Key Takeaways SBUX's Q2 revenues rose 9% YoY to $9.5B, and EPS climbed 22% to $0.50.SBUX's operating margin rose 110 bps YoY to 9.4%, its first consolidated expansion since Q1 FY24.SBUX targets $2B gross savings through FY28, expects near-term G&A impact and raises FY26 EPS to $2.25-$2.45. Starbucks Corporation (SBUX - Free Report) is placing greater emphasis on cost discipline as it works to convert stronger sales momentum into more durable earnings growth. In the second quarter of fiscal 2026, consolidated revenues rose 9% year over year to $9.5 billion, while global comparable sales increased 6.2%. Operating margin expanded 110 basis points to 9.4%, marking the company’s first consolidated margin expansion since the first quarter of fiscal 2024. SBUX’s fiscal second-quarter earnings per share (EPS) increased 22% year over year to 50 cents, marking its first year-over-year earnings growth in more than two years.
Starbucks’ consolidated margin improved in the fiscal second quarter, but cost pressure remained visible in North America. The segment’s operating margin contracted 170 basis points to 10.2%, reflecting Green Apron Service investments, higher product and distribution costs, tariffs, elevated coffee prices and legal accruals. These pressures were partially offset by progress on operating leverage and cost discipline, underscoring the role of efficiency efforts in supporting margin performance.
Starbucks remains on track with its $2 billion gross cost-savings plan through fiscal 2028, with savings expected across product and distribution costs, operating expenses and G&A. The company expects the near-term savings impact to show most clearly in G&A, with Back to Starbucks investments offsetting much of the realized savings across the P&L.
The pace of savings flow-through remains central to the company’s fiscal 2026 earnings trajectory. Starbucks expects slight year-over-year growth in consolidated operating margin for fiscal 2026, supported by sales leverage, cost-savings initiatives, easing coffee and tariff pressures in the back half of the year and the margin-accretive China JV structure.
With EPS returning to year-over-year growth in the fiscal second quarter and the savings program remaining on track through fiscal 2028, cost discipline is likely to remain a key lever for stronger profit conversion. Reflecting this improved setup, Starbucks raised its fiscal 2026 EPS guidance to $2.25-$2.45 from its prior $2.15-$2.40 range.
How It Stacks Up to CompetitorsDutch Bros Inc. (BROS - Free Report) is managing cost pressure through operating leverage, more disciplined labor deployment and overhead efficiency rather than a formal multiyear savings program. The company improved company-operated labor costs by 120 basis points as a percentage of shop revenues in the first quarter of 2026, supported by better alignment of staffing with customer demand. Efficiency also showed up in corporate overhead, with adjusted SG&A improving 100 basis points as a percentage of revenues. BROS expects about 80 basis points of adjusted SG&A leverage for 2026, although higher coffee costs, food rollout expenses and increased occupancy costs tied to its build-to-suit lease strategy remain margin headwinds.
McDonald’s Corporation (MCD - Free Report) , by comparison, is using scale, supply-chain discipline and ownership optimization to manage margin pressure. The company said its supply-chain teams, supplier partnerships and hedging strategies position it to navigate food, paper and energy inflation in 2026. MCD also acknowledged that U.S. company-operated margins were not acceptable and is reviewing both ownership mix and development returns, including dropping locations that no longer meet return thresholds.
Compared with BROS and MCD, Starbucks’ cost story is more structured and turnaround-driven. BROS is leaning on sales leverage and overhead efficiency, while MCD is using supply-chain scale, disciplined development and ownership optimization. Starbucks, meanwhile, has a defined $2 billion savings plan through fiscal 2028, making cost discipline a more explicit lever in its effort to convert stronger comps into faster EPS growth.
SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 5.1% in the past year against the industry’s 10.8% decline.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 3.21, below the industry’s average of 2.74.
SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. The EPS estimates for fiscal 2026 have increased in the past 30 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
SBUX’s Zacks RankSBUX stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Starbucks' latest drink launch is a bet on the future of fast food beverages By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Starbucks is aiming to capitalize on social media trends and demand from younger consumers. Starbucks Starbucks isn't just launching another drink. With its latest Refreshers debut, announced Monday, the coffee giant is expanding one of its fastest-growing businesses as it races to win customers long after the morning coffee rush ends.
Beginning July 14, Starbucks customers will be able to order any Refresher drink blended, the latest move in the company's effort to expand what executives describe as a $2 billion beverage platform.
The launch follows April's rollout of customizable Energy Refreshers, which Starbucks executives said recently exceeded expectations and helped drive new customer occasions.
Refreshers, which are iced juice and tea drinks often mixed with fruit pieces, have become one of Starbucks' biggest beverage businesses since launching in 2012, helping drive traffic later in the day as the company looks to expand beyond its traditional morning coffee roots.
"The success of Refreshers reflects an evolution in how customers are engaging with Starbucks, with a growing preference for cold, customizable beverages alongside our core coffee offerings," Dana Pellicano, Starbucks' senior vice president of global product experience, told Business Insider.
Starbucks said Refreshers are helping drive growth in afternoon visits, an area the company has increasingly focused on as it seeks new sources of traffic. It sees customization as a key reason for the platform's success.
The strategy reflects a broader shift underway across the restaurant industry, as chains compete not only with each other but also with energy drinks, functional beverages, and social-media-fueled drink trends for younger consumers' attention and spending.
"Since Refreshers first launched in 2012, we've seen increased interest in drinks that are flavor-forward, visually compelling, and easy to personalize," Pellicano added.
"Chains are no longer just competing with each other for coffee occasions," Noah Pozin, a food, agribusiness, and beverage industry consultant at Truist, told Business Insider. "They are competing with energy drink brands, bottled teas, functional waters, and customized soda concepts for the broader 'cold, caffeinated, customizable treat' occasion."
Chasing younger tastesDutch Bros has expanded its energy-drink offerings, which executives say now account for about 25% of its business. Customized soda chains have also surged in popularity, and restaurant brands from McDonald's to Taco Bell are investing heavily in cold beverages. Analysts at JPMorgan and KeyBanc have pointed to a growing pipeline of innovation from both Starbucks and Dutch Bros as chains race to capture demand for customizable, functional drinks.
