Colgate raises 2026 profit outlook after Q3 sales and cash-flow beat
Colgate-Palmolive beat third-quarter estimates, raised its full-year base-business EPS outlook and converted stronger sales into higher operating cash flow despite cost pressure.
Colgate-Palmolive reported third-quarter sales of $5.369 billion, up 4.6% from $5.131 billion a year earlier. Diluted GAAP earnings per share rose to $0.94 from $0.91, while base-business EPS was $0.97, up 7%. MarketBeat's published estimate was $5.34 billion of revenue and $0.9260 of EPS, putting the quarter modestly ahead on both measures.
Growth held across the portfolio
Organic sales increased 3.6%, with growth in all four categories and four of five divisions, according to management. Gross profit rose to $3.233 billion from $3.049 billion, lifting gross margin to about 60.2% from 59.4%. The improvement came despite roughly 300 basis points of material-cost pressure, as productivity, pricing and manufacturing leverage more than offset inflation.
Cash generation improved, but shareholder returns consumed liquidity
Nine-month operating cash flow reached $2.913 billion, compared with $2.745 billion in the prior-year period. Capital spending was $400 million, leaving free cash flow before dividends of about $2.513 billion. Colgate paid $1.308 billion of dividends and repurchased $927 million of stock in the first nine months. Cash ended September at $1.527 billion, while current and long-term debt totaled $7.716 billion, broadly higher than year-end after financing and debt repayments.
Narrower sales range and higher profit target
Colgate narrowed its 2026 reported sales-growth outlook to 4%–5% from 2%–6%, said organic sales should be broadly in line with the nine-month rate, and raised base-business EPS growth guidance to 5%–7% from a mid-single-digit range. It also raised its gross-margin outlook. Management said commodity inflation is expected to peak in the fourth quarter, leaving cost pressure as the main near-term constraint while the U.S. turnaround remains incomplete.
Q3 sales
$5.369B
↑ +4.6% YoY reported
Base-business EPS
$0.97
↑ +7% YoY reported
9M operating cash flow
$2.913B
↑ +$168M YoY reported
2026 base EPS guide
+5% to +7%
raised
Sources
Quarterly revenue, Colgate-Palmolive
Margins by quarter
Twelve quarters of figures
| Quarter | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.9B | $5.0B | $5.1B | $5.1B | $5.0B | $4.9B | $4.9B | $5.1B | $5.1B | $5.2B | $5.3B | $5.4B |
| Revenue growth | 10.3% | 6.9% | 6.2% | 4.9% | 2.4% | −0.1% | −3.0% | 1.0% | 2.0% | 5.8% | 8.4% | 4.9% |
| Gross margin | 58.5% | 59.6% | 60.0% | 60.6% | 61.1% | 60.3% | 60.8% | 60.1% | 59.4% | 60.2% | 60.6% | 61.5% |
| Operating margin | 20.9% | 21.7% | 20.7% | 21.6% | 21.2% | 21.5% | 21.9% | 21.1% | 20.6% | 1.8% | 18.1% | 19.0% |
| Net income | $708M | $718M | $683M | $731M | $737M | $739M | $690M | $743M | $735M | −$37.0M | $646M | $693M |
| Diluted EPS | $0.86 | $0.87 | $0.83 | $0.89 | $0.90 | $0.90 | $0.85 | $0.91 | $0.91 | −$0.04 | $0.80 | $0.86 |
| Cash from operations | $1.2B | $1.1B | $681M | $990M | $1.2B | $1.3B | $600M | $884M | $1.3B | $1.5B | $747M | $995M |
| Capital expenditure | $161M | $197M | $126M | $117M | $134M | $184M | $124M | $108M | $155M | $177M | $138M | $128M |
| Free cash flow | $991M | $939M | $555M | $873M | $1.0B | $1.1B | $476M | $776M | $1.1B | $1.3B | $609M | $867M |
| Dividends and buybacks | $728M | $751M | $903M | $953M | $703M | $969M | $690M | $706M | $708M | $929M | $723M | $753M |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or Colgate-Palmolive.
