Colgate Raises 2026 Base Business EPS Outlook

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

Organic sales growth accelerated to 3.6% in the third quarter as the company narrowed full-year net sales guidance and lifted Base Business earnings-per-share growth to 5% to 7%.

Colgate-Palmolive Company (CL) reported third-quarter 2026 net sales of $5,369 million, up 4.6% from a year earlier, as organic sales growth accelerated to 3.6% from 2.4% in the second quarter.

The personal-care company said worldwide volume growth improved sequentially for a fourth consecutive quarter, with volume up 1.7% and pricing up 2.0%. Organic sales included a 0.2% negative impact from lower private label pet food sales.

GAAP diluted earnings per share increased 3% to $0.94, reversing a 5% year-over-year decline in the second quarter. Base Business EPS rose 7% to $0.97.

GAAP gross profit margin expanded 80 basis points to 60.2%. Base Business gross profit margin expanded 90 basis points to 60.3%.

Latin America remained the largest growth engine. Net sales there rose 12.5%, with organic sales up 6.0%, volume up 3.9%, pricing up 2.1% and foreign exchange contributing 6.5%. Latin America operating profit rose 17% to $392 million, or 29.6% of sales.

North America net sales fell 1.7%, with organic sales down 1.6%, volume down 3.7% and pricing up 2.2%. North America operating profit fell 11% to $177 million, or 19.5% of sales.

Hill’s Pet Nutrition net sales increased 5.6%, with organic sales up 5.7%, volume up 1.8% and pricing up 3.9%. Operating profit in the division rose 5% to $267 million. Europe, Middle East & Africa net sales rose 1.4% and operating profit rose 8% to $262 million. Asia Pacific net sales rose 3.5% and operating profit was $211 million.

Total company GAAP operating profit rose 3% to $1,088 million, or 20.3% of sales. Base Business operating profit rose 5% to $1,117 million, or 20.8% of sales.

Advertising spending was $775 million in the third quarter, up from $674 million a year earlier. The company said advertising increased double digits in the quarter.

Chairman, President and Chief Executive Officer Noel Wallace said net sales and organic sales increased in all four categories and in four of five divisions, and that the company continued to invest behind brands globally.

For full-year 2026, the company now expects net sales to be up 4% to 5%, versus 2% to 6% previously, including a low-single-digit positive impact from foreign exchange. Organic sales growth is now expected to be broadly in line with nine-month performance, versus 1% to 4% previously, including the impact from the exit from private label pet food.

On a GAAP basis, the company now expects gross profit margin to be up, versus roughly flat previously, and still expects advertising to be up on both a dollar basis and as a percentage of net sales and double-digit earnings per share growth. On a Base Business basis, it now expects gross profit margin to be up and 5% to 7% earnings per share growth, versus mid-single-digit growth previously.

Toothpaste global market share was 41.4% year to date and manual toothbrush share 33.1% year to date.

Net cash provided by operations was $2,913 million for the first nine months of 2026.