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Church & Dwight Q1 Earnings Beat on Organic Sales and Margin Gain
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Key Takeaways
CHD posted Q1 adjusted EPS of 95 cents on $1.469B sales, with organic sales up 5%.
CHD gross margin rose 130 bps to 46.4%, helped by volume and productivity despite inflation and tariffs.
CHD sees Q2 adjusted EPS at 88 cents as higher marketing and SG&A offset margin gains.
Church & Dwight Co., Inc. (CHD - Free Report) delivered a first-quarter 2026 earnings and revenue beat, supported by stronger-than-expected organic growth and gross margin expansion. Adjusted earnings were 95 cents per share, up 4.4% year over year, topping the Zacks Consensus Estimate of 93 cents.
Net sales increased 0.2% to $1,469.3 million and exceeded the consensus mark of $1,466 million. Organic sales rose 5% in the quarter, driven by volume growth of 5.3%, with a modest drag from pricing and mix. Global online sales represented 24% of total consumer sales, reflecting continued momentum in e-commerce.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Adjusted gross margin improved 130 basis points year over year to 46.4%. The company attributed the expansion to higher volumes, productivity and a favorable mix tied to acquisitions and portfolio actions, partially offset by inflation and tariff costs.
Brand investment remained steady. Marketing expense increased to $139.4 million, up 20 basis points as a percentage of sales versus last year, as management continued to support innovation and distribution gains across categories.
Selling, general and administrative expenses totaled $251 million, including $6.3 million of charges related to restricted stock issued for the TOUCHLAND acquisition. On an adjusted basis, SG&A was $239.4 million, or 16.3% of net sales, a 110-basis point increase versus the prior year.
Church & Dwight’s Segment Breakdown
Consumer Domestic net sales were $1,117.7 million, down 1.1% year over year on a reported basis, reflecting 2025 strategic portfolio actions. On an organic basis, sales increased 5.4%, led by volume growth of 5.5%, and a slightly negative price and mix. Management pointed to organic gains in THERABREATH mouthwash and toothpaste, ARM & HAMMER cat litter, HERO and OXICLEAN. Those gains were partially offset by declines in WATERPIK flossers, while reported results also reflected contributions from the TOUCHLAND acquisition alongside the impact of prior portfolio exits.
Consumer International net sales increased 4.6% to $273.9 million. Organic sales advanced 3.7% on volume growth of 5.3%, partially offset by lower price and mix, as growth in THERABREATH, HERO and BATISTE was tempered by weaker Middle East region sales.
Specialty Products net sales rose 3.1% to $77.7 million, with organic sales also up 3.1%. The improvement reflected both higher volume and favorable price and mix, extending growth beyond the core consumer portfolio.
CHD’s Mix Shifts Toward Household Products
By product line, household products net sales increased 4.3% to $641.6 million in the quarter. Personal care products net sales declined 7.5% to $476.1 million. The divergence in category performance highlights how strategic portfolio actions and brand-level trends are influencing the company’s sales mix, even as overall consumer demand remains supportive.
CHD’s Cash Flow & Balance Sheet
Cash from operations was $174.8 million for the quarter. Capital expenditures rose to $31.9 million. The company continues to expect $1.15 billion of cash from operations in 2026 while anticipating full-year capital spending of approximately $130 million, or about 2% of sales.
As of March 31, 2026, CHD had cash-on-hand of $503.4 million and total debt of $2.2 billion, supporting flexibility for ongoing investment in brands and potential acquisitions consistent with its portfolio strategy.
Church & Dwight Reiterates 2026 View and Sets Q2 Target
For full-year 2026, the company reiterated its outlook for reported sales to decline 1.5% to 0.5% due to 2025 portfolio actions while projecting organic sales growth of 3% to 4%, which is likely to be driven by volumes.
Church & Dwight projects about 100 basis points of reported gross margin expansion for 2026. The company expects higher volumes, productivity and favorable mix tied to acquisitions and portfolio actions to fully offset inflation, tariff costs and ongoing commodity and transportation headwinds.
Marketing is still expected to run at about 11% of sales, while SG&A as a percentage of sales is expected to remain higher than 2025, reflecting the TOUCHLAND acquisition impact in the first half and stepped-up investment in new growth initiatives, e-commerce and international expansion. Management still expects full-year reported EPS to increase about 18% to 22%, while adjusted EPS growth is projected at 5% to 8%, fueled by growth across all segments.
For the second quarter of 2026, management expects organic sales growth of about 3% and a reported sales decline of roughly 1%. The company expects gross margin expansion of about 50 basis points. The company guided to adjusted earnings of 88 cents per share for the second quarter, noting that higher marketing and SG&A, including Touchland amortization, are expected to more than offset anticipated gross margin expansion for the quarter.
Shares of this Zacks Rank #3 (Hold) company have rallied 15.8% year to date against the industry’s decline of 1.3%.
The Zacks Consensus Estimate for Smithfield Foods’ current financial-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year reported levels. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company through the Beef, Pork, Chicken and Prepared Foods segments. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.4%, while the consensus mark for earnings indicates a decline of 4.1% from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 16.5%, on average.