Part of what's driving that demand is a shift in how younger consumers think about beverages.
"Gen Z and millennials treat beverages more like personal expression, social content, functional fuel, and affordable indulgence," Pozin said.
Starbucks competitor Dutch Bros says customized energy drinks, such as its Myst Energy Refreshers, now account for roughly 25% of its business. Illustration by Mario Tama/Getty Images As younger consumers navigate persistent inflation, housing affordability challenges, and broader economic uncertainty, beverages have become a relatively accessible luxury, he said. Consumers are increasingly looking for opportunities to experiment, customize, and discover new products without making a major purchase.
That trend has made beverages especially attractive to restaurant operators. Drinks typically carry higher margins than many food offerings and can help drive customer frequency throughout the day, making them an increasingly important growth engine for chains seeking new revenue streams.
Social media has only accelerated the trend.
"One of the biggest insights for us has been just how creative customers are with Refreshers," Pellicano said. "From early on, we saw customers take the core beverages and make them their own — whether that was swapping in coconut milk, which led to the creation of the Pink Drink, or layering in new flavors, textures, and colors."
"What started as customization quickly became culture," she added.
Pellicano said social media has become a "real-time feedback loop and source of inspiration" for Starbucks, helping the company spot emerging drink trends and scale them more quickly.
With blended Refreshers arriving this summer — and additional innovations already in the pipeline — Starbucks is signaling that its future growth won't come solely from coffee.
Read next
Katherine Tangalakis-Lippert is a senior reporter on Business Insider's West Coast team. When she's not writing about trending business and tech news, from the latest supply chain snarls or advancements in AI, she covers the food and restaurant industries, specifically companies such as Starbucks and McDonald's.Some of her prior areas of focus have included coverage of the Supreme Court and emerging technologies such as quantum computing.Katherine has worked on award-nominated projects and has appeared on Good Morning America, NBC, CNN, and other outlets to discuss her reporting.Prior to joining Business Insider, she covered retail, hospitality, and nonprofits at the San Fernando Valley Business Journal and received a master's degree in investigative reporting from the University of Southern California.Reach outDo you have feedback or a story tip? Contact Katherine on Signal at byktl.50, or email her at [email protected] her on Twitter and Instagram @scrawlgirl.Some of her recent scoops, exclusives, and original stories include: Starbucks set up a new office. It's a 5-minute drive from the CEO's California home.Inside Starbucks' crackdown on cup notesEndless Shrimp was Red Lobster's rock bottom. Now it's clawing back.Chipotle's new PAC signals a change in how the company engages in politicsKFC lost its footing in the Chicken Wars. Now it's gunning for a 'Kentucky Fried Comeback.'A few other highlights include: Clarence Thomas raised him 'as a son.' Now he's facing 25-plus years on weapons and drug charges.Call her Ivanka Kushner'Maybe I'll just resign:' Federal workers react to DOGE productivity emailSpaceX launches cause late-night booms that rattle windows, set off car alarms, and may damage property. Locals are pushing back.The US-China tech race is moving from chips to the raw materials they're made of
Starbucks (SBUX) is putting global expansion back in focus, with Chief Executive Officer Brian Niccol saying the coffee chain may still have far more room to gr
Starbucks (SBUX) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Cincinnati Financial Corporation reported improved Q1 2026 results, but profitability remains structurally weak with ROE below the cost of equity. CINF's underwriting profitability lags peers, making earnings more exposed to volatile investment income, especially due to its aggressive equity allocation. The stock trades at a premium valuation (1.6x book), which appears stretched given its high single-digit ROE and sector comparisons.
WTW Q1 results reflect solid performance across both segments, growth in the Investments business, an increase in adjusted operating income and expanded margin.
CINCINNATI, Ohio, May 4, 2026 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) today announced that based on preliminary voting results at the company's annual meeting on May 2, 2026, shareholders elected all directors for one-year terms to the 14-member board. Shareholders also approved the Amended and Restated Articles of Incorporation, the nonbinding resolution to approve the compensation for the company's named executive officers and ratified the selection of Deloitte & Touche LLP as independent registered public accounting firm for 2026.
CINCINNATI, Ohio, May 4, 2026 /PRNewswire/ -- Cincinnati Financial Corporation (Nasdaq: CINF) announced that at its regular meeting on May 2, 2026, the board of directors declared a 94 cents-per-share regular quarterly cash dividend. The dividend is payable July 15, 2026, to shareholders of record as of June 23, 2026.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cincinnati Financial (CINF - Free Report) Cincinnati Financial Corporation, formed in 1968 with its headquarters in Fairfield, OH, markets property and casualty insurance. Cincinnati Financial owns three subsidiaries: The Cincinnati Insurance Company, CSU Producer Resources Inc. and CFC Investment Company. In addition, the parent company has an investment portfolio. The Cincinnati Insurance Company owns four additional insurance subsidiaries. The standard market property casualty insurance group includes two of those subsidiaries – The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group writes a broad range of business, homeowner and auto policies. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, known as Cincinnati Re. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company providing life insurance policies and fixed annuities and The Cincinnati Specialty Underwriters Insurance Company offering excess and surplus lines insurance products.
CINF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CINF has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.3% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $8.61 per share. CINF boasts an average earnings surprise of +27.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CINF should be on investors' short list.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Fairfield, Cincinnati Financial (CINF - Free Report) is a Finance stock that has seen a price change of 0.01% so far this year. The insurer is currently shelling out a dividend of $0.94 per share, with a dividend yield of 2.3%. This compares to the Insurance - Property and Casualty industry's yield of 0.77% and the S&P 500's yield of 1.43%.
Looking at dividend growth, the company's current annualized dividend of $3.76 is up 8% from last year. Over the last 5 years, Cincinnati Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cincinnati Financial's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CINF expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.61 per share, which represents a year-over-year growth rate of 8.30%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CINF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cincinnati Financial (CINF - Free Report) Cincinnati Financial Corporation, formed in 1968 with its headquarters in Fairfield, OH, markets property and casualty insurance. Cincinnati Financial owns three subsidiaries: The Cincinnati Insurance Company, CSU Producer Resources Inc. and CFC Investment Company. In addition, the parent company has an investment portfolio. The Cincinnati Insurance Company owns four additional insurance subsidiaries. The standard market property casualty insurance group includes two of those subsidiaries – The Cincinnati Casualty Company and The Cincinnati Indemnity Company. This group writes a broad range of business, homeowner and auto policies. The Cincinnati Insurance Company also conducts the business of our reinsurance assumed operations, known as Cincinnati Re. Other subsidiaries of The Cincinnati Insurance Company include: The Cincinnati Life Insurance Company providing life insurance policies and fixed annuities and The Cincinnati Specialty Underwriters Insurance Company offering excess and surplus lines insurance products.
