CL US S&P 500Russell 1000 Earnings call
Colgate-Palmolive (CL) · Q2 2026 results and valuation
Share price: $98.00 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 1 May 2026
Net income up 7.3% on the previous quarter, guidance raised. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+7.3%
Net income vs Q1 2026
Guidance raised
Net income 693.0M vs 646.0M
Revenue +0.7%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
CL's free cash flow rose 18% through the second quarter.
Valuation
Is Colgate-Palmolive undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.3% growth a year (3-year revenue growth), the model's fair value is $34.16 a share — the stock trades 187% above it. Today's price assumes 17.6% growth a year.
Current price
$98.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.6% for 10 yrs
Fair value / share
$34.16
Buy below
$25.62
Price vs fair value
Overvalued 187%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Colgate-Palmolive plans targeted moves by category and channel to counter competition, backed by new product launches and stronger brand support.
Source quote
“With heightened competition in many of our categories, we will take surgical actions by category and channel to drive market... We will continue to drive these new products with increased distribution and strong brand support. And we've also planned for higher levels of brand support across our core businesses to drive both our equities and win at the point of purchase.”
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Key theme
Strength across most divisions came despite continued global volatility.
Source quote
“Our strong results this quarter across our financial statements were broad-based with organic sales growth in 4 of 5 divisions... We're pleased to have delivered another quarter of strong top and bottom line growth, particularly in the context of continued global volatility. We delivered solid gross margin expansion before a modest tariff benefit.”
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Guidance ↑
Colgate-Palmolive has increased its gross margin guidance to roughly flat for the year, but it does have to keep in mind that it does expect the higher raw materials…
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Guidance
Cost of goods and tariffs are expected to peak in the back half of the year.
Source quote
“As you saw in the prepared remarks, we expect cost of goods to a peak in the back half of this year as well as tariffs, but we're...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Q4 might be a little bit lower than our previous assumptions given oil more in the $90 range, but we're still seeing impacts related to uncertainty about the war.”
“So ex private label, volume was roughly flat in the quarter on a tough comp and a tough market.”
“And I think it's fair to say that many CPG companies continue to describe Europe as a difficult operating environment.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.36B | 5.32B | +0.7% | 5.11B | +4.9% |
| Gross profit | 3.30B | 3.23B | +2.2% | 3.07B | +7.4% |
| Operating income | 1.02B | 964.0M | +5.4% | 1.08B | −5.9% |
| Net income | 693.0M | 646.0M | +7.3% | 743.0M | −6.7% |
| EPS | 0.86 | 0.80 | +7.5% | 0.91 | −5.5% |
| P/E today 33.9 | 36.1 | 33.0 | +3.1 | 25.5 | +10.6 |
Topics
Most discussed now
- Category growth, at least in some of Colgate-Palmolive's big emerging markets is running roughly mid-single digits.
- Colgate-Palmolive has had that very same conversation quite a bit in terms of some of the learnings that it has had in...
- New Clearly asking people to use large language models across their work to drive enhanced productivity, and Colgate-Palmolive is seeing it…
- Colgate-Palmolive got a little bit of a modest benefit from refunds, but the bulk of the growth definitely came through...
- Colgate-Palmolive's teams on the ground are executing pricing and revenue growth management and using all of its tools to generate...
Faded since Q1 2026
- Dropped Clearly, Colgate-Palmolive will continue to focus on real value-added innovation particularly on Prescription Diet side, which is an area…
- Fading Colgate-Palmolive's sales growth was led by emerging markets, the regions where its strong global brands generally have higher market…
- Fading Colgate-Palmolive uses the strong net and organic sales growth to deliver gross profit, operating profit, earnings per share and free...
- Fading Latin America from a volume standpoint continues to hold its own, driving nice volume shares through the quarter.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Restructuring costs · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K