Key Highlights

● Colgate shares were indicated up 5.09% at $97.90 before the open.

● Third-quarter net sales rose 4.6% to $5.369 billion, with organic growth of 3.6%.

● Base Business EPS rose 7% to $0.97, versus a $0.92 pre-week consensus.

● Colgate now expects 2026 net sales growth of 4% to 5% and rising gross margin.

Colgate-Palmolive (NYSE:CL) is one of the strongest large-cap gainers ahead of Friday's opening bell. Shares were indicated at $97.90, up 5.09%, in a pre-market table as of 8:23 a.m. ET, after the toothpaste and pet food maker reported third-quarter results and raised its full-year targets.

For a consumer staples stock that normally moves in small increments, a 5% jump is a big reaction, and it comes on a morning when investors are looking for steady Earnings outside of tech.

A broad-based beat

Colgate reported net sales of $5.369 billion, up 4.6% from a year earlier, according to its Friday 8-K filing. Organic sales, which strip out currency moves and deals, rose 3.6%. That came from Volume growth of 1.7% and pricing of 2.0%. Rising volume is the detail investors watch most closely in staples, because it shows consumers are buying more products rather than simply paying more for them. Colgate getting a more even split between volume and price this quarter suggests Demand is holding up even after years of price increases across the household products industry.

Base Business EPS, Colgate's adjusted measure, rose 7% to $0.97. A pre-week consensus listed on an earnings calendar was $0.92, though that provider did not say whether its estimate was adjusted. GAAP EPS was $0.94. GAAP gross Margin widened by 0.8 percentage point to 60.2%.

CEO Noel Wallace said: "Our growth momentum continued, delivering another strong quarter of broad-based top- and bottom-line growth."

Guidance moves higher on every key line

The bigger catalyst is the outlook. Colgate now expects 2026 net sales growth of 4% to 5%, compared with its earlier 2% to 6% range. It expects Organic Sales growth in line with its nine-month pace, up from a prior 1% to 4% forecast, and Base Business EPS growth of 5% to 7%, versus mid-single digits before. It also now expects gross margin to rise for the year after previously guiding to roughly flat.

Raising the outlook on sales, margins and earnings at once suggests management sees steady demand and easing cost pressure in the final quarter, though the release gives no fourth-quarter figures.

Colgate is an S&P 500 member and one of the most widely held consumer staples stocks. Its strength fits a broader rotation this week. Health care hit a record on Thursday, and on Friday morning defensive names are holding up while Nasdaq-100 futures fall about 2.5% on worries about AI spending tied to Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC). Market notes also showed PepsiCo (NASDAQ:PEP) up 2.60% pre-market, citing defensive buying.

Risks and what to watch next

The main risks are input costs and currencies. Oil above $100 a barrel can raise packaging, resin and freight costs over time, and Colgate earns a large share of its sales outside the U.S., so dollar moves affect reported results. Consumer staples are also sensitive to interest rates. With the 10-year Treasury Yield near 5%, steady Dividend payers compete with bonds for income-focused investors.

Peer Church & Dwight (NYSE:CHD) also reported strong results this morning, and Kenvue released its quarterly numbers, so investors will compare volume trends across household and personal care names. If several staples companies show the same mix of rising volumes and better margins, the rotation into the group could have more staying power.

At the open, watch whether Colgate holds most of the pre-market gain, since staples rallies on earnings sometimes fade once broader trading begins. Also watch for analyst target revisions over the next few days and management's comments on volumes in emerging markets. Colgate's fourth-quarter report and 2027 outlook have not yet been scheduled.