Colgate-Palmolive (NYSE:CL) Releases Earnings Results, Beats Estimates By $0.04 EPS

Colgate-Palmolive (NYSE:CL) issued its earnings results on Friday. The company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.04, Zacks reports. The firm had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.34 billion. Colgate-Palmolive had a net margin of 9.68% and a return on equity of 464.63%. The company’s revenue was up 4.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.91 earnings per share.

Here are the key takeaways from Colgate-Palmolive’s conference call:

• Broad-based growth continued: Colgate-Palmolive reported organic sales growth across all four categories and four of five divisions, with emerging markets, Europe, and Hill’s contributing strongly. Free cash flow rose 7%, and the company returned $2.2 billion to shareholders year to date.
• Profitability outperformed despite inflation. Productivity programs, pricing, premium innovation, and manufacturing leverage more than offset roughly 300 basis points of material-cost pressure, prompting the company to raise its full-year gross-margin outlook.
• Hill’s delivered an especially strong quarter, with organic sales up 6.5% excluding private label and notable gains in therapeutic, cat, and wet-food segments. The company is also gradually rolling out its Fresh product line, targeting longer-term growth.
• Cost and macroeconomic pressures remain elevated. Management expects commodity inflation to peak in the fourth quarter, with logistics costs also high and foreign exchange moving unfavorably; these pressures could be a headwind into 2027, when no guidance has yet been provided.
• The U.S. turnaround remains a work in progress. Toothpaste market share showed early improvement, but category demand remains sluggish, and the company plans to rely on increased premium innovation, targeted advertising, AI-enabled marketing, and channel restructuring to drive a broader recovery in 2027.

Colgate-Palmolive Stock Performance

Shares of Colgate-Palmolive stock traded up $2.19 during trading on Friday, reaching $95.35. The company’s stock had a trading volume of 8,558,047 shares, compared to its average volume of 5,629,227. The company has a 50-day moving average price of $89.43 and a two-hundred day moving average price of $89.58. Colgate-Palmolive has a fifty-two week low of $74.54 and a fifty-two week high of $99.33. The firm has a market cap of $76.01 billion, a PE ratio of 37.84, a P/E/G ratio of 4.44 and a beta of 0.33. The company has a current ratio of 1.03, a quick ratio of 0.67 and a debt-to-equity ratio of 13.82.

Colgate-Palmolive Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Tuesday, October 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, October 20th. Colgate-Palmolive’s payout ratio is presently 84.13%.

Key Colgate-Palmolive News

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Colgate reported quarterly earnings of $0.97 per share, up from $0.91 a year earlier and ahead of consensus estimates of approximately $0.92-$0.93. Revenue rose 4.6% year over year to $5.37 billion, slightly above the $5.34 billion analyst forecast. Colgate-Palmolive Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised key profitability expectations. The company increased its 2026 base-business EPS and gross-margin outlook while maintaining its overall fiscal-year EPS view. Organic sales growth, pricing actions and productivity improvements helped offset cost pressures. Colgate-Palmolive Q3 Results and FY26 Outlook
• Neutral Sentiment: The outlook is mixed. Colgate narrowed its sales-growth outlook, suggesting that demand remains uneven despite higher prices and improved profitability. The company’s defensive consumer-staples profile may support investor interest, while a valuation near 38 times earnings leaves less room for execution disappointments.
• Negative Sentiment: U.S. demand and input costs remain headwinds. Management cited weaker U.S. consumer demand and rising costs, risks that could pressure volumes and margins if pricing cannot fully offset inflationary expenses. Colgate-Palmolive Q3 Results and Outlook

Insider Buying and Selling

In other Colgate-Palmolive news, CEO Noel R. Wallace sold 161,021 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $91.92, for a total transaction of $14,801,050.32. Following the completion of the sale, the chief executive officer directly owned 362,231 shares of the company’s stock, valued at approximately $33,296,273.52. This trade represents a 30.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Panagiotis Tsourapas sold 10,000 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $92.05, for a total value of $920,500.00. Following the sale, the chief operating officer directly owned 64,901 shares of the company’s stock, valued at $5,974,137.05. The trade was a 13.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 175,191 shares of company stock valued at $16,110,903 over the last quarter. 0.43% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

CL has been the subject of several analyst reports. Morgan Stanley reaffirmed an “overweight” rating and set a $104.00 price objective (up from $100.00) on shares of Colgate-Palmolive in a research report on Monday, August 3rd. Citigroup raised their target price on Colgate-Palmolive from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $89.00 price target (up from $88.00) on shares of Colgate-Palmolive in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $101.00 price target (up from $99.00) on shares of Colgate-Palmolive in a research note on Monday, August 3rd. Finally, UBS Group set a $106.00 price target on shares of Colgate-Palmolive in a research note on Thursday, October 15th. Thirteen research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, Colgate-Palmolive currently has a consensus rating of “Moderate Buy” and an average target price of $98.56.

Colgate-Palmolive Company Profile

Colgate-Palmolive Company (NYSE: CL) is a global consumer products company focused on oral care, personal care, home care and pet nutrition. Its portfolio includes toothpaste, toothbrushes, mouthwash, liquid hand soap, body wash, deodorants, household cleaning products and pet food and treats.

The company markets well-known brands such as Colgate, Palmolive, elmex, meridol, Softsoap, Irish Spring, Ajax, Protex and Hill’s Science Diet. Colgate-Palmolive also provides veterinary and nutritional products through Hill’s Pet Nutrition, which serves pet owners and animal health professionals.

Founded in 1806 by William Colgate, the company developed from a soap and candle business into a diversified consumer goods manufacturer.