CINF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CINF has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.3% for the current fiscal year.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $8.61 per share. CINF boasts an average earnings surprise of +27.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CINF should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Cincinnati Financial (CINF - Free Report) is headquartered in Fairfield, and is in the Finance sector. The stock has seen a price change of -0.23% since the start of the year. Currently paying a dividend of $0.94 per share, the company has a dividend yield of 2.31%. In comparison, the Insurance - Property and Casualty industry's yield is 0.76%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $3.76 is up 8% from last year. Over the last 5 years, Cincinnati Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.39%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Cincinnati Financial's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CINF expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $8.61 per share, representing a year-over-year earnings growth rate of 8.30%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CINF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Key Takeaways CINF is growing commercial lines through pricing actions, underwriting discipline and agency ties.Cincinnati Financial continues expanding E&S operations with new business and product additions.CINF has raised dividends for 65 consecutive years despite catastrophe and claims-cost risks. Cincinnati Financial Corporation’s (CINF - Free Report) shares have risen 6.3% in a year, outperforming the industry’s decline of 5.7%, while underperforming the Finance sector and the Zacks S&P 500 index’s growth of 10.6% and 29.3%, respectively.
Strong premium growth, improved pricing and higher net investment income, alongside a sharp reduction in losses and related expenses, increase the confidence of investors. The expected long-term earnings growth is pegged at 5.3%.
Image Source: Zacks Investment Research
Cincinnati Financial has outperformed its peers, including Arch Capital Group Ltd. (ACGL - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Palomar Holdings, Inc. (PLMR - Free Report) , in a year. Shares of ACGL, WRB and PLMR have lost 7.5%, 10.7% and 37.8%, respectively.
CINF’s Premium ValuationCincinnati Financial’s shares are trading at a premium to the industry. Its price-to-book value of 1.58X is higher than the industry average of 1.34X.
Image Source: Zacks Investment Research
CINF’s Growth Projection EncouragesThe Zacks Consensus Estimate for Cincinnati Financial’s 2026 earnings per share (EPS) is pinned at $8.61, indicating a year-over-year increase of 8.3%. The estimate for 2026 revenues is pegged at $12.05 billion, implying a year-over-year improvement of 7.7%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 4.9% and 6.6%, respectively, from the corresponding 2026 estimates. It has a Growth Score of B.
CINF's Average Target Price Suggests UpsideBased on short-term price targets offered by six analysts, the Zacks average price target is $181.50 per share. The average suggests a potential 14.8% upside from the last closing price.
Image Source: Zacks Investment Research
CINF’s Higher Return on CapitalReturn on equity in the trailing-12 months was 10%, better than the industry average of 6%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Factors Acting in Favor of CINFCincinnati Financial’s Commercial Lines Insurance segment has been consistently witnessing growth over the past several quarters, led by price increases and several growth initiatives. The company leverages its agency-centric model to expand commercial lines through deeper agency relationships, broader product offerings and disciplined underwriting, which is expected to support commercial lines’ profitability.
CINF expects property casualty underwriting results to continue benefiting from price increases and its ongoing initiatives, including the expansion of Cincinnati Re and Cincinnati Global, aimed at improving pricing precision. Management continues to highlight product expansion and selective risk-taking in these operations as part of its long-term strategy to improve income stability.
The Excess and Surplus line has been performing well since its inception in 2008. This segment should continue to benefit from new business-written premiums, higher renewal-written premiums and higher average renewal estimated pricing. Management also points to ongoing product additions in E&S and the ability to place portions of an account there to deepen broader relationships, which can help sustain growth without compromising risk selection, gain market share and diversify earnings.
Cincinnati Financial’s expansion strategy is driven by its exclusive partnerships with local, independent insurance agencies. This relationship-based model fosters strong customer loyalty, high retention rates and consistent business growth. As the insurer expands its agency network into underserved markets, it remains well-positioned to drive sustainable premium growth, deepen market penetration and create long-term shareholder value.
Cincinnati Financial has returned capital to its shareholders through share buybacks, dividend hikes and special dividends. It has an excellent track record of raising dividends for 65 straight years. Cincinnati Financial’s free cash flow conversion has remained more than 150% over the last few quarters, reflecting its solid earnings.
Risks for CINF StockCincinnati Financial’s results remain sensitive to catastrophe activity, particularly in property lines, and severity can vary sharply by period. If elevated catastrophe exposure or loss severity keeps underwriting appetite tight, it could slow long-term diversification benefits from personal lines and reduce operating leverage when rate increases ease.
Management continues to emphasize risk selection and segmentation, but rising loss costs, social inflation, larger jury awards and increasing claim severity could pressure profitability despite conservative reserves.
End NotesStrong performance at the Commercial Lines segment, rate increases, agent-focused business models, consistent cash flow and prudent capital deployment support growth. However, exposure to catastrophe losses and loss-cost trends, including social inflation, can narrow underwriting margins.
Its dividend yield of 2.3% is better than the industry average of 0.3%, making the stock an attractive pick for yield-seeking investors.
