CL

The Procter & Gamble Company PG, also referred to as P&G, enters fiscal 2027 with a sizable earnings hurdle. Management expects 1% to 3% organic sales growth, but higher costs, financing expense, lower non-operating income and currency are set to weigh on profit growth.Those pressures total about $1.4 billion after tax, or 56 cents per share, equal to an 8% drag on fiscal 2026 core EPS. Productivity and brand investment will determine how much of that burden P&G can absorb. The largest headwind is an estimated $1 billion after tax from higher raw-material, energy, transportation and related costs. Much of the pressure is expected in the first half of fiscal 2027.Management expects this cost dynamic to contribute to a decline of at least 5% in first-quarter fiscal 2027 EPS. The outlook assumes an effective Brent crude oil price of about $90 per barrel and reflects higher freight, supplier inflation and other supply-chain premiums. Procter & Gamble Company (The) price-consensus-eps-surprise-chart | Procter & Gamble Company (The) Quote P&G expects higher net interest expense to reduce fiscal 2027 earnings by about $150 million after tax. Lower non-operating income is expected to create another $150 million drag.Unfavorable foreign exchange is projected to reduce earnings by roughly $50 million after tax. Together with input costs, these items produce the estimated $1.4 billion after-tax headwind. P&G generated about $2.8 billion of before-tax productivity improvement across cost of goods sold and selling, general and administrative expenses in fiscal 2026. Those savings equaled roughly 340 basis points and helped fund investment.The company is also scaling Supply Chain 3.0, AI-enabled brand-building tools and automated workflows. Colgate-Palmolive Company CL is using productivity while maintaining elevated advertising investment, while Kimberly-Clark Corporation KMB has cited productivity gains as an offset to pricing, cost inflation and supply-chain investment. Efficiency remains a key lever across consumer staples. P&G expects fiscal 2027 all-in and organic sales to rise 1% to 3%. The organic sales outlook includes a 30-50-basis-point drag from brand, product-form and go-to-market discontinuations. Image Source: Zacks Investment Research Zacks estimates call for sales growth of 1.8% in fiscal 2027. Management is targeting organic growth modestly ahead of the markets in which it competes, though slower conditions in North America and Europe limit the cushion for execution shortfalls. P&G plans to maintain spending behind product superiority, packaging and brand communication even as costs rise. That approach supports its growth model but can restrain near-term margin expansion.The fiscal fourth quarter showed that trade-off. Core operating margin declined 130 basis points as 410 basis points of reinvestment, primarily in marketing, more than offset 300 basis points of selling, general and administrative productivity savings. Total productivity savings reached 460 basis points. P&G's fiscal 2027 outlook leaves productivity, pricing and execution carrying much of the burden against a meaningful earnings headwind. Core EPS is still expected to range from unchanged to up 3% from fiscal 2026, implying $6.89 to $7.11 per share.PG currently carries a Zacks Rank #4 (Sell), alongside a Growth Score of C, Value Score of D, Momentum Score of D and VGM Score of D. The Zacks Rank points to weaker near-term earnings-estimate trends, while the Style Scores indicate limited support from growth, value and momentum characteristics. Together, they favor a cautious near-term view without determining the stock's longer-term outcome.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report Colgate-Palmolive Company (CL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Colgate-Palmolive Company CL strengthened its 2026 profit outlook after a second-quarter earnings beat and 140-basis-point gross-margin expansion. Base Business EPS rose 8%, while organic sales growth reflected contributions from both volume and pricing. The update shifts attention to durability. Management is raising the earnings and margin view while keeping advertising elevated, but higher second-half raw-material and tariff costs and continued North American weakness could absorb part of the operating gains. Base Business earnings were 99 cents per share, up 8% year over year and 4.2% above the Zacks Consensus Estimate of 95 cents. Net sales increased 4.9% to $5.36 billion, edging above the consensus mark of $5.35 billion. Colgate-Palmolive Company price-consensus-eps-surprise-chart | Colgate-Palmolive Company Quote Organic sales advanced 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third consecutive quarter, broadening the growth profile beyond pricing alone. GAAP and Base Business gross profit margin expanded 140 basis points to 61.5%. Revenue growth management, productivity, pricing and mix supported the improvement, giving Colgate more room to absorb inflation and fund growth initiatives. Base Business operating profit increased 5% to $1.1 billion, while operating margin edged up 10 basis points to 21.4%. Those gains came despite higher selling, general and administrative expenses and continued brand investment. Management now expects mid-single-digit Base Business EPS growth in 2026, up from its prior low- to mid-single-digit view. It also improved both GAAP and Base Business gross profit margin outlooks to roughly flat year over year from down previously. Image Source: Zacks Investment Research The top-line framework did not change. Colgate still expects net sales growth of 2-6% and organic sales growth of 1-4%, with the latter