01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Colgate-Palmolive Company reported solid financial results for the quarter and six months ended June 30, 2026.
Net sales increased by 4.9%a for the quarter and 6.6% for the first six months, driven by a combination of volume growth, price increases, and favorable foreign exchange. The company continues to focus on its core Oral, Personal, and Home Care segments, alongside its growing Pet Nutrition business, with strategic initiatives aimed at driving long-term growth and efficiency. Despite some operational challenges, including increased raw material costs and global economic uncertainties, Colgate-Palmolive demonstrated resilience.
The company's Strategic Growth and Productivity Program is progressing, aiming to optimize its global supply chain and streamline operations, with significant charges already incurred. Diluted EPS saw a decrease on a GAAP basis due to these restructuring costs, but on a non-GAAP basis, EPS showed healthy growth, reflecting the underlying strength of the business.
02—Key points
Key Highlights
- Net sales for the second quarter of 2026 increased by 4.9% to $5,361 million compared to the prior year period.
- For the six months ended June 30, 2026, net sales grew by 6.6% to $10,686 million.
- Gross profit margin improved to 61.5% in the second quarter of 2026, up from 60.1% in the prior year, driven by cost savings and pricing.
- The company incurred $129 million in pre-tax charges related to the Strategic Growth and Productivity Program in the second quarter.
- Diluted EPS decreased to $0.86 in the second quarter from $0.91 in the prior year on a GAAP basis, but increased to $0.99 on a non-GAAP basis.
- The Hill's Pet Nutrition segment saw a 3.4% increase in net sales for the quarter, driven by price increases.
- Cash flow from operations increased significantly by 17% for the first six months of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Colgate-Palmolive kept $0.13.
- Revenue$5.36B100.0%
- Cost of revenue−$2.06B38.5%
- Gross profit$3.30B61.5%
- Operating costs−$2.28B42.5%
- Operating income$1.02B19.0%
- Interest, other & tax−$323.0M6.0%
- Net income$693.0M12.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $5.36B$5.11B | +4.9% |
| Cost of Revenue | $2.06B$2.04B | +1.2% |
| Gross Profit | $3.30B$3.07B | +7.4% |
| SG&A Expenses | $2.13B$1.96B | +8.5% |
| Operating Income | $1.02B$1.08B | −5.9% |
| Net Income | $693.00M$743.00M | −6.7% |
| EPS (Basic) | $0.87$0.92 | −5.4% |
| EPS (Diluted) | $0.86$0.91 | −5.5% |
| Shares Outstanding (Basic) | 799.40M810.20M | −1.3% |
| Shares Outstanding (Diluted) | 801.80M813.30M | −1.4% |
05—Questions
Frequently Asked Questions
What were the primary drivers of the net sales growth in the second quarter of 2026?
Net sales growth of 4.9% in the second quarter of 2026 was primarily driven by a 0.9% increase in volume, a 1.6% increase in net selling prices, and a 2.4% positive impact from foreign exchange. The acquisition of Prime100 contributed an additional 0.1% to volume growth.
How did the Strategic Growth and Productivity Program impact the financial results?
The Strategic Growth and Productivity Program resulted in pre-tax charges of $129 million in the second quarter and $305 million for the first six months of 2026. These charges impacted GAAP reported net income and EPS. On a non-GAAP basis, which excludes these charges, the company demonstrated stronger earnings growth.
What is the outlook for the company given the current economic environment?
Colgate-Palmolive anticipates challenging global macroeconomic, geopolitical, and market conditions to persist. They expect these conditions to impact supply chains, raw material costs, and consumer spending. The company is focused on mitigating these impacts through its business strategy, including productivity programs and revenue growth management initiatives.
How is the Hill's Pet Nutrition segment performing?
The Hill's Pet Nutrition segment reported a 3.4% increase in net sales for the second quarter of 2026, primarily due to net selling price increases of 3.9%, partially offset by a 1.2% decline in volume. Organic sales for the segment increased by 2.1%, impacted by lower private label pet food sales.
06—Continue