Colgate shares rise 4.4% after Q3 profit beat, raised EPS outlook

Colgate-Palmolive topped third-quarter profit estimates but missed on revenue, and raised its earnings-per-share outlook for 2026, the company said on Oct. 30 in its earnings release. Shares rose 4.4% in regular trading as of 9:43 a.m. ET, from a regular-session close of $93.16.

Colgate-Palmolive sells oral care, personal care, home care and pet nutrition products in more than 200 countries and territories.

Adjusted earnings were 97 cents per share, against the 95-cent consensus estimate compiled by Finnhub. On a GAAP basis, earnings were 94 cents per share.

Net sales of $5.37 billion were below the $5.49 billion consensus estimate compiled by Finnhub.

Here's how the company did:

• Adjusted EPS: 97 cents vs. 91 cents a year earlier, 95 cents expected, according to Finnhub
• GAAP EPS: 94 cents vs. 91 cents a year earlier
• Net sales: $5.369 billion vs. $5.131 billion a year earlier, $5.49 billion expected, according to Finnhub

Net sales rose 4.6% from a year earlier, and organic sales rose 3.6%. Advertising spending rose to $775 million from $674 million.

2026 guidance

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.

It expects organic sales growth to be broadly in line with its nine-month performance, versus 1% to 4% previously. The outlook includes its exit from the private label pet food business.

On a GAAP basis, the company now expects gross profit margin to be up, versus roughly flat previously, and double-digit earnings per share growth. On a Base Business basis, it expects 5% to 7% earnings per share growth, versus mid-single-digit growth previously.

Chairman, President and Chief Executive Officer Noel Wallace said: "Our growth momentum continued, delivering another strong quarter of broad-based top- and bottom-line growth." He added: "We remain focused on executing our 2030 strategy, with an emphasis on driving premium, science-based innovation."

Segment and margin results

Latin America net sales rose 12.5% and its operating profit was $392 million, up 17%. North America operating profit fell 11% to $177 million.

Hill's Pet Nutrition net sales were $1.205 billion, up 5.6%, and its operating profit was $267 million.

Revenue has risen in each of the last three quarters, from $5.13 billion to $5.36 billion, according to its SEC filings.

Cash and capital returns

For the first nine months, net cash provided by operations was $2.91 billion. Free cash flow before dividends was $2.51 billion, according to the release.

Colgate-Palmolive paid $1.31 billion in dividends and bought back $927 million of treasury shares over the same period.