including the private-label pet food exit. Execution, rather than a higher sales target, is carrying the profit upgrade. Advertising spending increased 15% to $777 million from $678 million a year ago. Management expects investment to remain elevated in the second half, with premium, science-led innovation and omnichannel demand generation central to the strategy. The company is funding growth rather than protecting the new earnings target by cutting brand support. That trade-off matters because raw-material and tariff costs are expected to be higher in the second half than in the second quarter. Latin America delivered 5.3% organic sales growth, Asia Pacific posted 5.2% and Europe, Middle East and Africa rose 2%. North America moved the other way, with organic sales down 3% and organic volume declining 3.9%. The Procter & Gamble Company PG is a useful comparison because its portfolio includes Crest and Oral-B in oral care and major fabric and home-care brands. The Clorox Company CLX provides another household-staples reference point through its cleaning, household and natural personal-care businesses. The second-quarter event improved Colgate's profit setup, but it did not remove the main risks. Margin execution and earnings growth have strengthened, while North America, promotional pressure and higher second-half costs keep the outlook balanced. CL currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B, Momentum Score of B and Value Score of D. The rank is consistent with a hold posture rather than a top-ranked buy signal, while the Style Scores show favorable growth and momentum characteristics but weaker value. The Style Scores complement the Zacks Rank rather than override it. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colgate-Palmolive Company (CL) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Colgate-Palmolive’s second quarter results were met with a cautious market response, as the company’s revenue matched Wall Street’s expectations while non-GAAP profit modestly exceeded consensus. Management attributed the quarter’s performance to continued strength in emerging markets, particularly in India, Brazil, Mexico, and China, as well as resilience in the Hill’s pet nutrition business. However, operating margin contraction and flat sales volumes reflected persistent competitive pressures in the U.S. and the lingering effects of inventory reductions by key retailers. CEO Noel Wallace described the U.S. performance as “not satisfactory,” highlighting the impact of heightened competition and consumer uncertainty on category growth. Is now the time to buy CL? Find out in our full research report (it’s free). Revenue: $5.36 billion vs analyst estimates of $5.35 billion (4.9% year-on-year growth, in line) Adjusted EPS: $0.99 vs analyst estimates of $0.95 (4.5% beat) Operating Margin: 19%, down from 21.1% in the same quarter last year Organic Revenue rose 2.4% year on year (miss) Sales Volumes were flat year on year (-0.2% in the same quarter last year) Market Capitalization: $74.14 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dara Mohsenian (Morgan Stanley) asked about Hill’s pet division resilience and pricing power. CEO Noel Wallace explained that Hill’s is outperforming in a flat U.S. market and emphasized targeted growth in segments like cat and wet food, while cautioning that category pressures persist. Peter Grom (UBS) questioned the strength and sustainability of gross margin gains. Wallace and CFO Stan Sutula attributed margin improvements to core business initiatives and pricing, while warning that future quarters would see increased cost pressures as tariff and raw material costs rise. Lauren Lieberman (Barclays) explored the volume-price balance for the rest of the year. Wallace responded that volume will become more important in the second half, especially in international markets, but categories are unlikely to rebound sharply. Chris Carey (Wells Fargo Securities) probed why Colgate-Palmolive did not raise organic sales guidance. Wallace cited volatility in consumer demand, particularly in North America, and preferred to maintain a prudent outlook despite some positive trends. Kaumil Gajrawala (Jefferies) asked about inventory reductions and the Hill’s Prime fresh launch strategy. Wallace said inventory normalization at retailers would be managed carefully and described a methodical, brand-focused rollout for fresh pet food, aiming for professional endorsement before scaling volume. In upcoming quarters, the StockStory team will closely monitor (1) the effectiveness of expanded premium product launches and stepped-up advertising in North America, (2) Colgate-Palmolive’s ability to manage margin pressures from raw material and tariff costs, and (3) sustained market share gains in emerging markets and the Hill’s division. Progress in digital transformation and AI-driven efficiency initiatives will also be important markers of execution. Colgate-Palmolive currently trades at $91.72, in line with $91.60 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Colgate-Palmolive stock has delivered a 30.8% return over the past five years, yet there is a split in what the valuation tools say today. The Discounted Cash Flow (DCF) intrinsic value estimate points to upside relative to the market price, while traditional market multiples suggest the shares are on the expensive side. Over the last 5 years Colgate-Palmolive has returned 30.8%, which points to a steady but not spectacular payoff for long term holders. The key support for the current valuation is the company’s ability to turn its consumer brands into reliable cash flow, while any pressure on margins or weaker