EssilorLuxottica: Margin Strength Supports A Higher Target Price

Despite Q2 revenue coming in slightly below consensus, EssilorLuxottica delivered stronger-than-expected operating leverage, with adjusted EBIT margin reaching 18.6% versus market expectations of approximately 16.5%. AI-glasses revenue nearly doubled in Q2, while there is still limited evidence that the category is replacing traditional eyewear purchases. Myopia-management sales increased 24% in Q2, while the partnership with Applied Materials strengthens EssilorLuxottica’s position in next-generation smart eyewear and should improve product scalability over time. We believe higher earnings support upside in the share price. So, we confirmed our buy rating.

On 28/07/2026, after market hours, EssilorLuxottica (ESLOF) (ESLOY) reported its H1 results. These results are particularly important because, unlike the usual Q1 update, when the company only reports top-line sales by geography and segment.