Coty has entered fiscal 2026 in a state of deliberate self-reconstruction, with two material asset actions and a refreshed strategic framework reshaping the equity story. The sale of the remaining Wella stake to KKR closed in December 2025. The July 2026 announcement to return the Gucci Beauty license to Kering pulls a meaningful revenue and profit tail forward. Coty closed fiscal 2026 with reported net revenues of $5,806.6M. Free cash flow came in at $348.2M for the fiscal year. The portfolio simplification theme is the dominant narrative thread. Coty carried $1.0B of Wella-related equity investment at the start of the fiscal year, and the disposal plus the announced Gucci transfer collectively reshape roughly one-fifth of the franchise over a six-month window.
The investment debate now sits squarely on the credibility of the Coty.Curated execution framework rather than on near-term reported earnings. The franchise generates cash today while restructuring. Operating cash flow reached $537.8M for fiscal 2026. The adjusted EBITDA run-rate compressed roughly 22% versus the prior fiscal year. The asymmetric setup favors patient capital that can underwrite a transitional year in fiscal 2027. The interim CEO structure adds a near-term management variable to an already complex execution profile. Investors should focus on the strategic review outcome and the portfolio-addition scaling pace as the two principal signals.