cash conversion may weigh on what investors are willing to pay. The stock only passes 2 of 6 valuation checks, which leans more towards Colgate-Palmolive not being a clear bargain on the broader measures. The issue now is whether the DCF implied upside or the richer market multiples end up being the better guide for where Colgate-Palmolive belongs on a valuation basis. Colgate-Palmolive delivered 12.1% returns over the last year. See how this stacks up to the rest of the Household Products industry. The Discounted Cash Flow (DCF) approach estimates what Colgate-Palmolive is worth based on the cash it can generate for shareholders over time. The model uses latest twelve month free cash flow of about $3.7b and assumes those cash flows continue to grow rather than shrink. On that basis, it arrives at an estimated intrinsic value of about $126 per share. Compared with the current share price, this implies Colgate-Palmolive trades at a discount of roughly 27.7% to what its cash flows suggest. This outcome reflects a business profile that appears mature but still capable of steady cash generation. It also means a lot of the debate for Colgate-Palmolive is whether those cash flow assumptions prove realistic, since small changes can move the DCF value quite quickly. On balance, the Discounted Cash Flow (DCF) workup indicates Colgate-Palmolive stock currently appears undervalued relative to its projected cash flows. Our Discounted Cash Flow (DCF) analysis suggests Colgate-Palmolive is undervalued by 27.7%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Colgate-Palmolive. The P/E ratio is a common way to assess Colgate-Palmolive because earnings are a key focus for consumer staples investors. Colgate-Palmolive currently trades on a P/E of about 35.0x, which is well above the Household Products industry average of roughly 16.6x and also above a peer group average of about 22.3x. A tailored fair P/E ratio for Colgate-Palmolive is estimated at about 21.8x. That is the multiple implied by its earnings profile, size and sector compared with similar companies. The gap between the current 35.0x and this fair level indicates that investors are paying a clear premium for the stock relative to what these benchmarks support. On this P/E basis, Colgate-Palmolive stock currently appears overvalued compared with both its sector and a more tailored fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Colgate-Palmolive valuation split leaves off by spelling out what would need to happen to Colgate-Palmolive's growth, margins and earnings for the stock to be worth materially more or less than today's price, and they sit on the company’s Community page. Rather than focusing on a single multiple or model, each narrative lays out its own set of assumptions so you can compare them with future company results as they are reported. You can add your own narrative on Colgate-Palmolive's stock and present a clear, number-driven case for where its growth, margins and execution go from here. Share your view and be one of the first voices in the Simply Wall St community to track how it holds up as new results come through. Do you think there's more to the story for Colgate-Palmolive? Head over to our Community to see what others are saying! For Colgate-Palmolive, the Discounted Cash Flow (DCF) intrinsic value estimate points to meaningful upside, while the P/E and other market multiples flag the stock as overvalued. That split reflects different focuses. The intrinsic value view leans on the durability and timing of future cash flows, whereas the multiple view centers on how much growth and margin strength investors are already pricing in compared with peers. Given the weak broader valuation checks, the key question from here is whether Colgate-Palmolive can support its current premium with consistent cash generation and margins, or whether the market eventually reins in the multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Colgate-Palmolive (CL) drew investor attention after releasing second quarter 2026 results, reporting sales of US$5.36b and net income of US$693m, while maintaining full year guidance for both net sales and earnings. See our latest analysis for Colgate-Palmolive. Colgate-Palmolive’s latest earnings and steady guidance come after a solid run in the stock, with a year to date share price return of 17.52% and a 1 year total shareholder return of 12.06%, while shorter term share price momentum has been more mixed. If you are reassessing your consumer staples exposure after Colgate-Palmolive’s update, this can be a useful moment to broaden your search and check out 18 top founder-led companies After Colgate-Palmolive’s strong run and solid second quarter update, the real trade off is clear. Do you accept today’s valuation to stay on board, or wait in hope of a softer entry price later on? Colgate-Palmolive’s most followed valuation narrative pegs fair value at $96.68, a little above the recent $91.30 close, which puts a spotlight on what is driving that gap. Read the complete narrative. Read the complete narrative. Want to understand why this narrative supports a higher fair value for Colgate-Palmolive? It highlights steady revenue growth, firmer margins, and a future earnings base that assumes a premium P/E multiple. Curious how those moving parts fit together and what assumptions sit underneath that confidence. Result: Fair Value of $96.68 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Colgate-Palmolive narrative still depends on easing input costs and steady demand in markets like North America and India, where pressure could quickly reshape expectations. Find out about the key risks to this