New York, January 31, 2026, 09:43 (EST) — Market closed
- CL shares jumped roughly 6% to close Friday at $90.29 following the release of fourth-quarter results and their 2026 outlook
- GAAP earnings swung to a quarterly loss after a $794 million non-cash impairment related to skin health
- Guidance includes tariffs announced and finalized by Jan. 28; attention now shifts to demand, costs, and the Feb. 6 U.S. jobs report
Colgate-Palmolive (NYSE: CL) closed Friday around 6% higher, finishing at $90.29.
This update is significant as staples companies report shoppers are holding back, with higher prices doing much of the heavy lifting. Colgate CEO Noel Wallace warned that cautious consumers aren’t going away anytime soon. Meanwhile, CFO Stanley Sutula III pointed to a wider 2026 sales range, citing global volatility and slower growth in the category. Other players like Procter & Gamble and Church & Dwight have also relied on price hikes to counter mostly flat volume sales.
Tariffs made their way into Colgate’s guidance, reflecting measures announced and finalized by Jan. 28. Meanwhile, a significant impairment in its skin-health segment has raised questions about the vulnerability of some growth bets tied to China.
Colgate reported in a regulatory filing on Friday that its fourth-quarter net sales climbed 5.8% to $5.23 billion, with organic sales—excluding currency and deal impacts—up 2.2%. Base Business earnings per share, the company’s non-GAAP metric, rose to 95 cents. However, GAAP earnings turned negative, showing a 5-cent loss per share after a $794 million non-cash after-tax impairment related to its skin-health segment, primarily Filorga. Wallace noted “slower category growth” is expected to persist short term as Colgate projects 2026 net sales growth between 2% and 6%, with organic sales rising 1% to 4%. This forecast factors in about a 20-basis-point drag from exiting private-label pet food. SEC
Analysts were forecasting adjusted earnings of 91 cents per share on revenue near $5.13 billion, based on estimates referenced by Barron’s.
Colgate forecasted gross margin expansion by 2026 and announced plans to increase advertising spending both in absolute dollars and as a percentage of sales. The company anticipates low- to mid-single-digit earnings-per-share growth on its Base Business basis.
According to the filing, Latin America and Africa/Eurasia both delivered double-digit net sales growth this quarter. North America saw a decline, and sales in Asia Pacific dropped marginally.
Yet the forecast window isn’t without risks. New tariff actions, sharper currency fluctuations, or another hiccup in China-focused skincare could pinch margins. On top of that, a drop in staples sales would have an immediate impact.
As U.S. markets reopen Monday, eyes will be on whether CL can sustain momentum and if there’s fresh insight on tariff impacts and demand trends. The key consumer snapshot arrives next with the U.S. January jobs report, set for release Feb. 6 at 8:30 a.m. ET.
