Colgate-Palmolive’s third quarter was marked by broad-based organic sales growth and a positive market reaction, as management attributed the momentum to strong emerging market demand and continued progress in its premium product strategies. CEO Noel Wallace emphasized that new product launches and increased advertising spend, especially in categories like oral care and pet nutrition, contributed to solid volume gains. Wallace noted, “Our strong on-the-ground execution, coupled with our continued investment in our AI capabilities, helped drive our performance.” Strength in India, Brazil, and China supported emerging market growth, while improved market share in U.S. toothpaste was highlighted as an early sign of turnaround.
Is now the time to buy CL? Find out in our full research report (it’s free for active Edge members).
Colgate-Palmolive (CL) Q3 2026 highlights:
- Revenue $5.37 billion vs S&P analysts’ estimates of $5.34 billion (4.6% year-on-year growth, 0.6% beat)
- Adjusted EPS $0.97 vs S&P analysts’ estimates of $0.93 (4.8% beat)
- Operating margin 20.3%, in line with the same quarter last year
- Organic revenue rose 3.6% year on year (beat)
- Sales volumes rose 1.7% year on year (-1.9% in the same quarter last year)
- Market capitalization $75.75 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Colgate-Palmolive’s Q3 earnings call
- Peter Galbo (Bank of America) asked about early expectations for cost trends in 2027. CEO Noel Wallace explained the company is focused on current controllable levers, with more detailed guidance to come next year.
- Dara Mohsenian (Morgan Stanley) pressed for specifics behind gross margin gains and advertising ROI. Wallace and CFO Stan Sutula credited productivity programs and pricing discipline, while Wallace stated the company is “spending a significant amount of time with understanding ROI” for ad investments.
- Peter Grom (UBS) inquired about Hill’s pet nutrition growth and market share gains. Wallace explained that growth was driven by targeted segment focus, particularly in wet and therapeutic categories, and ongoing manufacturing optimization.
- Lauren Lieberman (Barclays) questioned the sustainability of SG&A efficiencies. Sutula responded that both ongoing productivity and the SGPP are contributing, with part of the savings reinvested in AI, skills, and advertising.
- Steve Powers (Deutsche Bank) asked about Latin American momentum and regional risks. Wallace outlined double-digit growth in Brazil, retailer challenges in Mexico, and the importance of currency stability in the region.
Catalysts in upcoming quarters
Going forward, the StockStory team will be watching (1) the effectiveness of premium product launches and the scaling of AI-powered marketing, (2) the ability to maintain gross margins as cost inflation persists, and (3) continued signs of U.S. market share recovery, especially in oral care. The pace of innovation and execution on revenue growth management strategies will be key markers of sustained performance.
Colgate-Palmolive currently trades at $95.61, up from $93.16 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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