Clorox Earnings Beat, Guidance Hinges On GOJO

Clorox earnings, reported on Aug. 3, 2026, showed a modest EPS outperformance while management warned that ERP disruptions, elevated manufacturing and logistics inflation, and value-seeking consumers would pressure fiscal 2027.

Fourth-Quarter Results and FY26 Trends

Clorox (CLX) reported net sales of $1.95 billion for the quarter ended June 30, 2026, down about 2% year over year. Adjusted earnings per share (EPS) of $1.66 modestly exceeded consensus by $0.01–$0.02. Organic net sales declined 13%, reflecting weak volumes and mix. Chair and CEO Linda Rendle said, “We operated through fiscal 2026 in an environment marked by value-seeking consumers, heightened competition, inflation and macroeconomic uncertainty.”

For the full fiscal year, Clorox reported net sales of $6.7 billion and adjusted EPS of $5.53. Organic sales fell about 9%, including a roughly 7.5-percentage-point drag from shipment reversals tied to an ERP (enterprise resource planning) transition. Gross margin declined to 42.3%, pressured by higher commodity and logistics costs and lower volumes.

FY27 Outlook and Key Drivers

Clorox expects total net sales to rise 13–14% in fiscal 2027, with organic growth of about 3.5–4.5%, adjusted EPS of $5.70–$6.00, and gross margin near 42%. The GOJO (Purell) acquisition, now closed and integrated, accounts for roughly 9.5 percentage points of the projected sales increase and will change the company’s revenue mix, margin profile, and leverage.

Management anticipates more than $200 million in supply-chain inflation, mainly in manufacturing and logistics, and plans to offset much of this through productivity initiatives and targeted pricing. The company faced $20–$25 million in incremental input-cost headwinds in the fourth quarter alone, which pressured gross margin by about 130 basis points.

The ERP implementation is complete entering fiscal 2027, positioning Clorox for normalized shipment patterns and improved supply-chain visibility. Management also reported improving market-share trends and near-flat consumption exiting the year.

Clorox reiterated a free-cash-flow margin target of 11–13% for fiscal 2027. It plans to continue investing in brand building, innovation, supply-chain resilience, and digital capabilities while balancing acquisition leverage and returning cash to shareholders through dividends.

The company’s near-term performance will depend on successfully integrating GOJO, recovering margins through productivity and pricing without further volume loss, and defending market share as consumers remain value-sensitive.