Clorox (CLX) Q4 2026 Earnings Call Transcript
Clorox (CLX) reported Q4 FY2026 net sales of $1.95B, down 2% (GOJO added about 10 points). Organic sales fell 13% and adjusted EPS was $1.66, down 42%. Gross margin was 41.3%. For FY2027, it guided organic sales growth of 3.5% to 4.5% and adjusted EPS of $5.70 to $6.00, citing inflation headwinds of $200M+.
How this was made
The 30-second read
Why it matters
Forward guidance centers on modest organic sales growth after lapping prior-year shipment effects, while adjusted EPS is expected to rise on cost actions and GOJO accretion despite lower gross margin and elevated inflation.
Market read
The call’s quantified FY2027 guidance and cost/inflation assumptions are the primary trading inputs for CLX’s earnings outlook.
What to watch
The call highlights a 520 bps gross margin decline and a $200M+ inflation figure concentrated early in the year, which could pressure near-term earnings even if full-year EPS guidance holds.
Background
Clorox reported Q4 FY2026 results and discussed the completed digital transformation/ERP rollout, plus the April 2026 GOJO acquisition integration.
Ticker impact
Clorox guided FY2027 organic sales growth of 3.5% to 4.5% and adjusted EPS of $5.70 to $6.00 amid $200M+ inflation headwinds.
Likely choppy reaction risk, with upside bias if investors focus on EPS growth despite organic sales decline and GOJO accretion; downside risk if inflation and gross margin pressure look worse than assumed.
The article discloses specific FY2027 guidance ranges (organic sales and adjusted EPS), plus quantified inflation expectations and gross margin drivers, which are direct inputs to valuation and positioning.
Market effects
Consumer staples and household products peers may see read-across on how persistent input costs and logistics inflation are being modeled into margins.
Limited direct regional impact stated, aside from international FX support mentioned for CLX’s International segment.
Brent crude assumption ($90/bbl) and commodity/logistics inflation framing can influence broader cost-sensitivity sentiment for packaged goods.
Counterpoint
Investors may over-discount the GOJO accretion and innovation narrative, while underweighting the magnitude and timing concentration of inflation in the first half of FY2027.
Key entities
- companyClorox
Provided Q4 FY2026 results and FY2027 guidance, including organic sales growth and adjusted EPS ranges, plus inflation and margin drivers.
- companyGOJO Industries
Acquisition completed in April 2026, described as accretive to adjusted EPS and contributing to Health and Wellness net sales.
- executiveLinda Rendle
CEO who discussed inflation persistence, segment headwinds, and CEO succession search progress.
- executiveLuc Bellet
CFO who quantified inflation expectations and discussed cost persistence and timing.