Colgate-Palmolive Company (CL) Q2 2026 earnings summary

Executive summary

• Achieved strong top- and bottom-line growth in Q2 2026, with net sales up 4.9% to $5.4 billion and organic sales up 2.4%, despite a 0.4% drag from exiting private label pet food.

• Base Business EPS increased 8% to $0.99, while GAAP EPS declined 5% to $0.86 due to restructuring charges; adjusted operating profit rose 5%.

• Gross profit margin improved by 140 basis points to 61.5% year-over-year, reflecting cost savings and higher pricing.

• Strong broad-based results across most categories and divisions, with sequential improvement in worldwide organic volume growth for the third consecutive quarter.

• Strategic focus on premium, science-led innovation, omni-channel demand generation, and operational flexibility positions the company for continued performance.

Financial highlights

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

• Gross profit margin: 61.5% in Q2 2026 (+140 bps year-over-year); operating profit margin: 19.0% (GAAP), 21.4% (adjusted/Base Business).

• Base Business EPS rose 8% to $0.99; GAAP EPS was $0.86.

• Free cash flow increased 18% year-to-date; net cash from operations was $1,742 million in H1 2026.

• $1.4 billion returned to shareholders via dividends and buybacks in the first half of 2026.

Outlook and guidance

• Full-year 2026 net sales expected to increase 2%–6%, with organic sales growth guidance at 1%–4%, reflecting the exit from private label pet food.

• Gross profit margin now expected to be flat year-over-year, improved from previous guidance.

• Base Business EPS growth guidance raised to mid-single digits; GAAP EPS expected to grow double digits.

• Advertising spend to remain elevated as a percentage of sales and in dollar terms, with a 15% increase in Q2 2026.

• Management anticipates persistent macroeconomic and geopolitical challenges, including inflation, supply chain pressures, and volatile consumer demand.