CL Colgate-Palmolive 10-Q 2026-09-30 section summaries

Cover

Colgate-Palmolive (NYSE: CL) filed a Form 10-Q for the quarter ended September 30, 2026. It had 794,920,513 common shares outstanding as of that date.

The cover lists the following NYSE-traded notes:

• 0.300% notes due 2029
• 1.375% notes due 2034
• 3.250% notes due 2035
• 0.875% notes due 2039

Colgate-Palmolive — Q3 and first nine months of 2026

USD unless noted

Consolidated results

Q3 sales grew 4.6%, while operating profit rose 2.7%. For 9M, sales increased 6.0%, but operating profit fell 4.5%, principally as other expense, net, increased; it included $300M of Strategic Growth and Productivity Program charges. Total program charges were $333M pre-tax ($268M after tax) for 9M, including $30M pre-tax ($26M after tax) in Q3. The company reported $2.181B of 9M net income including noncontrolling interests, versus $2.266B.

Segments

Latin America led Q3 growth, with sales up about 12.6% and operating profit up about 16.3%; Hill’s also grew. North America sales and profit declined, while Asia Pacific profit was slightly lower. EMEA sales were up 5.4% and operating profit up 12.0% for 9M, compared with Q3 growth of about 1.3% and 7.8%, respectively. Asia Pacific 9M operating profit was $643M versus $620M, compared with a slight Q3 decline. Effective Q1 2026, the company realigned and recast segments, combining Europe and Africa/Eurasia (excluding Russia and Belarus) with skin health to form EMEA, and moving Russia and Belarus to Asia Pacific. The realignment shifted about $19M of goodwill from EMEA to Asia Pacific; the company found no resulting impairment.

Corporate operating loss, which reconciles segment results to consolidated operating profit, was $221M in Q3 versus $189M, and $902M for 9M versus $523M. Corporate results included $29M of Q3 and $327M of 9M program charges; 9M 2025 included $15M of ERISA litigation charges and $9M of acquisition costs. Approximately two-thirds of sales are outside the U.S. and 45% are from emerging markets; Q3 sales mix was Oral Care 44%, Personal Care 17%, Home Care 16%, and Pet Nutrition 23%.

Cash flow and investment

Working capital included $224M of cash outflow from receivables and $104M from inventory, partly offset by $254M from accounts payable and other working capital. The company paid $1.308B in dividends and repurchased $927M of treasury shares. Short-term borrowings rose $947M, while debt principal payments were $1.087B. Q3 capital expenditures were $134M versus $155M; 9M depreciation and amortization was $470M versus $457M.

Balance sheet and shares

Equity included $288M attributable to Colgate-Palmolive shareholders and $352M of noncontrolling interests. Parent-attributable tangible common equity, after deducting goodwill and other intangible assets from parent equity, was approximately negative $4.264B. Debt comprised $532M current and $7.184B long-term; its estimated fair value was $6.988B versus carrying value of $7.716B at September 30. Issued common shares were 1,465,706,360. Weighted-average diluted shares were 799.7M in Q3 versus 810.2M, and 802.2M for 9M versus 812.8M.

Programs, risks and other notable items

The three-year productivity program, approved in July 2025 and expanded in April 2026 to support the 2030 strategy, targets organizational alignment, supply-chain agility and lower overhead. Estimated cumulative pre-tax charges are $350M–$550M, 80%–90% expected to require cash, with substantially all charges expected by December 31, 2028. Cumulative charges through September 30 were $346M ($278M after tax); the restructuring accrual was $172M. Prime100, acquired in 2025 for $301M, expanded Hill’s in Australian fresh pet food; its finalized allocation included $207M goodwill and $64M other intangible assets.

Q3 effective tax rate was 23.6% versus 22.8%; the estimated full-year rate before discrete items was 23.5% versus 23.3%. The company reported no material 9M impact from U.S. OBBBA legislation or Pillar II minimum-tax rules. Disclosed litigation losses reasonably possible in excess of accruals were estimated at $0–approximately $225M; management did not expect a material consolidated impact, but noted an adverse outcome could materially affect a particular period. Talc cases increased to 561 at September 30 from 453 at year-end 2025. Disputed Brazilian assessments include approximately $107M, $19M and $28M. A separate IRS assessment for 2010–2021 involving imputed international-operation income is estimated at approximately $170M including interest; the company disputes it and expects a favorable outcome.

For 9M, foreign-currency contract losses recognized in SG&A were $81M versus gains of $110M in 2025. Net-investment hedges recorded AOCI gains of $165M versus losses of $560M, including a $172M gain on foreign-currency debt compared with a $525M loss in 2025. Derivatives are used to hedge, not speculate, and generally have maturities of 12 months or less. Supplier-finance obligations included in accounts payable rose to $218M from $177M; they do not change amounts due or scheduled payment dates.

Colgate-Palmolive — Q3 and first nine months of 2026 MD&A

Dollars in millions, except per-share data. Q3 is the three months ended September 30; 9M is the nine months ended September 30.

