01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Colgate-Palmolive Company reported net sales of $5.324 billiona for the three months ended March 31, 2026, an increase of 8.4% compared to the prior year's quarter.
This growth was driven by a combination of volume increase, net selling price adjustments, and favorable foreign exchange rates, alongside a contribution from the Prime100 acquisition. Diluted earnings per share for the quarter were $0.80b, a decrease from $0.85 in the same period last year, primarily impacted by charges related to the expanded Strategic Growth and Productivity Program. Excluding these program charges and other one-time items, adjusted earnings per share increased to $0.97.
The company continues to navigate a challenging global environment characterized by geopolitical tensions and inflationary pressures. Despite these headwinds, Colgate-Palmolive is executing its 2030 strategy, focusing on organic sales growth, operational efficiencies, and effective capital allocation. The expansion of the Strategic Growth and Productivity Program, now expected to incur charges between $350c-$550 million, aims to drive future growth and efficiency, with projected annualized pre-tax savings of $200-$300 million.
02—Key points
Key Highlights
- Net sales increased by 8.4% to $5.324 billion for Q1 2026, driven by volume, pricing, and foreign exchange, with organic sales growing 2.9%.
- Diluted EPS decreased to $0.80 from $0.85 year-over-year, impacted by restructuring charges. Adjusted diluted EPS rose to $0.97.
- Gross profit margin slightly decreased to 60.6% from 60.8%, primarily due to higher raw and packaging material costs, partially offset by cost savings and pricing.
- The "Strategic Growth and Productivity Program" was expanded, with total estimated pre-tax charges now between $350-$550 million, up from $200-$300 million.
- Hill's Pet Nutrition segment sales grew 6.7%, with organic sales up 2.1%, despite a negative impact from lower private label pet food sales.
- Operating profit decreased 10% year-over-year to $964 million, largely due to $171 million in charges from the Strategic Growth and Productivity Program.
- The company repurchased approximately 3.4 million shares for nearly $300 million during the quarter under its share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Colgate-Palmolive kept $0.12.
- Revenue$5.32B100.0%
- Cost of revenue−$2.10B39.4%
- Gross profit$3.23B60.6%
- Operating costs−$2.26B42.5%
- Operating income$964.0M18.1%
- Interest, other & tax−$318.0M6.0%
- Net income$646.0M12.1%
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 | $5.32B$4.91B | +8.4% |
| Cost of Revenue | $2.10B$1.92B | +9.0% |
| Gross Profit | $3.23B$2.99B | +8.0% |
| SG&A Expenses | $2.08B$1.90B | +9.4% |
| Operating Income | $964.00M$1.08B | −10.4% |
| Net Income | $646.00M$690.00M | −6.4% |
| EPS (Basic) | $0.81$0.85 | −4.7% |
| EPS (Diluted) | $0.80$0.85 | −5.9% |
| Shares Outstanding (Basic) | 802.30M812.00M | −1.2% |
| Shares Outstanding (Diluted) | 805.10M815.00M | −1.2% |
05—Questions
Frequently Asked Questions
What drove the increase in net sales for the first quarter of 2026?
Net sales increased by 8.4% to $5.324 billion, driven by a 1.1% volume growth, a 2.2% increase in net selling prices, and a positive foreign exchange impact of 5.1%. The acquisition of Prime100 also contributed 0.4% to volume growth.
Why did earnings per share (EPS) decline year-over-year?
Diluted EPS decreased to $0.80 from $0.85 in the prior year's quarter. This decrease was primarily due to charges associated with the Strategic Growth and Productivity Program. Excluding these and other non-recurring charges, adjusted diluted EPS increased to $0.97 from $0.91 in the prior year.
How is the Strategic Growth and Productivity Program impacting the company's financials?
The company expanded its Strategic Growth and Productivity Program, increasing the estimated total pre-tax charges to a range of $350 to $550 million. For the first quarter of 2026, charges related to this program amounted to $176 million pre-tax. While these charges negatively impact reported earnings, the program is expected to generate annualized pre-tax savings of $200 to $300 million once fully implemented.
What is the outlook for Colgate-Palmolive given the current global economic and geopolitical environment?
Colgate-Palmolive anticipates continued challenges from global macroeconomic, geopolitical, and market conditions, including inflationary pressures and supply chain disruptions. The company expects consumer behavior may shift towards lower-priced offerings and anticipates continued softness across its categories. Despite these headwinds, the company is focused on its 2030 strategy, leveraging brand strength, innovation, and operational efficiencies to drive growth and shareholder value.
06—Continue