Key Highlights

  • Net sales were USD 5,369 million, up 4.6% from USD 5,131 million, with organic growth in all four categories.
  • Gross profit rose to USD 3,233 million from USD 3,049 million, lifting gross Margin to about 60.2% from 59.4%.
  • Diluted EPS was USD 0.94 versus USD 0.91, and Net Income attributable to the company reached USD 751 million.
  • Free Cash Flow rose 7% through the third quarter, and USD 2.2 billion was returned year to date.

Sales and Margin Growth

Colgate-Palmolive Company (NYSE:CL) reported third-quarter 2026 net sales of USD 5,369 million, up from USD 5,131 million a year earlier. Gross Profit increased to USD 3,233 million, equal to a gross margin of about 60.2% against 59.4%. Operating profit rose to USD 1,088 million from USD 1,059 million, while selling, general and administrative expenses grew to USD 2,111 million from USD 1,971 million.

Net income attributable to the company was USD 751 million, or USD 0.94 per diluted share, versus USD 735 million, or USD 0.91. Nine-month net income attributable was USD 2,090 million versus USD 2,169 million. Interest expense was USD 62 million versus USD 67 million, and the provision for income taxes was USD 240 million versus USD 226 million. Nine-month gross profit was USD 9,755 million, a margin of about 60.8% against 60.1%.

Broad-Based Regional Growth

Chief executive Noel Wallace said Organic Sales grew in all four categories and four of five divisions, led by emerging markets with mid-single-digit growth driven by India, Brazil and China. European markets posted record market shares on science-based premium innovation, and the Hill's pet nutrition Business had a very strong quarter across therapeutic and wellness lines.

Management said it is focused on the U.S. turnaround, where toothpaste share has improved, by scaling premium innovation and reinforcing core brands, with sharper focus on digital, social and emerging agentic commerce channels.

Nine-Month Results and Costs

For nine months, net sales were USD 16,055 million versus USD 15,152 million, and diluted EPS was USD 2.61 versus USD 2.67. Other expense was USD 370 million versus USD 58 million, and operating profit was USD 3,069 million versus USD 3,214 million. Management said base business EPS came ahead of expectations even as Advertising increased, supported by funding-the-growth and the Strategic Growth and Productivity Program.

Management anticipates that cost Inflation remains elevated through the fourth quarter and into early 2027, with tariffs peaking in the fourth quarter and currency moving somewhat against the company. It cited Revenue growth management, productivity programs and AI tools as offsets, including PromoAI, now in many key markets, and a proprietary AI innovation platform that has sped up new product ideation. Funding-the-growth and the Strategic Growth and Productivity Program drove lower costs and are building a simpler, more agile organization.

Guidance and Factors to Watch

The company does not plan to share 2027 guidance until the first quarter of next year. Management described the global model as providing flexibility to invest in advertising while compounding EPS growth during significant cost inflation.

Items to watch include U.S. toothpaste share, the pace of premium innovation launches, Commodity and Tariff costs and advertising Investment levels.