Higher return on capital, favorable growth estimates and impressive dividend history should continue to benefit Cincinnati Financial over the long term. A VGM Score of A instils confidence. Given the premium valuation, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Colgate-Palmolive Co (CL) Q1 2026 Earnings Call Highlights: Strong Growth Amidst Cost Challenges Colgate-Palmolive Co (CL) reports robust sales growth driven by emerging markets, while navigating cost inflation and competitive pressures. Summary
Organic Sales Growth: Accelerated from the fourth quarter, driven by improved volume performance, particularly in Asia Pacific.Volume and Pricing Growth: Achieved in all four categories and four of five divisions, excluding the impact of private label pet food exit.Emerging Markets Sales Growth: Led by regions where Colgate-Palmolive has higher market shares and scale advantages.Gross Profit, Operating Profit, EPS, and Free Cash Flow: All experienced growth.Annualized Savings Target: $200 million to $300 million, with the majority of savings focused in 2027 and 2028.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Colgate-Palmolive Co CL reported strong top and bottom line growth, with organic sales growth accelerating from the previous quarter.Emerging markets led sales growth, with significant contributions from regions like Asia Pacific and Latin America.The company is investing in innovation, data, analytics, digital, and AI to enhance capabilities and drive market share improvement.Colgate-Palmolive Co (CL) announced a strategic growth and productivity program with an annualized savings target of $200 million to $300 million, focusing on 2027 and 2028.The Hill's Pet Nutrition segment showed impressive performance, with solid organic growth and strong execution in innovation and market share gains. Negative Points Significant increases in raw material and packaging costs have led to a reduced expectation for gross margin for the year.North America continues to lag in volume/mix, with interventions in place but requiring time for improvement.The company faces a challenging cost inflation environment, with an additional $300 million impact from raw materials and logistics.Gross margins are expected to be pressured due to higher raw material costs and tariffs, particularly impacting North America.The company is navigating a competitive environment with increased couponing and promotional activities from competitors. Q & A Highlights Q: Noel, can you discuss the volume mix, particularly the strong results in emerging markets in Q1, and the sustainability of this volume strength? Also, what are the plans for North America, which lagged in Q1?
A: Noel Wallace, CEO: We're pleased with the acceleration of volume growth, especially in emerging markets like Asia Pacific. Our interventions in the Hawley & Hazel business are paying off, though the category remains sluggish in China. In North America, we're implementing a strategy reset with brand interventions, innovation, and better execution. We expect improvement as new products and shelf resets take effect.
Q: Can you provide more color on the cost inflation embedded in your guidance, and the assumptions regarding crude oil and potential offsets?
A: Noel Wallace, CEO: We've assumed $300 million in additional raw materials, with oil at around $110. It's crucial for our operating units to plan for this inflationary environment. Stan Sutula, CFO: The $300 million impact is two-thirds raw materials and one-third logistics, with significant increases in oil byproducts and logistics costs. We're offsetting this through RGM productivity and maintaining our earnings guidance.
Q: You maintained your top and bottom line guidance despite gross margin pressures. Can you elaborate on the flexibility you have to deliver on the bottom line?
A: Noel Wallace, CEO: Our guidance reflects increased volatility, but we remain confident in our earnings range. We're committed to offsetting cost pressures through RGM efforts, premium innovation, and productivity initiatives. Stan Sutula, CFO: Our regular productivity program will help drive efficiency across the P&L, impacting both cost and SG&A.
Q: Can you discuss the performance and outlook for the APAC region, particularly India and China?
A: Noel Wallace, CEO: Asia Pacific showed strong growth, driven by China and India. We're seeing improvements in the Hawley & Hazel business and strong execution in omnichannel platforms. The Colgate business in China delivered mid-single-digit growth in a challenging market. Other markets like the Philippines and Thailand also performed well.
Q: How is the Latin America region performing, and do you expect the momentum to continue?
A: Noel Wallace, CEO: Latin America is executing well, with strong growth in Mexico and Brazil. Their omni demand generation and RGM efforts are best-in-class. We're focusing on innovation across all price points, which should drive continued growth. We expect emerging markets to remain a key growth driver.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Colgate-Palmolive remains a Buy, supported by resilient fundamentals, an attractive and still sustainable dividend yield while they hold the Dividend King status, and prudent valuation amid macro and geopolitical headwinds. CL posted solid Q1 results, with 8.4% net sales growth, robust free cash flow, and reaffirmed 2026 sales and EPS growth guidance despite Iran-driven margin pressures. Rising input and logistics costs, driven by the Iran conflict, are expected to pressure gross margins, but CL's strong cash flows support ongoing shareholder returns.
Colgate-Palmolive (NYSE:CL | CL Price Prediction) stock picked up a fresh price target raise from JPMorgan on Monday, May 4, with the firm lifting its target to $96 from $95 while maintaining its Overweight rating. The thesis is straightforward: a higher share of sales from faster-growing emerging markets positions Colgate to outperform consumer staples peers tilted toward developed markets.
The move follows a strong Q1 2026 print and lands as the defensive trade comes back into favor. For income-oriented investors, this analyst upgrade reinforces Colgate-Palmolive stock as a core staples holding rather than a tactical pick.
Ticker Company Firm Action Old Rating New Rating Old Target New Target CL Colgate-Palmolive JPMorgan Price target raised Overweight Overweight $95 $96 The Analyst’s Case JPMorgan asserts that Colgate-Palmolive is well positioned to continue outperforming its peers thanks to its emerging markets mix. Q1 2026 backed that view, with emerging markets organic sales growth of 6% and 4% volume growth.
Latin America led with net sales up 15% for Colgate-Palmolive, and Asia Pacific delivered the strongest organic growth at 6%. Adjusted EPS of $0.97 beat the $0.94 consensus, marking Colgate-Palmolive’s fourth consecutive EPS beat.
Company Snapshot Colgate-Palmolive is a global consumer staples giant operating in 200+ countries and territories, with brands including Colgate, Palmolive, Speed Stick, Irish Spring, Tom’s of Maine, and Hill’s Science Diet. Global toothpaste share sits at 41%.
The company carries a market cap of roughly $70 billion and is a dividend king with over 60 consecutive years of dividend increases. Colgate-Palmolive CEO Noel Wallace declared, “We delivered a strong start to 2026, with broad-based top and bottom-line growth.”
Why the Move Matters Now Colgate-Palmolive stock trades around $85.80 with a trailing P/E ratio of 33x and a forward P/E ratio of 23x. Shares are up 8% year to date (YTD), reflecting some appetite for defensive names amid AI-driven volatility.
The Colgate-Palmolive stock consensus analyst target sits at $95.53, putting JPMorgan slightly above Street average. Risks remain real: management revised full-year gross margin guidance down citing tariffs, and North America organic sales fell 2%.
