Colgate-Palmolive Company (CL) Q2 2026 earnings summary

Executive summary

• Net sales rose 4.9% year-over-year in Q2 2026 to $5,361 million, with organic sales up 2.4% despite a 0.4% drag from lower private label pet food sales.

• Gross profit margin improved by 140 basis points to 61.5%, reflecting cost savings and higher pricing, partially offset by increased raw material costs.

• Base Business EPS increased 8% to $0.99, while GAAP EPS declined 5% to $0.86.

• Strong broad-based top- and bottom-line results, with sequential improvement in worldwide organic volume growth for the third consecutive quarter.

• Significant investment in advertising, up 15% year-over-year, supporting long-term brand health and category growth.

Financial highlights

• Q2 2026 net sales: $5,361 million (+4.9% year-over-year); six-month net sales: $10,686 million (+6.6%).

• Q2 2026 gross profit: $3,296 million; gross margin: 61.5%.

• Q2 2026 operating profit: $1,016 million (GAAP); $1,145 million (adjusted).

• Free cash flow before dividends for the first half was $1,476 million; net cash from operations rose 17% to $1,742 million in H1 2026.

• Base Business EPS rose 8% year-over-year; global toothpaste market share up 20 basis points to 41.3%.

Outlook and guidance

• Full-year 2026 net sales expected to increase 2% to 6%, including a low-single-digit positive FX impact.

• Organic sales growth guidance maintained at 1% to 4%, reflecting the exit from private label pet food.

• Gross profit margin now expected to be roughly flat for the year (previously guided down).

• Base Business EPS growth guidance raised to mid-single digits; advertising spend to remain elevated.

• Management expects continued macroeconomic and geopolitical challenges, including inflation and supply chain pressures.