01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Church & Dwight Co., Inc. (CHD) reported a slight increase in net sales for the first quarter of 2026, reaching $1.469 billiona, up 0.2% year-over-year.
While overall sales growth was modest, the company achieved a notable 3.3% increase in gross profit, driven by productivity initiatives and the impact of business exits and acquisitions, leading to a 140 basis point improvement in gross margin to 46.4%. Diluted Earnings Per Share (EPS) also saw a modest increase of 2.2% to $0.91b.
The company continues to manage operational complexities, including the integration of the Touchland acquisition and the strategic exit from certain product lines, while navigating rising manufacturing costs, inflation, and global supply chain disruptions. Despite these challenges, management expresses confidence in liquidity and the ability to meet financial covenants, supported by a robust credit facility and cash flow from operations.
02—Key points
Key Highlights
- Net sales increased slightly by 0.2% to $1,469.3 million for the first quarter of 2026, compared to $1,467.1 million in the prior year.
- Gross profit increased by 3.3% to $681.4 million, with gross margin improving by 140 basis points to 46.4% due to productivity programs and business exits/acquisitions.
- Diluted Earnings Per Share (EPS) rose by 2.2% to $0.91 from $0.89 in the same period last year.
- Operating expenses, particularly SG&A, increased by 10.2% primarily due to the Touchland acquisition and investments in growth initiatives.
- The company successfully divested several non-core businesses (Spinbrush, Flawless, Waterpik showerheads, and VMS brands), impacting sales but contributing to margin improvement.
- Cash and cash equivalents increased to $503.4 million, and the company has significant availability through its revolving credit facility and commercial paper program.
- The company returned $72.9 million to shareholders through cash dividends in the first quarter of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Church & Dwight Co Inc kept $0.15.
- Revenue$1.47B100.0%
- Cost of revenue−$787.9M53.6%
- Gross profit$681.4M46.4%
- Operating costs−$390.4M26.6%
- Operating income$291.0M19.8%
- Interest, other & tax−$74.7M5.1%
- Net income$216.3M14.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.47B$1.47B | +0.1% |
| Cost of Revenue | $787.90M$807.50M | −2.4% |
| Gross Profit | $681.40M$659.60M | +3.3% |
| R&D Expenses | $31.60M$32.80M | −3.7% |
| SG&A Expenses | $251.00M$227.70M | +10.2% |
| Operating Income | $291.00M$295.30M | −1.5% |
| Interest Expense | $24.00M$23.30M | +3.0% |
| Net Income | $216.30M$220.10M | −1.7% |
| EPS (Basic) | $0.91$0.90 | +1.1% |
| EPS (Diluted) | $0.91$0.89 | +2.2% |
| Shares Outstanding (Basic) | 236.50M245.80M | −3.8% |
| Shares Outstanding (Diluted) | 238.10M248.00M | −4.0% |
05—Questions
Frequently Asked Questions
What was the overall sales performance for Church & Dwight in the first quarter of 2026?
Church & Dwight reported a modest increase in net sales, with a 0.2% rise to $1.469 billion compared to the same period in the prior year. This slight growth was a result of various factors including volume increases across segments, partially offset by unfavorable pricing/product mix and the exit of product lines.
How did the company manage its profitability despite rising costs?
Profitability saw an improvement driven by a 3.3% increase in gross profit and a 140 basis point expansion in gross margin to 46.4%. This was achieved through significant productivity programs, benefits from the Touchland acquisition and business exits, and favorable foreign exchange, which more than offset increased manufacturing costs related to inflation, commodities, transportation, and tariffs.
What is the impact of recent acquisitions and divestitures on the company's financial results?
The company completed the acquisition of Touchland in July 2025, which contributed to sales and SG&A expenses in the current quarter. Simultaneously, strategic exits from businesses like Spinbrush, Flawless, Waterpik showerheads, and the VMS brands in late 2025 reduced sales but contributed positively to gross margin improvement. These activities are reshaping the company's portfolio.
What is the company's liquidity position and outlook?
Church & Dwight maintains a strong liquidity position with $503.4 million in cash and cash equivalents and substantial availability through its $2.0 billion revolving credit facility. Management expects this liquidity, combined with cash from operations, to be sufficient for operational needs, share repurchases, dividends, capital expenditures, and potential acquisitions.
06—Continue