# 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.

Source page: https://stoqly.net/news/colgate-q3-2026-margin-cashflow

- **Published:** 2026-11-01T01:10:00+00:00
- **Section:** Quarterly results
- **Company:** Colgate-Palmolive (CL), https://stoqly.net/companies/cl.md

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.

**What matters for investors** The quarter combined a small consensus beat with better cash conversion and a higher profit outlook. The trade-off is that elevated input and logistics costs, plus substantial dividends and buybacks, keep the balance sheet and margin trajectory important into 2027.

- 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

- [Colgate-Palmolive, Q3 2026 results and outlook, 30 October 2026](https://investor.colgatepalmolive.com/news-releases/news-release-details/colgate-palmolive-announces-3rd-quarter-2026-results)
- [Colgate-Palmolive, Form 10-Q for quarter ended 30 September 2026](https://www.sec.gov/Archives/edgar/data/21665/000002166526000048/cl-20260930.htm)
- [MarketBeat, Colgate-Palmolive Q3 2026 earnings estimates and results, 30 October 2026](https://www.marketbeat.com/earnings/reports/2026-10-30-colgate-palmolive-stock/)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.