Colgate-Palmolive 8-K
PositiveEarningsGuidance raisedImpairment / charge
Private-label pet food sales weigh on organic growth; gross-margin and Base Business EPS outlooks raised.
Filed 2026-07-31 07:58 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with updated FY2026 guidance. Net sales rose 4.9%, while organic sales grew 2.4%; foreign exchange contributed 2.4% and lower private-label pet food sales reduced organic growth by 0.4%. GAAP diluted EPS declined, while Base Business EPS increased. Colgate maintained its sales and GAAP EPS outlook, raised its gross-margin outlook from down to roughly flat, and raised its Base Business EPS growth outlook.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales | $5.36B | $5.11B | +4.9% |
| Organic sales growth, non-GAAP | 2.4% | — | — |
| Operating profit, GAAP | $1.02B | $1.08B | -6% |
| Operating profit, non-GAAP | $1.15B | $1.09B | +5% |
| Net income attributable to Colgate-Palmolive Company | $693M | $743M | -6.7% |
| Diluted EPS, GAAP | $0.86 | $0.91 | -5% |
| Diluted EPS, Base Business non-GAAP | $0.99 | $0.92 | +8% |
- GAAP gross profit margin increased 140 bp to 61.5%. GAAP operating profit included $129M of Strategic Growth and Productivity Program charges; Base Business operating profit excludes such items.
- For H1 2026, operating cash flow was $1.74B vs $1.48B; free cash flow before dividends was $1.48B vs $1.25B.
- At 6/30/2026, cash was $1.37B, total debt was $7.86B, and debt less cash, cash equivalents and marketable securities was $6.40B. H1 treasury-share purchases were $597M vs $516M; average diluted shares outstanding fell to 803.4M from 814.2M.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales growth, GAAP | FY2026 | Up 2%-6%; includes a low-single-digit positive foreign-exchange impact | — | Reaffirmed |
| Organic sales growth, non-GAAP | FY2026 | 1%-4%; includes the private-label pet food business exit | — | Reaffirmed |
| Gross profit margin, GAAP | FY2026 | ≈flat | Down | Raised |
| Advertising, GAAP | FY2026 | Up in dollars and as a percentage of net sales | — | Reaffirmed |
| EPS growth, GAAP | FY2026 | Double-digit | — | Reaffirmed |
| Gross profit margin, Base Business non-GAAP | FY2026 | ≈flat | Down | Raised |
| Advertising, Base Business non-GAAP | FY2026 | Up in dollars and as a percentage of net sales | — | Reaffirmed |
| EPS growth, Base Business non-GAAP | FY2026 | Mid-single-digit | Low- to mid-single-digit | Raised |
Investor Takeaways
- Second-half results will show whether improving organic volume and higher advertising investment can sustain growth amid the volatile market conditions the company expects to continue.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3