Colgate-Palmolive zvýšil výhled zisku pro základní byznys, protože objemy i marže se zlepšují. Přesto zůstává tlak v Severní Americe a valuace je 22,47× forward zisků.
Key Takeaways CL's volumes are improving, margins are holding up and management raised its Base Business earnings outlook.Emerging-market organic sales rose 4.8%, while North America fell 3% as U.S. demand and competition weighed.CL trades at 22.5X forward earnings, above key benchmarks, while favorable estimate revisions add support. Colgate-Palmolive Company (CL - Free Report) enters the second half of 2026 with better operating momentum. Volumes are improving, margins have held up better than expected and management lifted its Base Business earnings outlook.
The restraint is valuation. CL still trades above its sub-industry, sector and the broader market, while weakness in North America leaves less room for execution misses.
Colgate's Growth Mix Is Getting HealthierSecond-quarter organic sales rose 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third straight quarter, giving Colgate a more balanced growth mix than one driven mainly by price.
Emerging markets added breadth, with organic sales up 4.8%. Latin America rose 5.3% and Asia Pacific increased 5.2%, while management expects the second half to be somewhat more volume-driven as innovation and brand penetration efforts scale.
CL's Margin Outlook Improves Despite Higher CostsGross profit margin expanded 140 basis points year over year to 61.5% in the second quarter. Revenue growth management, productivity, pricing and mix helped absorb higher investment, including a 15% increase in advertising.
Management now expects full-year gross profit margin to be roughly flat year over year, versus a prior expectation for a decline. That upgrade matters because raw-material and tariff costs are still expected to be higher in the second half than in the second quarter.
Colgate's North America Weakness Caps the UpsideNorth America remains the clearest operating drag. Second-quarter organic sales fell 3% and organic volume declined 3.9% as softer U.S. categories, retailer inventory reductions, heavier competition and some market-share loss pressured results.
Competitive intensity is meaningful. The Procter & Gamble Company (PG - Free Report) competes in oral care through brands including Crest and Oral-B, while The Clorox Company (CLX - Free Report) has a broad home-care portfolio. Colgate plans selective pricing and promotional actions, but persistent category softness could slow the volume recovery.
CL's Valuation Leaves Less Room for ErrorCL trades at 22.47X forward 12-month earnings, above the Zacks sub-industry's 18.38X, the sector's 17.2X and the S&P 500's 20.6X. That premium raises the hurdle for further upside if U.S. demand or cost pressures worsen.
Image Source: Zacks Investment Research
The stock is not at an extreme relative to its own history. Its current multiple sits below the five-year median of 23.5X, with the five-year range spanning 19.4X to 28.8X. The valuation therefore looks elevated versus external benchmarks but less stretched versus Colgate's historical norm.
Colgate's Earnings Revisions Add SupportThe Zacks Consensus Estimate for earnings in the current fiscal year has moved higher, with the estimate up 1.3% over four weeks and 1.1% over 12 weeks. Second-quarter Base Business earnings of 99 cents per share also beat the consensus mark of 95 cents by 4.2%.
Projected EPS growth for the current fiscal year is 4.3%. That keeps the valuation-growth trade-off in focus because estimate revisions are favorable, but the expected earnings growth rate remains modest relative to the stock's forward multiple.
CL's Mixed Style Scores Reinforce PatienceThe operating picture has improved, but the valuation premium and North American pressure argue for patience rather than treating recent progress as an unqualified buying signal. CL currently carries a Zacks Rank #3 (Hold), consistent with a balanced near-term stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CL has a VGM Score of B, a Growth Score of B and a Momentum Score of B, but a Value Score of D. The B grades are favorable within their respective styles, while the Value Score is a counterweight. Because the Zacks Style Scores complement the Zacks Rank, the mix shows favorable growth and momentum characteristics alongside weaker value characteristics.
Colgate-Palmolive klesla pod 50denní SMA, což signalizuje oslabení krátkodobého momenta. Navzdory tomu výnosy ve 2. čtvrtletí vzrostly o 4,9 % na 5,36 miliardy USD.
