NEW YORK, August 3, 2026, 19:02 EDT — U.S. cash markets had ended trade, but after-hours sessions continued.
- Clorox forecasts fiscal 2027 sales growth between 13% and 14%, surpassing LSEG’s projection of 12.8%.
- According to company figures, around 96% of growth at the midpoint is accounted for by GOJO and ERP comparisons.
- The stock ended the session up 2.86% at $98.26 and advanced another 0.56% following the close.
The Clorox Company NYSE:CLX projected a 13% to 14% increase in sales for fiscal 2027. However, the majority of this recovery is attributed to acquisitions and timing-related factors.
GOJO accounts for roughly 9.5 percentage points at the 13.5% midpoint. The impact of cycling last year’s ERP inventory drawdown contributes over 3.5 points.
Combined, these factors account for roughly 96% of midpoint growth. Based on company guidance, underlying organic growth remains under half a percentage point.
Profit outlook appears softer. Adjusted earnings are projected at $5.85 per share, roughly 2% under the $5.97 estimate from LSEG. The company expects its gross margin to be close to 42%, compared to 42.3% for fiscal 2026.
The most recent quarter surpassed Wall Street’s reduced expectations, though margins saw a significant drop. Below is a comparison of actual results and consensus estimates.
| Q4 fiscal 2026 metric | Actual | Year-on-year change | LSEG estimate | Comparison |
|---|---|---|---|---|
| Net sales | $1.95 billion | -2% | $1.90 billion | Approximately 2.6% above estimate |
| Adjusted EPS | $1.66 | -42% | $1.65 | Outperformed by $0.01 |
| Gross margin | 41.3% | -520 basis points | — | ERP and GOJO each reduced by roughly 150 basis points |
The modest earnings outperformance failed to bring back operating leverage. ERP timing and GOJO inventory accounting each reduced the quarterly margin by roughly 150 basis points.
The fiscal 2027 bridge indicates the sources of the recovery. Midpoint figures are based on the ranges outlined by management.
| Fiscal 2027 measure | Company guidance | Midpoint or calculated reading |
|---|---|---|
| Reported sales growth | 13% to 14% | 13.5% |
| GOJO contribution | Around 9.5 points | Approximately 70% of midpoint growth |
| Organic sales growth | 3.5% to 4.5% | 4.0% |
| ERP comparison benefit | Above 3.5 points | Exceeds 87.5% of organic midpoint |
| Organic growth excluding ERP benefit | No separate guidance provided | Below 0.5 point |
| Adjusted EPS | $5.70 to $6.00 | $5.85 |
| LSEG adjusted EPS estimate | $5.97 | Midpoint of guidance is about 2% lower |
| Gross margin | Around 42% | Roughly 30 basis points under fiscal 2026 |
The gap is significant as reported growth may exceed final demand. Clorox anticipates that inflation and an unfavorable product mix will outweigh cost reductions.
Results across segments varied. Health and Wellness saw gains from GOJO, but ongoing challenges weighed on legacy divisions.
| Q4 segment | Net-sales change | Adjusted EBIT change | Main factor |
|---|---|---|---|
| Health and Wellness | +16% | -15% | GOJO contributed roughly 28 sales points |
| Household | -18% | -56% | Decline in volume and rising commodity costs |
| Lifestyle | -17% | -60% | Reduced volume |
| International | +4% | +17% | Impact of currency, improved sales, and cost savings |
International reported growth in both sales and adjusted EBIT. Operating profit in Household and Lifestyle dropped by over 50%.
Clorox outperformed certain staples and sanitation comparables on Monday. The comparison does not account for dividends or after-hours trading.
| Security | Monday move | Performance gap versus Clorox |
|---|---|---|
| The Clorox Company NYSE:CLX | +2.86% | — |
| Procter & Gamble Company NYSE:PG | +0.33% | Clorox leads by 2.53 percentage points |
| Ecolab Inc. NYSE:ECL | +0.65% | Clorox leads by 2.21 percentage points |
| Colgate-Palmolive Company NYSE:CL | -1.56% | Clorox leads by 4.42 percentage points |
The stock is still down 2.05% over the past five sessions. Monday’s rise offset just a portion of last week’s drop.
The dividend record date is set for August 12 next week. Shareholders will receive the increased $1.25 quarterly dividend on August 28.
Chief Executive Linda Rendle stated that conditions are expected to stay “challenging,” highlighting “continued cost volatility and a value-seeking consumer.” The unchanged margin forecast reflects that conservative stance. The Clorox Company Investors
Risks: The $2.25 billion GOJO deal may put pressure on Clorox’s execution and margins. The company is currently seeking a replacement for Rendle, introducing leadership uncertainty amid the integration process.
