Colgate Q3 2026 Results Lift Sales, Profit
Colgate Q3 2026 Results show higher sales, profit and gross-margin expansion and a raised full-year outlook that could boost investor interest in margins.
KEY TAKEAWAYS
- Net sales rose 4.6% to $5.4 billion for the quarter.
- Organic sales grew 3.6% and were broad based across categories and divisions.
- Company narrowed 2026 sales range to 4%-5% and raised Base Business EPS growth to 5%-7%.
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Colgate-Palmolive reported higher sales, profit, and margin expansion in its Colgate Q3 2026 results release on Oct. 30, 2026, driven by volume, pricing, and foreign-exchange contributions. The company also raised its full-year outlook.
Third-Quarter Results and Drivers
For the quarter ended Sept. 30, 2026, Colgate-Palmolive reported net sales of $5.369 billion, up 4.6% year over year. Organic sales rose 3.6%, with lower private-label pet-food sales reducing growth by 0.2 percentage point. GAAP diluted earnings per share increased 3% to $0.94, while Base Business diluted EPS, a non-GAAP measure, rose 7% to $0.97. Net income attributable to Colgate was $751 million, compared with $735 million a year earlier.
Gross margin expansion supported profitability. GAAP gross margin widened 80 basis points to 60.2%, and Base Business gross margin increased 90 basis points to 60.3%. GAAP operating profit rose 3% to $1.088 billion, producing a 20.3% operating margin. Base Business operating profit grew 5% to $1.117 billion, with a 20.8% operating margin.
Pricing contributed about 80 basis points to gross-margin improvement, while funding growth initiatives added roughly 290 basis points. Higher raw-material costs had an adverse effect of approximately 300 basis points. Organic sales growth was broad-based across all four categories and in four of five divisions.
Net cash provided by operations was $2.913 billion for the first nine months of 2026, up from $2.745 billion in the same period a year earlier.
Guidance and Costs
Colgate narrowed its full-year 2026 net-sales growth range to 4%–5%, assuming a low-single-digit positive foreign-exchange impact. It expects full-year organic sales growth to align broadly with the nine-month performance. The company raised its outlook for reported and Base Business gross margins to increase year over year and projects Base Business EPS growth of 5%–7% for 2026.
Base Business advertising spending rose 15% in the quarter to $775 million from $674 million a year earlier, supporting growth investments.
Management said logistics costs have increased and remain elevated. They expect the fourth quarter to have the highest logistics costs of the year, both in dollars and as a percentage of sales, with cost pressure continuing into early 2027. “The logistics costs have increased, they remain elevated and our guidance for Q4 has the highest logistics cost quarter of the year both in dollars and as a percent of sales,” management said.
Colgate filed its Form 10-Q and disclosed the earnings release as an exhibit in a related Form 8-K on Oct. 30, 2026. Management plans to provide 2027 guidance in the first quarter of 2027.