Key Takeaways CL remains below its 50-day SMA, signaling weaker short-term momentum after a recent rebound.Colgate-Palmolive faces softer U.S. demand, retailer inventory cuts and heightened competition.CL posted 4.9% Q2 sales growth, while emerging markets and improved gross-margin execution offered support. Shares of Colgate-Palmolive Company (CL - Free Report) have witnessed some near-term pressure, with the stock slipping below its key 50-day simple moving average (SMA), signaling a loss of short-term technical momentum. On Monday, CL closed at $90.21, below its 50-day SMA of $91.56. Although the stock rebounded 1.4% in the next trading session to close at $91.46, it remained marginally below the updated 50-day SMA of $91.32.
A stock’s move below the 50-day SMA is generally viewed as a sign of weakening short-term momentum, as it indicates that recent buying interest is losing strength. For Colgate-Palmolive, the breach warrants attention, particularly after the stock failed to sustain its recent momentum.
SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach also provides a clearer perspective on a stock's long-term direction.
CL Stock Trades Below 50 Day SMAs
Image Source: Zacks Investment Research
CL has delivered a lackluster performance, with its shares declining 3.8% in the past six months compared with the Zacks Consumer Products – Staples industry’s 5% fall. However, the stock has outperformed the broader Zacks Consumer Staples sector, which fell 10.2%, while underperforming the S&P 500’s 11.8% gain over the same period.
CL’s Six-Month Price Performance
Image Source: Zacks Investment Research
At its current price of $91.46, CL stock trades 22.7% above its 52-week low of $74.55 and roughly 7.9% below its 52-week high of $99.33.
The recent technical weakness comes despite a solid second-quarter 2026 performance. Colgate-Palmolive reported net sales of $5.36 billion, up 4.9% year over year, while organic sales advanced 2.4%. Base Business earnings increased 8% to 99 cents per share. The company also delivered strong gross-margin performance and continued to increase advertising investments behind its brands.
Nevertheless, several near-term challenges appear to be keeping investors cautious.
Here's Why CL Stock Faces Near-Term PressureThe biggest concern remains the North American business. Management expressed disappointment with the second-quarter performance in the region amid softer category demand, heightened competitive activity and inventory reductions by major retailers. The company also identified selective pricing gaps versus competitors and plans to address them while stepping up advertising and premium innovation during the second half.
North America net sales and organic sales declined 3% in the second quarter, with a 3.9% volume decline more than offsetting a 0.9% increase in pricing. This weakness contrasts with stronger results in several international markets and remains an important hurdle for Colgate as it attempts to improve its U.S. trajectory.
Consumer uncertainty is another concern. Management highlighted significant month-to-month volatility in category trends, noting that elevated gasoline prices and weaker consumer confidence have made shoppers more cautious. Although U.S. category trends improved after a particularly weak May, they remained below historical levels.
Cost pressures could also intensify in the second half. Colgate expects raw-material costs and tariffs to be higher in the back half than in the second quarter. Even so, strong revenue growth management, pricing, productivity and favorable mix allowed the company to raise its full-year gross-margin outlook to roughly flat from its prior expectation for a decline.
Hill’s Pet Nutrition also faces a softer category backdrop. Excluding the private-label exit, Hill’s delivered roughly 4% organic growth, but the exit created an approximately 200-basis-point drag on volume. Management believes the pet category may be near a bottom, though inflation could continue to pressure demand.
Still, Colgate-Palmolive's international operations provide an important cushion. Emerging markets led second-quarter growth, with strength in India, Brazil, Mexico and China, while Europe continued to benefit from innovation, premiumization and market-share gains.
Here’s How Estimates Are Shaping for CLThe Zacks Consensus Estimate for Colgate-Palmolive’s earnings per share (EPS) for the current and upcoming fiscal years has been revised upward over the past 30 days. For fiscal 2026 and 2027, EPS estimates have moved upward by 1.3% and 0.5% to $3.86 and $4.07, respectively.
Image Source: Zacks Investment Research
CL’s Valuation PictureValuation remains another factor investors should consider. CL currently trades at a forward 12-month P/E ratio of about 22.92X, above the Zacks Consumer Products - Staples industry average of 18.12X. The premium valuation suggests that investors are already assigning considerable value to Colgate-Palmolive’s strong brands, global footprint, margin execution and long-term growth prospects.
Image Source: Zacks Investment Research
The premium becomes more important in the context of the stock’s recent technical weakness. While Colgate-Palmolive continues to deliver healthy profitability and international growth, persistent U.S. pressure, elevated promotional competition and rising input costs could limit near-term upside if operating trends fail to improve sufficiently.