What It Means for Your Portfolio For prudent investors, the price target raise reinforces Colgate-Palmolive’s role as a defensive anchor. The bull case rests on emerging markets growth, Hill’s Pet Nutrition (+7% revenue), pricing power, and a yield around 2%. Colgate-Palmolive’s dividend track record remains a key draw for income portfolios.
The bear case centers on foreign exchange (FX) translation risk, slowing staples volumes, tariff-driven margin pressure, and a rich valuation that limits multiple expansion. Should AI infrastructure leadership resume, the defensive trade could rotate out quickly.
Watch for whether Q2 2026 sustains broad-based organic growth across emerging market regions; also look for Hill’s momentum after the Prime100 acquisition, and monitor for FX trajectory. Those signals will determine whether JPMorgan’s incremental bullishness on Colgate-Palmolive stock proves directionally right.
Some companies that are strong investments aren't selling brands and products that I think about daily; they're just there in my everyday life, built into the flow of my day without me noticing. I'll reach for the same products every morning, not because I compared options, but because I've used them for so long it doesn't even feel like a decision anymore.
That quiet, almost invisible, presence is what makes these two consumer staples companies so powerful. They've become part of how people live, not just what they buy. And because of that, their shares are solid decade-long holds.
Image source: Getty Images.
Procter & Gamble owns your morning routine Before most people have made a single conscious decision in the morning, they have already used a Procter & Gamble (PG +0.79%) product -- probably several. The toothbrush next to the sink may be Oral-B. The shampoo might be Pantene or Head & Shoulders. Their deodorant is Old Spice or Secret. The laundry detergent they'll use later is Tide. None of that spending is the result of advertising working in real time. It is the result of years of habit formation that now runs on autopilot.
This is what makes Procter & Gamble something other than just a consumer goods company. It is a behavioral infrastructure company. Its products have become so deeply woven into people's daily routines that switching requires active effort, and most people, under most circumstances, have no reason or desire to make that effort. That psychological stickiness is a moat that no balance sheet can capture.
CFO Andre Schulten said it plainly during the company's most recent earnings call: "Consumers respond well if we give them a truly better proposition in the categories we are in because they see there is upside." That encapsulates my thesis in one sentence. P&G doesn't ask consumers to switch. It asks them to upgrade within brands they already trust -- from standard Tide to Tide Pods, from regular Pampers to Pampers Pure. The margin profile on those higher-tier products is meaningfully better for the company, and consumers make those moves with less psychological resistance because their relationships with the brands are already established.
What gives the next decade its particular shape for P&G is that it is now beginning that same process in earnest across Latin America, Southeast Asia, and Africa. These are markets where growing middle classes are moving from generic products to branded essentials for the first time. Procter & Gamble has done this before: It sold Tide to American households in the 1940s, established Pampers in Western Europe in the 1970s, and entered China in the 1990s.
The playbook is not new, and it has never failed to generate decades of compounding growth. Brand formation like this creates wealth. The honest truth with P&G is that it has grown large enough that its acceleration is structurally limited, and meanwhile, private-label alternatives continue improving to the point where they capture meaningful market share from value-sensitive households. Those are real pressures. But the consumer who buys a store-brand detergent during a tight economic stretch almost always returns to Tide when that stretch ends. That is not loyalty born of convenience. Procter & Gamble has been building that loyalty for 189 years.
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2. Colgate-Palmolive Colgate-Palmolive's (CL +0.07%) Colgate toothpaste is arguably present in more households worldwide than any other single-branded product. More ubiquitous than any fast-food logo, or virtually any technology you can name. In Brazil, India, Mexico, China, the Philippines, and throughout sub-Saharan Africa, Colgate is not one option among several -- it is the toothpaste you use.
Dentists in countries where the company has operated for decades were trained on Colgate clinical materials, learned to recommend Colgate products, and passed those recommendations on to their patients, who passed the habit to their children. The brand has embedded itself into the trusted authority network of oral health in a way that no competitor can replicate with a marketing budget -- because the trust was built not through advertising, but through professional endorsement over generations.
CEO Noel Wallace said during the company's most recent earnings call that growth was "led by emerging markets," where its brands hold the highest market share and the greatest scale advantages. The reason is not pricing or distribution alone -- it is that Colgate arrived in those markets early, built trust in communities where dental health awareness was just emerging, and became the default. That default status, once earned, is nearly permanent.
Morgan Stanley named Colgate-Palmolive its top consumer sector pick for 2026. The company also gained global toothpaste market share in the first quarter of 2026 -- a category where it already leads -- a result that suggests the brand is not defending old ground, but actively expanding.
Colgate-Palmolive delivered 8% sales growth in Q1 2026, but EPS declined 6%, warranting a conservative hold rating. I see organic growth of just 2.9%, with North America sales falling due to increased toothpaste competition and margin compression. FX tailwinds drove significant growth in Latin America, EMEA, and APAC, raising concerns about sustainability if currency trends reverse.
Investors interested in stocks from the Consumer Products - Staples sector have probably already heard of Ollie's Bargain Outlet (OLLI - Free Report) and Colgate-Palmolive (CL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Ollie's Bargain Outlet is sporting a Zacks Rank of #2 (Buy), while Colgate-Palmolive has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that OLLI likely has seen a stronger improvement to its earnings outlook than CL has recently. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
OLLI currently has a forward P/E ratio of 16.78, while CL has a forward P/E of 22.83. We also note that OLLI has a PEG ratio of 1.32. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CL currently has a PEG ratio of 4.53.
Another notable valuation metric for OLLI is its P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CL has a P/B of 144.35.
These are just a few of the metrics contributing to OLLI's Value grade of B and CL's Value grade of D.
OLLI has seen stronger estimate revision activity and sports more attractive valuation metrics than CL, so it seems like value investors will conclude that OLLI is the superior option right now.
CL's innovation strategy is driving market share gains as premium launches, pricing and science-based products support growth across oral care and pet nutrition.
NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive (NYSE:CL) Chief Operating Officer, Americas, Shane Grant and Executive Vice President, M&A and Special Projects, John Faucher will participate in a fireside chat at the dbAccess Global Consumer Conference in Paris on Wednesday, June 3, 2026 at 8:45 am ET.
