Sasha Jovanovic
4 min read
Colgate-Palmolive just posted its Q3 2026 scorecard and the stock did not shrug. Shares closed at US$95.29, up 2.3% on the day, as investors rushed to price in what looked like a clean set of numbers.
The real story sits in earnings power. Basic earnings per share landed at US$0.94 on revenue of US$5,369m, while management leaned hard into margin recovery and cash generation as the key message. Today’s move looks like a relief rally that fixates on those headline figures, yet the fuller margin and valuation picture still raises sharper questions for anyone already holding the stock.
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Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025): US$5,369m vs. US$5,131m (up 4.6%)
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Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$751m vs. US$735m (up 2.2%)
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Basic EPS (Q3 2026 vs. Q3 2025): US$0.94 vs. US$0.91 (up 3.6%)
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Trailing 12-Month Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$2.05b vs. US$2.91b (down 29.4%)
Management keeps pointing to AI as a growth driver. Ask Charlie what Colgate-Palmolive’s AI is really changing.
Colgate-Palmolive Premium Engine Gets A Real-World Check
Premiumization, emerging markets and pet nutrition are pitched as the long term earnings engine for Colgate-Palmolive.
“Expansion and premiumization of core oral care lines like Colgate Total, now supported by a broader push into premium Oral, Home and Personal Care offerings such as Optic White Pro Series, Fabuloso sprays and premium Palmolive dish pumps, aims to lift pricing power and mix, which can support revenue growth and gross margin.”
Q3 revenue of US$5,369m and basic EPS of US$0.94 show pricing and mix are doing real work, especially with gross margin guidance nudged higher and emerging regions plus Hill’s cited as strong contributors. The catch is trailing 12 month net income excluding extras of US$2.05b versus US$2.91b a year earlier, which makes the premium mix story look incomplete rather than fully delivered.
North America And Legal Overhang Keep The Bear Case Alive
Concerns around weak categories and legal exposure set a clear hurdle for the Colgate-Palmolive reset.
“The underperformance in the U.S. and wider North America business, including shipment declines and heavier competitive activity, may not be fully offset by the current reset toward premium offerings and higher brand support, which could limit the benefit from premiumization and weigh on revenue growth and profitability.”
