Clorox (CLX) is sliding today after resetting expectations for fiscal 2026 profitability. The company lowered its full-year adjusted EPS outlook to $5.45–$5.65 from its prior $5.95–$6.30 range, and it warned that gross margin is now expected to fall 250–300 basis points for the year—both changes that reframed near-term earnings power for investors. (investing.com)

The guidance cut comes even as Clorox posted third-quarter adjusted EPS of $1.64, with revenue around $1.67 billion. The issue is the forward view: management highlighted a tougher consumer spending backdrop and intensifying competition, alongside rising costs—particularly energy—pressuring margins and profitability expectations for the remainder of the year. (investing.com)

Clorox linked the revised outlook to multiple overlapping headwinds: higher energy-related input costs, ongoing impacts tied to its ERP transition (including shipment timing effects), and transaction/integration costs following its GOJO Industries acquisition that added the Purell brand. Those factors together pushed the company to a more conservative profit and margin trajectory for FY2026. (investing.com)

With the stock reacting sharply to the guidance reset, the next catalysts are whether volumes stabilize (or deteriorate further), whether pricing and mix can offset cost inflation, and whether the GOJO integration and ERP-related disruptions fade on schedule. Any signs that margins are tracking better than the new 250–300 bps decline expectation—or that demand is holding up better than implied—could change the tone around the name in coming weeks. (investing.com)