Should You Buy CL Stock After the SMA Breach?Colgate-Palmolive has several fundamental strengths, including its dominant global oral-care franchise, emerging-market momentum, improving gross-margin execution, strong cash generation and continued investments in premium innovation and brand support.
However, the drop below the 50-day SMA points to weakening short-term momentum. U.S. category softness, retailer inventory reductions, heightened competitive activity and rising raw-material and tariff costs could continue to create volatility. Meanwhile, CL's premium valuation leaves less room for execution setbacks.
Given the mixed technical picture and balanced fundamental outlook, investors may prefer to wait for a more decisive move back above the 50-day SMA before becoming more constructive on the stock. Existing investors may continue to hold their positions, particularly while CL remains above its 200-day moving average.
Colgate-Palmolive currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The J. M. Smucker Company (SJM - Free Report) , which manufactures and markets branded food and beverage products, carries a Zacks Rank #2 (Buy) at present. SJM delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for J. M. Smucker’s current fiscal-year earnings indicates growth of 8.9% from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank of 2. USFD delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.3% and 16.3%, respectively, from the year-ago figures.
Colgate-Palmolive ve 2. čtvrtletí zvýšila tržby o 4,9 % na 5,36 mld. USD a zisk na akcii činil 99 centů za akcii. Růst táhly rozvíjející se trhy, hlavně Indie, Brazílie, Mexiko a Čína.
Key Takeaways CL's Q2 revenues rose 4.9% to $5.36B, with organic sales growth in four of five divisions.Emerging markets led growth, with India up double digits and Brazil, Mexico and China also advancing.CL expects more volume-led growth as raw-material costs and tariffs rise from second-quarter levels. Colgate-Palmolive Company (CL - Free Report) delivered a solid second-quarter 2026 performance despite a volatile global operating backdrop, supported by broad-based sales growth, emerging-market momentum and resilient execution across much of its portfolio. Organic sales increased in four of its five divisions and three of its four categories, with emerging markets leading growth, with strength in India, Brazil, Mexico and China. Europe also benefited from innovation, premiumization and market-share gains, while Hill’s Pet Nutrition continued to outperform its category. However, weakness in the United States, heightened competitive activity and cautious consumer spending remain key hurdles as CL enters the second half.
CL’s second-quarter revenues totaled $5.36 billion, up 4.9% year over year, while earnings came in at 99 cents per share. Free cash flow increased 18%, helping the company return $1.4 billion to its shareholders. Gross margin expanded 100 basis points year over year and improved 90 basis points sequentially, supported by pricing, favorable mix, productivity initiatives and revenue growth management. Latin America grew about 5%, reflecting a balanced 2.8% increase in pricing and 2.6% volume growth, with Brazil advancing high single digits and Mexico growing mid-single digits. Hill’s generated roughly 4% organic growth excluding private label, despite an approximately 200-basis-point drag on volume from the private-label exit. Meanwhile, India posted double-digit growth and Greater China advanced at a mid-single-digit pace despite a challenging category environment.
Looking ahead, sustaining this momentum will depend on CL’s ability to offset softer category trends and mounting cost pressures. Management expects growth to become somewhat more volume-driven in the second half while raw-material costs and tariffs rise from second-quarter levels. The company is stepping up advertising, premium innovation and targeted pricing and promotional actions to improve its U.S. trajectory, while continuing to scale revenue growth management, Promo AI, digital capabilities and productivity programs globally. Although consumer uncertainty, geopolitical tensions and inflation could restrain category growth, CL’s geographic diversification and focus on premium products may help it outperform underlying markets and preserve earnings momentum.
CL’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 5.1% in the past year, outperforming both the industry, which fell 8.7%, and the broader Consumer Staples sector, which rose 1.6%.
CL Stock's Past Year Performance
Image Source: Zacks Investment Research
Is CL a Value Play Stock?Colgate currently trades at a forward 12-month P/E ratio of 22.61X, which is higher than the industry average of 18.12X. This valuation positions the stock at a premium relative to both its sector and industry peers, suggesting that investors may be pricing in stronger growth prospects, brand strength or operational efficiency compared with competitors.
