Colgate-Palmolive Company
CL · NYSE
Dec 2026
Next quarter
Expected to report Jan 29, 2027 — estimated from last year’s reporting date.
Consensus is $0.97 EPS for Dec 2026 across 9 estimates, ranging $0.93 to $0.98.
CL Sep 2026
- 5.43%
- $0.92
- $0.97
- —
- $5.37B
Reported results
- $5.37B
- 60.22%
- $1.09B
- 20.26%
- $751.00M
- $0.94
Highlights
- EPS beat: Base Business diluted EPS was $0.97, up 7% year over year and 5.4% above the $0.92 consensus; GAAP diluted EPS was $0.94, up 3%.
- Sales growth: Net sales rose 4.6% to $5.369 billion, while organic sales grew 3.6%; volume contributed 1.7%, pricing 2.0% and foreign exchange 1.0%.
- Margin resilience: GAAP gross margin expanded 80 basis points to 60.2%, or 90 basis points to 60.3% on a Base Business basis, despite roughly $300 million of full-year raw-material inflation.
- Guidance raised: Full-year sales growth is now expected at 4%–5% versus 2%–6% previously; Base Business EPS growth is now 5%–7% versus mid-single digits, with gross margin expected to increase rather than remain roughly flat.
- Regional divergence: Organic sales grew in four of five divisions; Latin America rose 6.0%, EMEA 2.7%, Asia Pacific 4.6% and Hill’s 5.7%, while North America declined 1.6%.
- Hill’s momentum: Pet Nutrition sales increased 5.6% to $1.205 billion, with 5.7% organic growth; management cited strength in therapeutic products, cat and wet food.
- Investment and productivity: Advertising increased 15% to $775 million, or 14.4% of sales; funding-the-growth productivity offset 290 basis points of material-cost pressure.
- Cash generation: Nine-month operating cash flow was $2.913 billion and free cash flow before dividends was $2.513 billion; the company returned $2.2 billion to shareholders year to date.
Analysis
Colgate-Palmolive delivered another quarter of sales and earnings growth, with Base Business EPS of $0.97 beating the $0.92 consensus by 5.4%; GAAP diluted EPS was $0.94. Net sales increased 4.6% year over year to $5.369 billion, and organic sales rose 3.6%. Versus Q2 FY2026, revenue was broadly flat at $5.369 billion versus $5.36 billion, while GAAP operating income increased to $1.088 billion from $1.02 billion, net income to $751 million from $693 million and diluted EPS to $0.94 from $0.86. Year over year, GAAP operating income rose 3% and net income 2%, while operating margin slipped 30 basis points to 20.3%; Base Business operating margin increased 20 basis points to 20.8%.
The defining feature was margin expansion despite persistent input-cost pressure: productivity, pricing and mix offset higher materials, while advertising rose 15% to $775 million. Growth was broad internationally and at Hill’s, but North America remained weak, with organic sales down 1.6% and volume down 3.7%. Management narrowed full-year sales guidance to 4%–5% growth and lifted its Base Business EPS growth outlook to 5%–7%, while now expecting gross margin to rise. It described costs as elevated into Q4 and early 2027, and did not provide 2027 guidance.
Sales and earnings
- Reported sales: Net sales reached $5.369 billion, up 4.6% from $5.131 billion a year earlier. Organic growth was 3.6%, including a 0.2-point drag from lower private-label pet-food sales; volume added 1.7%, pricing 2.0% and FX 1.0%.
- Profit measures: GAAP operating income increased 3% to $1.088 billion and net income rose 2% to $751 million. GAAP diluted EPS was $0.94 versus $0.91 a year ago; Base Business EPS was $0.97 versus $0.91.
- Sequential comparison: Revenue was nearly unchanged from Q2 FY2026’s $5.36 billion, while operating income rose from $1.02 billion, net income from $693 million and diluted EPS from $0.86.
Margin and cost offsets
- Gross margin: GAAP gross margin increased 80 basis points year over year to 60.2%; excluding $5 million of program charges, Base Business margin rose 90 basis points to 60.3%.
- Cost bridge: Management said funding-the-growth productivity contributed a 290-basis-point offset to material inflation, pricing added 80 basis points and mix 20 basis points, against a 300-basis-point headwind from raw and packaging materials.
- Operating margin: GAAP operating margin fell 30 basis points to 20.3%, while Base Business operating margin rose 20 basis points to 20.8%. SG&A grew 7% to $2.111 billion, including advertising investment up $101 million and overhead up $30 million on a Base Business comparison.
- Investment trade-off: Advertising rose 15% to $775 million, equal to 14.4% of sales versus 13.1% a year earlier. Management cited overhead efficiencies of 90 basis points, partly offset by 30 basis points of higher logistics costs.
Regional growth split
- North America: Organic sales declined 1.6%, with volume down 3.7% and pricing up 2.2%; operating profit fell 11% to $177 million and margin contracted 210 basis points to 19.5%. Management described the U.S. turnaround as ongoing, centered on premium innovation, stronger marketing and go-to-market changes.
- International markets: Latin America organic sales grew 6.0% and operating profit 17% to $392 million; EMEA organic sales rose 2.7% and operating profit 8% to $262 million. Asia Pacific organic sales increased 4.6%, though operating profit declined 1% to $211 million.
- Category position: Year-to-date global toothpaste share was 41.4%, up 0.3 points, and manual toothbrush share was 33.1%, up 0.8 points. Toothpaste share improved in Latin America and EMEA but fell in North America and Asia Pacific.
Hill’s pet nutrition
- Quarterly growth: Hill’s sales rose 5.6% to $1.205 billion, with organic sales up 5.7% including a 0.7-point drag from lower private-label pet-food sales. Volume grew 1.8% and pricing 3.9%.
- Growth drivers: Management said therapeutic products performed well, including Prescription Diet dog up mid-single digits and Prescription Diet cat up double digits. Cat and wet products were strong; dog dry remained flat to down as consumers shifted toward smaller pets.
- Investment and margins: Hill’s gross margin increased 170 basis points, while operating profit rose 5% to $267 million and operating margin edged down 20 basis points to 22.2%. Management attributed the slight margin decline to investment in advertising, innovation and the measured Fresh-food rollout.
Outlook and cash
- 2026 sales outlook: Net sales growth guidance narrowed to 4%–5% from 2%–6%, including a low-single-digit positive FX impact. Organic sales growth is expected to be broadly in line with the nine-month performance; the company reported nine-month organic growth of 3.0%.
- 2026 profit outlook: Management now expects GAAP and Base Business gross margin to increase, versus roughly flat previously. Base Business EPS growth is forecast at 5%–7%, up from mid-single digits; GAAP EPS is still expected to grow by double digits.
- Near-term pressures: Management expects commodity costs to remain elevated through Q4 and early 2027; it described full-year inflation as roughly in the original $300 million range. Q4 logistics costs are expected to be the highest of the year, and 2027 guidance will come in the first quarter of next year.
- Cash and returns: Nine-month operating cash flow increased to $2.913 billion from $2.745 billion, and free cash flow before dividends reached $2.513 billion versus $2.358 billion. The company returned $2.2 billion to shareholders year to date.
