10-Q · April 30, 2026
Clorox reported Q3 fiscal 2026 results showing revenue of $1.67 billion, flat compared to the prior year and a minor increase in diluted EPS to $1.64 from $1.50. The results reflect ongoing challenges in the operating…
Earnings analysis · 10-K
CLX earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Clorox retains a strong branded portfolio, with more than 80% of sales from No. 1 or No. 2 category brands, and the GOJO acquisition broadens its health-and-hygiene and B2B positioning. However, fiscal 2026 showed…
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Clorox retains a strong branded portfolio, with more than 80% of sales from No. 1 or No. 2 category brands, and the GOJO acquisition broadens its health-and-hygiene and B2B positioning. However, fiscal 2026 showed weakening demand and earnings, including a 26% EPS decline, while the $5.1 billion debt load, incomplete GOJO integration and planned CEO departure materially raise execution risk. The FY2027 outlook anticipates substantial sales and EPS growth, but delivery depends on ERP stabilization, margin recovery and successful integration of recent transactions.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Leading brands support competitive moat
Clorox generated fiscal 2026 net sales of approximately $6.7 billion, and more than 80% of sales came from brands holding No. 1 or No. 2 market-share positions in their categories, supporting a differentiated brand and distribution moat.
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GOJO expands health and hygiene platform
The April 2026 GOJO acquisition expanded Clorox into Purell and broader health-and-hygiene solutions, adding B2B exposure in healthcare and institutional markets through an established distribution network and installed dispensing base.
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Innovation pipeline remained active
Clorox continued investing in its product roadmap, launching Clorox PURE, Clorox Screen+ Sanitizing Wipes, Fresh Step Lightweight Litter, Glad ForceFlex MaxStrength LeakGuard bags, new Burt’s Bees products, and additional flavors and scents across key brands.
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Transformation investment reaches milestone
The company completed its core U.S. ERP implementation in the third quarter of fiscal 2026 after approximately $580 million of incremental transformational investment, with expected longer-term efficiencies across supply chain, digital commerce, innovation and brand building.
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Dividend commitment continued
The company paid $602 million in dividends during fiscal 2026 and announced a further 1% dividend increase in July 2026, extending its longstanding practice of annual dividend increases.
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FY2027 outlook targets renewed growth
The FY2027 outlook calls for net sales of $7.59 billion to $7.66 billion, GAAP diluted EPS of $5.41 to $5.71, organic sales growth of 3.5% to 4.5%, and adjusted EPS of $5.70 to $6.00.
What to watch
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Earnings and demand declined
Fiscal 2026 diluted EPS declined 26% year over year, primarily because of lower net sales and higher manufacturing and logistics costs. The filing also states that macroeconomic uncertainty drove category slowdowns and lower sales.
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Leverage rose after strategic transactions
Debt increased to approximately $5.1 billion as of June 30, 2026, following the primarily debt-financed $2.15 billion GOJO acquisition and the $476 million cash purchase of P&G’s 20% Glad interest. S&P lowered Clorox’s long-term rating to BBB from BBB+ in February 2026.
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GOJO integration and controls remain incomplete
GOJO integration is a new execution risk: Clorox had not integrated GOJO’s internal controls into its existing systems as of June 30, 2026 and excluded the acquired business from its internal-control assessment under the one-year acquisition guidance. The transaction may also create channel conflict between B2B and consumer operations.
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CEO succession adds execution uncertainty
The CEO and Chair announced a planned resignation in May 2026, and the Board began a successor search. The filing warns that the transition could disrupt employees, customers, investors and other stakeholders and complicate execution of the company’s strategy.
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Retailer concentration pressures margins
Customer concentration remains material: Walmart represented 26% of consolidated net sales in fiscal 2026, while the five largest customers accounted for about half of consolidated net sales. Retailer consolidation and private-label competition could increase pricing pressure and reduce shelf space.
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ERP and cybersecurity exposure persists
The company completed its ERP replacement in January 2026 but continues to face potential system inefficiencies, data migration issues, security-access gaps and order-fulfillment disruption. The filing also notes that Clorox’s August 2023 cyberattack materially affected business strategy, results and financial condition.
Management's outlook
The FY2027 outlook was newly provided rather than compared with a prior FY2027 outlook. Management expects net sales growth of 13% to 14%, organic sales growth of 3.5% to 4.5%, and adjusted EPS of $5.70 to $6.00.
Earlier filings 4
10-K · August 8, 2025
Clorox’s FY2025 10-K presents a company with stable top-line scale ($7.1 billion in net sales) that delivered margin expansion and a 190% increase in diluted EPS year-over-year while continuing its IGNITE transformation…
10-Q · October 30, 2024
Clorox reported quarterly net sales of $1,762 million, up $376 million (+27.1%) versus $1,386 million in the prior-year quarter. Gross profit rose to $807 million (45.8% gross margin) and diluted EPS was $0.80 versus…
10-K · August 10, 2023
Clorox reported fiscal year 2023 net sales of $7.4 billion, up 4% year-over-year, driven by strength in cleaning, bags & wraps, cat litter and water-filtration products and supported by cost-justified pricing and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.