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Colgate's Pre-Q2 Earnings: What's Likely to Shape the Results?
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Key Takeaways
Colgate's Q2 sales are estimated to rise 4.7% YoY, while EPS is expected to grow 3.3%.
Emerging-market demand, pricing, innovation and omnichannel execution may support results.
Hill's growth may help offset pressure from higher raw material, packaging, freight and SG&A costs.
Colgate-Palmolive Company (CL - Free Report) is expected to have registered growth in its bottom and top lines as it is set to release second-quarter 2026 numbers on July 31, before the opening bell. The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.35 billion, indicating a rise of about 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s earnings per share (EPS) is pegged at 95 cents, suggesting growth of 3.3% from the prior-year quarter’s reported figure. The consensus estimate for the quarter has been stable in the past 30 days.
In the last reported quarter, the leading global consumer products company’s earnings beat the Zacks Consensus Estimate by 2.1%. It has delivered an earnings surprise of 3%, 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.
Colgate currently has an Earnings ESP of -1.78% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Influence CL's Q2 Results
Colgate is expected to have benefited from resilient demand across its Oral Care, Personal Care, Home Care and Pet Nutrition businesses. The company has been witnessing improving volume trends, particularly in emerging markets, backed by sustained investments in advertising, omnichannel demand generation and revenue growth management (RGM) initiatives. Strong execution in Asia-Pacific and Latin America, coupled with continued pricing actions and brand strength, is likely to have supported second-quarter performance. Management also highlighted that emerging markets remain a key growth driver, where Colgate continues to invest behind its global brands and scale advantages.
Innovation continues to be at the center of Colgate's long-term strategy and is expected to have aided quarterly results. The company has been accelerating science-based product launches, leveraging AI, digital capabilities, analytics and omnichannel execution to improve speed-to-market and consumer engagement. Management also expects sequential improvement in North America, supported by accelerated innovation, enhanced promotional execution, better retailer partnerships and strategic brand interventions. These initiatives, along with continued premiumization and improved product mix, are likely to have supported CL's top-line performance in the quarter under review.
Colgate's Hill's Pet Nutrition business is also expected to have remained a key growth contributor despite a challenging pet industry backdrop. Excluding the impact of the private-label pet food exit, Hill's continued to post healthy volume and pricing growth, driven by robust demand for Prescription Diet and Science Diet products. Management noted continued market share gains across strategic growth segments, including cat food, wet food and therapeutic nutrition, supported by science-based innovation, improved supply chain capabilities and expanding retail shelf space. These strengths are likely to have contributed meaningfully to the company's second-quarter results.
However, Colgate is expected to have faced headwinds from elevated raw material, packaging and logistics costs, particularly those linked to higher oil prices. Management indicated that inflation in resins, petrochemicals, fats and oils, along with higher freight expenses, would continue to pressure gross margins. Although the company has been relying on pricing, productivity initiatives, revenue growth management and its Strategic Growth and Productivity Program (SGPP) to offset these costs, continued inflationary pressures and higher SG&A investments are likely to have weighed on margin expansion during the quarter.
CL’s Price Performance & Valuation
The recent market movements show that Colgate’s shares have gained 6.7% in the past six months against the industry's 0.6% drop.
Image Source: Zacks Investment Research
From the valuation standpoint, CL trades at a forward 12-month P/E multiple of 22.98X, exceeding the industry average of 18.06X. Its valuation appears quite pricey.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
NWL is likely to register a bottom-line decline when it releases second-quarter 2026 results. The consensus estimate for Newell Brands’ quarterly earnings currently stands at 19 cents per share, down 20.8% from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues is pegged at about $1.97 billion, implying a rise of 1.7% from the year-ago quarter. NWL has a trailing four-quarter average earnings surprise of 9.7%.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The company is likely to register growth in its bottom and top lines when it reports second-quarter 2026 numbers.
The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $2.42 billion, indicating an increase of 14.6% from the figure reported in the prior-year quarter. The consensus estimate for MNST’s quarterly earnings of 59 cents per share implies a rise of 13.5% from the year-ago quarter’s level. MNST has a trailing four-quarter earnings surprise of 9.6%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2, suggesting a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
View the Zacks #1 Rank List
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Colgate's Pre-Q2 Earnings: What's Likely to Shape the Results?
