New York, February 1, 2026, 08:56 (EST) — Market closed
- Colgate-Palmolive shares surged about 6% on Friday after the company posted strong quarterly profits and raised its sales forecast through 2026
- In its 2026 plan, the company flagged tariff assumptions and an increase in advertising costs
- Focus turns to Monday’s reopening and the company’s Feb. 20 session at a key consumer conference
Colgate-Palmolive shares closed Friday at $90.29, up 5.9%, after the company reported quarterly results that beat expectations and raised its 2026 sales forecast beyond estimates. With U.S. markets closed over the weekend, the stock’s rally will be put to the test once trading resumes Monday.
The shift happens amid staples firms fighting to hold on to customers turning to cheaper private-label brands. CEO Noel Wallace said, “While we expect the difficult operating environment and slower category growth to continue in the short term, we are operating from a position of strength.” Reuters
The fight for shelf space is unmistakable: resist raising prices, boost ad budgets, and hope sales volumes hold steady. Colgate’s recent results lay bare this challenge.
The company revealed in an 8-K filing that its fourth-quarter net sales reached $5.23 billion, with “Base Business” earnings per share coming in at 95 cents—this adjusted figure strips out certain charges. It forecasts 2026 net sales growth between 2% and 6%, with organic sales rising 1% to 4%, excluding currency effects and acquisitions. The forecast also includes a low-single-digit lift from foreign exchange and factors in tariffs announced and finalized as of Jan. 28. SEC
Colgate posted a quarterly loss under GAAP, hit by a $794 million after-tax, non-cash impairment charge tied to its skin-health unit. The company pointed to sluggish category growth and operational challenges, especially in China, as the main factors behind the decline.
Quarterly sales got a 2.7% lift from pricing, despite flat overall volumes. In North America, organic sales fell 1.8%, weighed down by a 2.3% drop in volumes. But Latin America and Europe posted organic growth. Hill’s Pet Nutrition saw its organic sales climb 1.5%.
On the Street, sentiment turned slightly more upbeat. Goldman Sachs analyst Bonnie Herzog lifted her price target to $94 from $91, keeping a Buy rating intact. She pointed to “broad-based strength” in organic sales and noted margins had ticked up a bit. TipRanks
Colgate returned $2.9 billion to shareholders in 2025 through dividends and share buybacks, backed by record operating cash flow. This financial strength underpins higher ad spending, though investors want to see if it’s boosting demand growth rather than merely maintaining pricing power.
The risk is clear. If trade-down speeds up, category growth stalls, or tariffs and input costs climb, that wide 2026 range could flip from a cushion into a warning sign.
The next major event on the calendar is the Consumer Analyst Group of New York conference, set for Feb. 16-20 in Orlando. Colgate will take the stage on Feb. 20 at 8:00 a.m. ET. The day before, The Procter & Gamble Company and Kimberly-Clark Corporation plan to update investors on volumes, promotions, and pricing ahead of Colgate’s presentation.
