Colgate-Palmolive (NYSE:CL) Releases Earnings Results, Beats Estimates By $0.04 EPS

Colgate-Palmolive (NYSE:CL) issued its earnings results on Friday. The company reported $0.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.93 by $0.04, Zacks reports. The business had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.34 billion. Colgate-Palmolive had a return on equity of 464.63% and a net margin of 9.68%. The company’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.91 EPS.

Here are the key takeaways from Colgate-Palmolive’s conference call:

• Broad-based growth continued: Colgate-Palmolive reported organic sales growth across all four categories and four of five divisions, with emerging markets, Europe, and Hill’s contributing strongly. Free cash flow rose 7%, and the company returned $2.2 billion to shareholders year to date.
• Profitability outperformed despite inflation. Productivity programs, pricing, premium innovation, and manufacturing leverage more than offset roughly 300 basis points of material-cost pressure, prompting the company to raise its full-year gross-margin outlook.
• Hill’s delivered an especially strong quarter, with organic sales up 6.5% excluding private label and notable gains in therapeutic, cat, and wet-food segments. The company is also gradually rolling out its Fresh product line, targeting longer-term growth.
• Cost and macroeconomic pressures remain elevated. Management expects commodity inflation to peak in the fourth quarter, with logistics costs also high and foreign exchange moving unfavorably; these pressures could be a headwind into 2027, when no guidance has yet been provided.
• The U.S. turnaround remains a work in progress. Toothpaste market share showed early improvement, but category demand remains sluggish, and the company plans to rely on increased premium innovation, targeted advertising, AI-enabled marketing, and channel restructuring to drive a broader recovery in 2027.

Colgate-Palmolive Trading Up 2.4%

Shares of CL traded up $2.19 on Friday, hitting $95.35. 8,558,047 shares of the stock traded hands, compared to its average volume of 5,629,227. Colgate-Palmolive has a 1 year low of $74.54 and a 1 year high of $99.33. The stock’s 50 day moving average is $89.43 and its two-hundred day moving average is $89.58. The firm has a market capitalization of $76.01 billion, a P/E ratio of 37.84, a P/E/G ratio of 4.44 and a beta of 0.33. The company has a quick ratio of 0.67, a current ratio of 1.03 and a debt-to-equity ratio of 13.82.

Colgate-Palmolive Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, October 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, October 20th. This represents a $2.12 annualized dividend and a dividend yield of 2.2%. Colgate-Palmolive’s dividend payout ratio is presently 84.13%.

Insiders Place Their Bets

In related news, COO Panagiotis Tsourapas sold 10,000 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $92.05, for a total transaction of $920,500.00. Following the transaction, the chief operating officer directly owned 64,901 shares in the company, valued at approximately $5,974,137.05. This represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director John T. Cahill sold 4,170 shares of the firm’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $93.37, for a total value of $389,352.90. Following the completion of the sale, the director directly owned 28,373 shares in the company, valued at approximately $2,649,187.01. The trade was a 12.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 175,191 shares of company stock valued at $16,110,903. Company insiders own 0.43% of the company’s stock.

Key Stories Impacting Colgate-Palmolive

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Colgate reported quarterly earnings of $0.97 per share, up from $0.91 a year earlier and ahead of consensus estimates of approximately $0.92-$0.93. Revenue rose 4.6% year over year to $5.37 billion, slightly above the $5.34 billion analyst forecast. Colgate-Palmolive Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management raised key profitability expectations. The company increased its 2026 base-business EPS and gross-margin outlook while maintaining its overall fiscal-year EPS view. Organic sales growth, pricing actions and productivity improvements helped offset cost pressures. Colgate-Palmolive Q3 Results and FY26 Outlook
• Neutral Sentiment: The outlook is mixed. Colgate narrowed its sales-growth outlook, suggesting that demand remains uneven despite higher prices and improved profitability. The company’s defensive consumer-staples profile may support investor interest, while a valuation near 38 times earnings leaves less room for execution disappointments.
• Negative Sentiment: U.S. demand and input costs remain headwinds. Management cited weaker U.S. consumer demand and rising costs, risks that could pressure volumes and margins if pricing cannot fully offset inflationary expenses. Colgate-Palmolive Q3 Results and Outlook

Analyst Ratings Changes

A number of research analysts have issued reports on CL shares. Raymond James Financial increased their target price on shares of Colgate-Palmolive from $100.00 to $102.00 and gave the company an “outperform” rating in a report on Monday, August 3rd. Citigroup boosted their price target on Colgate-Palmolive from $105.00 to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Royal Bank Of Canada restated an “outperform” rating and issued a $104.00 price target on shares of Colgate-Palmolive in a report on Tuesday, September 8th. Evercore raised their price objective on Colgate-Palmolive from $100.00 to $101.00 and gave the company an “outperform” rating in a research note on Thursday, October 8th. Finally, Jefferies Financial Group reiterated a “hold” rating and set a $89.00 target price (up from $88.00) on shares of Colgate-Palmolive in a research report on Monday, August 3rd. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $98.56.

About Colgate-Palmolive

Colgate-Palmolive Company (NYSE: CL) is a global consumer products company focused on oral care, personal care, home care and pet nutrition. Its portfolio includes toothpaste, toothbrushes, mouthwash, liquid hand soap, body wash, deodorants, household cleaning products and pet food and treats.

The company markets well-known brands such as Colgate, Palmolive, elmex, meridol, Softsoap, Irish Spring, Ajax, Protex and Hill’s Science Diet. Colgate-Palmolive also provides veterinary and nutritional products through Hill’s Pet Nutrition, which serves pet owners and animal health professionals.

Founded in 1806 by William Colgate, the company developed from a soap and candle business into a diversified consumer goods manufacturer.