New York, January 30, 2026, 15:40 EST — Trading in the regular session.
- Colgate-Palmolive shares jumped roughly 5%, hitting $89.70 in afternoon trading
- After beating profit expectations in Q4, the company projects 2%-6% net sales growth for 2026
- A $794 million after-tax impairment charge drives GAAP results into a quarterly loss
Colgate-Palmolive shares climbed 5.2% to $89.70 in Friday afternoon trading, following the release of its fourth-quarter results and a new sales forecast for 2026.
The update comes as consumer staples firms ramp up branding and promotions to hold onto volume. Colgate noted stable demand for essentials across Latin America and Europe, but North American shoppers, facing tighter budgets, are shifting toward private-label options—a trend also hitting Kimberly-Clark. The company projects 2026 net sales growth between 2% and 6%, reporting Q4 net sales of $5.23 billion and adjusted earnings of 95 cents per share. Prices climbed 2.7%, while volumes remained flat. (Reuters)
This matters because the quick wins from price increases are running out. Investors want to see if Colgate can boost volumes without sacrificing too much margin, especially as it ramps up marketing spending amid uneven category growth.
A recent SEC filing revealed Colgate recorded a $794 million after-tax, non-cash impairment charge linked to its skin health segment, primarily Filorga, following a downgrade of its China outlook. This write-down pushed fourth-quarter GAAP earnings into a 5-cent-per-share loss, despite CEO Noel Wallace asserting the company remains “operating from a position of strength.” Colgate also posted a record $4.2 billion in operating cash flow for 2025 and returned $2.9 billion to shareholders. The company’s annual meeting is set for May 8, 2026. (SEC)
Colgate outperformed the sector. The Consumer Staples Select Sector SPDR ETF rose 1.4%, even as the SPDR S&P 500 ETF Trust fell 0.6%.
During the earnings call, CFO Stanley Sutula noted that foreign exchange is expected to deliver a “low single-digit benefit to revenue in 2026,” mostly in the first half of the year. (Investing)
North America takes center stage for now. Volumes remain sluggish, and with store brands selling well, retailers see little incentive to cut back on shelf space.
Then there’s the skin health segment post-write-down. Any further dip in China demand or added strain in prestige beauty could keep that division tightly controlled.
The risk is straightforward: a sudden move toward private labels or new tariff hurdles might force Colgate to pick between boosting volume or protecting margins. Their broad 2026 forecast buys management some flexibility, but it also highlights genuine uncertainty.
May 8 marks the next big date for shareholders to convene. Until then, traders will watch closely for signs that volumes are steadying and that increased marketing budgets are actually boosting market share.
