Clorox Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did CLX Beat Earnings? Q4 2025 Results
Clorox closed out fiscal 2025 with a quarter that handily beat Wall Street's expectations, though much of the strength came with an asterisk attached. The consumer products company posted Q4 revenue of $1.99 billion, up 4.5% year-over-year and ahead of the $1.93 billion consensus, while adjusted EPS of $2.87 cleared the $2.21 estimate by 29.86%, a gap that looks impressive on the surface but was heavily shaped by a single operational catalyst. Ahead of its U.S. ERP system transition, retailers loaded up on inventory, contributing roughly 13 to 14 points of benefit to organic sales growth and an estimated $0.85 to $0.95 per share lift to earnings. That same dynamic now frames a challenging year ahead: Clorox guided fiscal 2026 adjusted EPS to $5.95 to $6.30, a decline of 18% to 23%, as the inventory drawdown reverses course and weighs on both revenue and margins. Net sales are expected to fall 6% to 10%, leaving investors to weigh a strong finish against a deliberately cautious reset year.
- Incremental ERP transition shipments contributed approximately 13 to 14 points of benefit to Q4 net sales
- Strong cost savings initiatives
- Higher volume across all segments
- Divestiture of Better Health VMS business and Argentina business reducing portfolio volatility
- Insurance recoveries of $100 million related to August 2023 cyberattack
“While we delivered strong margin expansion and adjusted EPS growth for the year, we did not meet our topline expectations in the back half. We continued to see rapidly shifting consumer behaviors and broader market volatility which we expect to continue.”
Clorox CEO, on the earnings call
Forward Guidance & Outlook
For FY2026, Clorox expects net sales to decline 6% to 10% versus the prior year, with organic sales expected to decrease 5% to 9%, including a negative impact of about 7 to 8 points related to the reversal of incremental ERP transition shipments. Gross margin is expected to decline 50 to 100 basis points. Selling and administrative expenses are expected at about 16% of net sales. Advertising and sales promotion spending is expected at about 11% of net sales. The effective tax rate is expected to be about 24%. GAAP diluted EPS is expected between $5.60 and $5.95 (a decline of 9% to 14% year-over-year). Adjusted EPS is expected between $5.95 and $6.30 (a decline of 18% to 23%), excluding approximately $0.35 of digital capabilities and productivity investment costs. The ERP transition inventory drawdown is expected to reduce FY2026 EPS by about $0.85 to $0.95.
CLX YoY Financials
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Figures from SEC filings and company reports. Not investment advice.