2026 Second Quarter
Filed Jul 31, 2026CHURCH & DWIGHT DELIVERS STRONG SECOND QUARTER RESULTS Q2 NET SALES, ORGANIC SALES AND ADJUSTED EPS EXCEED OUTLOOK RAISES FULL-YEAR 2026 SALES, EPS, AND CASH FLOW OUTLOOK
Organic sales growth accelerated to 5.8%, all three divisions grew organically, reported EPS increased to $0.85 from $0.78 last year, and the Company raised full-year 2026 sales, adjusted EPS, and cash-from-operations outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $1,530.0 million | – | +1.6% |
| Organic sales growthother | 5.8% | – | – |
| Organic sales volume growthother | 4.3% | – | – |
| Organic sales price and mixother | 1.5% | – | – |
| Gross marginGAAP | 45.4% | – | increased 240 basis points |
| Adjusted gross marginnon-GAAP | 45.4% | – | increase of 40 basis points |
| Marketing expenseGAAP | $165.3 million | – | up $8.2 million and 40 basis points as a percentage of sales |
| Selling, general, and administrative expenseGAAP | $252.2 million | – | – |
| Adjusted selling, general, and administrative expensenon-GAAP | $241.4 million | – | a 220-basis point increase over prior year |
| Income from OperationsGAAP | $276.4 million | – | – |
| Adjusted income from operationsnon-GAAP | $287.2 million | – | a decrease of $28.7 million compared to prior year |
| Reported EPSGAAP | $0.85 | – | – |
| Adjusted EPSnon-GAAP | $0.89 | – | – |
| Adjusted effective tax ratenon-GAAP | 20.3% | – | decreased to 20.3% from 23.8% last year |
| Cash from operationsother | $461.6 million | – | an increase of 10.8% versus prior year |
| Capital expendituresother | $61.8 million | – | an increase of $22.8 million versus the prior year |
| Global e-commerce growthother | 22.7% | – | – |
| Global online sales as a percentage of total consumer salesother | 25.5% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consumer DomesticOrganic sales increased 5.1% driven by volume growth (+3.6%) and favorable price and product mix (+1.5%). Organic sales growth was driven by THERABREATH™ mouthwash and toothpaste, HERO™, ARM & HAMMER™ cat litter, and ZICAM™. | $1,155.8 million | – | a $1.7 million or 0.1% increase |
| Consumer InternationalOrganic sales increased 9.1% driven by higher volume (+7.3%) and favorable price and product mix (+1.8%). Growth was driven by the THERABREATH, HERO, and BATISTE™ brands. | $297.5 million | – | a $19.9 million or 7.2% increase |
| Specialty ProductsOrganic sales also increased 2.8% due to a combination of higher volume (+1.3%) and higher price and product mix (+1.5%). | $76.7 million | – | a $2.1 million or 2.8% increase |
2026 Full Year outlook
- Revenueapproximately flat to 1% growth
- Gross marginexpand approximately 100 to 120 basis points
- Operating expensesMarketing as a percentage of sales is now expected to be at or above 11% of sales; SG&A as a percentage of sales is now expected to remain above 2025 levels
- Tax rateapproximately 21%
- NoteOrganic sales growth of approximately 4% to 5%
- NoteFull-year reported EPS to increase approximately 20% to 22%
- NoteAdjusted EPS expectation for 2026 of 6% to 8% growth
- NoteCash from operations of approximately $1.175 billion
- NoteFull-year capital expenditures of approximately $130 million or 2% of sales
- Noteapproximately $15 million of phase II tariff refund benefits in the second half of the year
What drove it
- Organic sales growth of 5.8% was driven primarily by volume growth of 4.3% and positive price and mix of 1.5%.
- Reported Consumer Domestic sales included growth from the acquisitions of TOUCHLAND™ and MISS MOUTH’S offset by the sales impact from last year’s strategic portfolio actions.
- Adjusted gross margin expansion was driven by higher volume, productivity, and favorable mix from acquisitions and portfolio actions.
- Global e-commerce grew 22.7%, with global online sales representing 25.5% of total consumer sales.
- New product launches in 2026 are expected to account for approximately half of organic growth.
Concerns
- Higher inflation and recent transportation cost increases partially offset adjusted gross margin drivers.
- Adjusted SG&A was affected by amortization and SG&A expenses related to the TOUCHLAND acquisition.
- Other Expense increased $9.2 million reflecting lower interest income.
- The Company cited inflationary pressure from the situation in the Middle East.
