Colgate stock climbs as third-quarter organic sales top forecasts and guidance improves

what happened

Seeking Alpha reports that Colgate-Palmolive stock traded higher before the open on Friday, after the household products company posted third-quarter organic sales above analyst forecasts and lifted its full-year profit outlook.

Organic sales grew 3.6%, against a 3.17% consensus estimate compiled by Bloomberg. Net sales climbed 4.6% to $5.37 billion, slightly above the $5.34 billion expected. Base Business earnings per share rose 7% to 97 cents, and GAAP EPS advanced 3% to 94 cents. Volume and pricing both beat projections, and gross margin widened by 80 basis points to 60.2%.

Regional results were mixed. Asia Pacific organic sales rose 4.6% versus an estimated 3.1%, and Hill's Pet Nutrition gained 5.7%, above the 3.99% expected. North America slipped 1.6%, a smaller decline than forecast, though regional volume fell 3.7%. The company narrowed its 2026 net sales growth view to 4.5% from 4% at the midpoints and now sees Base Business EPS growth at about 6%. Chief executive Noel Wallace said global volume improved for a fourth straight quarter.

why it matters

Shares are up about 18% this year, versus a 12.8% gain in the broader index, and short interest stands at 3.02% of the total float. The key signal for investors is the guidance upgrade and the expected gross margin expansion instead of roughly flat margins, which matters for defensive consumer staples.

market impact

CL shares: sales beat and raised guidance support the stock; staples sector: a sign of resilient demand

• ▲Colgate-Palmolive shares (CL) pressure up — sales and profit beat with a raised full-year outlook

tags

instruments