Colgate-Palmolive narrative. The popular Colgate-Palmolive narrative leans on cash flow and a fair value of $96.68, yet the current P/E of 35x tells a different story. It sits well above the peer average of 22.3x, the global household products average of 16.6x, and a fair ratio estimate of 21.8x, which points to meaningful valuation risk if sentiment cools. That wide gap suggests the market is already paying up for perceived quality and resilience. The key question is whether you are comfortable owning Colgate-Palmolive at a price where expectations are already this high, or prefer to wait for the P/E to move closer to that fair ratio. See what the numbers say about this price — find out in our valuation breakdown. With mixed signals on Colgate-Palmolive’s valuation and outlook, it makes sense to move quickly, review the data yourself, and weigh both sides of the story. To help with that, take a closer look at the 3 key rewards and 3 important warning signs If Colgate-Palmolive now feels fully priced, this is the moment to widen your watchlist and uncover fresh ideas that match your risk and income goals. Target resilient cash generators by scanning 55 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect their underlying strength. Build a steadier income stream by reviewing 9 dividend fortresses and see which companies offer higher yields while aiming to keep payouts supported by their finances. Get ahead of the crowd by checking screener containing 19 high quality undiscovered gems where lesser known stocks with sound metrics could offer a different mix of risk and return. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Colgate-Palmolive Company? Here are five stocks we like better. Colgate-Palmolive delivered broad-based Q2 growth, with organic sales increasing across most divisions, gross margin expanding 100 basis points and free cash flow rising 18%. The company returned $1.4 billion to shareholders and increased advertising investment. North America remains a weak spot because of softer categories, retailer inventory reductions and heightened competition. Management plans to expand brand support, emphasize premium innovation and selectively address pricing and promotional gaps to drive second-half improvement. Emerging markets and Hill’s pet nutrition provided important momentum. Hill’s gained share in a roughly flat pet-food market, while Latin America, India and China posted organic growth; the company is also expanding fresh pet food and scaling AI across pricing, marketing and productivity. 3 Dividend Kings With Income, Stability, and a Possible Catalyst Colgate-Palmolive (NYSE:CL) said its second-quarter 2026 results reflected broad-based organic sales growth, gross-margin expansion and higher advertising spending, while executives outlined steps to improve performance in North America amid softer category trends and elevated competition. Chairman, President and Chief Executive Officer Noel Wallace said organic sales grew in four of the company’s five divisions and in three of its four categories. Growth was led by emerging markets, including India, Brazil, Mexico and China, while Europe and the Hill’s pet nutrition business also contributed. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Up-and-Coming Stocks That Could Be the Next NVIDIA “We’re pleased to have delivered another quarter of strong top and bottom-line growth, particularly in the context of continued global volatility,” Wallace said. The company’s free cash flow increased 18% through the second quarter, and it returned $1.4 billion to shareholders, according to Wallace. The company also said John Faucher, executive vice president of M&A and special projects, will retire at the end of September. Wallace said the call was Faucher’s 40th quarterly earnings call with Colgate-Palmolive. → Microsoft Just Flipped the AI Spending Narrative Overnight 3 Sectors That Look Most Vulnerable Ahead of May 15 Colgate-Palmolive reported gross-margin expansion of 100 basis points in the quarter, including a modest benefit from tariff refunds. Wallace said most of the improvement came from the company’s core operations, including pricing, revenue growth management, productivity initiatives and product mix. Chief Financial Officer Stan Sutula said material costs were slightly below the company’s expectations during the quarter, as higher raw-material costs were partially offset by tariff refunds. He said the company does not expect meaningful additional refunds. → Carrier Earnings Could Send the Stock to a New All-Time High Management said it now expects gross margin to be roughly flat for the full year, an improvement from its prior expectation for a decline. Sutula cautioned that raw-material costs and tariffs are expected to be higher in the second half than in the second quarter, although comparisons will be easier year over year. He said oil prices around $90 could make fourth-quarter costs somewhat lower than the company had previously assumed. Wallace said the company has been incorporating expected cost increases into its profit-and-loss planning and is using pricing, revenue growth management and promotional artificial-intelligence tools to protect profitability. The company increased advertising by double digits during the quarter and plans to maintain elevated investment behind its brands. “We believe our efforts in revenue growth management, promo AI, and funding the growth give us the ability to invest in advertising to build our brands while driving profit and EPS growth,” Wallace said. Wallace said the company was not satisfied with its U.S. performance. He attributed part of the weakness to category softness in