Companies /Consumer Defensive

Colgate-Palmolive Company

NYSE: CL Household & Personal Products
$90.10
▲ $0.47 (+0.52%) today
Markets closed · 3:33am ET

Q2 2025 Earnings

Reported Aug 1, 2025, 8:00am ET · SEC source
$0.92
Beat +2.80%
EPS · est. $0.89
$5.1B
Beat +1.55%
Revenue · est. $5.0B
−3.2%
Trailing market
CL vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%Aug 1Aug 1report 8:00am ETearnings−0.7%−0.8%
−2%0+2%Aug 1Aug 1earnings−0.7%−0.8%
CL −0.8%S&P 500 −0.7%
−2%0+2%Aug 1Aug 1report 8:00am ETearnings−0.9%−0.8%
−2%0+2%Aug 1Aug 1earnings−0.9%−0.8%
CL −0.8%NASDAQ −0.9%
0+2%Jul 31Aug 8report 8:00am ETearnings+2.0%+2.7%
0+2%Jul 31Aug 8earnings+2.0%+2.7%
CL +2.7%S&P 500 +2.0%
0+2%Jul 31Aug 8report 8:00am ETearnings+3.1%+2.7%
0+2%Jul 31Aug 8earnings+3.1%+2.7%
CL +2.7%NASDAQ +3.1%
−0.41%
Day of report
−0.18%
Next session
+1.41%
One week
+0.36%
30 days

S&P 500 over the same 30 days: +3.54%.

Did CL Beat Earnings? Q2 2025 Results

Colgate-Palmolive posted a solid if measured second quarter, beating Wall Street expectations on both the top and bottom lines as the consumer staples giant navigated a challenging cost environment. The company reported non-GAAP EPS of $0.92, edging past the $0.89 consensus estimate by 2.80%, while revenue of $5.11 billion topped forecasts by 1.55% and grew 1.0% year over year. The headline beat was underpinned by organic sales growth of 1.8%, with strength in Africa/Eurasia, up 7.7% organically, and Hill's Pet Nutrition helping offset a 0.9% organic decline in North America, the company's weakest division. Gross profit margin compressed 50 basis points to 60.1%, pressured by higher raw material costs and tariff-related headwinds, a challenge Colgate is actively addressing through a new three-year productivity program targeting $200 million to $300 million in cumulative pre-tax savings through 2028. Looking ahead, management trimmed its organic sales growth outlook to the low end of its 2% to 4% range, while maintaining a low-single-digit EPS growth forecast for the full year.

Key Takeaways
  • Organic sales growth of 1.8% driven by 2.0% pricing gains
  • Africa/Eurasia led divisions with 7.7% organic sales growth
  • Latin America organic sales grew 3.4% despite severe FX headwinds
  • Hill's Pet Nutrition grew organic sales 2.0% with 2.9% pricing
  • Planned exit from private label pet sales created 0.6% organic sales drag
  • Gross profit margin declined 50 basis points to 60.1% due to higher input costs and tariffs
  • Lower effective tax rate of 23.2% versus 24.1% year ago

“I am pleased that Colgate-Palmolive people achieved another quarter of net sales, organic sales and earnings per share growth in the face of continued difficult market conditions worldwide, with organic sales growth improving sequentially versus the first quarter despite an even greater negative impact from lower private label pet sales.”

Colgate-Palmolive CEO, on the earnings call

Forward Guidance & Outlook

For full year 2025, based on current spot rates and tariffs finalized as of July 31, 2025: net sales expected up low single digits with flat to low-single-digit negative FX impact; organic sales growth now expected at the low end of 2% to 4% (including impact of planned exit from private label pet sales); both GAAP and non-GAAP gross profit margin and advertising expected roughly flat as a percentage of net sales; and both GAAP and non-GAAP EPS expected up low single digits.

CL YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$5.1B$5.1BRevenue$3.1B$3.1BGross Profit$1.2B$1.1BOperating Income$731.0M$743.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

CL Revenue by Segment

Oral, Personal and Home Care$4.0B
Hill's Pet Nutrition$1.2B+3.8%

CL Revenue by Geography

Latin America$1.2B−4.8%
Europe$738.0M+7.8%
North America$1.0B−1.0%
Asia Pacific$687.0M+0.8%
Africa/Eurasia$295.0M+8.0%

Figures from SEC filings and company reports. Not investment advice.