The Base Business EPS beat and raised guidance are modest positives, but the GAAP EPS decline and restructuring charges prevent a clear bullish read. Monitor the earnings call for details on the Strategic Growth and Productivity Program's scope and timeline, as well as commentary on North America's -3.0% organic sales decline and the impact of private label pet food exit.
Price Chart
Executive Summary
Colgate-Palmolive reported Q2 2026 results with net sales up 4.9% to $5.361B and GAAP EPS declining 5% to $0.86, while Base Business (non-GAAP) EPS grew 8% to $0.99, beating the $0.95 consensus. The company maintained its full-year sales and GAAP EPS guidance but raised its Base Business EPS growth outlook from 'low- to mid-single-digit' to 'mid-single-digit', a modest positive signal. Gross margin expanded 140 bps to 61.5%, and advertising investment increased 15% year-over-year, supporting the brand investment narrative. However, GAAP operating profit declined 6% and GAAP EPS fell, driven by restructuring charges from the Strategic Growth and Productivity Program, which tempers the headline beat.
Key Financial Metrics
Key Facts
- Net sales increased 4.9% to $5.361B vs $5.110B YoY
- GAAP EPS decreased 5% to $0.86 from $0.91 YoY
- Base Business (non-GAAP) EPS increased 8% to $0.99, beating consensus of $0.95
- Organic sales growth of 2.4%, with volume growth improving sequentially for third consecutive quarter
- GAAP gross profit margin expanded 140 bps to 61.5%
- Advertising spending increased 15% to $777M
- Full-year 2026 guidance maintained: net sales +2-6%, organic sales +1-4%, GAAP double-digit EPS growth
- Base Business EPS guidance raised from 'low- to mid-single-digit' to 'mid-single-digit' growth
- GAAP operating profit declined 6% to $1.016B, impacted by $129M in Strategic Growth and Productivity Program charges
- Net cash provided by operations for H1 2026 was $1.742B, up from $1.484B YoY
Financial Impact
Base Business EPS beat consensus by $0.04 (4.5%), with gross margin expansion of 140 bps and raised Base Business EPS guidance
Risk Factors
- North America organic sales declined 3.0%, driven by -3.9% volume decline
- GAAP operating profit fell 6% due to $129M in restructuring charges from the Strategic Growth and Productivity Program
- Hill's Pet Nutrition organic volume declined 1.8% (excluding Prime100 acquisition impact)
- Volatile market conditions and tariffs continue to create uncertainty for the balance of 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000021665-26-000041 |
| Document: cl-20260731.htm | 0000021665-26-000041 |
| Document: 0000021665-26-000041-index-headers.html | 0000021665-26-000041 |
| Document: 0000021665-26-000041-index.html | 0000021665-26-000041 |
| Document: 0000021665-26-000041.txt | 0000021665-26-000041 |
| 8-K Data (Synthetic) | 0000021665-26-000041 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 7, 2026 8w ago | Insider Cluster | $93.27 $88.77 | ▼ −4.82% | ▼ −4.43% | $84.26 (−9.66%) |
Jul 31, 2026 9w ago | 8-K | $91.30 $90.75 | ▼ −0.60% | ▼ −3.59% | $84.26 (−7.71%) |
Apr 9, 2026 25w ago | 8-K | $86.00 $88.16 | ▲ +2.52% | ▼ −5.05% | $84.26 (−2.02%) |
Mar 31, 2026 26w ago | Court Ruling | $85.23 $84.49 | ▼ −0.87% | ▼ −10.28% | $84.26 (−1.14%) |
Mar 27, 2026 27w ago | Court Ruling | $84.26 $84.17 | ▲ +0.11% | ▲ +12.85% | $84.26 (−0.00%) |
Mar 25, 2026 27w ago | DEFA14A | $85.40 $83.69 | ▼ −2.00% | ▼ −9.86% | $84.26 (−1.33%) |
US Market Status
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