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FY2026 Q1
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Colgate-Palmolive Company earnings call
Buzzberg read
Organic sales growth accelerated with strong volume in Asia Pacific
Colgate-Palmolive reported a strong start to 2026 with broad-based volume growth, particularly in emerging markets, but management lowered its gross margin outlook due to a $300 million raw material and logistics cost inflation headwind. The company maintained its EPS and organic sales growth guidance, highlighting a strategic growth program to offset costs and fund investments. Strong Q1 results with organic sales growth accelerating from Q4, driven by volume, especially in Asia Pacific and Latin America.
Buzzberg read Organic sales growth accelerated with strong volume in Asia Pacific Colgate-Palmolive reported a strong start to 2026 with broad-based volume growth, particularly in emerging markets, but management lowered its gross margin outlook due to a $300 million raw material and logistics cost inflation headwind. The company maintained its EPS and organic sales growth guidance, highlighting a strategic growth program to offset costs and fund investments. Strong Q1 results with organic sales growth accelerating from Q4, driven by volume, especially in Asia Pacific and Latin America. Read full analysisCollapse analysis
Colgate-Palmolive reported a strong start to 2026 with broad-based volume growth, particularly in emerging markets, but management lowered its gross margin outlook due to a $300 million raw material and logistics cost inflation headwind. The company maintained its EPS and organic sales growth guidance, highlighting a strategic growth program to offset costs and fund investments. Strong Q1 results with organic sales growth accelerating from Q4, driven by volume, especially in Asia Pacific and Latin America.
- Management lowers gross margin guidance for the year, expecting margins to be down year-over-year due to significant cost inflation.
- Full-year EPS guidance maintained at low-to-mid single digits, with organic sales growth still 1-4%.
- Cost inflation is driven by oil-derived inputs and logistics, with oil assumed at ~$110 for the rest of the year.
Revenue$5.324B+2% QoQ
EPS$0.97+2% QoQ
Gross margin60.59%Reported
Operating margin21.71%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
Increased cost inflation expected to pressure gross margin
Productivity
Strategic growth and productivity program savings target raised to $200-300M
Show 3 more callouts
Guidance
North America planned improvements expected sequentially
Demand
Emerging markets expected to continue driving growth
Demand
Hills business strong despite tough category
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $5.324B | +2% QoQ |
| EPS | $0.97 | +2% QoQ |
| Gross margin | 60.59% | Reported |
| Operating margin | 21.71% | Reported |
| Free cash flow | $0.609B | -52% QoQ |
| Capex | $0.138B | Reported |
AI, capex & demand read
Management read
Confident
Management expressed confidence in their strategic plan and ability to manage the current volatile environment while delivering short-term results.
all 2 named companies below
Companiesreturns since call
Supply chain
Supply chain
Stan Sutula
Cost inflation of $300 million is driven by oil, resins, petrochemicals, fats, and oils, with logistics costs up nearly 10%. Management assumes a ~$110 oil price for the remainder of the year. — Elevated oil prices translate to higher input costs across the consumer staples supply chain, potentially pressuring margins for companies with less pricing power.
Evidence
“The biggest incremental impact, Filippo, is coming from oil byproducts, resins, petrochemicals, fats, and oils. And we now expect that spending in those areas to be up more than 20% year on year for the full year.”
External signals
Supply-chain alpha · 2returns since call
The pet food category is suffering in dry dog segment, with the market roughly flat, while Hills gains share across channels; private label exit continues to create a headwind.
Evidence
“The only part of the category that's suffering more than others is dry dog, and we've seen that category continue to slip, and our growth was not where we'd like it to be.”
Cost inflation of $300 million is driven by oil, resins, petrochemicals, fats, and oils, with logistics costs up nearly 10%. Management assumes a ~$110 oil price for the remainder of the year.
Methodology & coverage
Management-only analysis. All 2 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.