COLGATE PALMOLIVE CO (CL): Results of Operations and Financial Condition
COLGATE PALMOLIVE CO (CL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Colgate Announces 2nd Quarter 2026 Results • Net sales increased 4.9%; Organic sales* increased 2.4%, including a 0.4% negative impact from lower private label pet food sales • GAAP EPS decreased 5% to $0.86; Base Business EPS* increased 8% to $0.99 • GAAP Gross profit
How this was made
The 30-second read
Why it matters
Traders can update earnings models based on the new FY gross margin and Base Business EPS growth range, plus the 2Q GAAP vs Base Business divergence and cash flow generation.
Market read
The filing provides fresh, decision-relevant guidance updates (gross margin roughly flat, Base Business EPS mid-single-digit growth) alongside 2Q performance metrics.
What to watch
The guidance change is tied to exit from private label pet food and updated gross margin expectations; investors may focus on whether the margin improvement is sustainable without that mix benefit.
Net sales increased 4.9% and Base Business EPS increased 8%, while GAAP EPS decreased 5%; full-year sales guidance was maintained and gross profit margin and Base Business EPS guidance were updated.
Sales, organic sales, gross profit margin and Base Business EPS increased, but GAAP EPS decreased 5%, North America net sales declined, and Hill’s Pet Nutrition organic volume declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net SalesGAAP | $5,361 | – | +4.9 % |
| EPS (diluted)GAAP | $0.86 | – | -5 % |
| Organic Sales Growthnon-GAAP | +2.4 % | – | – |
| Base Business EPS (diluted)non-GAAP | $0.99 | – | +8 % |
| Gross profit marginGAAP | 61.5% | – | increased 140 basis points |
| Base Business Gross profit marginnon-GAAP | 61.5% | – | increased 140 basis points |
| Operating Profit - North AmericaGAAP | $192 | – | 3% |
| Operating Profit - Latin AmericaGAAP | $418 | – | 14% |
| Operating Profit - Europe, Middle East & AfricaGAAP | $263 | – | 9% |
| Operating Profit - Asia PacificGAAP | $209 | – | 3% |
| Operating Profit - Hill’s Pet NutritionGAAP | $269 | – | 2% |
| Operating Profit - Total Company, As ReportedGAAP | $1,016 | – | -6% |
| Operating Profit - Total Company, Base Businessnon-GAAP | $1,145 | – | 5% |
| Global toothpaste market share year to dateother | 41.3% | – | – |
| Global manual toothbrushes market share year to dateother | 32.7% | – | – |
| Advertising increaseother | 15% | – | – |
| Net cash provided by operationsGAAP | $1,742 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaAs Reported Volume -3.9%; Organic Volume -3.9%; Pricing +0.9%; FX —%. | -3.0% | – | -3.0% |
| Latin AmericaOrganic Sales +5.3%; As Reported Volume +2.6%; Organic Volume +2.6%; Pricing +2.8%; FX +8.4%. | +13.7% | – | +13.7% |
| Europe, Middle East & AfricaOrganic Sales +2.0%; As Reported Volume +3.2%; Organic Volume +3.2%; Pricing -1.2%; FX +1.6%. | +3.5% | – | +3.5% |
| Asia PacificOrganic Sales +5.2%; As Reported Volume +4.1%; Organic Volume +4.1%; Pricing +1.1%; FX -0.3%. | +4.9% | – | +4.9% |
| Hill’s Pet NutritionOrganic Sales +2.1%; As Reported Volume -1.2%; Organic Volume -1.8%; Pricing +3.9%; FX +0.6%. The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.6%. | +3.4% | – | +3.4% |
| Total CompanyOrganic Sales +2.4%; As Reported Volume +0.9%; Organic Volume +0.8%; Pricing +1.6%; FX +2.4%. The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.1%. | +4.9% | – | +4.9% |
full year 2026 outlook
- Revenuenet sales to be up 2% to 6%, including a low-single-digit positive impact from foreign exchange; organic sales growth to be 1% to 4%
- Gross marginGAAP gross profit margin to be roughly flat; non-GAAP (Base Business) gross profit margin to be roughly flat
- NoteGAAP advertising to be up on both a dollar basis and as a percentage of net sales.
