Colgate-Palmolive tops EPS estimates, but shares dip

Investing.com -- Colgate-Palmolive Company (NYSE: CL) reported second-quarter earnings before the open on Friday, topping earnings expectations.

Adjusted earnings per share of $0.99 beat the analyst estimate of $0.95 by $0.04. Revenue for the quarter came in at $5.36 billion, matching the consensus estimate and representing a 4.9% increase from $5.10 billion in the same quarter last year.

The company reported organic sales growth of 2.4% for the quarter, with net sales and organic sales growing in three of four categories and in four of five divisions. Gross profit margin increased 140 basis points to 61.5%. The company's stock fell 2% following the earnings release.

"Our growth momentum continued in the second quarter, as we delivered strong broad-based top- and bottom-line results, despite a difficult operating environment," said Noel Wallace, Chairman, President and Chief Executive Officer.

For the full year 2026, Colgate-Palmolive maintained its net sales guidance of up 2% to 6% and organic sales growth of 1% to 4%. The company updated its adjusted earnings per share guidance to mid-single-digit growth, compared to previous guidance of low- to mid-single-digit growth. The midpoint of this updated guidance range suggests an improvement from prior expectations. The company also revised its gross profit margin outlook to roughly flat from down previously on both a GAAP and adjusted basis.

The company delivered these results while increasing advertising spending by 15% in the quarter. Net cash provided by operations was $1.74 billion for the first six months of 2026.

By division, Latin America posted the strongest net sales growth at 13.7%, while North America declined 3.0%. Europe, Middle East & Africa grew 3.5%, Asia Pacific increased 4.9%, and Hill's Pet Nutrition rose 3.4%.

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