May, heightened competition and inventory reductions by certain retailers. While category conditions improved in June and remained steadier in July, Wallace said they were still below historical levels. Management said retailer inventory reductions caused shipments to trail consumption in North America, and Wallace said the company has not assumed that retailers will rebuild inventories during the second half. Colgate-Palmolive plans to increase distribution and support for recent launches, including Optic White Pro Series with ActivShine technology and Fabuloso products in new formats. The company also plans to take “surgical” actions in specific categories and retail channels where it identified price and promotional gaps versus competitors. Increase brand support across core U.S. businesses. Expand premium innovation in 2026 and 2027. Address selected price and promotion gaps without broadly escalating promotional activity. Focus on improving market share and delivering sequential improvement in the second half. Wallace said the company is particularly focused on premium opportunities, where it believes it is under-indexed in North America. He pointed to the company’s experience in Asia and Europe, where stronger innovation, premium offerings, go-to-market changes and online expansion have supported improvement. Hill’s continued to outperform the broader pet-food category, according to Wallace. Excluding discontinued private-label business, Hill’s organic sales rose 4%, compared with a category that Wallace characterized as roughly flat, particularly in the U.S. Private-label discontinuations reduced Hill’s volume by 200 basis points. Excluding those discontinuations, volume was approximately flat during the quarter, while the therapeutic business delivered growth in both volume and pricing, supporting mix and gross-margin improvement. Wallace said Hill’s gained traction in cat food, wet food and small-pet offerings, while Science Diet dog food was weaker as consumers shifted toward smaller pets and ownership of larger pets declined. International Hill’s sales rose at a solid mid-single-digit rate, he said. The company is also rolling out fresh pet food in the U.S. following its Prime acquisition. Wallace described the rollout as deliberate and said the company’s initial objective is to establish the brand’s scientific credentials and professional support rather than pursue significant early volume. The offering includes three single-protein diets, with the company emphasizing their intended benefits for digestion, coat condition and overall pet health. Distribution will be phased through professional, pet-specialty and neighborhood veterinary channels rather than launched simultaneously across all retailers. Latin America delivered approximately 5% organic growth, with pricing up 2.8% and volume up 2.6%, Wallace said. Brazil grew at a high-single-digit rate and Mexico grew at a mid-single-digit rate. Management said Colgate Total market shares have been rebuilding, particularly in Brazil, following prior reformulation-related issues. In India, the company reported double-digit growth, supported by both indirect trade and modern trade. Wallace said the company is pursuing premiumization while also maintaining price-pack architectures designed to attract consumers entering its categories. Greater China rose at a mid-single-digit rate, while the Colgate China business delivered mid-single-digit growth and Hawley & Hazel, which includes the Darlie brand, posted low-single-digit organic growth. Wallace said China remains a challenging market due to declining brick-and-mortar sales, rapid e-commerce shifts and aggressive competition, but he highlighted the market’s role in developing digital talent and social-first innovation. Wallace also said Colgate-Palmolive is scaling AI across pricing, productivity, innovation, marketing and data analytics. The company has trained much of its workforce on AI tools, including about 70% of vice presidents in advanced AI training, according to Wallace. He said the company is moving from AI pilots toward broader implementation, including promotional optimization, content creation and more automated internal processes. Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care. The company's core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Colgate-Palmolive Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Colgate-Palmolive (CL) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.21%. A quarter ago, it was expected that this consumer products maker would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Colgate-Palmolive, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $5.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.20%. This compares to year-ago revenues of $5.11 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Colgate-Palmolive shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 8.7%. While Colgate-Palmolive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Colgate-Palmolive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.91 on $5.35 billion in revenues for the coming quarter and $3.81 on $21.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, BBB Foods (TBBB), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This discount retailer is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -38.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BBB Foods' revenues are expected to be $1.42 billion, up 47.