Key Highlights

  • Net sales rose to USD 1,602.1 million from USD 1,585.6 million, while Gross Profit increased to USD 749.4 million.
  • Net income was USD 212.2 million, or USD 0.89 per diluted share, compared with USD 0.75 a year earlier.
  • The board approved a new share repurchase program of up to USD 1 billion with no expiration date.
  • Full-year Organic Sales growth is now guided to about 5%, the high end of the prior 4% to 5% range.

Margin Expansion Lifts Profit

Church & Dwight Co., Inc. (NYSE:CHD) reported third-quarter 2026 net sales of USD 1,602.1 million, compared with USD 1,585.6 million a year earlier. Gross profit rose to USD 749.4 million from USD 714.4 million, lifting gross Margin to about 46.8% from 45.1%. Marketing expenses fell to USD 190.7 million from USD 202.9 million, while selling, general and administrative expenses rose to USD 267.3 million from USD 256.9 million.

Income from operations was USD 291.4 million versus USD 254.6 million, and Net Income was USD 212.2 million versus USD 182.2 million. Diluted EPS was USD 0.89 against USD 0.75, and Operating Income rose 14.5% while net income rose 16.5%. Nine-month net income was USD 631.3 million, or USD 2.65 per diluted share. Nine-month net sales were USD 4,601.4 million versus USD 4,559.0 million, and nine-month dividends were USD 0.93 per share.

Balance Sheet and Repurchases

Total Debt was USD 2.2 billion and cash was USD 447 million at quarter end. The board authorized repurchases of up to USD 1 billion, replacing the prior authorization, which management said adds flexibility alongside Investment and acquisitions. The company paid cash dividends of USD 0.31 per share in the quarter and expects full-year capital expenditures near USD 125 million.

Raised Outlook

For 2026, management raised its sales outlook and tightened adjusted EPS guidance to growth of about 7%, from a range of 6% to 8%. Organic sales growth is guided to about 5%, adjusted gross margin to expand about 100 basis points, marketing to remain near 11% of sales and the adjusted tax rate to be about 21%. Cash from operations remains about USD 1.175 billion. Management said its outlook reflects strong year-to-date growth and continued fourth-quarter momentum, and that transportation rates have increased further over the past 90 days.

The company said its outlook reflects strong year-to-date growth and continued fourth-quarter momentum, and that transportation rates have increased further over the past 90 days. The outlook includes about USD 150 million of inflation, USD 50 million more than originally projected and USD 20 million more than in July, and assumes Crude Oil near USD 100 per barrel. Management cited productivity and Revenue growth management as offsets that delivered gross margin gains every quarter this year. For the fourth quarter, the company guides organic growth near 4% and adjusted EPS growth of 17% to 19%.

Cost and Innovation Variables for 2027

Management said it expects record productivity in 2026 and described the pipeline of household and personal care innovation, including new products planned for 2027. Selling, general and administrative expenses are guided to stay above 2025 levels because of acquisitions and investments in growth initiatives, AI capabilities, E-commerce and international. Items to watch include Commodity and transportation costs and promotional intensity.