EL7.AI
StocksMedium•27 October 2026•
3 min read

Clorox cuts organic sales 8% in 2026, expects growth next year

Key Facts

1Organic sales fell 8% and net sales fell 5% to $6.72 billion in fiscal 2026.
2Adjusted earnings per share fell 28% to $5.53, from $7.72 in the prior year.
3Clorox estimated that comparison with prior inventory shipments affected sales growth by about 7.5 points in 2026.
4The company expects organic growth of 3.5% to 4.5% in fiscal 2027.

Clorox net sales fell 5% to $6.72 billion in the fiscal year ended June 30, 2026, while organic sales declined 8%, the company’s results showed. Adjusted earnings per share fell 28% to $5.53, compared with $7.72 in the prior year. The company said results were affected by additional inventory shipments ahead of its ERP system transition, which supported sales in the prior year. The filing estimated that the comparison affected 2026 sales growth by about 7.5 points. The figures come amid declining margins and pressure on earnings, while the company expects organic sales to return to growth in fiscal 2027.

The comparison effect was clear in the fourth quarter, when organic sales fell 13%; Clorox attributed the decline mainly to the comparison with additional shipments tied to the system transition. Quarterly net sales fell 2% to $1.95 billion. The earlier shipments had added about 3.5 points to sales and about 90 cents to earnings per share in fiscal 2025, according to the company. That comparison therefore created an arithmetic headwind for results in the following year, while lower sales and manufacturing and logistics costs also weighed on margins. The quarter’s weakness was not limited to the comparison effect: gross margin fell 520 basis points to 41.3%.

For the full year, gross margin fell 290 basis points to 42.3% from 45.2% in the prior fiscal year. The company linked the decline to lower sales and higher manufacturing and logistics costs. Net cash from operations also fell 38% to $612 million, compared with $981 million in 2025. Clorox attributed a substantial part of the cash-flow decline to a payment to terminate the Glad Venture agreement. The pressures also include costs from the GOJO acquisition, which the company expects to contribute to sales growth next year.

The company cut its fiscal 2026 adjusted earnings-per-share forecast in April to a range of $5.45–$5.65, from $5.95–$6.30 previously. Reuters, via Investing.com, reported that the reduction came amid weak demand for cleaning products and higher costs related to the war on Iran. In the context of financial pressures, a Motley Fool article published Oct. 26 said total debt had reached about $5.1 billion, after nearly doubling in the prior year. Chief Executive Linda Rendle said the operating environment would remain challenging in fiscal 2027. She added that the company expects continued cost volatility and consumers seeking value.

Clorox expects net sales to grow 13% to 14% in fiscal 2027, with the GOJO acquisition contributing about 9.5 points. It expects organic sales growth of 3.5% to 4.5%, signaling an improvement in underlying business activity, according to the company’s estimates. It also expects adjusted earnings per share of $5.70 to $6.00, an annual increase of 3% to 8%. Motley Fool, meanwhile, reported that the stock had fallen about 27% in the year leading up to its Oct. 26 article. The company is scheduled to report fiscal 2027 first-quarter results on Nov. 2, 2026, offering a near-term indication of the organic sales trajectory amid cost volatility.