CL P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The J. M. Smucker Company (SJM - Free Report) , which manufactures and markets branded food and beverage products, carries a Zacks Rank #2 (Buy) at present. SJM delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for J. M. Smucker’s current fiscal-year earnings indicates growth of 8.9% from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. It currently carries a Zacks Rank of 2. USFD delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.3% and 16.3%, respectively, from the year-ago figures.
Colgate-Palmolive ve 2. čtvrtletí vykázala růst organických tržeb ve čtyřech z pěti divizí a hrubá marže vzrostla o 100 bazických bodů. Firma zároveň zvýšila celoroční výhled hrubé marže na přibližně stabilní úroveň.
3 Dividend Kings With Income, Stability, and a Possible CatalystColgate-Palmolive NYSE: CL said its second-quarter 2026 results reflected broad-based organic sales growth, gross-margin expansion and higher advertising spending, while executives outlined steps to improve performance in North America amid softer category trends and elevated competition.
Chairman, President and Chief Executive Officer Noel Wallace said organic sales grew in four of the company’s five divisions and in three of its four categories. Growth was led by emerging markets, including India, Brazil, Mexico and China, while Europe and the Hill’s pet nutrition business also contributed.
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3 Up-and-Coming Stocks That Could Be the Next NVIDIA“We’re pleased to have delivered another quarter of strong top and bottom-line growth, particularly in the context of continued global volatility,” Wallace said. The company’s free cash flow increased 18% through the second quarter, and it returned $1.4 billion to shareholders, according to Wallace.
The company also said John Faucher, executive vice president of M&A and special projects, will retire at the end of September. Wallace said the call was Faucher’s 40th quarterly earnings call with Colgate-Palmolive.
Margins Supported by Pricing, Mix and Productivity 3 Sectors That Look Most Vulnerable Ahead of May 15Colgate-Palmolive reported gross-margin expansion of 100 basis points in the quarter, including a modest benefit from tariff refunds. Wallace said most of the improvement came from the company’s core operations, including pricing, revenue growth management, productivity initiatives and product mix.
Chief Financial Officer Stan Sutula said material costs were slightly below the company’s expectations during the quarter, as higher raw-material costs were partially offset by tariff refunds. He said the company does not expect meaningful additional refunds.
Management said it now expects gross margin to be roughly flat for the full year, an improvement from its prior expectation for a decline. Sutula cautioned that raw-material costs and tariffs are expected to be higher in the second half than in the second quarter, although comparisons will be easier year over year. He said oil prices around $90 could make fourth-quarter costs somewhat lower than the company had previously assumed.
Wallace said the company has been incorporating expected cost increases into its profit-and-loss planning and is using pricing, revenue growth management and promotional artificial-intelligence tools to protect profitability. The company increased advertising by double digits during the quarter and plans to maintain elevated investment behind its brands.
“We believe our efforts in revenue growth management, promo AI, and funding the growth give us the ability to invest in advertising to build our brands while driving profit and EPS growth,” Wallace said.
North America Improvement Plan Wallace said the company was not satisfied with its U.S. performance. He attributed part of the weakness to category softness in May, heightened competition and inventory reductions by certain retailers. While category conditions improved in June and remained steadier in July, Wallace said they were still below historical levels.
Management said retailer inventory reductions caused shipments to trail consumption in North America, and Wallace said the company has not assumed that retailers will rebuild inventories during the second half.
Colgate-Palmolive plans to increase distribution and support for recent launches, including Optic White Pro Series with ActivShine technology and Fabuloso products in new formats. The company also plans to take “surgical” actions in specific categories and retail channels where it identified price and promotional gaps versus competitors.
Increase brand support across core U.S. businesses. Expand premium innovation in 2026 and 2027. Address selected price and promotion gaps without broadly escalating promotional activity. Focus on improving market share and delivering sequential improvement in the second half. Wallace said the company is particularly focused on premium opportunities, where it believes it is under-indexed in North America. He pointed to the company’s experience in Asia and Europe, where stronger innovation, premium offerings, go-to-market changes and online expansion have supported improvement.
Hill’s Gains Share in a Soft Pet Market Hill’s continued to outperform the broader pet-food category, according to Wallace. Excluding discontinued private-label business, Hill’s organic sales rose 4%, compared with a category that Wallace characterized as roughly flat, particularly in the U.S.
Private-label discontinuations reduced Hill’s volume by 200 basis points. Excluding those discontinuations, volume was approximately flat during the quarter, while the therapeutic business delivered growth in both volume and pricing, supporting mix and gross-margin improvement.
