Colgate-Palmolive Announces 3rd Quarter 2026 Results
COLGATE PALMOLIVE CO (CL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Colgate-Palmolive Announces 3rd Quarter 2026 Results • Net sales increased 4.6%; Organic sales* increased 3.6%, including a 0.2% negative impact from lower private label pet food sales • GAAP EPS increased 3% to $0.94; Base Business EPS* increased 7% to $0.97 • GAAP Gr
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to trigger buying interest, especially in the consumer staples sector.
Market read
Strong earnings and raised guidance position CL for short‑term upside amid broader consumer staples sentiment.
What to watch
Exit from private label pet food may dampen future organic growth.
Colgate-Palmolive Announces 3rd Quarter 2026 Results
Third-quarter net sales increased 4.6%, organic sales growth was +3.6%, GAAP diluted EPS increased 3% to $0.94 and Base Business diluted EPS increased 7% to $0.97. Gross profit margin expanded, while North America sales declined and reported operating profit margin contracted.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $5.37B | – | +4.6 % |
| Organic sales growth, three months ended September 30non-GAAP | +3.6 % | – | +3.6 % |
| Gross profit, three months ended September 30GAAP | $3.23B | – | – |
| Gross profit, three months ended September 30non-GAAP | $3.24B | – | – |
| Gross profit margin, three months ended September 30GAAP | 60.2 % | – | 80 basis points |
| Gross profit margin, three months ended September 30non-GAAP | 60.3 % | – | 90 basis points |
| Selling, general and administrative expenses, three months ended September 30GAAP | $2.11B | – | – |
| Selling, general and administrative expenses as a percentage of Net sales, three months ended September 30GAAP | 39.3 % | – | 90 basis points |
| Operating profit, three months ended September 30GAAP | $1.09B | – | 3 % |
| Operating profit, three months ended September 30non-GAAP | $1.12B | – | 5 % |
| Operating profit margin, three months ended September 30GAAP | 20.3 % | – | (30) basis points |
| Operating profit margin, three months ended September 30non-GAAP | 20.8 % | – | 20 basis points |
| Net income attributable to Colgate-Palmolive Company, three months ended September 30GAAP | $751M | – | – |
| Net income attributable to Colgate-Palmolive Company, three months ended September 30non-GAAP | $777M | – | – |
| Diluted earnings per common share, three months ended September 30GAAP | $0.94 | – | +3 % |
| Diluted earnings per common share, three months ended September 30non-GAAP | $0.97 | – | +7 % |
| Effective tax rate, three months ended September 30GAAP | 23.6 % | – | – |
| Effective tax rate, three months ended September 30non-GAAP | 23.3 % | – | – |
| Advertising, three months ended September 30GAAP | $775M | – | – |
| Net sales, nine months ended September 30GAAP | $16.05B | – | 6.0 % |
| Organic sales growth, nine months ended September 30non-GAAP | 3.0 % | – | 3.0 % |
| Gross profit, nine months ended September 30GAAP | $9.76B | – | – |
| Gross profit margin, nine months ended September 30GAAP | 60.8 % | – | – |
| Operating profit, nine months ended September 30GAAP | $3.07B | – | (5) % |
| Operating profit, nine months ended September 30non-GAAP | $3.40B | – | 5 % |
| Operating profit margin, nine months ended September 30GAAP | 19.1 % | – | (210) basis points |
| Operating profit margin, nine months ended September 30non-GAAP | 21.2 % | – | (20) basis points |
| Net income attributable to Colgate-Palmolive Company, nine months ended September 30GAAP | $2.09B | – | – |
| Net income attributable to Colgate-Palmolive Company, nine months ended September 30non-GAAP | $2.36B | – | – |
| Diluted earnings per common share, nine months ended September 30GAAP | $2.61 | – | – |
| Diluted earnings per common share, nine months ended September 30non-GAAP | $2.94 | – | – |
| Net cash provided by operations, nine months ended September 30GAAP | $2.91B | – | – |
| Free cash flow before dividends, nine months ended September 30non-GAAP | $2.51B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America, three months ended September 30Organic sales change was (1.6) %, with volume of (3.7) %, pricing of 2.2 % and foreign exchange of (0.2) %. | $905M | – | (1.7) % |
| Latin America, three months ended September 30Organic sales change was 6.0 %, with volume of 3.9 %, pricing of 2.1 % and foreign exchange of 6.5 %. | $1.33B | – | 12.5 % |
| Europe, Middle East & Africa, three months ended September 30Organic sales change was 2.7 %, with volume of 3.5 %, pricing of (0.9) % and foreign exchange of (1.2) %. | $1.13B | – | 1.4 % |
| Asia Pacific, three months ended September 30Organic sales change was 4.6 %, with volume of 1.9 %, pricing of 2.8 % and foreign exchange of (1.1) %. | $802M | – | 3.5 % |
