Clorox Company
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.66%.
Did CLX Beat Earnings? Q3 2026 Results
Clorox posted a headline beat in its fiscal third quarter, but the real story was the sharp downgrade to its full-year outlook that overshadowed stronger-than-expected earnings. The company reported adjusted EPS of $1.64, clearing the $1.55 consensus estimate by 6.05%, while revenue of $1.67 billion edged past expectations by 0.10% and held essentially flat year-over-year, up just 0.1%. The adjusted earnings gain, up 13% from $1.45 a year ago, was driven primarily by cost savings and lower selling and administrative expenses, though gross margin contracted 140 basis points to 43.2% as higher manufacturing and logistics costs took a toll. The more consequential news was the company's substantially lowered FY2026 guidance, with full-year adjusted EPS now expected at $5.45 to $5.65, down from a prior range of $5.95 to $6.30, as the ERP transition inventory normalization, GOJO acquisition costs, and higher energy costs weigh on the back half; organic sales are now seen declining approximately 9% for the full year.
- Cost savings contributed 170 basis points to gross margin
- Lower advertising investments and lower selling and administrative expenses drove adjusted EPS growth
- Higher manufacturing and logistics costs (210 bps headwind) and unfavorable mix pressured gross margin
- Household segment volume growth of 3 points driven by shipment ahead of consumption in Cat Litter and Grilling
- International segment benefited from favorable foreign exchange rates (6 points) and higher volume
- Lifestyle segment declined on lower consumption and retail inventory adjustments
- Glad joint venture termination payment of $476 million reduced year-to-date operating cash flow
“Our third-quarter results were mixed, with continued momentum in some parts of our portfolio and slower-than-anticipated market share recovery in others.”
Clorox CEO, on the earnings call
Forward Guidance & Outlook
Clorox significantly lowered its FY2026 outlook. Net sales are now expected to decline about 6% (previously low end of 6%–10% decline), including ~3 points of positive impact from the GOJO acquisition, less than 1 point of negative impact from the VMS divestiture, and less than 1 point of positive FX impact. Organic sales are now expected to decline about 9% (previously low end of 5%–9% decline), including ~7.5 points of headwind from ERP transition inventory normalization. Gross margin is now expected to decline 250–300 basis points (previously 50–100 bps decline), reflecting GOJO transaction costs (~60 bps headwind), ERP shipment reversal (~100 bps), and higher energy costs. Full-year GAAP diluted EPS is expected at $4.78–$4.98 (previously low end of $5.60–$5.95), a 24%–27% YoY decrease. Full-year adjusted EPS is expected at $5.45–$5.65 (previously low end of $5.95–$6.30), a 27%–29% YoY decrease, including 2–4 cents dilution from GOJO. The ~$0.90 ERP transition shipment reversal remains the most significant driver of the year-over-year decline. SG&A is still expected at ~16% of net sales, advertising at ~11% of net sales, and effective tax rate at ~24%.
CLX YoY Financials
CLX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.