Consolidated results

*Approximate prior-period sales inferred from reported Q3 growth of 4.6%.

Q3 sales increased 4.6%; organic growth was 3.6%, comprising volume growth of 1.7% and pricing of 2.0%, with a 1.0% contribution from foreign exchange. Organic growth included a 20-basis-point drag from lower private-label pet-food sales. For 9M, sales grew 6.0%, but organic growth was 3.0%: volume +1.2% (including 0.2% from Prime100), pricing +1.9% and FX +2.8%; lower private-label pet-food sales reduced organic growth by 40 basis points.

Q3 gross margin was 60.2% versus 59.4%; excluding Strategic Growth and Productivity Program (SGPP) charges, it was 60.3% versus 59.4%. Cost savings, pricing and mix contributed 290, 80 and 20 basis points, respectively, largely offset by 300 basis points of raw- and packaging-material inflation. Adjusted SG&A was $2,102 in Q3 and $6,296 for 9M; advertising rose 15% in Q3 to $775 and 13% for 9M to $2,286. Adjusted operating profit was $1,117 versus $1,059 in Q3 and $3,396 versus $3,240 for 9M. GAAP results include SGPP charges; 9M 2025 also included ERISA-litigation and acquisition-related costs.

Q3 segment results

Corporate results include $29 of Q3 SGPP charges; segment profit and corporate reconcile to consolidated operating profit, subject to rounding. Q3 organic sales growth was 6.0% in Latin America, 4.6% in Asia Pacific, 2.7% in EMEA and 5.7% at Hill’s, while North America declined 1.6%. Latin American growth was led by Brazil, Argentina and Colombia; Hill’s growth came from therapeutic and wellness categories in the U.S. and Europe. North American weakness included Personal Care and Oral Care; Asia Pacific and Hill’s faced significant materials-cost pressure. Savings and pricing helped offset inflation in several regions.

For 9M, Oral, Personal and Home Care sales were $12,461 versus $11,735 (organic growth 2.9%); Hill’s sales were $3,594 versus $3,417 (organic growth 3.3%). EMEA’s reported sales growth slowed from 5.4% for 9M to 1.4% in Q3; North America declined 2.2% for 9M and 1.7% in Q3.

Cash flow and investment

Operating cash flow increased 6%, primarily reflecting higher net income excluding non-cash items and working-capital changes. The prior-year investing outflow included the Care TopCo/Prime100 acquisition. The company expects 2026 capital expenditures of approximately 3.0% of sales.

Restructuring, liquidity and outlook

The SGPP, expanded in April 2026 to support the company’s 2030 strategy, targets organizational alignment, supply-chain efficiencies and lower overhead. Q3 charges were $30 pretax ($26 after tax); 9M charges were $333 ($268 after tax). Cumulative charges through September 30 were $346 pretax ($278 after tax). The program’s estimated total pretax charges are $350–$550, with substantially all expected by December 31, 2028; projected annualized pretax savings are $200–$300. About 80%–90% of charges are expected to require cash.

Total debt was $7,716 at September 30, down from $7,988 at year-end 2025. Cash and equivalents rose to $1,527 from $1,288; commercial paper outstanding increased to $1,037 from $147. Financing outflows reflected higher debt principal payments and share repurchases, and the absence of prior-year debt issuance proceeds. Management expects operating cash flow and debt issuance to fund foreseeable needs. The quarterly dividend rose to $0.53 per share from $0.52, effective Q2 2026.

Management expects category softness to persist through 2026. Risks include consumer trade-down, elevated input and logistics costs, FX and tariff volatility, geopolitical disruption, and intensifying competition across retail and digital channels. Approximately two-thirds of sales are outside the U.S. and about 45% are from emerging markets. The company estimates approximately $170 plus interest in tax exposure for 2010–2021 related to an IRS dispute, which it contests. The 9M effective tax rate was 23.8% (adjusted 23.3%); management estimates a 23.5% full-year 2026 rate.

Colgate-Palmolive reported no material change in its disclosures on exposure to foreign-currency, interest-rate, commodity-price, or credit risk compared with its 2025 Form 10-K. The section presents no new market-risk metrics or developments.

Controls and Procedures

As of September 30, 2026, management concluded that disclosure controls and procedures were effective. The Company is upgrading its enterprise IT system and transitioning its infrastructure to the cloud; these initiatives have not had, and are not expected to have, a material impact on internal control over financial reporting. No other changes during the quarter materially affected, or are reasonably likely to materially affect, those controls.

Other Information

Colgate-Palmolive reported no material changes to the risk factors disclosed in its FY2025 Form 10-K. Legal matters are addressed in Note 10 of the Form 10-Q.

Under the $5.0B share repurchase program authorized March 20, 2025, the Company repurchased 3,680,167 shares in Q3 2026 at an average price of $89.70 per share. Of these, 3,361,109 shares were repurchased under publicly announced plans, while 319,058 shares were surrendered by employees to satisfy compensation and benefit program elections.

No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q3 2026. The Company reported no defaults upon senior securities.