Colgate-Palmolive Company (CL Quick QuoteCL - Free Report) is expected to register top-line growth when it reports fourth-quarter 2025 results on Jan. 30, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $5.1 billion, indicating growth of 3.3% from the year-ago quarter’s reported figure.

The consensus estimate for CL’s earnings is pegged at 91 cents per share, remaining flat year over year. The Zacks Consensus Estimate for earnings for the quarter has moved down by a penny in the past seven days.

In the last reported quarter, the company's earnings beat the consensus estimate by 2.3%. It has delivered an earnings surprise of 3.4%, on average, in the trailing four quarters.

What the Zacks Model Unveils for CL Stock

Our proven model does not conclusively predict an earnings beat for Colgate this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Colgate currently has an Earnings ESP of -0.04% and a Zacks Rank of 4 (Sell).

Key Aspects to Note Ahead of CL’s Q4 Results

Colgate’s fourth-quarter performance is expected to have benefited from solid business momentum, supported by pricing, funding-the-growth initiative and other productivity plans. Accelerated revenue-growth management plans, including sharper price-pack architecture and value offerings across categories, have been aiding Colgate’s organic sales.

CL’s brand strength, coupled with its focus on innovation, premiumization and digital transformation, is expected to have driven its performance in the to-be-reported quarter. The company is focused on investing in scaling its capabilities in key areas like digital, data and analytics to enhance competitive advantages and drive profitability.

Furthermore, Colgate’s pipeline of science-based innovation, including the global relaunch of Colgate Total, advancements in premium oral care and Hill’s strong therapeutic portfolio, remains central to driving category expansion and brand penetration. Combined with its resilient portfolio of daily-use products and balanced presence across price tiers, Colgate believes it is well-positioned to sustain its organic sales trajectory moving forward.

Our model predicts sales growth of 2.8% for fourth-quarter 2025, with organic sales growth of 1.4%. We expect the volume decline of 1.3% to be largely offset by pricing gains of 2.7% for the fourth quarter. Our model predicts a 3% rise in sales in Latin America, 9.5% growth in Europe, a 1% increase in Asia Pacific, a 6.5% increase in Africa/Eurasia and a 2% rise in Pet Nutrition. This is expected to be partly offset by a 0.3% decline in North America.

Colgate remains confident in achieving consistent, compounded EPS growth, supported by its strong global portfolio and disciplined execution. Management highlighted that while tariffs and raw material inflation remain headwinds, the company has built flexibility into its business model and sourcing strategies, including productivity initiatives worth $200-$300 million in the next three years to optimize supply chains, enhance digital capabilities and fund growth investments.

For 2025, Colgate reaffirmed that net sales are expected to increase in the low single digits, with organic sales growth roughly in line with the year-to-date pace of about 1.2%, including a 70-basis-point (bps) drag from exiting private-label pet food. The company also reiterated its outlook for low single-digit EPS growth, supported by strong cash flow, premium innovation, AI-enabled productivity initiatives and ongoing brand investment.

However, Colgate’s fourth-quarter 2025 performance is likely to have remained under pressure amid a convergence of macro headwinds. Persistent inflation across key raw materials and continued increases in packaging costs are expected to have weighed on margins. A volatile global economic backdrop, compounded by tariff-related uncertainties, is likely to have added to operating challenges across several markets. At the same time, heightened consumer caution and a deceleration in category pricing limited the company’s ability to fully offset cost pressures, keeping near-term earnings growth constrained despite ongoing productivity efforts.

The company is expected to have witnessed gross margin compression in the fourth quarter due to a combination of greater-than-anticipated raw material inflation, with fats and oils called out as the biggest driver, alongside lower fixed-cost leverage due to softer volumes, the impact of tariffs, and a margin impact tied to the Colgate Total formula replacement in Latin America. This balance highlights Colgate’s disciplined execution but also underlines the limited scope for near-term margin expansion until input costs stabilize.

On the last reported quarter’s earnings call, management projected the gross margin for 2025 to be roughly in line with 60.1% reported in the nine months of 2025 till the third quarter, reflecting easing material inflation and reduced Colgate Total formula-change costs, partially offset by increased tariff pressure. Our model predicts a gross margin of 60.2% for fourth-quarter 2025, reflecting a 10-bps decline year over year. We expect a gross margin of 60.1% for 2025, suggesting a 40-bps decline year over year.

CL’s Price Performance & Valuation

The recent market movements show that Colgate’s shares have gained 10% in the past three months against the industry's 3.2% decline.

Image Source: Zacks Investment Research

From the valuation standpoint, CL trades at a forward 12-month P/E multiple of 22.21X, exceeding the industry average of 18.47X and below the S&P 500’s average of 23.08X. Its valuation appears quite pricey relative to its peers.

Image Source: Zacks Investment Research

Stocks With the Favorable Combination

Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.

The Estee Lauder Companies (EL Quick QuoteEL - Free Report) has an Earnings ESP of +6.68% and sports a Zacks Rank of 1 at present. EL is likely to register growth in its top and bottom lines when it releases second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.2 billion, which implies growth of 5.7% from the figure in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Estee Lauder’s bottom line has moved up 2.5% to 82 cents per share in the past 30 days. The estimate indicates 32.3% growth from the year-ago quarter’s actual. EL delivered an earnings surprise of 82.6%, on average, in the trailing four quarters.

Corteva (CTVA Quick QuoteCTVA - Free Report) currently has an Earnings ESP of +7.47% and carries a Zacks Rank of 2. CTVA is anticipated to register an increase in its top line when it reports fourth-quarter 2025 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.2 billion, indicating growth of 6.4% from the figure reported in the prior-year quarter. 

The consensus estimate for Corteva’s bottom line has been unchanged in the past 30 days at 20 cents per share. This implies a decline of 37.5% from the year-ago quarter’s reported figure. CTVA delivered an earnings beat of 23.4%, on average, in the trailing four quarters.

Altria Group (MO Quick QuoteMO - Free Report) currently has an Earnings ESP of +3.55% and a Zacks Rank of 3. The company is likely to register an increase in its bottom line when it reports fourth-quarter 2025 numbers. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.32, suggesting a 2.3% growth from the year-ago period’s reported number. The consensus mark has moved up by a penny in the past 30 days.

The consensus estimate for Altria Group’s quarterly revenues is pegged at $5 billion, which indicates a decline of 2% from the prior-year quarter’s actual. MO has a trailing four-quarter earnings surprise of 3.2%, on average.