Rich Duprey
4 min read
Quick Read
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CL has surged 21.87% year to date but now trades at ~24x 2026 EPS. That is a demanding multiple for a company guiding just 1% to 4% organic growth.
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North America net sales fell 3.0% for the fourth straight quarter, with volume down 3.9% as retailers cut inventory and Colgate lost share.
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Oil has climbed to $107.89 per barrel, well above management’s $90 reference, threatening back-half margins with zero upward EPS revisions in 30 days.
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Colgate-Palmolive (NYSE:CL) reports third-quarter results on Friday, Oct. 30. The stock has rose 21.87% year to date. That rally puts a premium price on a business that is still struggling to grow in the U.S.
Strong Beats, a Weak Home Market and a Rich Multiple
Last quarter, Colgate posted Base Business EPS of $0.99, beating the $0.95 consensus, on revenue of $5.36B (+4.9% YoY). Gross margin expanded 140 bps to 61.5% even as advertising rose 15% to $777M. Management raised its Base Business EPS growth outlook to mid-single digits and lifted gross margin guidance to roughly flat.
North America was the problem. Net sales fell 3.0%, the fourth straight quarterly decline, with volume down 3.9%. Shares slid 1.56% the day after the report despite the beat.
Momentum has since returned. CL gained 10.05% over the past month and trades around 24x the full-year 2026 EPS consensus. That is a demanding multiple for a company guiding to 1% to 4% organic growth.
Wall Street Expects Modest Q3 Growth
Colgate has beaten EPS estimates six straight quarters.
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