Colgate-Palmolive Company (CL) Q3 2025 earnings summary

Executive summary

• Net sales rose 2.0% year-over-year to $5.1 billion in Q3 2025, with organic sales up 0.4% despite a 0.8% drag from exiting private label pet sales.

• GAAP EPS was $0.91, flat year-over-year; Base Business EPS also flat.

• Maintained global market leadership in toothpaste (41.2% share) and manual toothbrushes (32.4% share) year-to-date.

• Launched Strategic Growth and Productivity Program and transitioned to a 2030 strategic plan focused on innovation, AI, and supply chain flexibility.

• Achieved 28th consecutive quarter of organic sales growth, with pricing up 2.3% in Q3.

Financial highlights

• Gross profit margin declined 170 basis points year-over-year to 59.4% in Q3 2025, mainly due to higher raw and packaging material costs.

• Operating profit for Q3 2025 was $1,059 million, down 1% year-over-year; operating margin decreased to 20.6%.

• For the first nine months of 2025, net sales were $15,152 million, essentially flat year-over-year; organic sales grew 1.2%.

• Year-to-date free cash flow was $2.4 billion; $2.1 billion returned to shareholders via dividends and buybacks.

• Advertising spend was 13.1% of net sales in Q3 2025.

Outlook and guidance

• Full-year 2025 net sales expected to increase low single digits, with a flat to low-single-digit negative FX impact.

• Organic sales growth guidance revised to 1–2% (from 2–4%), reflecting a 70 basis point impact from the pet sales exit.

• Gross profit margin for the year expected to be roughly in line with the year-to-date margin of 60.1%, with sequential improvement in Q4.

• EPS expected to be up low single digits; advertising spend to remain flat as a percentage of net sales.

• Guidance includes $75 million in tariff costs for 2025; further tariffs could increase expenses.