Church & Dwight Raises 2026 Sales Outlook After Third-Quarter Beat

The Tip Desk · October 30, 2026 · 3 min read

Organic sales rose 5.1% as net sales reached $1,602 million, and the company lifted full-year sales to about 0.5% growth.

Church & Dwight Co., Inc. (CHD) reported third-quarter net sales of $1,602 million, a 1.0% increase that exceeded the company’s outlook of a 1% decline. Organic sales grew 5.1%, well above a 3% outlook, as the personal-care and household-products maker said volume rose 4.6% and price and mix added 0.5%.

The company said the result reflected 2025 strategic portfolio actions. Organic growth slowed from 5.8% in the second quarter, when net sales were $1,530.0 million.

Gross margin expanded 170 basis points to 46.8%. Adjusted gross margin was also 46.8%, an increase of 170 basis points that the company attributed to higher volume, productivity, tariff refunds, and favorable mix from acquisitions and portfolio actions, which it said offset higher inflation and transportation costs.

Reported earnings were $0.89 a share, compared with $0.75 a year earlier. Adjusted EPS was $0.92, up 13.6% and above the company’s $0.89 outlook. The company said stronger-than-expected sales supported incremental SG&A investments and incentive compensation. Income from operations was $291 million. Adjusted income from operations was $298 million.

Consumer Domestic net sales were $1,225 million. Organic sales in that division slowed to 4.4% from 5.1% in the second quarter, with volume of 3.6% and price and mix of 0.8%. The company said growth was driven by ARM & HAMMER liquid laundry detergent, THERABREATH mouthwash and toothpaste, ARM & HAMMER cat litter, and WATERPIK water flossers. Reported domestic sales also included growth from the MISS MOUTH’S acquisition, which it said partially offset the sales impact of last year’s portfolio actions.

Consumer International net sales were $297 million. Organic sales slowed to 7.8% from 9.1% in the second quarter, with volume of 9.1% and price and mix of minus 1.3%. The company said growth was driven by THERABREATH, BATISTE, TOUCHLAND, and OXICLEAN.

Specialty Products net sales were $80 million. Organic sales accelerated to 5.0% from 2.8% in the second quarter, with volume of 2.9% and price and mix of 2.1%.

Global e-commerce revenues grew 20%, slower than 22.7% in the second quarter. Online sales represented 25.9% of total consumer sales.

Marketing expense was $191 million, or 11.9% of net sales. SG&A was $267 million, including $6 million of charges for restricted stock issued for the TOUCHLAND acquisition. Adjusted SG&A was $261 million, or 16.3% of net sales, a 110-basis-point increase the company tied to amortization and SG&A related to acquisitions, SG&A investments, and higher incentive compensation.

Cash from operations in the third quarter was $380 million. For the first nine months of 2026, cash from operations was $841 million. The company continues to expect approximately $1.175 billion of cash from operations for full-year 2026. As of September 30, 2026, total debt was $2.2 billion and cash on hand was $447 million. The board approved a new $1 billion share repurchase program with no expiration date, replacing the existing program.

The company raised its full-year 2026 net sales outlook to approximately 0.5% growth from a prior range of flat to 1%. It lifted full-year organic sales growth to approximately 5%, the high end of a prior 4% to 5% range. Full-year adjusted gross margin expansion is now expected to be approximately 100 basis points. Reported EPS is expected to increase approximately 20%, and adjusted EPS growth is now expected at approximately 7%, tightening a prior 6% to 8% range.

For the fourth quarter, the company expects a reported sales decline of approximately 0.5%, driven entirely by 2025 portfolio actions, organic sales growth of approximately 4.0%, continued gross margin expansion, and adjusted EPS up 17% to 19% versus last year. It said it remains optimistic about 2027 and plans to share a first formal update on 2030 growth initiatives at a January investor meeting.