Key Highlights

  • CL shares traded down 0.90% at $93.69, with the 50-day moving average moving below the 200-day average.
  • Second-quarter net sales rose 4.9% to $5.36 billion, with organic sales growth of 2.4% and pricing of 1.6%.
  • Gross profit margin rose 140 basis points to 61.5%, and advertising spending rose 15% to $777 million.
  • GAAP earnings per share fell 5% to $0.86, while base business earnings per share rose 8% to $0.99.
  • The company raised its base business earnings outlook to mid-single-digit growth and now expects roughly flat gross margin.

Colgate-Palmolive (NYSE:CL) shares are trading down 0.90% at $93.69, and the stock's 50-day simple moving average has moved below its 200-day, a pattern technical analysts call a death cross. The company has a market capitalization of $74.69 billion.

The signal is derived from past prices and does not reflect operating results. The company reported second-quarter results on July 31.

Organic Growth Led by Latin America and Asia Pacific

Net sales were $5.36 billion, up 4.9%, including a 2.4% benefit from foreign exchange. Organic sales rose 2.4%, including a 0.4% drag from lower private label pet food sales, with organic volume up 0.8% and pricing up 1.6%.

Latin America organic sales rose 5.3% and Asia Pacific rose 5.2%, while Europe, Middle East and Africa rose 2.0% and Hill's Pet Nutrition rose 2.1%. North America organic sales fell 3.0%.

Gross Margin Expands as GAAP and Base Business Earnings Diverge

Gross profit margin was 61.5%, up 140 basis points from 60.1%. Advertising spending rose to $777 million from $678 million.

GAAP operating profit fell 6% to $1.02 billion at a 19.0% margin, down 210 basis points, reflecting $129 million of charges tied to its Strategic Growth and Productivity Program. Base business operating profit rose 5% to $1.15 billion at a 21.4% margin.

GAAP net income attributable to Colgate was $693 million, against $743 million, and GAAP earnings per share were $0.86, against $0.91. Base business net income was $797 million, against $750 million, and base business earnings per share were $0.99, against $0.92.

The corporate operating loss widened to $335 million from $181 million. Division operating profit rose in all five divisions, including Latin America at $418 million, up 14%.

Cash Flow and Updated 2026 Guidance

For the first six months, net sales were $10.69 billion, up 6.6%, and net cash from operations was $1.74 billion, against $1.48 billion. Free cash flow before dividends was $1.48 billion, and the company paid $879 million of dividends and repurchased $597 million of stock.

The company left net sales guidance at growth of 2% to 6% and organic growth at 1% to 4%. It now expects roughly flat gross margin, previously a decline, and base business earnings per share growth in the mid-single digits, previously low to mid-single digits, while GAAP earnings growth remains in the double digits.

Signal Versus Raised Earnings Outlook

The death cross reflects past price action, while the reported figures show modest organic growth, a wider gross margin and a raised base business earnings outlook. The next report will show whether organic growth tracks the 1% to 4% range and how North America performs. This review is limited to reported results and company guidance and does not assess valuation.