Colgate-Palmolive 2025 Q3 Earnings Mixed Performance as Revenue Rises 1.9% but Net Income Falls 1.3%

Colgate-Palmolive (CL) reported Q3 2025 results in line with revenue expectations but with mixed net income performance. The company’s $5.13 billion revenue matched forecasts, while non-GAAP EPS of $0.91 beat estimates. However, net income declined 1.3% year-over-year to $766 million, signaling margin pressures and operational challenges. Guidance for full-year 2025 organic sales growth of 1.2% and low-single-digit EPS growth reflects cautious optimism amid macroeconomic headwinds.

Revenue

Colgate-Palmolive’s total revenue increased by 1.9% to $5.13 billion in Q3 2025, driven by its core Oral, Personal, and Home Care segment, which generated $3.99 billion. The Pet Nutrition segment contributed $1.14 billion, while corporate expenses remained at $0. International markets and emerging regions offset weaker performance in North America and Europe, with Latin America posting 2.0% organic sales growth.

Earnings/Net Income

Colgate-Palmolive’s non-GAAP EPS rose 1.1% to $0.91, exceeding the $0.89 consensus estimate. However, net income fell to $766 million, down from $776 million in 2024 Q3, despite continued profitability for over 20 years. The EPS growth is positive, but the net income decline highlights margin compression and operational risks.

Post-Earnings Price Action Review

The stock experienced volatility following the earnings release, with a 1.48% post-earnings drop despite beating EPS estimates. Over 30 days, CL’s price fluctuated between $75.37 (52-week low) and $76.51, ending with a 1.5% decline. Mixed market sentiment, macroeconomic uncertainty, and weak gross margins (-170 bps YoY to 59.4%) contributed to the underperformance.

CEO Commentary

CEO Noel Wallace emphasized resilience amid consumer uncertainty, tariffs, and inflation, highlighting strategic priorities such as AI-driven R&D, omnichannel marketing, and cost optimization. He noted strong performance in Latin America and Hill’s pet nutrition but acknowledged near-term headwinds.

Guidance

Colgate-Palmolive reiterated full-year 2025 organic sales growth of 1.2% and low-single-digit EPS growth. Gross margin is projected at 60.1%, supported by reduced raw material costs and SG&A discipline. FX headwinds are expected to ease in Q4, with strategic initiatives targeting long-term growth.

Additional News

1. Strategic 2030 Growth Plan: Colgate-Palmolive outlined a framework to drive innovation, expand omni-channel demand, and optimize operations, aiming to sustain EPS growth amid global uncertainties.


2. Gross Margin Decline: The company’s GAAP gross margin fell 170 bps to 59.4%, attributed to cost pressures and the exit of non-strategic private-label pet sales.


3. Market Position: Despite challenges, Colgate-Palmolive maintains a strong consumer defensive sector position, with 70% international sales and a 32.4% global market share in manual toothbrushes.

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