CL
Toothpaste king, mixed quarter
Colgate-Palmolive kicked off 2026 with a decent top-line flex: net sales climbed 8.4% and organic sales rose 2.9%. That’s the kind of headline that says the soap, toothpaste, and pet food empire is still very much doing its thing.
The catch: margins took a tiny nap
Here’s the part that matters for your portfolio: GAAP EPS slipped 6% to $0.80, while base business EPS actually rose 7% to $0.97. Translation: the underlying business still looks sturdier than the headline number, but the company isn’t exactly swimming in margin expansion.
- GAAP gross margin came in at 60.6%, down 20 basis points
- Base business gross margin also fell 20 basis points to 60.6%
- Net cash from operations hit $747 million for the first three months of 2026
Why investors should care
Colgate is one of those sleepy names that can suddenly become interesting when pricing power, mix, and margins start talking to each other. The 0.6% drag from lower private label pet food sales is a reminder that even a household-staples giant can get poked by the less glamorous corners of the aisle.
Big picture: the quarter looks fine on growth, a bit meh on profits, and very Colgate — steady, defensive, and just controversial enough when margins wobble.