Colgate-Palmolive (CL) Shares Plunge 0.44% on Q4 Revenue Miss, Weak 2025 Guidance

Colgate-Palmolive (CL) shares fell 0.44% on Thursday, marking a two-day losing streak with a cumulative decline of 1.28%. The stock hit its lowest level since September 2025, with an intraday drop of 0.61%, signaling renewed investor concerns over the company’s near-term outlook.

The recent downturn follows a Q4 2024 earnings report that fell short of expectations, with revenue of $4.94 billion lagging behind the estimated $4.98 billion. While adjusted earnings per share exceeded forecasts, the revenue miss highlighted operational challenges, particularly in navigating foreign exchange headwinds. The company’s 2025 guidance, which projected flat revenue growth and mid-single-digit adjusted EPS expansion, further dampened market optimism despite management’s confidence in long-term resilience.

Operational adjustments have also drawn attention. Regulatory scrutiny, including a Texas Attorney General investigation into toothpaste packaging, has raised compliance costs and reputational risks. Conversely, Colgate’s partnership with Erthos to develop sustainable biopolymer packaging aligns with growing consumer demand for eco-friendly products. Such initiatives aim to bolster brand loyalty and differentiate the company in a competitive market, though their near-term impact on margins remains uncertain.

Colgate’s dividend strategy continues to anchor its appeal to income-focused investors, with a quarterly payout of $0.52 per share. However, recent earnings underperformance has sparked questions about the sustainability of future distributions amid macroeconomic pressures. The company’s new productivity program, aimed at enhancing operational efficiency, could provide long-term growth catalysts, though specifics remain undisclosed.

Analyst sentiment remains mixed, with a “Moderate Buy” consensus reflecting cautious optimism. The average price target of $98.17 implies an 8% upside from current levels, though divergent views underscore uncertainty around Colgate’s ability to execute its strategic priorities. Broader macroeconomic factors, including oil price fluctuations and potential Federal Reserve policy shifts, further complicate the outlook for the consumer staples giant.