Colgate-Palmolive reported higher sales and earnings for the third quarter of 2026, with organic sales growth across all four product categories. The company also raised parts of its full-year outlook, citing improved expectations for gross profit margin and base-business earnings per share.
Management said volume growth improved for a fourth consecutive quarter while pricing remained strong. It also emphasized continued investment in premium, science-based products and advertising as it pursues its 2030 strategy.
Third-quarter results
- Net sales rose 4.6% to $5.37 billion from $5.13 billion a year earlier. Organic sales increased 3.6%; lower private-label pet food sales reduced that growth by 0.2 percentage point.
- Diluted GAAP earnings per share increased 3% to 94 cents, from 91 cents. Base-business diluted EPS, a non-GAAP measure, rose 7% to 97 cents from 91 cents.
- Gross profit margin expanded. The GAAP margin increased 80 basis points to 60.2%; the base-business margin rose 90 basis points to 60.3%.
- The company said sales and organic sales increased in all four product categories and in four of its five divisions. It also reported year-over-year growth in operating profit, operating margin, net income, EPS and free cash flow.
- Operating cash flow totaled $2.913 billion for the first nine months of 2026.
- Colgate maintained its global market-share leadership in toothpaste, with a 41.4% share year to date, and manual toothbrushes, with a 33.1% share.
Updated 2026 outlook
- Colgate now expects full-year net sales growth of 4% to 5%, narrowing its previous range of 2% to 6%. The outlook includes a low-single-digit positive contribution from foreign exchange, based on current exchange rates.
- The company expects organic sales growth to be broadly in line with its performance for the first nine months, compared with its previous forecast of 1% to 4%.
- It also raised its full-year expectations for gross profit margin and base-business EPS. The available announcement text does not provide the revised numerical targets.
What changes for investors
The updated sales range is tighter and sits within the company’s former forecast, while its organic-growth outlook is now tied to results achieved so far this year. The higher margin and base-business EPS outlook reflects a stronger profit outlook alongside continued sales growth. Colgate said it is increasing global advertising by a double-digit percentage this quarter and remains focused on premium, science-based innovation.