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colgate-Palmolive Company (CL) : Free Stock Analysis Report BBB Foods Inc. (TBBB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Colgate-Palmolive (CL) reported revenue of $5.36 billion, up 4.9% over the same period last year. EPS came in at $0.99, compared to $0.92 in the year-ago quarter. The reported revenue represents a surprise of +0.2% over the Zacks Consensus Estimate of $5.35 billion. With the consensus EPS estimate being $0.95, the EPS surprise was +4.21%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Colgate-Palmolive performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Oral, Personal and Home Care- North America: $891 million versus the four-analyst average estimate of $908.99 million. The reported number represents a year-over-year change of -13.2%. Net Sales- Oral, Personal and Home Care- Asia Pacific: $782 million compared to the $770.07 million average estimate based on four analysts. The reported number represents a change of +13.8% year over year. Net Sales- Oral, Personal and Home Care- Europe, Middle East & Africa: $1.12 billion compared to the $1.17 billion average estimate based on four analysts. The reported number represents a change of +51.9% year over year. Net Sales- Oral, Personal and Home Care- Latin America: $1.37 billion compared to the $1.33 billion average estimate based on four analysts. The reported number represents a change of +13.7% year over year. Net Sales- Pet Nutrition: $1.2 billion versus the five-analyst average estimate of $1.19 billion. The reported number represents a year-over-year change of +3.3%. Net Sales- Total Oral, Personal and Home Care: $4.17 billion versus the five-analyst average estimate of $4.17 billion. The reported number represents a year-over-year change of +5.4%. Operating profit- Pet Nutrition: $269 million versus $267.14 million estimated by three analysts on average. Operating profit- Total Oral, Personal and Home Care: $1.08 billion compared to the $1.04 billion average estimate based on three analysts. View all Key Company Metrics for Colgate-Palmolive here>>> Shares of Colgate-Palmolive have returned -3.7% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colgate-Palmolive Company (CL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Organic Sales Growth: Organic sales growth was reported in four of five divisions and three of four categories. Emerging Markets Sales: Sales in emerging markets were up mid-single digits, driven by India, Brazil, Mexico, and China. Free Cash Flow: Free cash flow increased 18% in the second quarter. Shareholder Returns: The company returned $1.4 billion to shareholders during the quarter. Advertising Investment: Advertising spending increased by a double-digit percentage. Gross Margin: Gross margin expanded solidly, before a modest tariff benefit. Earnings Per Share (EPS): Base business EPS came in ahead of expectations. Warning! GuruFocus has detected 3 Warning Sign with CL. Is CL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Colgate-Palmolive Co (NYSE:CL) delivered strong top and bottom-line growth in Q2 2026, with organic sales growth in four of five divisions and three of four categories. Emerging markets led sales growth, up mid-single digits, driven by strong performances in India, Brazil, Mexico, and China. The Hill's Pet Nutrition business continues to outperform the category, delivering solid organic growth of 4% (ex-private label) despite a tough market, with strong performance in therapeutic, wet, cat, and small paws segments. Gross margin expanded by 100 basis points in the quarter, driven by core business initiatives, revenue growth management, and positive mix, leading to an increased full-year gross margin guidance to roughly flat. The company generated strong cash flow, with free cash flow up 18% and $1.4 billion returned to shareholders in the first half of the year. Colgate-Palmolive Co (NYSE:CL) is making significant strides in AI and digital capabilities, including scaling Promo AI tools and investing in data analytics, which is improving ROI on advertising and driving productivity. The company expressed dissatisfaction with its US business performance, citing heightened competition, category softness, and inventory reductions from key retailers. North America shipments were down 3% versus consumption of 1%, indicating significant inventory destocking in the quarter. The pet category remains soft, with the US market roughly flat, and the company noted a decline in the dry dog food business due to a shift in pet ownership trends. Colgate-Palmolive Co (NYSE:CL) faces significant cost inflation and tariff pressures, with cost of goods expected to peak in the back half of the year, creating uncertainty for future margins. The company maintained its organic sales growth guidance despite a strong first half, citing global volatility, consumer uncertainty, and the impact of higher gasoline prices on consumer confidence. The company lost some market share in the US during the quarter, which contributed to the gap between tracked retail sales and reported results. Q: Can you provide perspective on the pet division's performance amid soft category dynamics, the sustainability of Hill's share gains, the ability to continue realizing pricing, and the plans for the Prime fresh food launch? A: Noel Wallace (Chairman, President, and CEO): Hill's delivered solid organic growth of 4% (excluding private label) in a tough market, well above the flat category. We grew in all segments except Science Diet dog, with strong performance in cat, wet, and small paws, and our therapeutic business continues to grow nicely from both volume and pricing. The category has likely bottomed out, but we expect continued pressure. Regarding Prime, we've learned a lot from the Australian launch, particularly around manufacturing fresh products. The US