Post Holdings (POST - Free Report) operates as a consumer-packaged goods holding company. At present, POST carries a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago reported figures.
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Church & Dwight Q1 Earnings Beat on Organic Sales and Margin Gain
Key Takeaways
Church & Dwight Co., Inc. (CHD - Free Report) delivered a first-quarter 2026 earnings and revenue beat, supported by stronger-than-expected organic growth and gross margin expansion. Adjusted earnings were 95 cents per share, up 4.4% year over year, topping the Zacks Consensus Estimate of 93 cents.
Net sales increased 0.2% to $1,469.3 million and exceeded the consensus mark of $1,466 million. Organic sales rose 5% in the quarter, driven by volume growth of 5.3%, with a modest drag from pricing and mix. Global online sales represented 24% of total consumer sales, reflecting continued momentum in e-commerce.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote
CHD Expands Profitability Despite Cost Pressures
Adjusted gross margin improved 130 basis points year over year to 46.4%. The company attributed the expansion to higher volumes, productivity and a favorable mix tied to acquisitions and portfolio actions, partially offset by inflation and tariff costs.
Brand investment remained steady. Marketing expense increased to $139.4 million, up 20 basis points as a percentage of sales versus last year, as management continued to support innovation and distribution gains across categories.
Selling, general and administrative expenses totaled $251 million, including $6.3 million of charges related to restricted stock issued for the TOUCHLAND acquisition. On an adjusted basis, SG&A was $239.4 million, or 16.3% of net sales, a 110-basis point increase versus the prior year.
Church & Dwight’s Segment Breakdown
Consumer Domestic net sales were $1,117.7 million, down 1.1% year over year on a reported basis, reflecting 2025 strategic portfolio actions. On an organic basis, sales increased 5.4%, led by volume growth of 5.5%, and a slightly negative price and mix. Management pointed to organic gains in THERABREATH mouthwash and toothpaste, ARM & HAMMER cat litter, HERO and OXICLEAN. Those gains were partially offset by declines in WATERPIK flossers, while reported results also reflected contributions from the TOUCHLAND acquisition alongside the impact of prior portfolio exits.
Consumer International net sales increased 4.6% to $273.9 million. Organic sales advanced 3.7% on volume growth of 5.3%, partially offset by lower price and mix, as growth in THERABREATH, HERO and BATISTE was tempered by weaker Middle East region sales.
Specialty Products net sales rose 3.1% to $77.7 million, with organic sales also up 3.1%. The improvement reflected both higher volume and favorable price and mix, extending growth beyond the core consumer portfolio.
CHD’s Mix Shifts Toward Household Products
By product line, household products net sales increased 4.3% to $641.6 million in the quarter. Personal care products net sales declined 7.5% to $476.1 million. The divergence in category performance highlights how strategic portfolio actions and brand-level trends are influencing the company’s sales mix, even as overall consumer demand remains supportive.
CHD’s Cash Flow & Balance Sheet
Cash from operations was $174.8 million for the quarter. Capital expenditures rose to $31.9 million. The company continues to expect $1.15 billion of cash from operations in 2026 while anticipating full-year capital spending of approximately $130 million, or about 2% of sales.
As of March 31, 2026, CHD had cash-on-hand of $503.4 million and total debt of $2.2 billion, supporting flexibility for ongoing investment in brands and potential acquisitions consistent with its portfolio strategy.
Church & Dwight Reiterates 2026 View and Sets Q2 Target
For full-year 2026, the company reiterated its outlook for reported sales to decline 1.5% to 0.5% due to 2025 portfolio actions while projecting organic sales growth of 3% to 4%, which is likely to be driven by volumes.
Church & Dwight projects about 100 basis points of reported gross margin expansion for 2026. The company expects higher volumes, productivity and favorable mix tied to acquisitions and portfolio actions to fully offset inflation, tariff costs and ongoing commodity and transportation headwinds.
Marketing is still expected to run at about 11% of sales, while SG&A as a percentage of sales is expected to remain higher than 2025, reflecting the TOUCHLAND acquisition impact in the first half and stepped-up investment in new growth initiatives, e-commerce and international expansion. Management still expects full-year reported EPS to increase about 18% to 22%, while adjusted EPS growth is projected at 5% to 8%, fueled by growth across all segments.
For the second quarter of 2026, management expects organic sales growth of about 3% and a reported sales decline of roughly 1%. The company expects gross margin expansion of about 50 basis points. The company guided to adjusted earnings of 88 cents per share for the second quarter, noting that higher marketing and SG&A, including Touchland amortization, are expected to more than offset anticipated gross margin expansion for the quarter.
Shares of this Zacks Rank #3 (Hold) company have rallied 15.8% year to date against the industry’s decline of 1.3%.
Stocks to Consider
Smithfield Foods, Inc. (SFD - Free Report) produces various packaged meats and fresh pork products in the United States and internationally. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Smithfield Foods’ current financial-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year reported levels. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company through the Beef, Pork, Chicken and Prepared Foods segments. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.4%, while the consensus mark for earnings indicates a decline of 4.1% from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 16.5%, on average.
Post Holdings (POST - Free Report) operates as a consumer-packaged goods holding company. At present, POST carries a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago reported figures.