GET DAILY SIGNALSColgate-Palmolive (CL) Reports 4.6% Sales Increase and EPS Growth in Q3
Key Takeaways
- Net sales rose 4.6% to $5.37 billion, modestly above the consensus estimate of roughly $5.34 billion.
- Base Business (non-GAAP) diluted earnings per share (EPS) increased 7% to $0.97, beating the consensus estimate of $0.93, while GAAP diluted EPS rose 3% to $0.94.
- Organic sales grew 3.6%, supported by pricing up 2.0% and volume up 1.7%, with foreign exchange adding 1.0%.
- Gross profit margin expanded 80 basis points to 60.2% on a GAAP basis, and management raised its full-year margin and EPS outlook.
- North America remained a soft spot, with net sales down 1.7% and organic sales down 1.6% on a 3.7% volume decline.
- Advertising investment rose about 15% to $775 million, reflecting continued brand-building even as input costs stayed elevated.
Earnings Context and Why It Matters
Colgate-Palmolive's third-quarter report arrives at a pivotal moment for consumer packaged goods companies, which are balancing resilient pricing power against persistent volume pressure as shoppers absorb higher prices. The company has now beaten consensus EPS estimates for four consecutive quarters, signaling durable execution. Investors are watching whether broad-based category growth and productivity savings can offset elevated commodity costs, particularly resins, petrochemicals, and freight. Results across oral care, personal care, home care, and the Hill's Pet Nutrition segment matter because they reveal demand resilience and brand strength against private-label competition. Strong international momentum, led by Latin America, is being weighed against a still-soft North American market. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the third quarter ended September 30, 2026, CL reported net sales of $5.37 billion, up 4.6% from $5.13 billion a year earlier and ahead of the roughly $5.34 billion consensus. Organic sales grew 3.6%, including a 0.2% negative impact from lower private-label pet food sales. Volume rose 1.7%, pricing contributed 2.0%, and foreign exchange added 1.0%.
GAAP diluted EPS increased 3% to $0.94, while Base Business (non-GAAP) diluted EPS climbed 7% to $0.97, exceeding the consensus estimate of $0.93. Net income attributable to the company rose to $751 million from $735 million. GAAP gross profit margin expanded 80 basis points to 60.2%, and Base Business gross profit margin rose 90 basis points to 60.3%. GAAP operating profit reached $1.09 billion, with an operating margin of 20.3%, down 30 basis points year over year.
Management narrowed its 2026 net sales growth outlook to 4%–5% from 2%–6%, expects organic sales growth broadly in line with its roughly 3% nine-month performance, and raised its gross profit margin and Base Business EPS growth guidance to 5%–7%. GAAP EPS is expected to grow at a double-digit rate.
Market Reaction and Investor Sentiment
CL shares traded higher following the release, as investors focused on the top- and bottom-line beats and the raised profitability guidance. The 7% Base Business EPS gain and 90-basis-point Base Business gross margin expansion were seen as evidence that pricing, productivity, and favorable mix are offsetting raw material and freight inflation. Sentiment was tempered by continued weakness in North America, where a 3.7% volume decline and lower operating profit highlight a still-challenging home market. The deliberate ramp-up in advertising spending was read as a long-term investment in brand equity, though it pressured near-term margins in some regions.
Forward Outlook and Key Factors to Monitor
Following this report, investors will focus on whether Colgate-Palmolive can sustain volume growth while holding pricing, especially if consumer demand softens further. Management said commodity costs, particularly resins, petrochemicals, and pulp and paper, remain a headwind, with freight and logistics pressure expected to peak in the fourth quarter. The company's confidence in productivity programs and largely locked-in commodity costs for the balance of 2026 supports its raised guidance, but elevated input costs are expected to carry into 2027.
The North American division remains a key area to watch, given its high margins and recent volume weakness. A sustained decline there could offset gains in faster-growing regions like Latin America and in the Hill's Pet Nutrition business. Advertising investment is expected to keep rising, so investors should monitor whether increased spending translates into market share gains and durable revenue growth.
Finally, any commentary on tariffs, foreign exchange swings, and the integration of recent pet food acquisitions could shape expectations for 2027. While the company raised its outlook, the balance between pricing power and cost inflation will be central to sustaining momentum. From what I see, this is important because it sets the stage for how the business navigates 2027 pressures.
Integrating AI Tools into My Research Process
In my analysis of consumer staples names like CL, I often turn to Tickeron’s AI-powered platforms to cross-check patterns and signals alongside traditional fundamentals. These tools help surface comparable opportunities efficiently without replacing core due diligence. One thing that stands out is how they complement earnings reviews by highlighting technical trends across the sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CL in -1.51% downward trend, falling for three consecutive days on October 28, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where CL declined for three days, in 126 of 270 cases, the price declined further within the following month. The odds of a continued downward trend are 47%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CL moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 13 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 33%.
CL broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CL entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on CL as a result. In 35 of 68 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 51%.
The Moving Average Convergence Divergence (MACD) for CL just turned positive on October 06, 2026. Looking at past instances where CL's MACD turned positive, the stock continued to rise in 24 of 43 cases over the following month. The odds of a continued upward trend are 56%.
CL moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CL crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +2.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where CL advanced for three days, in 143 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 46%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 32 (best 1 - 100 worst), indicating outstanding price growth. CL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CL's P/B Ratio (314.681) is very high in comparison to the industry average of (21.037). P/E Ratio (36.677) is within average values for comparable stocks, (17.443). Projected Growth (PEG Ratio) (1.577) is also within normal values, averaging (1.518). Dividend Yield (0.023) settles around the average of (0.034) among similar stocks. P/S Ratio (3.331) is also within normal values, averaging (1.931).
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General Information
a maker of oral, personal, and household products
Industry HouseholdPersonalCare
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