AI Takeaway
CLX delivered essentially flat Q3 FY2026 results with revenue up just 0.1% to $1.67B and net income up 0.5% to $187M, while gross margin compressed 137 bps to 43.2% due to higher cost of revenue, and a large debt issuance dramatically reshaped the balance sheet, pushing stockholders' equity into negative territory.
Revenue
$1.67B
++0.12% YoY
EPS (Basic)
$1.54
++1.99% YoY
Gross Margin
43.2%
-1.37% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Q3 FY2026 revenue came in at $1.670B, essentially unchanged (+0.1%) versus the prior-year period of $1.668B, suggesting limited volume or pricing growth across CLX's product portfolio during the quarter.
Source: Source: 10-Q Income Statement
Cost of revenue rose 2.6% YoY to $948M while revenue was flat, compressing gross margin by approximately 137 basis points to 43.2% from 44.6%, indicating meaningful input cost or product mix headwinds.
Source: Source: 10-Q Income Statement
SG&A expenses declined sharply by 14.2% YoY to $229M from $267M, a $38M reduction that helped offset gross profit erosion and supported net income growth of 0.5% to $187M.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCLX's stockholders' equity stands at -$67M with total liabilities of $6.344B against total assets of $6.436B, leaving virtually no equity cushion. The debt-to-equity ratio is deeply negative (-94.7x), meaning the company is technically insolvent on a book-value basis, which could constrain future financing flexibility or trigger covenant concerns.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $1.64 versus the $1.57 analyst consensus — a +4.7% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.67B | $1.67B | +0.12% |
Cost of Revenue | $948M | $924M | +2.60% |
Gross Profit | $722M | $744M | -2.96% |
Net Income | $187M | $186M | +0.54% |
EPS (Basic) | $1.54 | $1.51 | +1.99% |
EPS (Diluted) | $1.54 | $1.50 | +2.67% |
R&D Expense | $27M | $27M | 0.00% |
SG&A Expense | $229M | $267M | -14.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.44B | $5.51B | +16.76% |
Current Assets | $2.65B | $1.59B | +66.73% |
Total Liabilities | $6.34B | $5.32B | +19.20% |
Current Liabilities | $3.15B | $2.15B | +46.40% |
Stockholders' Equity | $-67M | $27M | -348.15% |
Cash & Equivalents | $1.19B | $226M | +425.22% |
Long-Term Debt | $2.49B | $2.48B | +0.16% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $282M | $687M | -58.95% |
Investing Cash FlowYTD | $-120M | $-18M | -566.67% |
Financing Cash FlowYTD | $857M | $-645M | +232.87% |
Share BuybacksYTD | $256M | $257M | -0.39% |
D&A | $58M | $55M | +5.45% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 43.2% | 44.6% | -1.37% |
Net Margin | 11.2% | — | — |
ROE | -279.1% | — | — |
ROA | 2.9% | — | — |
Current Ratio | $0.84 | — | — |
Debt to Equity | $-94.687 | — | — |
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CLX reported Q3 FY2026 revenue of $1.670B (essentially flat YoY) and net income of $187M (+0.5%), with diluted EPS of $1.54 (+2.7%). The headline story was gross margin compression to 43.2% from 44.6% due to rising costs, partially offset by a sharp 14.2% reduction in SG&A expenses.
CLX's revenue grew just 0.1% YoY in Q3 FY2026, rising from $1.668B to $1.670B — essentially flat. This suggests limited volume or pricing momentum across the company's consumer and professional product lines during the quarter.
CLX's gross margin fell approximately 137 basis points to 43.2% in Q3 FY2026 because cost of revenue rose 2.6% to $948M while revenue was virtually unchanged. This indicates input cost inflation or an unfavorable product mix that the company was unable to fully offset through pricing.
CLX's balance sheet shows signs of stress: stockholders' equity turned negative at -$67M, the current ratio is below 1.0 at 0.84, and YTD operating cash flow dropped 59% to $282M. However, the company holds $1.187B in cash and continues to generate positive net income of $187M, providing near-term operational stability.
CLX's cash & equivalents jumped 425% YoY to $1.187B, driven by a massive swing in YTD financing cash flow to +$857M from -$645M in the prior year, strongly suggesting the company raised significant new debt or completed a capital markets transaction during the fiscal year-to-date period. This large cash build alongside rising current liabilities suggests the proceeds may be earmarked for near-term debt repayment or other obligations.