Colgate-Palmolive Q3 Results Rise, Lifts FY26 Base Business EPS View; Stock Gains

(RTTNews) - Consumer products major Colgate-Palmolive Co., while reporting higher third-quarter results, on Friday confirmed fiscal 2026 outlook for earnings per share. Further, the firm raised guidance for Base Business earnings per share and gross profit margin, while narrowing sales growth view.

In pre-market activity on the NYSE, the shares were gaining around 5 percent, trading at $97.85, after closing Thursday's regular trading 1.60 percent higher.

Noel Wallace, Chairman, President and Chief Executive Officer, said, "Despite consumer uncertainty and ongoing macroeconomic volatility, our proactive focus on driving growth while building flexibility into our P&L gives us confidence we can navigate these challenges while continuing to deliver consistent, compounded earnings per share growth..."

Looking ahead for fiscal 2026, the company continues to expect double-digit earnings per share growth on a reported basis. However, Base Business earnings per share are now projected to grow 5 percent to 7 percent from last year, compared to previous estimate of growth in mid-single digit.

Further, Colgate-Palmolive now projects gross profit margin on a reported and adjusted basis to be up from last year, compared to previous view of roughly flat.

The Company now expects net sales to be up 4 percent to 5 percent, including a low-single-digit positive impact from foreign exchange, compared to previous estimate of 2 percent to 6 percent growth.

The Company now expects organic sales growth to be broadly in line with its nine-month performance, while previous outlook was a growth of 1 percent to 4 percent. The outlook reflects the impact from its exit from the private label pet food business.

For fiscal 2025, Colgate-Palmolive had posted sales of $20.382 billion.

In the third quarter, Colgate-Palmolive's earnings totaled $751 million, higher than $735 million last year. Earnings per share grew 3 percent to $0.94 from prior year's $0.91.

Base Business earnings were $777 million or $0.97 per share for the period, compared to $0.91 per share a year ago.

Total Company operating profit increased 3 percent from last year to $1.09 billion, despite weak profit in North America and Asia Pacific. operating margin dropped 30 basis points to 20.3 percent.

Base Business operating profit grew 5 percent year-over-year to $1.117 billion.

Gross profit margin increased 80 basis points to 60.2 percent, and Base Business Gross profit margin increased 90 basis points to 60.3 percent.

The company's net sales for the period rose 4.6 percent to $5.369 billion from $5.131 billion last year.

Organic sales increased 3.6 percent, including a 0.2 percent negative impact from lower private label pet food sales. Volume grew 1.7 percent, and pricing grew 2 percent.

Net sales and organic sales increased in all four categories and in four of five divisions, the company noted.

In the quarter, North America sales dropped 1.7 percent on a reported basis and 1.6 percent on organic basis. Volume fell 3.7 percent, while pricing grew 2.2 percent. Latin America sales climbed 12.5 percent, and the growth was 1.4 percent in Europe, Middle East & Africa, 3.5 percent in Asia Pacific and 5.6 percent in Hill's Pet Nutrition.

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