Investors may access a live webcast of this fireside chat on Colgate’s website at www.colgatepalmolive.com. For those unable to participate during the live webcast, a recorded version of the webcast will be made available through the Investor Center section of Colgate’s website.
* * *
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, Ajax, Axion, Darlie, elmex, EltaMD, Fabuloso, Filorga, hello, Hill’s Prescription Diet, Hill’s Science Diet, Irish Spring, Lady Speed Stick, meridol, PCA SKIN, Prime100, Protex, Sanex, Softsoap, Sorriso, Soupline, Speed Stick, Suavitel and Tom’s of Maine. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our achievements in decreasing plastic waste and promoting recyclability, saving water and improving children’s oral health through our Colgate Bright Smiles, Bright Futures program, which has reached approximately two billion children and their families since 1991. For more information about Colgate-Palmolive and how we make more smiles, visit www.colgatepalmolive.com. CL-C
If you are looking for reliable dividend growth in consumer staples, your search should rarely be about headline yield. Your search should focus on the kind of steady, compounding cash flow that can endure across entire economic cycles.
Five names stand out right now, and they cover the full range of how a consumer goods dividend can compound over decades.
Image source: Getty Images.
1. Coca-Cola The Coca-Cola Company (KO +0.11%) approved its 64th consecutive annual dividend increase in February, lifting the annual payout to $2.12 per share from $2.04. The reason this dividend has held up for more than six decades is structural. Coca-Cola sells syrup concentrate to a global network of independent bottlers, which produces high gross margins, low capital intensity, and pricing power even when consumer demand softens.
The 2025 to 2026 stretch has also been one of the better periods for revenue per case, as international pricing has held up, and the company has continued to invest in away-from-home channels.
The honest risk with Coca-Cola is that its volume growth in developed markets is modest, and weight-loss drugs are starting to influence beverage consumption at the margin. Neither factor has really shown up in the numbers, but both deserve to be monitored.
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2. Procter & Gamble Procter & Gamble (PG +0.79%) declared its 69th consecutive annual dividend increase in April. The payout is supported by a portfolio of category-leading brands across laundry, personal care, beauty, baby, and grooming, and by some of the most predictable free cash flow in the consumer staples universe. P&G's dividend has been paid for more than 130 years, which is genuinely unusual.
The dividend appeal is its consistency. P&G generates enough free cash flow to cover the dividend, fund buybacks, and reinvest in product development, all in the same year, every year.
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3. Colgate-Palmolive Colgate-Palmolive Company (CL +0.07%) raised its quarterly dividend in March, continuing one of the longer payout-growth streaks in consumer staples. The reason this stock works for dividend-focused investors is that toothpaste and oral care are among the most recession-resistant consumer goods, and Colgate's emerging-market exposure provides volume growth that mature U.S. competitors do not.
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4. McDonald's McDonald's Corporation (MCD +0.01%) currently yields about 2.7%, with a long history of annual dividend increases and a payout supported by a franchise model that generates substantial royalty-based cash flow. The reason the dividend is so reliable is the structure. McDonald's collects rent and royalties from franchisees rather than running most stores itself, which makes the income stream look more like a real estate and royalty business than a restaurant business.
The risk worth naming is value perception. McDonald's has been in a multi-quarter rebuild of its value menu, and traffic among lower-income U.S. consumers has been pressured. The payout itself is well covered, but earnings growth depends on how the value rebuild progresses.
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5. Walmart Walmart (WMT +0.44%) extended its dividend-growth streak to 53 years in February, with the quarterly payout rising to $0.248 per share. The yield is modest, but the dividend growth profile and the underlying business are what make this work. Walmart's advertising business is generating roughly $6.4 billion in revenue, and the membership program (Walmart Plus) is scaling. Adjusted operating income grew 10.8% in the fourth quarter, while revenue grew 5.6%, indicating real operating leverage.
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How to think about the mix These five names aren't the highest-yielding consumer goods stocks, and that's my point. What each ticker offers instead is consistency. Each one has strong payout coverage, a long history of dividend growth, and the kind of stability that lets income investors actually plan around the cash flow for decades.
A common trap in dividend investing is getting distracted by headline yield. A 6% yield can look attractive until the payout gets cut. Meanwhile, a steady 2% yield from a long-established Dividend King that grows its dividend 6% to 8% a year can quietly compound into a far larger income stream over time. A Dividend King is a company that's grown its dividend payment for at least 50 consecutive years.
That's the profile these companies tend to fit. Each represents a different angle on the same core idea: durable cash generation, dominant market positions, and a long record of raising dividends across multiple cycles. Put together thoughtfully and held with patience, they're less about chasing today's income and more about building a dividend stream that grows steadily year after year.
Key Takeaways CL posts broad-based volume and pricing growth across most divisions and categories.Colgate sees strong momentum in the Asia Pacific and Latin America markets.CL continues using innovation-led pricing to support margins and consumer value. Colgate-Palmolive Company (CL - Free Report) is striving for a balance between volume and pricing, rather than relying solely on price increases to drive revenues. In the first quarter of fiscal 2026, the company highlighted that it witnessed improved volume performance, particularly within the Asia Pacific region. Excluding the impact from the private label pet food exit, the company achieved both volume and pricing growth across all four categories and in four of its five operating divisions, reflecting broad-based business momentum.
The company stated that industry-wide category volumes remain relatively sluggish globally, making the recent acceleration in volume growth particularly encouraging. Management highlighted that volume improvement compared with the fourth quarter of fiscal 2025 was broad-based, with growth observed across nearly all divisions and categories in the first quarter of fiscal 2026. This trend was strongest in emerging markets, which the company views as a primary growth engine. Management noted that the Asia Pacific region was a significant contributor to accelerating growth trends, while Latin America continued delivering solid volume performance and market share gains.
However, pricing remains a critical lever navigating the inflationary environment and maintaining pricing power remains a key priority across the business. Management highlighted that pricing actions continue to be important for protecting margin dollars and supporting category investment. The company also emphasized that future pricing initiatives will increasingly be supported by innovation and strong value propositions across multiple price points. Management expects innovation-led pricing opportunities to continue through the remainder of the year as it focuses on balancing pricing strategy with consumer value.
Overall, Colgate appears increasingly balanced between pricing and volume growth, with emerging market momentum, innovation-led demand and pricing discipline supporting sustainable revenue growth and margin protection.
