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Colgate-Palmolive 8-K Report, Financial Results (May 1, 2026)

Reports
Earnings & Results·Financial Events·Exhibits & Filings
Filing Date
Filed May 1, 2026
Period End
April 30, 2026
Security
CL
In the record · 2016–202610-K1210-Q338-K102

CL filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 102 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Jun ’19Jun ’19
  3. Restructuring8-K · Jan ’22Jan ’22
  4. Leadership change8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 8-K filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.

Colgate-Palmolive reported first quarter 2026 results with net sales up 8.4% to $5,324 milliona, but organic sales growth was a more modest 2.9%, with FX contributing 5.1 points.

GAAP EPS fell 6% to $0.80 due to $171 millionb of Strategic Growth and Productivity Program (SGPP) charges, while Base Business (non-GAAP) EPS rose 7% to $0.97. Gross profit margin declined 20 basis points to 60.6% on both bases, and GAAP operating profit fell 10% to $964 million (Base Business operating profit rose 4% to $1,134 million). Cash generation was solid, with operating cash flow of $747 million and free cash flow before dividends of $609 million, up from $476 million a year earlier.

The central new disclosure is an expansion of the SGPP, approved by the Board on April 30, 2026. Cumulative pretax charges are now estimated at $350 million to $550 millionc, up from $200 million to $300 million, and projected annual pretax savings are $200 million to $300 million once fully implemented. Roughly 80% to 90% of charges are expected to be cash, with substantially all incurred by December 31, 2028.

Employee-related costs make up 70%d to 80% of the charges, and Europe, Middle East & Africa (25% to 30%) and Corporate (20% to 25%) carry the largest shares. The higher charge estimate is a near-term cost for investors to weigh against the savings case and the execution risk the company flags. Full-year 2026 guidance for net sales (up 2% to 6%), organic sales (up 1% to 4%), and sales-based outlook was maintained.

Management lowered its gross profit margin outlook to 'down' from 'up', and kept low-to-mid single-digit Base Business EPS growth and double-digit GAAP EPS growth. Notably, the GAAP EPS growth expectation is higher than the Base Business expectation, which is unusual and should be read carefully against the SGPP charge timing. North America was the weak spot, with sales down 1.8% and operating profit down 28% on a GAAP basis.

02—Key points

Key Highlights

  1. Net sales rose 8.4% to $5,324 million; organic sales grew 2.9%, with a 5.1-point FX tailwind and a 0.6-point drag from lower private label pet food sales.
  2. GAAP diluted EPS fell 6% to $0.80 on $171 million of SGPP operating charges; Base Business EPS rose 7% to $0.97.
  3. SGPP cumulative pretax charges raised to $350M–$550M (from $200M–$300M), with annual pretax savings of $200M–$300M once fully implemented.
  4. Gross profit margin declined 20 bps to 60.6%, and full-year 2026 gross margin guidance was lowered to 'down' from 'up'.
  5. North America weakened: sales fell 1.8% and GAAP operating profit fell 28% to $141 million, while Latin America (+15%) and EMEA (+20%) led profit growth.
  6. Operating cash flow was $747 million (vs. $600 million) and free cash flow before dividends was $609 million (vs. $476 million), supporting dividends of $417 million and buybacks of $306 million.
  7. Full-year sales and EPS guidance was maintained, but the company now guides GAAP EPS growth to double digits versus low-to-mid single digits on a Base Business basis.

03—Questions

Frequently Asked Questions

  1. Why did the company raise its restructuring charge estimate?

    The Board expanded the Strategic Growth and Productivity Program on April 30, 2026, to further align operations with the 2030 strategy. Cumulative pretax charges are now estimated at $350M–$550M, up from $200M–$300M. The filing does not give a detailed breakdown of the expanded initiatives beyond the segment and cost-type allocations.

  2. How much cash will the restructuring cost, and when will it be spent?

    Roughly 80% to 90% of the charges are expected to result in cash expenditures. Substantially all charges are expected to be incurred by December 31, 2028. Employee-related costs (severance and termination benefits) account for 70% to 80% of the total, with asset-related and other costs making up the remaining 20% to 30%.

  3. What savings does the program target?

    Once all projects are approved and implemented, the company projects cumulative pretax savings of $200M to $300M annually. The filing notes risk that the full savings may not be realized and that costs could exceed forecasts.

  4. Why did GAAP earnings decline while Base Business earnings grew?

    GAAP results include $171 million of SGPP charges in operating profit (plus $5 million in postretirement costs), which reduced GAAP diluted EPS by $0.17. Excluding these charges, Base Business EPS rose 7% to $0.97, reflecting higher sales and a $26 million reduction in non-service postretirement costs on a GAAP basis.

  5. What are the main risks to the outlook?

    Management cites volatile macroeconomic conditions, slower category growth, tariffs, and the gross margin pressure that led to the lowered margin guidance. Execution risk on the SGPP and possible cost overruns are also flagged, as is the exit from private label pet food, which weighs on organic sales growth.

04—Continue

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