launch is anchored on single proteins with a science-driven, professionally-focused approach. We're not looking to generate significant volume right now but to build the brand and underscore the science-driven nature of the product, with a thoughtful, phased rollout through the balance of the year. Q: Can you unpack the strength in gross margin, which was strong even after backing out tariff refunds, and walk through the phasing for the rest of the year given expectations for peak inflation? A: Noel Wallace (Chairman, President, and CEO): Gross margin was strong, up 100 basis points, with only a modest benefit from refunds. The bulk came from our core business initiatives, including revenue growth management, Promo AI tools, and funding the growth. We don't anticipate more refunds moving forward. We expect cost of goods to peak in the back half of this year along with tariffs. Stanley Sutula (CFO): Q3 is largely locked in line with guidance, while Q4 might be slightly lower given oil in the $90 range. We've raised our gross margin guidance to roughly flat for the year, up from down, driven by strong execution on margin components. Q: How are you thinking about the balance between volume and price mix in the second half, particularly given strength in emerging markets? A: Noel Wallace (Chairman, President, and CEO): We got a lot of pricing in the first half and anticipate being more volume-driven in the back half. We see opportunities for volume growth, particularly internationally in big markets and on the premium side of the business. We're not anticipating categories will inflect differently in the back half and have assumed more or less sustained trends based on June and early July data. Our focus will be on executing new products, driving brand penetration, and delivering a balanced pricing-volume mix, slightly more towards volume. Q: Can you provide an update on the Chinese market, the competitive dynamics, changes in shopping behavior, and the turnaround for Darlie and Colgate? A: Noel Wallace (Chairman, President, and CEO): China is a fascinating market, and we've had all our operating heads visit to learn from the innovation in go-to-market, particularly social media and B2C platforms. Our Colgate China business is consistently delivering mid-single-digit performance with good volume, despite disruption from platform shifts and aggressive competition. We're investing behind both Colgate and Darlie, with unique innovation like Optic White Purple, developed in China with a social-first model, now rolling out globally. Hawley & Hazel was up low single digits with good volume growth driven by B2C and dual-chamber innovation. We're not out of the woods yet, but we have exciting plans for the next six to nine months. The overall market is likely down 1%-2%, but we're executing above those numbers. Q: Why not raise the lower end of the organic sales growth guidance given the strong first-half run rate, and how are you thinking about upside and downside scenarios? A: Noel Wallace (Chairman, President, and CEO): While we had a solid quarter, there are significant uncertainties in the world, including wars, consumer confidence impacts, and volatility in category growth. We saw a significant drop in North America categories in May, which rebounded in June but remains below historical numbers. Despite executing above market growth globally, we didn't want to get too far ahead of ourselves. We're shooting for higher numbers, but given the volatility and consumer uncertainty, particularly from higher gasoline prices, we felt it was prudent to maintain the current guidance. We'll revisit as we move through the back half. Q: Can you elaborate on the US performance, the competitive environment, price points, and how comfortable you are with your positioning for the second half? A: Noel Wallace (Chairman, President, and CEO): We're disappointed with the North America second quarter, impacted by category softness in May, heightened competitive activity, and inventory reductions from key retailers. Consumption was roughly flat while shipments were down 3%, indicating noise from inventory. We're focused on actions we control: stepping up support for premium innovation like Optic White and Fabuloso extensions, addressing select price gaps in certain retailers and categories, and increasing advertising spend in the back half. We'll be thoughtful not to lead pricing down further. We expect sequential improvement through the back half, though not linear. Q: What is driving the strong volume and pricing growth in Latin America, and how sustainable is this performance, especially as you lap the Colgate Total reformulation? A: Noel Wallace (Chairman, President, and CEO): Latin America was up about 5% with a good balance between pricing (up 2.8%) and volume (up 2.6%). Volume has bounced back over the last three quarters, helped by getting the Colgate Total issue behind us and rebuilding share. We have a strong innovation platform across core businesses in Brazil and Mexico, with Brazil up high single digits and Mexico up mid-single digits. All three categories were up, with oral care up high mid-single digits. Colgate Total shares are improving sequentially, particularly in Brazil. FX was a tailwind but volatile, and we don't expect the same tailwind in the second half, so we'll manage pricing and inflation carefully. Q: Is the inventory reduction in North America a one-time event, and how do you manage the messaging for Hill's Prime fresh food versus the core dry food business? A: Noel Wallace (Chairman, President, and CEO): On inventory, retailers adjusted inventories as the market softened in May, and we haven't