid-range opportunity: improving operating performance and cash generation are tempered by balance-sheet leverage, while technicals are constructive and valuation is attractive (low P/E). The latest earnings call adds support via a raised EPS floor and continued margin/cash-flow execution, but flat comps and category/promotional pressures remain key risks.

To see Spark’s full report on SBH stock, click here.

More about Sally Beauty

Sally Beauty Holdings, Inc., based in Plano, Texas, operates in the beauty retail and distribution industry with a focus on professional hair color and related beauty products. The company serves both retail consumers and professional stylists through its Sally Beauty and Beauty Systems Group segments, and is increasingly leveraging global e-commerce, which accounted for 12% of net sales in the latest quarter.

Average Trading Volume: 1,446,276

Technical Sentiment Signal: Hold

Current Market Cap: $1.36B

Find detailed analytics on SBH stock on TipRanks’ Stock Analysis page.

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