Zacks Rundown for CLColgate’s shares have gained 11.7% in the past six months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, CL trades at a forward price-to-earnings ratio of 23X, higher than the industry’s average of 17.68X. CL currently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CL’s 2026 and 2027 earnings implies year-over-year growth of 3.5% and 5.6%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Kenvue Inc. (KVUE - Free Report) operates as a consumer health company in the United States, the rest of North America, Europe, the Middle East, Africa, the Asia-Pacific and Latin America. KVUE currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for KVUE's current fiscal-year sales and earnings implies growth of 3.2% and 7.4%, respectively, from the year-ago actuals. KVUE delivered a trailing four-quarter negative earnings surprise of 12.1%, on average.
Krispy Kreme, Inc. (DNUT - Free Report) produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT Carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 14%, and the same for earnings implies growth of 80% from the year-ago reported figures. DNUT delivered a trailing four-quarter negative earnings surprise of 6.3%, on average.
NEW YORK--(BUSINESS WIRE)--Colgate-Palmolive, a global leader in health and hygiene, today announced the launch of Serving Smiles, a new video-first podcast designed to tackle health misinformation and simplify wellness for Gen Z. Hosted by actor, singer and content creator Pressley Hosbach and award-winning advocate, actor and podcaster Madison Tevlin, the series brings expert-backed clarity to a generation overwhelmed by wellness trends and conflicting health advice that can be found on socia.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, June 8, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
Colgate-Palmolive delivered solid Q1 results with 8.4% revenue growth and strong performance outside North America. CL's North American segment continues to underperform, with a 28% decline in operating profit and ongoing margin pressure from tariffs and freight costs. The SGPP productivity program is being expanded, targeting $200m–$300m in annual pretax savings by 2028 through supply chain and operational optimizations.
NEW YORK--(BUSINESS WIRE)--The Board of Directors of Colgate-Palmolive Company (NYSE:CL) today declared a quarterly cash dividend of $0.53 per common share, payable on August 14, 2026, to shareholders of record on July 20, 2026. The Company has paid uninterrupted dividends on its common stock since 1895. * * * Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Hom.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced that Steve Bandrowczak will step down as Chief Executive Officer, and the Board of Directors has appointed Louie Pastor as Chief Executive Officer, effective immediately. “On behalf of the Board and the entire Xerox team, I want to thank Steve for his leadership during a pivotal period for the company, including the successful acquisitions and integrations of Lexmark and ITsavvy,” said Scott Letier, Chairm.
Xerox Holdings Co. (NASDAQ: XRX - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock traders acquired 1,689 put options on the stock. This represents an increase of approximately 1,369% compared to the average volume of 115 put options. Wall Street Analyst Weigh In XRX has been the subject of
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) will host a live webcast with presentation slides at 8 a.m. ET on Thursday, April 30th, to discuss the company’s 2026 first-quarter results. A news release containing this information will be issued earlier that day at 6:30 a.m. ET.
WHEN:
8 a.m. ET, Thursday, April 30th, 2026
WHAT:
Review of Xerox’s 2025 first-quarter results
WHO:
Louie Pastor, chief executive officer, Xerox
Chuck Butler, chief financial officer, Xerox
WEBCAST:
https://edge.media-server.com/mmc/p/2of89kat
About Xerox Holdings Corporation (NASDAQ: XRX)
Xerox has been redefining the workplace experience for over a century. As a services-led, software-enabled company, we power today’s hybrid workplace through advanced print, digital, and AI-driven technologies. In 2025 Xerox acquired Lexmark - expanding our global footprint, strengthening service capabilities, and equipping us to deliver an even broader portfolio of workplace technologies to our clients. Today, we continue our legacy of innovation to deliver client-centric, digitally driven solutions that meet the needs of a global, distributed workforce. Whether in offices, classrooms, or hospitals, we help our clients thrive in a constantly evolving business landscape.
Note: To receive RSS news feeds, visit https://www.news.xerox.com.
For open commentary, industry perspectives and views, visit http://www.linkedin.com/company/xerox or http://www.youtube.com/XeroxCorp.
Xerox® is a trademark of Xerox Corporation in the United States and/or other countries.
Xerox (XRX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
NASHVILLE, Tenn.--(BUSINESS WIRE)--RJ Young, a leading provider of office technology solutions and managed services, today announced an expansion of its growing partnership with Xerox. Under this expanded agreement, RJ Young will now provide technical services for all Xerox clients, with sales support for SMB clients, across Tennessee, Mississippi, and West Virginia.
This strategic expansion enhances RJ Young’s ability to deliver best-in-class service, innovative technology solutions, and local expertise to a broader client base throughout the region.
“We’re excited to deepen our relationship with Xerox and extend our service capabilities to support more businesses across these key markets,” said AJ Baggott, President at RJ Young. “Our team is committed to delivering exceptional client experiences, and this expansion allows us to bring our world-class service to even more Xerox clients.”
Through this partnership, Xerox SMB clients in Tennessee, Mississippi, and West Virginia will benefit from RJ Young’s comprehensive service offerings, including managed print and document solutions, proactive maintenance and support, advanced workflow and automation technologies, as well as local service teams with rapid response times.
“RJ Young has consistently demonstrated a strong commitment to service excellence and client satisfaction,” said Karl Boissonneault, President, North America Channels at Xerox. “We are confident that this expanded partnership will deliver increased value and support to our clients across the region.”
RJ Young’s investment in local infrastructure, technical expertise, and customer support ensures a seamless transition for Xerox clients, with no disruption to service and an enhanced overall experience.
About RJ Young
RJ Young is a leading provider of business technology solutions, specializing in managed print services, copiers and multifunction devices, and workplace technology solutions. With a strong focus on service excellence and local support, RJ Young helps organizations improve efficiency, productivity, and performance. With nearly 30 locations and more than 650 team members, RJ Young has supported businesses nationwide since 1955. Learn more at rjyoung.com.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox today announced the launch of Xerox® IT as a Service, an AI-powered ServiceNow platform that transforms how organizations operate and manage technology. Xerox ITaaS unifies managed services, automation, procurement, and real-time intelligence into a single IT operating system, enabling organizations to move from reactive support models to autonomous operations. As organizations face increasing complexity, from distributed infrastructure and rising cyber th.
