Strong Top-Line Revenue Growth
Revenue grew 8.4% year-over-year to $5.32B in Q1 FY2026, up from $4.91B in the prior-year period, reflecting solid demand across Colgate-Palmolive's product portfolio.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Colgate-Palmolive (CL) delivered 8.4% revenue growth in Q1 FY2026 to $5.32B, but operating income fell 10.4% to $964M as surging SG&A expenses (+9.4%) compressed operating margin by 380 basis points to 18.1%.
Revenue
$5.32B
+8.41% YoY
EPS (Diluted)
$0.80
-5.88% YoY
Gross Margin
60.6%
-0.2 pts YoY
Operating Income
$964M
-10.41% YoY
Source: SEC XBRL
Colgate Palmolive (CL) reported Q1 FY2026 revenue of $5.32B, up 8.4% year over year. Operating margin was 18.1%, down 3.8 points from 21.9% a year earlier. Operating cash flow was $747M, up 24.5% year over year. CL's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.99 | 0.98 | Beat +1.5% |
| Mar 2026This filing | 0.97 | 0.97 | Miss -0.3% |
| Dec 2025 | 0.95 | 0.94 | Beat +1.1% |
| Sep 2025 | 0.91 | 0.92 | Miss -0.5% |
Adjusted (non-GAAP) EPS of $0.97 versus the $0.97 analyst consensus — a -0.3% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.80.
Compiled by AI from this SEC filing
Revenue grew 8.4% year-over-year to $5.32B in Q1 FY2026, up from $4.91B in the prior-year period, reflecting solid demand across Colgate-Palmolive's product portfolio.
Source: 10-Q Income Statement
Gross profit increased 8.0% to $3.23B, with gross margin remaining nearly flat at 60.6% versus 60.8% in the prior year, suggesting the company maintained pricing power and managed input costs reasonably well at the product level.
Source: 10-Q Income Statement
SG&A expenses rose 9.4% to $2.08B, outpacing revenue growth and causing operating income to decline 10.4% to $964M. Operating margin contracted sharply from 21.9% to 18.1%, a 380 basis point deterioration.
Source: 10-Q Income Statement
Operating cash flow rose 24.5% year-over-year to $747M, demonstrating strong cash generation despite the earnings pressure, supported by D&A of $156M and working capital management.
Source: 10-Q Cash Flow Statement
Long-term debt increased 20.8% to $7.94B while stockholders' equity collapsed 60.1% to just $145M, driving the debt-to-equity ratio to an extremely elevated 111.2x, reflecting continued capital returns to shareholders via buybacks and dividends.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Colgate-Palmolive's debt-to-equity ratio stands at an exceptionally high 111.2x, with long-term debt of $7.94B against stockholders' equity of only $145M. This level of leverage leaves the company highly sensitive to interest rate increases and limits financial flexibility in a downturn.
Source: 10-Q Balance Sheet
Operating margin declined sharply from 21.9% to 18.1% year-over-year, a 380 basis point contraction driven by SG&A expenses growing faster than revenue. If this trend continues, it could significantly erode profitability even as top-line growth remains healthy.
Source: 10-Q Income Statement
Net income fell 6.4% to $646M and diluted EPS dropped 5.9% to $0.80, even as revenue grew 8.4%. This divergence between revenue growth and earnings suggests cost pressures are not yet under control and may disappoint investors expecting earnings leverage.
Source: 10-Q Income Statement
Stockholders' equity declined 60.1% year-over-year to just $145M, driven by aggressive share buybacks ($306M in Q1 FY2026) and dividend payments. Continued capital returns at this pace could push equity into negative territory, increasing balance sheet fragility.
Source: 10-Q Balance Sheet
Financing cash outflows increased 22.9% to -$563M, reflecting higher debt service costs and capital return programs. With long-term debt already elevated, the company's ability to sustain buybacks and dividends while managing debt obligations warrants close monitoring.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.32 $B | 4.91 $B | +8.41% |
Cost of Revenue $B | 2.10 $B | 1.92 $B | +9.04% |
Gross Profit $B | 3.23 $B | 2.99 $B | +8.00% |
Operating Income $B | 0.96 $B | 1.08 $B | -10.41% |
Net Income $M | 646.00 $M | 690.00 $M | -6.38% |
EPS (Basic) $ | 0.81 $ | 0.85 $ | -4.71% |
EPS (Diluted) $ | 0.80 $ | 0.85 $ | -5.88% |
SG&A Expense $B | 2.08 $B | 1.90 $B | +9.38% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, Colgate-Palmolive delivered top-line revenue growth of 4.9% YoY to $5.36B and expanded gross margin to 61.48%, though higher SG&A expenses reduced net income by 6.7% to $693M.
Colgate-Palmolive (CL) delivered modest revenue growth of 1.4% to $20.4B in FY2025, but profitability fell sharply with net income declining 26.2% to $2.1B and operating income dropping 22.5%, driven by elevated SG&A costs and restructuring-related charges.
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