Colgate-Palmolive — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 4.6% year-over-year to $5,369 million for the third quarter of 2026, compared to $5,131 million in 2025.
• Organic sales growth was 3.6% for the quarter, including a 0.2% negative impact from lower private label pet food sales.
• GAAP diluted earnings per share (EPS) increased 3% to $0.94, compared to $0.91 in the prior year period.
• Base Business (non-GAAP) diluted EPS increased 7% to $0.97.
• GAAP gross profit margin increased 80 basis points to 60.2%, compared to 59.4% in 2025.
• Base Business gross profit margin increased 90 basis points to 60.3%.
• Net cash provided by operations was $2,913 million for the first nine months of 2026, compared to $2,745 million in 2025.
• Total debt decreased to $7,716 million as of September 30, 2026, from $7,988 million as of December 31, 2025.
• Advertising expenses increased to $775 million in the third quarter of 2026 from $674 million in 2025.

Guidance and Future Outlook:

• Full-year 2026 net sales guidance was narrowed to an increase of 4% to 5% (previously 2% to 6%), including a low-single-digit positive impact from foreign exchange.
• Full-year 2026 organic sales growth guidance is now expected to be broadly in line with nine-month performance (previously 1% to 4%), reflecting the exit from the private label pet food business.
• Full-year 2026 GAAP gross profit margin guidance was raised to "up" (previously roughly flat).
• Full-year 2026 Base Business gross profit margin guidance was raised to "up" (previously roughly flat).
• Full-year 2026 Base Business earnings per share growth guidance was raised to 5% to 7% (previously mid-single-digit growth).
• The Company expects advertising to increase on both a dollar basis and as a percentage of net sales for the full year.
• Management anticipates double-digit earnings per share growth on a GAAP basis for the full year.

Business Segments and Product Lines:

• Net sales and organic sales increased in all four categories and four of five divisions.
• North America sales decreased 1.7% (organic sales down 1.6%).
• Latin America sales increased 12.5% (organic sales up 6.0%).
• Europe, Middle East & Africa sales increased 1.4% (organic sales up 2.7%).
• Asia Pacific sales increased 3.5% (organic sales up 4.6%).
• Hill's Pet Nutrition sales increased 5.6% (organic sales up 5.7%).
• The Company exited the private label pet food business.
• The Company reported its fourth quarter of sequential improvement in worldwide volume growth.
• Strong pricing growth was delivered in the third quarter.

Market and Competitive Landscape:

• Colgate-Palmolive maintained global market share leadership in toothpaste at 41.4% year-to-date.
• The Company maintained global market share leadership in manual toothbrushes at 33.1% year-to-date.
• The Company is executing its 2030 strategy with an emphasis on premium, science-based innovation.
• The Company invested in advertising with a double-digit increase for the quarter.

Risks and Challenges:

• Management cited consumer uncertainty and ongoing macroeconomic volatility as factors navigated through proactive growth and P&L flexibility.
• Forward-looking statements note potential impacts from global trade relations, tariffs, geopolitical events, wars, and military conflicts (specifically Ukraine and the Middle East).
• Risks include cost reduction plan execution, tax rates, interest rates, and legal or tax proceedings.

Management Commentary and Tone:

• Noel Wallace, Chairman, President and CEO, described the quarter as "strong" with "broad-based top- and bottom-line growth."
• Management expressed confidence in navigating challenges while delivering "consistent, compounded earnings per share growth" and driving long-term shareholder value.
• The tone emphasized continued growth momentum and the successful execution of the 2030 strategy.

Other Key Points:

• The Company narrowed its sales guidance while raising gross profit margin and Base Business EPS guidance for the full year.
• Corporate operations included charges of $29 million for the Strategic Growth and Productivity Program in the third quarter of 2026.
• The Company reported $1,308 million in dividends paid and $927 million in purchases of treasury shares for the nine months ended September 30, 2026.
• Free cash flow before dividends (Net cash provided by operations less Capital expenditures) was $2,513 million for the nine months ended September 30, 2026.
• The Company has recast historical geographic segment information to conform to the reporting structure effective for the quarter ended March 31, 2026.