Wallace said Hill’s gained traction in cat food, wet food and small-pet offerings, while Science Diet dog food was weaker as consumers shifted toward smaller pets and ownership of larger pets declined. International Hill’s sales rose at a solid mid-single-digit rate, he said.
The company is also rolling out fresh pet food in the U.S. following its Prime acquisition. Wallace described the rollout as deliberate and said the company’s initial objective is to establish the brand’s scientific credentials and professional support rather than pursue significant early volume.
The offering includes three single-protein diets, with the company emphasizing their intended benefits for digestion, coat condition and overall pet health. Distribution will be phased through professional, pet-specialty and neighborhood veterinary channels rather than launched simultaneously across all retailers.
Emerging Markets, China and AI Initiatives Latin America delivered approximately 5% organic growth, with pricing up 2.8% and volume up 2.6%, Wallace said. Brazil grew at a high-single-digit rate and Mexico grew at a mid-single-digit rate. Management said Colgate Total market shares have been rebuilding, particularly in Brazil, following prior reformulation-related issues.
In India, the company reported double-digit growth, supported by both indirect trade and modern trade. Wallace said the company is pursuing premiumization while also maintaining price-pack architectures designed to attract consumers entering its categories.
Greater China rose at a mid-single-digit rate, while the Colgate China business delivered mid-single-digit growth and Hawley & Hazel, which includes the Darlie brand, posted low-single-digit organic growth. Wallace said China remains a challenging market due to declining brick-and-mortar sales, rapid e-commerce shifts and aggressive competition, but he highlighted the market’s role in developing digital talent and social-first innovation.
Wallace also said Colgate-Palmolive is scaling AI across pricing, productivity, innovation, marketing and data analytics. The company has trained much of its workforce on AI tools, including about 70% of vice presidents in advanced AI training, according to Wallace. He said the company is moving from AI pilots toward broader implementation, including promotional optimization, content creation and more automated internal processes.
About Colgate-Palmolive (NYSE:CL)Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.
The company's core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Colgate-Palmolive potvrdila celoroční výhled tržeb, i když severoamerické organické tržby ve čtvrtletí klesly o 3 % kvůli slabé poptávce. Akcie po zprávě oslabily o 2,5 %.
Palmolive products are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina, October 29, 2024. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights, opens new tab
July 31 (Reuters) - Colgate-Palmolive (CL.N), opens new tab on Friday reaffirmed its annual sales forecast even after posting a quarterly rise as the toothpaste maker continues to grapple with muted demand in North America, sending its shares down 2.5%.
Higher food and fuel prices tied to the Middle East conflict have hit lower-income shoppers hard, making it harder for U.S. consumer goods companies to meet demand across both budget and premium segments.
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The company's North America organic sales fell 3% in the quarter, driven by a 3.9% drop in volumes, as slower category growth, market share losses, increased competition and inventory reductions at key retailers weighed on sales.
It, however, continues to expect annual net sales to grow 2% to 6%, and raised the base of its 2026 adjusted earnings forecast to mid-single-digit growth, up from its prior low- to mid-single-digit forecast.
Colgate, however, warned additional headwinds relative to the forecast, as new 10% and 12.5% tariffs imposed by the Trump administration are expected to more than offset the benefit from tariff refunds received in the second quarter.
Rival Procter & Gamble (PG.N), opens new tab on Tuesday forecast slower revenue growth in fiscal 2027 after quarterly sales missed estimates and margins fell under a "very challenging geopolitical and economic environment".
Colgate-Palmolive posted a 4.9% rise in net sales to $5.36 billion for the three months ended June 30, in line with analysts' estimates, according to data compiled by LSEG.
Adjusted earnings per share of 99 cents surpassed analysts' estimate of 95 cents.
Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Colgate-Palmolive (CL - Free Report) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.21%. A quarter ago, it was expected that this consumer products maker would post earnings of $0.95 per share when it actually produced earnings of $0.97, delivering a surprise of +2.11%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Colgate-Palmolive, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $5.36 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.20%. This compares to year-ago revenues of $5.11 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Colgate-Palmolive shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Colgate-Palmolive?While Colgate-Palmolive has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Colgate-Palmolive was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.91 on $5.35 billion in revenues for the coming quarter and $3.81 on $21.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, BBB Foods (TBBB - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.