NORWALK, Conn.--(BUSINESS WIRE)--Xerox Holdings Corporation (NASDAQ: XRX) today announced its 2026 first-quarter results. “This quarter's results demonstrated tangible progress as revenue and profit trajectory improved, adjusted1 operating margin expanded, and we further enhanced our liquidity,” said Louie Pastor, chief executive officer at Xerox. “When I took this role, I was unequivocal that we must be clear about our priorities — stabilize revenue, increase profitability and reduce leverage.
Xerox Holdings Corporation (XRX - Free Report) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.2. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +45.00%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced a loss of $0.1, delivering a surprise of -166.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Xerox, which belongs to the Zacks Office Supplies industry, posted revenues of $1.85 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.97%. This compares to year-ago revenues of $1.46 billion. The company has topped consensus revenue estimates just once 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.
Xerox shares have lost about 33.8% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Xerox?While Xerox has underperformed 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 Xerox was unfavorable. 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 #5 (Strong Sell) for the stock. So, the shares are expected to underperform 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 $0.08 on $1.94 billion in revenues for the coming quarter and $0.29 on $7.51 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, Office Supplies is currently in the bottom 1% 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 broader Zacks Industrial Products sector, Watts Water (WTS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of +14.8%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level.
Watts Water's revenues are expected to be $632.09 million, up 13.3% from the year-ago quarter.
Xerox Holdings Corporation (XRX - Free Report) reported $1.85 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 26.7%. EPS of -$0.11 for the same period compares to -$0.06 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.78 billion, representing a surprise of +3.97%. The company delivered an EPS surprise of +45%, with the consensus EPS estimate being -$0.20.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Xerox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Equipment Sales- Entry: $135 million compared to the $94.93 million average estimate based on two analysts. The reported number represents a change of +214% year over year.Revenue- Equipment Sales- Mid-range: $198 million versus the two-analyst average estimate of $198.23 million. The reported number represents a year-over-year change of 0%.Revenue- Equipment Sales- High-end: $40 million compared to the $33.17 million average estimate based on two analysts. The reported number represents a change of 0% year over year.Revenue- Print and Other- Equipment sales: $378 million versus $330.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +33.1% change.Revenue- Equipment Sales: $378 million versus $330.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +33.1% change.Revenue- Print and Other: $1.69 billion compared to the $1.59 billion average estimate based on two analysts. The reported number represents a change of +30.8% year over year.Revenue- Equipment Sales- Other: $5 million versus the two-analyst average estimate of $3.93 million. The reported number represents a year-over-year change of +66.7%.Revenue- IT Solutions: $156 million versus $190.57 million estimated by two analysts on average.Revenue- Print and Other- Post sale revenue: $1.31 billion versus $1.35 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +30.1% change.View all Key Company Metrics for Xerox here>>>
Shares of Xerox have returned +24.6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways XRX beat Q1 estimates as revenue rose 26.7% YoY to $1.85B and loss narrowed to 11 cents per share. XRX saw strong growth in equipment sales and post-sale revenues, driving broad segment gains. XRX improved operating income and margin, while guiding 2026 revenue above $7.5B and solid cash flow. Xerox Holdings (XRX - Free Report) reported better-than-expected first-quarter 2026 results.
Quarterly adjusted loss came in at 11 cents per share compared to the Zacks Consensus Estimate loss of 20 cents and decreased 83.3% from the year-ago quarter. Revenues of $1.85 billion beat the consensus estimate by 4% and increased 26.7% on a year-over-year basis.
The impressive results had a positive impact on the market, as the company’s shares have gained 15.6% since the earnings release on April 30.
Image Source: Zacks Investment Research
The company’s shares have depreciated 51.9% over the past year compared with the Office Supplies industry’s 27.9% decline and the S&P 500’s 33.3% rise.
Q1 Revenues Details of XRXPost-sale revenues totaled $1.31 billion, up 30.1% year over year on a reported basis and 26.5% at cc, lagging our estimate of $1.46 billion. Equipment sales rose 33.1% year over year on a reported basis and 30.7% at cc to $378 million, beating our estimate of $315.8 million.
The Print and Other segment’s revenues totaled $1.69 billion, up 30.8% year over year on a reported basis and down 3.5% at cc, beating our estimate of $1.59 billion.
Sales revenues amounted to $920 million, up 65.2% year over year on a reported basis and declined 2% at cc. Services, maintenance, rentals and other revenues amounted to $926 million, up 3% on a year over year basis.
XRX’s Operating PerformanceAdjusted operating income totaled $72 million, improved more than 100% on a year-over-year basis. The adjusted operating margin was 3.9%, up 240 basis points year over year.
XRX’s Key Balance Sheet and Cash Flow FiguresXerox exited the first-quarter with a cash and cash equivalent balance of $585 million compared with $512 million in the December-end quarter of 2025. The company’s net cash provided by operating activities and free cash flow for the quarter were $144 million and $165 million, respectively.
XRX’s 2026 GuidanceFor 2026, the adjusted operating income is projected to be in the band of $450-$500 million. The company anticipates free cash flow of approximately $250 million.
Xerox expects the 2026 revenues to be above $7.5 billion.
Xerox’s Zacks RankXRX currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotManpowerGroup (MAN - Free Report) reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
MAN’s adjusted earnings (excluding 46 cents from non-recurring items) were 51 cents per share, which surpassed the Zacks Consensus Estimate by 1 cent and increased 16% from the year-ago quarter’s level. Total revenues were $4.5 billion, which beat the consensus estimate by $171.4 million and improved 10.3% on a year-over-year basis.
Robert Half Inc. (RHI - Free Report) reported first-quarter fiscal 2026 earnings of 14 cents per share, in line with the Zacks Consensus Estimate and down 17.6% from the year-ago quarter.
Quarterly revenues were $1.3 billion, down 3.8% year over year and slightly below the consensus mark of $1.31 billion, implying a 0.9% miss. Management pointed to strengthening same-day, constant-currency trends in talent solutions as the quarter progressed and into early April, with contract bill rates up 2.6% from a year ago on an adjusted basis.
