Colgate-Palmolive Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did CL Beat Earnings? Q3 2025 Results
Colgate-Palmolive posted a modest but broadly in-line third quarter for fiscal 2025, nudging past Wall Street expectations as earnings per share of $0.91 edged ahead of the $0.89 consensus by 2.36%, while revenue of $5.13 billion matched estimates almost precisely and rose 1.9% year over year. The headline numbers, however, masked an underlying deceleration, with organic sales expanding just 0.4% as slowing category demand across key markets and the company's deliberate exit from private label pet food manufacturing, which shaved roughly 70 basis points from organic growth, weighed on momentum. Gross profit margin contracted 170 basis points on a GAAP basis to 59.4%, underscoring the cost pressures that prompted management to launch its Strategic Growth and Productivity Program alongside the results. Regional performance was uneven, with Europe leading on a 7.6% net sales gain while North America contracted 0.4% and Asia Pacific slipped 1.5%. Looking ahead, Colgate lowered its full-year organic sales growth outlook to 1%-2% from the prior 2%-4% range, though it maintained guidance for low-single-digit EPS growth, signaling cautious confidence in its broader 2030 strategic repositioning.
- Pricing contributed 2.3% to total company sales growth while organic volume declined 1.9%
- Europe led regional performance with 7.6% net sales growth driven by 6.4% favorable FX
- Africa/Eurasia posted 6.8% net sales growth with 7.3% pricing
- Gross profit margin decline of 170 basis points to 59.4% pressured profitability
- Exit from private label pet sales created approximately 0.8% drag on organic sales growth
- Global toothpaste market share of 41.2% and manual toothbrush market share of 32.4% year to date
“We are pleased to have delivered another quarter of net sales and organic sales growth, even in the face of slowing category growth in many markets and the negative impact from lower private label pet sales as we have exited that non-strategic business.”
Colgate-Palmolive CEO, on the earnings call
Forward Guidance & Outlook
Colgate-Palmolive updated its full-year 2025 guidance based on current spot rates and tariffs announced as of October 29, 2025. The company still expects net sales to be up low single digits, including a flat to low-single-digit negative impact from foreign exchange. Organic sales growth guidance was lowered to 1%-2% (from the prior low end of 2%-4%), roughly in line with year-to-date organic sales growth of 1.2%, including approximately 70 basis points of impact from the exit of private label pet sales. On both a GAAP and non-GAAP basis, the company now expects gross profit margin to be roughly in line with year-to-date levels of 60.1% (versus roughly flat previously) and still expects advertising to be roughly flat as a percentage of net sales and earnings per share to be up low single digits.
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CL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.