Colgate-Palmolive (NYSE:CL) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Colgate-Palmolive (NYSE:CL) issued its earnings results on Friday. The company reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.95 by $0.04, FiscalAI reports. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.36 billion. Colgate-Palmolive had a return on equity of 386.76% and a net margin of 10.04%.The business’s revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.92 EPS.

Here are the key takeaways from Colgate-Palmolive’s conference call:

• Broad-based second-quarter performance: Colgate-Palmolive reported organic sales growth in four of five divisions and three of four categories, with base-business EPS ahead of expectations, free cash flow up 18%, and $1.4 billion returned to shareholders.
• Emerging markets, Europe, and Hill’s led growth. Hill’s organic sales increased 4% excluding discontinued private-label business and continued to gain share despite a largely flat pet-care category, while Latin America delivered balanced pricing and volume growth.
• U.S. performance remains a concern. Category softness, heightened competition, retailer inventory reductions, and select pricing gaps contributed to weakness; management plans increased advertising, innovation, and targeted promotional actions in the second half, but cautioned that improvement will not be linear.
• Management raised full-year gross-margin expectations to roughly flat, supported by revenue-growth management, productivity, mix, and pricing, while warning that raw-material costs and tariffs are expected to be higher in the second half. Organic sales guidance was not increased because of continued volatility in consumer demand, oil prices, geopolitical conditions, and North American categories.
• Hill’s is rolling out its fresh, single-protein pet-food offering gradually through veterinary, specialty, and neighborhood vet channels, prioritizing professional endorsement, product quality, and long-term brand building over near-term volume; Colgate also expects expanding AI, digital, and data capabilities to improve productivity and marketing effectiveness.

Colgate-Palmolive Stock Performance

Colgate-Palmolive stock opened at $91.29 on Friday. Colgate-Palmolive has a 1 year low of $74.54 and a 1 year high of $99.33. The company’s 50-day moving average is $90.97 and its two-hundred day moving average is $89.44. The company has a current ratio of 1.02, a quick ratio of 0.67 and a debt-to-equity ratio of 16.33. The company has a market cap of $73.05 billion, a PE ratio of 36.23, a PEG ratio of 4.81 and a beta of 0.33.

Colgate-Palmolive Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, July 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, July 20th. Colgate-Palmolive’s payout ratio is currently 82.49%.

Institutional Trading of Colgate-Palmolive

A number of institutional investors have recently bought and sold shares of CL. Van Diest Capital LLC acquired a new position in Colgate-Palmolive in the fourth quarter valued at about $214,000. Compound Planning Inc. increased its stake in Colgate-Palmolive by 178.3% in the fourth quarter. Compound Planning Inc. now owns 20,928 shares of the company’s stock valued at $1,654,000 after purchasing an additional 13,409 shares in the last quarter. Invesco Ltd. boosted its position in shares of Colgate-Palmolive by 1.5% during the fourth quarter. Invesco Ltd. now owns 8,598,021 shares of the company’s stock worth $679,416,000 after purchasing an additional 130,028 shares in the last quarter. Corient Private Wealth LLC grew its holdings in shares of Colgate-Palmolive by 64.6% in the 4th quarter. Corient Private Wealth LLC now owns 783,928 shares of the company’s stock valued at $61,946,000 after buying an additional 307,744 shares during the period. Finally, Strive Financial Group LLC bought a new position in Colgate-Palmolive during the fourth quarter worth about $102,000. Institutional investors and hedge funds own 80.41% of the company’s stock.

Key Stories Impacting Colgate-Palmolive

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Second-quarter adjusted/base-business EPS was $0.99, exceeding the $0.95 consensus estimate and rising from $0.92 a year earlier. Revenue increased 4.9% year over year to $5.36 billion, in line with expectations. Colgate-Palmolive Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with GAAP and base-business gross margins expanding 140 basis points to 61.5%. Productivity gains and organic sales growth helped offset increased brand investment, while Latin America led regional growth and toothpaste maintained its global leadership. Colgate Q2 Earnings Beat Estimates on Strong Margins
• Neutral Sentiment: Management reaffirmed its full-year sales forecast, with expected revenue of approximately $20.8 billion to $21.6 billion. Maintaining guidance supports stability, but the range signals limited visibility in a choppy consumer environment. Colgate-Palmolive Reaffirms Annual Sales Forecast
• Negative Sentiment: North American demand remained muted, creating concern that the company’s strongest international performance may not fully offset weakness in its largest developed market. Investors also focused on management’s warning that new tariffs could outweigh a recent refund benefit, potentially pressuring future earnings. Colgate Warns New Tariffs Will Outweigh Recent Refund Windfall
• Negative Sentiment: GAAP EPS declined 5% to $0.86 despite the adjusted earnings beat, and organic sales growth was only 2.4%. The combination of slower underlying growth, domestic weakness and tariff risk is outweighing the quarter’s positive margin and earnings performance.

Wall Street Analysts Forecast Growth

CL has been the subject of a number of analyst reports. Royal Bank Of Canada reiterated an “outperform” rating and issued a $102.00 target price on shares of Colgate-Palmolive in a research note on Monday, May 4th. Wells Fargo & Company upped their price objective on shares of Colgate-Palmolive from $92.00 to $95.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 8th. Piper Sandler raised their target price on Colgate-Palmolive from $92.00 to $96.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Weiss Ratings raised Colgate-Palmolive from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, May 4th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Colgate-Palmolive in a report on Friday, May 1st. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $97.82.

Colgate-Palmolive Company Profile

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.