Colgate-Palmolive's 2026 Guidance: Margin Expansion and Brand Investment

Colgate-Palmolive reported Q4 2025 results with higher sales of $5,230 million but a net loss of $37 million. The company's 2026 guidance calls for modest net and organic sales growth, gross margin expansion, and double-digit GAAP EPS growth. Management plans to expand margins while increasing advertising as a percentage of sales, signaling a willingness to invest in its brands. The stock has risen 11% after the announcement, with some analysts seeing potential undervaluation by 22%.