This discount retailer is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -38.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BBB Foods' revenues are expected to be $1.42 billion, up 47.5% from the year-ago quarter.
Colgate-Palmolive Company (NYSE:CL) will release its second quarter earnings report before the opening bell on Friday, July 31.
Analysts expect the New York-based company to report quarterly earnings of 95 cents per share, up from 92 cents per share in the year-ago period. The consensus estimate for Colgate-Palmolive’s quarterly revenue is $5.36 billion. It reported $5.11 billion last year, according to Benzinga Pro.
On June 11, Colgate-Palmolive declared a quarterly cash dividend of 53 cents per common share.
Shares of Colgate-Palmolive fell 2% to close at $91.60 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying CL stock? Here’s what analysts think:
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Colgate-Palmolive čeká za 2Q tržby 5,35 miliardy USD, tedy růst o 4,7 % meziročně, a EPS 95 centů, což je o 3,3 % více. Výsledky mohou podpořit poptávka na rozvíjejících se trzích, ale marže tlačí nahoru náklady na suroviny, obaly a dopravu.
Key Takeaways Colgate's Q2 sales are estimated to rise 4.7% YoY, while EPS is expected to grow 3.3%.Emerging-market demand, pricing, innovation and omnichannel execution may support results.Hill's growth may help offset pressure from higher raw material, packaging, freight and SG&A costs. Colgate-Palmolive Company (CL - Free Report) is expected to have registered growth in its bottom and top lines as it is set to release second-quarter 2026 numbers on July 31, before the opening bell. The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.35 billion, indicating a rise of about 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s earnings per share (EPS) is pegged at 95 cents, suggesting growth of 3.3% from the prior-year quarter’s reported figure. The consensus estimate for the quarter has been stable in the past 30 days.
In the last reported quarter, the leading global consumer products company’s earnings beat the Zacks Consensus Estimate by 2.1%. It has delivered an earnings surprise of 3%, on average, in the trailing four quarters.
What the Zacks Model Unveils for CL StockOur proven model does not conclusively predict an earnings beat for Colgate this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Colgate currently has an Earnings ESP of -1.78% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Influence CL's Q2 ResultsColgate is expected to have benefited from resilient demand across its Oral Care, Personal Care, Home Care and Pet Nutrition businesses. The company has been witnessing improving volume trends, particularly in emerging markets, backed by sustained investments in advertising, omnichannel demand generation and revenue growth management (RGM) initiatives. Strong execution in Asia-Pacific and Latin America, coupled with continued pricing actions and brand strength, is likely to have supported second-quarter performance. Management also highlighted that emerging markets remain a key growth driver, where Colgate continues to invest behind its global brands and scale advantages.
Innovation continues to be at the center of Colgate's long-term strategy and is expected to have aided quarterly results. The company has been accelerating science-based product launches, leveraging AI, digital capabilities, analytics and omnichannel execution to improve speed-to-market and consumer engagement. Management also expects sequential improvement in North America, supported by accelerated innovation, enhanced promotional execution, better retailer partnerships and strategic brand interventions. These initiatives, along with continued premiumization and improved product mix, are likely to have supported CL's top-line performance in the quarter under review.
Colgate's Hill's Pet Nutrition business is also expected to have remained a key growth contributor despite a challenging pet industry backdrop. Excluding the impact of the private-label pet food exit, Hill's continued to post healthy volume and pricing growth, driven by robust demand for Prescription Diet and Science Diet products. Management noted continued market share gains across strategic growth segments, including cat food, wet food and therapeutic nutrition, supported by science-based innovation, improved supply chain capabilities and expanding retail shelf space. These strengths are likely to have contributed meaningfully to the company's second-quarter results.
However, Colgate is expected to have faced headwinds from elevated raw material, packaging and logistics costs, particularly those linked to higher oil prices. Management indicated that inflation in resins, petrochemicals, fats and oils, along with higher freight expenses, would continue to pressure gross margins. Although the company has been relying on pricing, productivity initiatives, revenue growth management and its Strategic Growth and Productivity Program (SGPP) to offset these costs, continued inflationary pressures and higher SG&A investments are likely to have weighed on margin expansion during the quarter.
CL’s Price Performance & ValuationThe recent market movements show that Colgate’s shares have gained 6.7% in the past six months against the industry's 0.6% drop.
