Earnings analysis · 10-Q
CL earnings analysis
Filed May 1, 2026 · Our reading of the company's report
The latest report
Colgate-Palmolive reported Q1 2026 earnings with revenue of $5.324 billion, exceeding estimates of $5.212 billion, but EPS fell short at $0.80 against an expected $0.95. The company highlighted strong sales growth in…
Read full summary
Colgate-Palmolive reported Q1 2026 earnings with revenue of $5.324 billion, exceeding estimates of $5.212 billion, but EPS fell short at $0.80 against an expected $0.95. The company highlighted strong sales growth in Latin America and EMEA, offsetting a decline in North American sales. Full-year guidance for organic sales growth remains intact despite a revised gross margin expectation.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $0.8
What stood out
-
Revenue Surpassed Estimates
Total revenue for Q1 2026 reached $5.324 billion, exceeding the estimated $5.212 billion.
-
EPS Missed Expectations
Diluted EPS reported at $0.80, falling short of the estimated $0.95.
-
Strong Latin America Growth
Sales in Latin America grew by 14.8%, reflecting robust demand.
-
Stable Gross Margin Percentage
Gross margin remained stable at 60.1%, despite previous expectations of a decline.
-
Market Share Efforts
The company continues to focus on strategic initiatives to bolster market share amid competitive pressures.
-
Increased Sales in EMEA
EMEA segment sales rose by 11.9%, contributing to overall growth.
What to watch
-
North American Sales Decline
Sales in North America declined by 1.8%, indicating potential weakness in this key market.
-
Strategic Initiative Costs
Increased charges from strategic growth initiatives may impact profitability going forward.
-
Exit from Pet Food Business
The ongoing negative impact from the strategic exit from the pet food business may affect future sales.
Management's outlook
Full-year guidance for net sales growth maintained at 2% to 6% and organic sales growth at 1% to 4%, though gross margin outlook was revised down.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.