Key Takeaways
Colgate-Palmolive Company (CL - Free Report) is expected to have registered growth in its bottom and top lines as it is set to release second-quarter 2026 numbers on July 31, before the opening bell. The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.35 billion, indicating a rise of about 4.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s earnings per share (EPS) is pegged at 95 cents, suggesting growth of 3.3% from the prior-year quarter’s reported figure. The consensus estimate for the quarter has been stable in the past 30 days.
In the last reported quarter, the leading global consumer products company’s earnings beat the Zacks Consensus Estimate by 2.1%. It has delivered an earnings surprise of 3%, 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.
Colgate currently has an Earnings ESP of -1.78% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Influence CL's Q2 Results
Colgate is expected to have benefited from resilient demand across its Oral Care, Personal Care, Home Care and Pet Nutrition businesses. The company has been witnessing improving volume trends, particularly in emerging markets, backed by sustained investments in advertising, omnichannel demand generation and revenue growth management (RGM) initiatives. Strong execution in Asia-Pacific and Latin America, coupled with continued pricing actions and brand strength, is likely to have supported second-quarter performance. Management also highlighted that emerging markets remain a key growth driver, where Colgate continues to invest behind its global brands and scale advantages.
Innovation continues to be at the center of Colgate's long-term strategy and is expected to have aided quarterly results. The company has been accelerating science-based product launches, leveraging AI, digital capabilities, analytics and omnichannel execution to improve speed-to-market and consumer engagement. Management also expects sequential improvement in North America, supported by accelerated innovation, enhanced promotional execution, better retailer partnerships and strategic brand interventions. These initiatives, along with continued premiumization and improved product mix, are likely to have supported CL's top-line performance in the quarter under review.
Colgate's Hill's Pet Nutrition business is also expected to have remained a key growth contributor despite a challenging pet industry backdrop. Excluding the impact of the private-label pet food exit, Hill's continued to post healthy volume and pricing growth, driven by robust demand for Prescription Diet and Science Diet products. Management noted continued market share gains across strategic growth segments, including cat food, wet food and therapeutic nutrition, supported by science-based innovation, improved supply chain capabilities and expanding retail shelf space. These strengths are likely to have contributed meaningfully to the company's second-quarter results.
However, Colgate is expected to have faced headwinds from elevated raw material, packaging and logistics costs, particularly those linked to higher oil prices. Management indicated that inflation in resins, petrochemicals, fats and oils, along with higher freight expenses, would continue to pressure gross margins. Although the company has been relying on pricing, productivity initiatives, revenue growth management and its Strategic Growth and Productivity Program (SGPP) to offset these costs, continued inflationary pressures and higher SG&A investments are likely to have weighed on margin expansion during the quarter.
CL’s Price Performance & Valuation
The recent market movements show that Colgate’s shares have gained 6.7% in the past six months against the industry's 0.6% drop.
Image Source: Zacks Investment Research
From the valuation standpoint, CL trades at a forward 12-month P/E multiple of 22.98X, exceeding the industry average of 18.06X. Its valuation appears quite pricey.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NWL is likely to register a bottom-line decline when it releases second-quarter 2026 results. The consensus estimate for Newell Brands’ quarterly earnings currently stands at 19 cents per share, down 20.8% from the year-ago quarter.
The Zacks Consensus Estimate for its quarterly revenues is pegged at about $1.97 billion, implying a rise of 1.7% from the year-ago quarter. NWL has a trailing four-quarter average earnings surprise of 9.7%.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The company is likely to register growth in its bottom and top lines when it reports second-quarter 2026 numbers.
The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $2.42 billion, indicating an increase of 14.6% from the figure reported in the prior-year quarter. The consensus estimate for MNST’s quarterly earnings of 59 cents per share implies a rise of 13.5% from the year-ago quarter’s level. MNST has a trailing four-quarter earnings surprise of 9.6%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2, suggesting a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.