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From the valuation standpoint, CL trades at a forward 12-month P/E multiple of 22.98X, exceeding the industry average of 18.06X. Its valuation appears quite pricey.
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Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NWL is likely to register a bottom-line decline when it releases second-quarter 2026 results. The consensus estimate for Newell Brands’ quarterly earnings currently stands at 19 cents per share, down 20.8% from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues is pegged at about $1.97 billion, implying a rise of 1.7% from the year-ago quarter. NWL has a trailing four-quarter average earnings surprise of 9.7%.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The company is likely to register growth in its bottom and top lines when it reports second-quarter 2026 numbers.
The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $2.42 billion, indicating an increase of 14.6% from the figure reported in the prior-year quarter. The consensus estimate for MNST’s quarterly earnings of 59 cents per share implies a rise of 13.5% from the year-ago quarter’s level. MNST has a trailing four-quarter earnings surprise of 9.6%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2, suggesting a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Colgate-Palmolive je letos YTD +20,4 % a firma čeká pro rok 2026 růst čistých tržeb o 2 % až 6 %. Zůstává Dividend King s nepřerušenou historií dividend od roku 1895.
As of market close on July 3, the S&P 500 (^GSPC +0.72%) and the Nasdaq-100 are up 9.3% and 16.2%, respectively, year to date (YTD). This is well ahead of their historical average annual gains. The tech sector, especially semiconductor stocks, has been the driver of broader market returns. But that doesn't mean all value stocks are underperforming the major indexes.
Colgate-Palmolive (CL 1.93%) is up 20.4% YTD. And it's also an ultra-reliable dividend stock that has paid uninterrupted dividends since 1895 and has increased its payout for 63 consecutive years. That streak earns Colgate-Palmolive a spot on the list of Dividend Kings, which are companies that have paid and increased their dividends for at least 50 consecutive years.
Here's why Colgate-Palmolive remains a top buy now even after its recent run-up.
Image source: Getty Images.
Colgate-Palmolive is at the top of its game Colgate-Palmolive has been a standout in the household and personal products industry. The company is guiding for 2026 net sales growth of 2% to 6% and organic sales growth of 1% to 4% at a time when many of its peers are experiencing sales declines. And even with margins under pressure, Colgate-Palmolive remains one of the most profitable companies in its industry. By comparison, Unilever, Kenvue, Church & Dwight, Clorox, Kimberly-Clark, and Estee Lauder all have operating margins under 20%.
CL Revenue (TTM) data by YCharts
The industry has been dealing with inflationary pressures and consumer resistance to price increases. But Colgate-Palmolive has done a masterful job of navigating these challenges through its elite brand portfolio, highly efficient supply chain and operations, and geographic diversification.
In addition to its flagship Colgate and Palmolive brands, the company owns Softsoap, Irish Spring, Tom's of Maine, and Speed Stick, among others. One of Colgate-Palmolive's top brands, Hill's Pet Nutrition, made up 23% of total 2025 sales.
Without factoring in Hill's, Europe, Middle East, and Africa (EMEA), Latin America, and Asia Pacific sales are more than triple those of North America, which has helped make Colgate-Palmolive resistant to U.S.-specific inflationary pressures. In the first quarter of 2026, North America was the only region that reported declining net and organic sales, while Latin America and EMEA posted double-digit growth and total company net sales rose 8.4% year over year.
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A dividend you can count on Colgate-Palmolive is far from cheap -- trading at 25 times forward earnings -- because the stock price has been rising faster than the company's earnings growth. But Colgate-Palmolive deserves its premium valuation because its results are solid despite a difficult operating environment. This resilience is particularly appealing to risk-averse folks seeking a stable passive income stream to help supplement retirement income. If inflationary pressures ease and consumer spending improves, a rising tide will lift the broader household and personal products industry. But Colgate-Palmolive isn't dependent on those factors to drive sales growth.
Colgate-Palmolive yields 2.2%, which is good but not quite high-yield territory. Many of its peers offer higher yields because they distribute the vast majority of their cash flow to shareholders through dividends, whereas Colgate-Palmolive's dividend is highly affordable. Its trailing-12-month free cash flow per share is at an all-time high of $4.66, well over double its $2.06 per-share annualized dividend.