- The Company expects to invest phase II tariff refund benefits in consumer-facing activities and to offset inflationary pressures.
What to watch
- Delivery of approximately 4% to 5% full-year organic sales growth.
- Ability to expand adjusted gross margin by approximately 100 to 120 basis points while offsetting inflation, transportation, and tariff-related costs.
- Marketing spending at or above 11% of sales and SG&A remaining above 2025 levels.
- Contribution from the MISS MOUTH’S brand and growth opportunities over the next 12-18 months.
- Receipt and deployment of approximately $15 million of phase II tariff refund benefits in the second half of the year.
Balance sheet and cash flow
- Cash from operations for the first six months of 2026 was $461.6 million, an increase of 10.8% versus prior year.
- Capital expenditures totaled $61.8 million in the first half, an increase of $22.8 million versus the prior year.
- As of June 30, 2026, the Company’s total debt was $2.3 billion and cash-on-hand was $254.8 million.
Analysis
Church & Dwight reported a strong second quarter, with net sales increasing 1.6% to $1,530.0 million and organic sales growth accelerating to 5.8%. The organic result was led by 4.3% volume growth and 1.5% favorable price and mix. The Company stated that sales exceeded its outlook of a 1% decline and that organic growth was well above its 3% outlook. All three divisions produced organic sales growth, led by Consumer International at 9.1% and Consumer Domestic at 5.1%.
The mix of growth was broad across brands and channels. Consumer Domestic growth was driven by THERABREATH™ mouthwash and toothpaste, HERO™, ARM & HAMMER™ cat litter, and ZICAM™, while International growth was driven by THERABREATH, HERO, and BATISTE™. Global e-commerce grew 22.7%, and global online sales represented 25.5% of total consumer sales. Reported domestic sales also benefited from TOUCHLAND™ and MISS MOUTH’S, although last year’s strategic portfolio actions offset part of that benefit.
Margins showed a split between reported and adjusted trends. Gross margin increased 240 basis points to 45.4%, while adjusted gross margin was 45.4%, up 40 basis points. Higher volume, productivity, and favorable acquisition and portfolio mix supported adjusted margin, partly offset by higher inflation and transportation costs. The Company increased marketing expense by $8.2 million and 40 basis points as a percentage of sales. Adjusted SG&A was $241.4 million, or 15.8% of net sales, with the 220-basis point increase attributed to TOUCHLAND amortization and SG&A expenses.
Reported EPS increased to $0.85 from $0.78 last year, while adjusted EPS of $0.89 exceeded the Company’s $0.88 outlook but was below $0.94 last year. Adjusted income from operations was $287.2 million, a decrease of $28.7 million compared with the prior year, as stronger sales and gross-margin expansion were offset by higher marketing investment and SG&A expense. The adjusted effective tax rate decreased to 20.3% from 23.8% last year due to continued tax planning initiatives.
Cash generation and liquidity remain central to the outlook. Cash from operations was $461.6 million for the first six months of 2026, up 10.8% versus the prior year, while capital expenditures totaled $61.8 million. At June 30, 2026, total debt was $2.3 billion and cash-on-hand was $254.8 million. The Company raised its full-year outlook for reported sales, organic sales, reported EPS, adjusted EPS, and cash from operations. The outlook assumes volume growth, productivity, and favorable mix can offset inflation, transportation, and tariff-related costs, while marketing investment remains at or above 11% of sales and SG&A remains above 2025 levels.
Management, verbatim
Our power brands continued to perform exceptionally well in a challenging macroeconomic environment, driving a second straight quarter of industry-leading organic sales growth.
Rick Dierker, Chief Executive Officer
Our improved outlook reflects the strength of our operating fundamentals, led by volume growth, market share gains and gross margin expansion.
Rick Dierker, Chief Executive Officer
While the situation in the Middle East creates some inflationary pressure, we continue to expect that we can offset this transitory cost pressure in 2026.
Rick Dierker, Chief Executive Officer
Not in the filing
stated, not guessed- Consolidated net sales prior-year dollar amount
- GAAP gross margin prior-year percentage
- Adjusted gross margin prior-year percentage
- GAAP net income
- GAAP net income prior-year amount
- Free cash flow
- Quarterly cash from operations
- Quarterly capital expenditures
- Share repurchases
- Dividends
- Prior-quarter metrics
- Full prior earnings release or previous outlook document for formal comparison against prior guidance
- Full continuation of the filing text after the truncated sentence beginning 'This improvement reflects strong growth across all thr'
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.