Colgate-Palmolive Company (CL) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 4.6% to $5,369M and organic sales increased 3.6%, with volume up 1.7% and pricing up 2.0%.

• Growth reached all four categories and four of five divisions; worldwide volume growth improved sequentially for a fourth consecutive quarter.

• Base Business diluted EPS rose 7% to $0.97; 9M free cash flow before dividends increased 7% to $2,513M, and $2.2B was returned to shareholders year to date.

Financial highlights

• Q3 GAAP gross profit was $3,233M and gross margin increased 80 bps to 60.2%; Base Business gross margin rose 90 bps to 60.3%.

• Q3 GAAP operating profit rose 3% to $1,088M; Base Business operating profit increased 5%.

• Q3 GAAP net income attributable to shareholders was $751M and diluted EPS was $0.94; Base Business diluted EPS was $0.97.

• 9M net sales increased to $16,055M from $15,152M; reported operating profit was $3,069M and Base Business operating profit was $3,396M.

• Q3 advertising expense rose to $775M from $674M; advertising increased 130 bps as a share of sales.

Outlook and guidance

• FY2026 net sales growth guidance narrowed to 4%–5% from 2%–6%, including a low-single-digit positive FX impact; organic sales growth is expected broadly in line with 9M performance.

• GAAP EPS growth is still expected to be double digits; Base Business EPS growth guidance increased to 5%–7% from mid-single digits.

• GAAP and Base Business gross profit margin are now expected to increase YoY, versus prior expectations of flat; advertising is expected to increase in dollars and as a share of sales.

• The private-label pet food exit is expected to reduce FY sales growth by ~30 bps; the exit reduced Q3 organic sales growth by 0.2 percentage points.

• Category softness is expected through the balance of 2026; FY cost inflation remains within the original $300M± range, with tariffs expected to peak in Q4.