built into our numbers that they will reload. We're focused on driving consumption and top-line growth. On Prime, we're not entering emerging segments unless we can bring the brand platform to life. The single-protein idea promotes healthy digestion and overall health, integrated into the launch. We're going to the profession with a fresh alternative that consumers are asking for, building demand For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Colgate-Palmolive Company CL posted second-quarter 2026 results, wherein earnings and sales beat the Zacks Consensus Estimate and grew year over year. Results benefited from higher organic sales and gains from strategic efforts. On a Base Business basis (non-GAAP basis), earnings were 99 cents per share, up 8% year over year and beating the Zacks Consensus Estimate of 95 cents by 4.2%.Net sales rose 4.9% to $5.36 billion and came above the consensus mark of $5.35 billion. Organic sales grew 2.4%, supported by a 0.8% increase in organic volume and 1.6% pricing growth. A 2.4% favorable foreign-exchange impact also aided sales. Our model had anticipated organic sales growth of 2.7% for the reported quarter.The company maintained a 41.3% year-to-date share of the global toothpaste market. It also held a 32.7% share of the worldwide manual toothbrush market. These leadership positions support management's strategy of investing in innovation and brand-building initiatives. Colgate expects strong investment levels to continue through the remainder of 2026.Hill's Pet Nutrition net sales rose 3.4%, while organic sales increased 2.1%. Pricing improved 3.9%, but organic volume declined 1.8%, partly reflecting the company's exit from private-label pet food.This Zacks Rank #3 (Hold) company’s shares have gained 4.9% in the past three months compared with the industry’s 2.1% growth. Colgate-Palmolive Company price-consensus-eps-surprise-chart | Colgate-Palmolive Company Quote GAAP and Base Business gross profit margin expanded 140 basis points year over year to 61.5%. The improvement strengthened profitability despite a difficult operating environment and continued spending behind brands.Base Business operating profit increased 5% to $1.1 billion. The adjusted operating margin edged up 10 basis points to 21.4%, showing that stronger gross margin performance and productivity actions helped absorb higher investments.Base Business selling, general and administrative expenses were $2.1 billion, while the adjusted expense rate increased 120 basis points to 39.6% of sales. We had expected selling, general and administrative expenses to increase 30 basis points to 38.7% of sales.Advertising spending climbed 15% to $777 million from $678 million a year ago. Management said elevated investment will continue in the back half as the company focuses on premium, science-led innovation and omnichannel demand generation. North America net sales fell 3% and organic sales also declined 3%, reflecting a 3.9% drop in volume that more than offset 0.9% pricing growth. The region accounted for 17% of total company sales.Latin America remained the strongest growth contributor, with net sales up 13.7% and organic sales rising 5.3%. Volume grew 2.6%, pricing increased 2.8% and foreign exchange contributed 8.4%.Europe, Middle East & Africa net sales increased 3.5%, while organic sales rose 2%. A 3.2% volume gain more than offset a 1.2% pricing decline, and currency added 1.6%.Asia Pacific net sales advanced 4.9% and organic sales grew 5.2%, driven by 4.1% volume growth and 1.1% pricing. Foreign exchange reduced the region's reported sales growth by 0.3%.Our model had expected sales to decline 0.9% year over year in North America, rise 7% in Latin America, jump 6.1% in Europe, Middle East & Africa and rise 7% in Asia Pacific. Net cash provided by operations reached $1.7 billion in the first six months of 2026, up from $1.5 billion a year ago. Free cash flow before dividends increased to $1.5 billion from $1.3 billion.CL ended June with $1.4 billion in cash and cash equivalents and total debt of $7.9 billion. During the first half, the company paid $879 million in dividends and purchased $597 million of treasury shares. Colgate maintained its 2026 net sales growth outlook of 2-6% and organic sales growth guidance of 1-4%. Foreign exchange is still expected to provide a low-single-digit positive impact at current spot rates.Management now expects both GAAP and Base Business gross profit margin to be roughly flat year over year, improving from its prior expectation of a decline. It also raised its Base Business earnings growth forecast to mid-single digits from low- to mid-single-digit growth, while retaining its view for double-digit GAAP earnings growth. United Natural Foods UNFI, which is the leading distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.Medifast, Inc. MED, which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank #2 (Buy). MED missed the average earnings surprise by a sharp margin in the trailing four quarters. The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 25.9% from the year-ago number. Freshpet, Inc. FRPT, which manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats, currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for Freshpet’s current financial-year sales indicates growth of 9.5% from the prior-year level. FRPT delivered a trailing four-quarter earnings surprise of 49.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colgate-Palmolive Company (CL) : Free Stock Analysis Report Freshpet, Inc. (FRPT) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report MEDIFAST INC (MED) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research