- NoteGAAP double-digit earnings per share growth.
- NoteNon-GAAP (Base Business) advertising to be up on both a dollar basis and as a percentage of net sales.
- NoteNon-GAAP (Base Business) mid-single-digit earnings per share growth.
- NoteOrganic sales growth guidance includes the impact from the exit from the private label pet food business.
What drove it
- Total Company organic sales growth was +2.4%, with pricing of +1.6% and organic volume of +0.8%.
- Net sales and organic sales grew in three of four categories and in four of five divisions.
- Worldwide organic volume growth improved sequentially for the third consecutive quarter.
- Latin America delivered +13.7% net sales growth, including +8.4% FX and +5.3% organic sales growth.
- Asia Pacific delivered +5.2% organic sales growth.
- The Company continued to invest in the business, with advertising up 15% this quarter.
- The Company cited global toothpaste market share of 41.3% year to date and global manual toothbrush market share of 32.7% year to date.
Concerns
- GAAP EPS decreased 5% to $0.86.
- North America net sales decreased -3.0%, with as reported volume and organic volume both down -3.9%.
- Hill’s Pet Nutrition organic volume decreased -1.8% and as reported volume decreased -1.2%.
- Organic sales growth included a 0.4% negative impact from lower private label pet food sales.
- Total Company, As Reported operating profit declined -6% and operating profit margin declined -210 basis points.
- Management expects volatile market conditions to continue in the balance of 2026.
What to watch
- Delivery against full-year net sales guidance of up 2% to 6% and organic sales growth guidance of 1% to 4%.
- Whether gross profit margin is roughly flat for full year 2026, following a 140-basis-point increase to 61.5% in the second quarter.
- Progress in North America volume following the -3.9% decline in both as reported and organic volume.
- Hill’s Pet Nutrition volume performance and the impact from the exit from the private label pet food business.
- The effect of continued advertising investment, which management expects to be up on both a dollar basis and as a percentage of net sales.
- Execution against non-GAAP (Base Business) mid-single-digit earnings per share growth guidance.
Balance sheet and cash flow
- Net cash provided by operations was $1,742 million for the first six months of 2026.
- Free cash flow increased year over year, but the filing text does not provide the amount or comparison.
Analysis
Colgate-Palmolive reported second-quarter net sales of $5,361, up +4.9 %, while organic sales growth was +2.4 %. Pricing contributed +1.6% and organic volume contributed +0.8% at the Total Company level. Foreign exchange added +2.4% to net sales growth. The company stated that net sales and organic sales grew in three of four categories and in four of five divisions, while worldwide organic volume growth improved sequentially for the third consecutive quarter.
Regional performance was uneven. Latin America posted +13.7% net sales growth and +5.3% organic sales growth, while Asia Pacific posted +4.9% net sales growth and +5.2% organic sales growth. Europe, Middle East & Africa reported +3.5% net sales growth and +2.0% organic sales growth. North America was the key weak division, with net sales down -3.0% and both as reported and organic volume down -3.9%. Hill’s Pet Nutrition grew net sales +3.4% and organic sales +2.1%, but organic volume fell -1.8%; lower private label pet food sales had a 0.4% negative impact on total organic sales growth.
Profit measures show a distinction between reported and Base Business results. GAAP EPS declined -5 % to $0.86, while Base Business EPS increased +8 % to $0.99. GAAP gross profit margin and Base Business gross profit margin each increased 140 basis points to 61.5%. Total Company, As Reported operating profit was $1,016, down -6%, and its margin was 19.0%, down -210 basis points. Total Company, Base Business operating profit was $1,145, up 5%, and its margin was 21.4%, up +10 basis points.