| Hill's Pet Nutrition, three months ended September 30Organic sales change was 5.7 %, with volume of 1.8 %, pricing of 3.9 % and foreign exchange of (0.1) %. | $1.21B | – | 5.6 % |
| North America, nine months ended September 30Organic sales change was (2.3) %, with volume of (3.6) %, pricing of 1.4 % and foreign exchange of 0.1 %. | $2.68B | – | (2.2) % |
| Latin America, nine months ended September 30Organic sales change was 5.6 %, with volume of 2.8 %, pricing of 2.7 % and foreign exchange of 8.1 %. | $4.01B | – | 13.7 % |
| Europe, Middle East & Africa, nine months ended September 30Organic sales change was 2.7 %, with volume of 3.0 %, pricing of (0.3) % and foreign exchange of 2.8 %. | $3.38B | – | 5.4 % |
| Asia Pacific, nine months ended September 30Organic sales change was 5.1 %, with volume of 3.5 %, pricing of 1.6 % and foreign exchange of 0.6 %. | $2.39B | – | 5.7 % |
| Hill's Pet Nutrition, nine months ended September 30Organic sales change was 3.3 %, with organic volume of (0.6) %, pricing of 3.9 % and foreign exchange of 1.1 %. | $3.59B | – | 5.2 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenuenet sales to be up 4% to 5%, including a low-single-digit positive impact from foreign exchange; organic sales growth to be broadly in line with its nine-month performance
- Gross marginGAAP gross profit margin to be up; non-GAAP (Base Business) gross profit margin to be up
- 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) earnings per share growth of 5% to 7%.
- NoteOrganic sales growth includes the impact from the exit from the private label pet food business.
Capital returns
- Dividends paid were $1,308 for the nine months ended September 30, 2026, compared with $1,300 for the nine months ended September 30, 2025.
- Purchases of treasury shares were $927 for the nine months ended September 30, 2026, compared with $804 for the nine months ended September 30, 2025.
- Proceeds from exercise of stock options were $178 for the nine months ended September 30, 2026, compared with $83 for the nine months ended September 30, 2025.
What drove it
- Third-quarter Total Company volume was +1.7 %, pricing was +2.0 % and foreign exchange was +1.0 %.
- Latin America delivered 12.5 % net sales growth, including 6.5 % from foreign exchange.
- Hill's Pet Nutrition delivered 5.6 % net sales growth and 5.7 % organic sales growth.
- The Company reported its fourth quarter of sequential improvement in worldwide volume growth.
- Advertising was $775 in the third quarter, compared with $674 in the prior-year quarter.
- Global toothpaste market share was 41.4% year to date and global manual toothbrush market share was 33.1% year to date.
Concerns
- North America third-quarter net sales declined (1.7) % and organic sales change was (1.6) %.
- North America third-quarter operating profit was $177, down 11%, and operating profit margin was 19.5%, down 210 basis points.
- Third-quarter GAAP operating profit margin was 20.3 %, compared with 20.6 % in the prior-year quarter.
- Nine-month GAAP operating profit was $3,069, down (5) %, while GAAP operating profit margin was 19.1 %, compared with 21.2 %.
- Nine-month GAAP net income attributable to Colgate-Palmolive Company was $2,090, compared with $2,169, and diluted EPS was $2.61, compared with $2.67.
- The guidance cites consumer uncertainty and ongoing macroeconomic volatility.
What to watch
- Full-year net sales guidance of up 4% to 5%, narrowed from 2% to 6%.
- Full-year organic sales growth expected to be broadly in line with nine-month performance, including the impact from the exit from the private label pet food business.
- Delivery of full-year GAAP and Base Business gross profit margin expansion after prior guidance of roughly flat.
- Full-year Base Business earnings per share growth guidance of 5% to 7%, raised from mid-single-digit growth.
- North America volume, which was (3.7) % in the third quarter.
- The effect of a low-single-digit positive impact from foreign exchange in full-year net sales guidance.
Balance sheet and cash flow
- Cash and cash equivalents were $1,527 as of September 30, 2026, compared with $1,288 as of December 31, 2025 and $1,279 as of September 30, 2025.
- Total debt was $7,716 as of September 30, 2026, compared with $7,988 as of December 31, 2025 and $8,419 as of September 30, 2025.
- Debt less cash, cash equivalents and marketable securities was $6,104 as of September 30, 2026, compared with $6,593 as of December 31, 2025 and $6,947 as of September 30, 2025.
- Working capital % of sales was (6.3) % as of September 30, 2026, compared with (7.0) % as of December 31, 2025 and (4.0) % as of September 30, 2025.
- Capital expenditures were $400 for the nine months ended September 30, 2026, compared with $387 for the nine months ended September 30, 2025.
