Clorox Reports Q1 Fiscal Year 2027 Results, Updates Outlook
CLOROX CO /DE/ (CLX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Clorox Reports Q1 Fiscal Year 2027 Results, Updates Outlook OAKLAND, Calif., Nov. 2, 2026 — The Clorox Company (NYSE: CLX) today reported results for the first quarter of fiscal year 2027, which ended Sept. 30, 2026. “We entered this fiscal year focused on steadily improving perf
How this was made
The 30-second read
Why it matters
The strong sales growth offsets margin compression, but higher commodity costs may limit stock rally.
Market read
Earnings beat with updated guidance may cause short-term volatility; investors will watch cost trends.
What to watch
Integration synergies from the GOJO acquisition may boost future earnings beyond current outlook.
Clorox Reports Q1 Fiscal Year 2027 Results, Updates Outlook
Net sales increased 33% and adjusted EPS increased 82%, supported by GOJO, volume, cost savings and lapping the ERP-related inventory drawdown. Gross margin declined 130 basis points amid higher commodity, manufacturing and logistics costs, and the company expects adjusted EPS closer to the low end of its maintained fiscal year 2027 range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1.91B | – | 33 % |
| Organic sales growth / (decrease)non-GAAP | 18 % | – | 18 % |
| Cost of products soldGAAP | $1.14B | – | – |
| Gross profitGAAP | $770M | – | – |
| Gross marginGAAP | 40.4% | – | decreased 130 basis points |
| Adjusted gross profitnon-GAAP | 780 | – | – |
| Adjusted gross marginnon-GAAP | 40.9 % | – | – |
| Selling and administrative expensesGAAP | $290M | – | – |
| Selling and administrative expenses as a percent of net salesGAAP | 15.2 % | – | – |
| Adjusted selling and administrative expensesnon-GAAP | 274 | – | – |
| Adjusted selling and administrative expenses as a percent of net salesnon-GAAP | 14.4 % | – | – |
| Advertising costsGAAP | 190 | – | – |
| Research and development costsGAAP | 29 | – | – |
| Interest expenseGAAP | 52 | – | – |
| Other (income) expense, netGAAP | 2 | – | – |
| Earnings before income taxesGAAP | $207M | – | 93 % |
| Adjusted EBITnon-GAAP | $284M | – | – |
| Income tax expenseGAAP | 34 | – | – |
| Net earningsGAAP | 173 | – | – |
| Net earnings attributable to CloroxGAAP | $170M | – | – |
| Adjusted net earnings attributable to Cloroxnon-GAAP | 190 | – | – |
| Basic net earnings per shareGAAP | $ 1.39 | – | – |
| Diluted net earnings per shareGAAP | $ 1.39 | – | 114 % |
| Adjusted diluted earnings per sharenon-GAAP | $ 1.55 | – | 82 % |
| Weighted average shares outstanding, basicGAAP | 121,619 | – | – |
| Weighted average shares outstanding, dilutedGAAP | 122,027 | – | – |
| Year-to-date net cash provided by operationsGAAP | $143M | – | 54% increase |
| Health and Wellness segment adjusted EBITnon-GAAP | $209M | – | 69 % |
| Household segment adjusted EBITnon-GAAP | 30 | – | 11 % |
| Lifestyle segment adjusted EBITnon-GAAP | 60 | – | 58 % |
| International segment adjusted EBITnon-GAAP | 31 | – | 63 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Health and WellnessHigher volume contributed 55 points and favorable price mix contributed 7 points. The GOJO acquisition contributed approximately 39 points to net sales growth. | $918M | – | 62 % |
| HouseholdGrowth was driven by 17 points of higher volume, primarily from lapping the ERP transition-related inventory drawdown in the year-ago quarter. | 423M | – | 17 % |
| LifestyleGrowth was driven by 15 points of higher volume and 1 point of favorable price mix. Volume benefited from lapping the ERP transition-related inventory drawdown. | 283M | – | 16 % |
| InternationalOrganic sales increased 9%, driven by 9 points of organic volume growth, supported by strong shipments across several regions, particularly in Latin America. | 281M | – | 11 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Fiscal year 2027 full year outlook outlook
- RevenueNet sales are still expected to be up 13% to 14% compared to the prior year, including about 9.5 points of benefit from the GOJO acquisition. Organic sales are expected to increase about 3.5% to 4.5%, including more than 3.5 points of benefit from lapping the ERP-related drawdown in the prior fiscal year.
- Gross marginabout 41.5%
- Operating expensesSelling and administrative expenses are now expected to be about 15.5% of net sales. Advertising and sales promotion spending is still expected to be about 10% of net sales. This assumes about 12% of net sales for its retail businesses.
- Tax rateabout 23%
- NoteDiluted EPS is still expected to be between $5.41 and $5.71, a year-over-year increase of 12% to 19%, respectively.