The company continued to invest in demand generation, reporting a 15% increase in advertising during the quarter. It also reported net cash provided by operations of $1,742 million for the first six months of 2026, while stating that free cash flow increased year over year. Market-share indicators remained prominent, with global toothpaste market share at 41.3% year to date and global manual toothbrush market share at 32.7% year to date.
For full year 2026, Colgate maintained guidance for net sales to be up 2% to 6% and organic sales growth of 1% to 4%. It now expects GAAP and Base Business gross profit margin to be roughly flat, versus down previously. GAAP double-digit EPS growth guidance was maintained, while Base Business EPS growth guidance was raised to mid-single-digit growth from low- to mid-single-digit growth previously. Management also expects advertising to be up on both a dollar basis and as a percentage of net sales, while citing volatile market conditions for the balance of 2026.
Management, verbatim
Our growth momentum continued in the second quarter, as we delivered strong broad-based top- and bottom-line results, despite a difficult operating environment. Net sales and organic sales grew in three of four categories and in four of five divisions with worldwide organic volume growth improving sequentially for the third consecutive quarter. Gross profit margin, operating profit, operating profit margin, net income, earnings per share and free cash flow all increased year over year.
Noel Wallace, Chairman, President and Chief Executive Officer
We delivered these strong results while continuing to invest in the long-term health of our business with a 15% increase in advertising this quarter. Strong levels of investment will continue in the back half of the year as we execute against our 2030 strategy with a focus on premium, science-led innovation and omni-channel demand generation to drive brand health and category growth.
Noel Wallace, Chairman, President and Chief Executive Officer
While we expect the volatile market conditions to continue in the balance of 2026, we are confident that the strength of our global portfolio and clear business strategy should enable us to deliver consistent, compounded earnings per share growth and drive long-term shareholder value.
Noel Wallace, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Period-end date for the second quarter of 2026.
- GAAP net income and prior-year GAAP net income.
- GAAP gross profit dollars and prior-year gross profit dollars.
- Base Business gross profit margin prior-year percentage.
- GAAP operating income prior-year amount.
- GAAP total operating profit reconciliation items.
- Segment net sales dollar amounts and prior-year segment net sales dollar amounts.
- Prior-year and prior-quarter values for segment operating profit.
- Free cash flow amount and prior-year free cash flow amount.
- Cash, debt and other balance-sheet balances.
- Share repurchases, dividends and other capital-return amounts.
- Operating expenses guidance.
- Tax-rate guidance.
- Prior outlook document needed for formal actual-versus-prior-guidance comparisons.
- Quantitative drivers of the GAAP EPS decline.
- Quantitative drivers of gross profit margin expansion.
- Category-level sales and volume metrics.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K filing with Exhibit 99 covering Colgate-Palmolive’s 2Q 2026 results and updated FY 2026 guidance.
Ticker impact
Colgate reported 2Q 2026 results and updated full-year guidance, including gross margin and Base Business EPS outlook changes.
Likely modest positive bias if investors view the gross margin stabilization and higher Base Business EPS growth as credible.
The filing includes specific 2Q performance (net sales, GAAP and Base Business EPS, gross margin) plus updated FY 2026 guidance (gross margin roughly flat vs down previously, Base Business EPS mid-single-digit vs low-to-mid).
Market effects
Signals resilience in consumer staples oral care and pet nutrition demand, with advertising investment supporting brand health.
North America shows negative organic volume while Latin America and Asia Pacific show growth, implying regional mix effects.
Provides a large-cap staples read on FX and private label pet food exit impacts for global peers’ margin expectations.
Counterpoint
GAAP EPS fell 5% and total company operating profit declined, so the market may discount Base Business strength if underlying demand or cost pressures persist.
Key entities
- issuerColgate-Palmolive Company
Reported 2Q 2026 results and updated full-year 2026 guidance in an SEC 8-K.