- Net cash used in financing activities was $(2,272) for the nine months ended September 30, 2026, compared with $(1,895) for the nine months ended September 30, 2025.
- Net increase in Cash and cash equivalents was $239 for the nine months ended September 30, 2026, compared with $183 for the nine months ended September 30, 2025.
Analysis
Colgate-Palmolive reported a solid third quarter, with net sales of $5,369, up 4.6 %, and organic sales growth of +3.6 %. Total Company growth reflected +1.7 % volume, +2.0 % pricing and +1.0 % foreign exchange. Management stated that net sales and organic sales increased in all four categories and in four of five divisions. The major exception was North America, where net sales declined (1.7) % and volume declined (3.7) %.
The regional mix was led by Latin America, where net sales increased 12.5 %, including 6.5 % from foreign exchange, while organic sales increased 6.0 %. Hill's Pet Nutrition grew net sales 5.6 % and organic sales 5.7 %, supported by 1.8 % volume and 3.9 % pricing. Europe, Middle East & Africa and Asia Pacific also delivered positive organic growth. North America remains the clear weak point: its operating profit declined 11% to $177 and its operating profit margin contracted 210 basis points to 19.5%.
Margins improved at the gross-profit level but not on a reported operating-margin basis. GAAP gross profit margin increased 80 basis points to 60.2 %, and Base Business gross profit margin increased 90 basis points to 60.3 %. Advertising rose to $775 from $674. GAAP operating profit increased 3% to $1,088, but GAAP operating profit margin declined 30 basis points to 20.3 % as selling, general and administrative expenses as a percentage of Net sales rose to 39.3 % from 38.4 %. Base Business operating profit increased 5% to $1,117 and Base Business operating profit margin increased 20 basis points to 20.8 %.
Third-quarter GAAP diluted EPS increased 3% to $0.94 and Base Business diluted EPS increased 7% to $0.97. For the nine months, sales were $16,055 versus $15,152, but GAAP operating profit was $3,069 versus $3,214 and GAAP diluted EPS was $2.61 versus $2.67. Strategic Growth and Productivity Program charges affected nine-month GAAP results, while nine-month non-GAAP operating profit increased 5% to $3,396 and non-GAAP diluted EPS was $2.94 versus $2.74.
Cash generation and shareholder distributions remained material. Net cash provided by operations was $2,913 for the first nine months, and free cash flow before dividends was $2,513. The Company paid $1,308 in dividends and purchased $927 of treasury shares. Cash and cash equivalents were $1,527 and total debt was $7,716 as of September 30, 2026.
The Company narrowed full-year net sales guidance to up 4% to 5% from 2% to 6%, raised its gross profit margin outlook from roughly flat to up on both a GAAP and Base Business basis, and raised Base Business EPS growth guidance to 5% to 7% from mid-single-digit growth. It retained an expectation for GAAP double-digit earnings per share growth. Execution in North America, delivery of margin expansion, the exit from private label pet food, and the contribution from foreign exchange are the principal reported variables to monitor.
Management, verbatim
Our growth momentum continued, delivering another strong quarter of broad-based top- and bottom-line growth with net sales and organic sales increasing in all four categories and in four of five divisions. We were particularly pleased to have delivered our fourth quarter of sequential improvement in worldwide volume growth, while delivering strong pricing growth in the third quarter. As was the case last quarter, gross profit, 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 remain focused on executing our 2030 strategy, with an emphasis on driving premium, science-based innovation, and we continue to invest behind our brands globally supported by another double-digit increase in advertising this quarter.
Noel Wallace, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter values for key income-statement metrics were not reported.
- Full-year 2026 operating-expense guidance was not reported.
- Full-year 2026 tax-rate guidance was not reported.
- A previous-release outlook section was not provided, so no actual-versus-prior-guidance comparison is included.
- Third-quarter free cash flow before dividends was not reported.
- Third-quarter cash flow from operations was not reported.
- Third-quarter capital returns were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Colgate-Palmolive released its Q3 2026 results via an SEC Form 8‑K, highlighting sales growth, margin expansion, and updated full‑year guidance.
Ticker impact
Colgate-Palmolive issued its Q3 2026 earnings, reporting 4.6% sales growth and raised full-year gross margin and EPS guidance.
likely upward pressure as investors price in stronger sales and higher margins
The company posted higher-than-expected sales, improved margins, and updated guidance upward, which typically drives short-term buying.
Market effects
Consumer staples may see modest rally on strong oral care demand.
North America sales growth supports US consumer discretionary sentiment.
Improved global market share reinforces confidence in consumer staples worldwide.
Counterpoint
If macro volatility persists, sales growth could be unsustainable, limiting upside.
Key entities
- companyColgate-Palmolive
Global consumer products company reporting Q3 2026 results.