- NoteAdjusted EPS is still expected to be between $5.70 and $6.00, or an increase between 3% and 8%, respectively.
- NoteDiluted EPS includes about 29 cents of impact from transaction-related costs associated with the GOJO acquisition.
- NoteGross margin includes about 20 basis points of negative impact primarily related to the GOJO inventory step-up.
- NoteSelling and administrative expenses include about 40 basis points of negative impact from GOJO transaction-related costs.
- NoteThe company expects adjusted EPS results closer to the low end of the range.
What drove it
- Total net sales growth was driven by 31 points of higher volume and 2 points of favorable price mix.
- The GOJO acquisition contributed 15 points to total net sales growth.
- Organic sales growth reflected about 18 points of benefit from lapping the ERP transition-related inventory drawdown in the year-ago quarter.
- Adjusted EPS growth was driven by higher net sales, cost savings and a lower tax rate.
- The company delivered one of the strongest quarters of cost savings on record.
- Clorox officially launched Clorox Purell ProCare, combining CloroxPro and GOJO under a unified sales and service organization.
Concerns
- Gross margin decreased 130 basis points, primarily due to higher commodity costs and higher manufacturing and logistics costs.
- The impact from inventory step-up of the GOJO acquisition was about 50 basis points to first-quarter gross margin.
- The cost environment has become more challenging, with higher inflationary pressures reflected in the updated outlook.
- Fiscal year 2027 gross margin is expected to reflect higher-than-normal inflationary headwinds and negative mix more than offsetting cost savings and pricing actions.
- GOJO transaction-related costs are expected to affect cost of goods sold and selling and administrative expenses.
- The reported growth rate benefited from lapping the ERP transition-related inventory drawdown in the year-ago quarter.
What to watch
- Progress in mitigating higher commodity, manufacturing and logistics costs.
- Whether adjusted EPS trends toward the low end of the maintained $5.70 to $6.00 outlook range.
- Realization of GOJO acquisition synergies and integration of Clorox Purell ProCare.
- The effect of negative mix and GOJO inventory step-up on gross margin.
- The durability of volume growth after the benefit from lapping the ERP transition-related inventory drawdown.
Balance sheet and cash flow
- Cash and cash equivalents were $ 184 at 9/30/2026, compared with $ 143 at 6/30/2026 and $ 166 at 9/30/2025.
- Notes and loans payable were $ 1,175 at 9/30/2026, compared with $ 1,086 at 6/30/2026 and $ 218 at 9/30/2025.
- Current maturities of long-term debt were 1 at 9/30/2026, 1 at 6/30/2026 and — at 9/30/2025.
- Long-term debt was 3,982 at 9/30/2026, compared with 3,981 at 6/30/2026 and 2,485 at 9/30/2025.
- Year-to-date net cash provided by operations was $143 million compared to $93 million in the year-ago period, representing a 54% increase.
Analysis
Clorox opened fiscal year 2027 with a sharp recovery in reported sales and earnings. Net sales increased 33% to $ 1,905, while organic sales growth was 18%. Total growth reflected 31 points of higher volume and 2 points of favorable price mix, with the GOJO acquisition contributing 15 points. The reported organic growth rate also reflected about 18 points of benefit from lapping the ERP transition-related inventory drawdown in the year-ago quarter, making that comparison a central consideration in assessing underlying demand momentum.
Management, verbatim
We entered this fiscal year focused on steadily improving performance while navigating continued input cost pressures. We made good progress in the first quarter, delivering better-than-expected results through strong execution and timing benefits.
Linda Rendle, Chair and CEO
The cost environment has become more challenging, with higher inflationary pressures reflected in our updated outlook. We have plans in place to mitigate these pressures while continuing to invest behind our brands.
Linda Rendle, Chair and CEO
Not in the filing
stated, not guessed- Operating income
- Operating margin
- Free cash flow
- Cash flow from investing activities
- Cash flow from financing activities
- Capital expenditures
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported quarterly metrics
- Prior-year adjusted gross margin
- Prior-year adjusted selling and administrative expenses
- Prior-year adjusted net earnings attributable to Clorox
AlphAI 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
Clorox's Q1 FY2027 earnings release via SEC Form 8‑K provides the first public disclosure of its quarterly performance and outlook.
Ticker impact
Clorox reported Q1 FY2027 results with 33% sales growth and updated outlook amid higher input costs.
likely modest pressure as investors price in higher costs despite sales beat.
The earnings beat and updated outlook provide fresh data for traders; large-cap scale and significant margin impact suggest limited upside.
Market effects
Consumer staples may see mixed sentiment as cost inflation pressures rise.
U.S. market may experience slight pullback in household goods stocks.
Limited, primarily affects U.S. consumer staples sector.
Counterpoint
Higher margins could improve if cost inflation eases, offering upside beyond the guidance.
Key entities
- CompanyClorox Company
U.S. consumer products firm reporting earnings.