So while Colgate-Palmolive could easily afford to pay a higher dividend, the company prefers a balanced approach of using cash to reinvest in the business, paying a steadily growing (and manageable) dividend, and buying back stock. Colgate-Palmolive has reduced its share count by 10% over the last decade, which has helped make the stock a better value.
Investing in a market leader Colgate-Palmolive's geographic diversification and portfolio of leading brands across pet nutrition and oral, personal, and home care make it highly recession resistant. The company continues to deliver solid growth through volume and price increases, while many of its peers face a difficult trade-off: either cutting prices to drive volume or keeping prices high at the expense of lower sales volumes.
All told, Colgate-Palmolive stands out as one of the most reliable dividend-paying stocks on the market. It's a top buy for the second half of the year for investors who don't mind paying a premium price for a quality company.
Procter & Gamble vykázal ve fiskálním 3. čtvrtletí core EPS 1,59 USD a tržby 21,235 miliardy USD, zatímco Colgate-Palmolive oznámil upravené EPS 0,97 USD a tržby 5,324 miliardy USD. P&G zároveň nabízí vyšší dividendový výnos 2,83 % a má za sebou 70 let po sobě jdoucího zvyšování dividend.
Procter & Gamble (NYSE:PG | PG Price Prediction) and Colgate-Palmolive (NYSE:CL) both just reported, and the earnings reports sharpened a debate dividend investors have been having for years.
P&G posted its fiscal Q3 2026 with core EPS of $1.59 on net sales of $21.235 billion. Colgate followed with Q1 2026 adjusted EPS of $0.97 on revenue of $5.324 billion. Both lean on staples brands. Only one runs the bigger dividend machine.
Tide and Pampers Carry P&G. Hill’s and Latin America Carry Colgate. P&G’s quarter looked broad. Beauty grew 11% reported, Grooming added 7%, and Fabric & Home Care delivered $7.403 billion in sales. CEO Shailesh Jejurikar called it “a solid acceleration in top-line results… with broad-based growth across product categories and regions.”
Tide, Pampers, and Gillette did the heavy lifting, and pricing only contributed one point of organic growth, which tells me volume is finally pulling its weight again.
Dividend Lens P&G Colgate Consecutive annual hikes 70 63 Indicated yield 2.83% 2.33% FY dividends to shareholders ~$10B expected FY26 $1.823B paid in 2025 Trailing P/E 22x 35x Colgate’s mix was lumpier. Oral, Personal and Home Care rose 8.9% to $4.131 billion, and Hill’s Pet Nutrition added $1.194 billion. Latin America organic sales jumped 5.4% and Asia Pacific led at 5.6%.
North America was the sore spot, down 1.8% with volume off 3.2%. Noel Wallace leaned on resilience language, noting the team is “able to execute against our long-term strategy while delivering strong results in a difficult operating environment.”
Scale Versus Reinvention P&G is playing defense on cost. Management flagged roughly $400 million in after-tax tariff drag plus $150 million in commodity headwinds, and core gross margin slipped 100 basis points. The buyback is still real, with over $600 million repurchased in Q3 and roughly $5 billion planned for FY26. Free cash flow productivity sits in the 85% to 90% range.
Colgate is rewiring itself. The expanded Strategic Growth and Productivity Program now carries pretax charges of $350 million to $550 million with targeted annual savings of $200 million to $300 million.
Gross margin guidance was revised lower because of tariffs, while advertising rose to $734 million from $668 million. The most recent dividend ticked up to $0.53 per share. Growth is real, but the restructuring bill is climbing.
The Next Test Is Margin Recovery I want to see whether P&G can hold its $6.83 to $7.09 core EPS guide as tariffs bite. Colgate needs a North America turn, where Speed Stick, Tom’s of Maine, and the core Colgate brand have been ceding shelf to private label. Hill’s matters too. Pet food is still the cleanest growth lane in this comparison, and any volume slowdown would dent the bullish case.
Why I Lean Toward P&G for the Income Sleeve If you want a dividend with the fewest moving parts, I would lean toward P&G. The 136-year payment streak, deeper free cash flow, and a 10-year total price return of 141.11% all argue for staying with scale.
Colgate is the more interesting setup if you believe the SGPP cuts work and Hill’s keeps compounding. At 35x trailing earnings, though, the stock is paying you the lower yield for the harder turnaround. For me, the better dividend stock right now is P&G, and I would only switch if Colgate’s North America volumes inflected positively for two straight quarters.
