Colgate narrows 2026 sales growth outlook to 4%-5% after quarterly profit reaches $751 million

Key Facts

Colgate-Palmolive said on October 30 that net income attributable to the company was $751 million in the third quarter of 2026, compared with $735 million in the same period of 2025, while core and diluted earnings per share under U.S. accounting standards rose to $0.94 from $0.91. The results came as the company narrowed its full-year net sales growth outlook to 4%-5%, from 2%-6% previously. Chief Executive Noel Wallace said sales and organic sales increased in all four categories and in four of the company’s five divisions. He added that global organic volume growth improved sequentially for the fourth consecutive quarter. The results combined stronger earnings and margins with a decline in organic sales in North America.

The company said its 2026 organic sales growth outlook was now close to performance recorded in the first nine months, after its previous outlook range was 1%-4%. It also raised its core earnings per share growth outlook to 5%-7%, from mid-single-digit growth previously, and raised its gross margin outlook from roughly flat to an increase year over year. It left its U.S. GAAP earnings per share growth guidance unchanged. The sales range adjustment followed third-quarter results showing improved profitability, as the company continues to tie its annual outlook to the trajectory of organic sales and margins. Management said the net sales outlook was narrower than the previous range, with a focus on finishing the year within the new range.

Regionally, organic sales in North America fell 1.6% during the quarter, and organic volume declined 3.7%. By contrast, organic sales rose 6.0% in Latin America, 2.7% in Europe, the Middle East and Africa, and 4.6% in Asia-Pacific. The divergence highlights the company’s reliance on markets outside North America to offset weakness in the region, which recorded declines in sales and volume. Wallace said net and organic sales grew in all four categories, and four of the five divisions posted an increase. This puts regional performance in the context of an overall result in which growth spanned most categories and divisions despite the decline in North America.

Reported gross profit margin under U.S. accounting standards rose to 60.2%, up 80 basis points year over year, while core operating margin was 60.3%, up 90 basis points. The company said raw material costs had a negative 300 basis-point impact on the change in core margin. By contrast, funding-the-growth initiatives contributed 290 basis points, according to the earnings statement. This means the margin improvement came despite the burden of raw materials, with a nearly equivalent contribution from the initiatives cited by the company. Core operating margin remains a non-GAAP measure, alongside the margin reported under those standards.

Wallace said the company recorded “a fourth consecutive quarter of sequential improvement in global volume growth,” referring to the improvement from one quarter to the next. The company’s global market share since the start of 2026 was about 41.4% in toothpaste and 33.1% in manual toothbrushes. These percentages provide context on the company’s position in two major categories in its portfolio, alongside organic sales growth across all four categories during the quarter. Wallace, Chief Financial Officer Stan Sutula and Claire Ross of Investor Relations hosted the earnings call on October 30 at 8:30 a.m. Eastern time. The call was devoted to discussing third-quarter results and the company’s outlook.

Before the results announcement, the company’s shares, listed under the ticker CL, closed at $93.16 on October 29, the last daily close before the statement was released. After the announcement, Investing.com reported earnings per share of $0.97, compared with an analyst estimate of $0.93, and revenue of $5.37 billion against a forecast of $5.34 billion. The $0.97 earnings per share figure differs from the $0.94 diluted and core earnings per share under U.S. accounting standards; the company describes it as diluted earnings per share on a core business basis, a non-GAAP measure. The revenue figure and analyst estimates in the Investing.com report were also given as $5.37 billion and $5.34 billion. The company’s announced annual guidance centers on a 4%-5% net sales growth range and its updated 2026 earnings and margin outlook.