Clorox (CLX) is trading lower after releasing third-quarter fiscal 2026 results (quarter ended March 31, 2026) and updating its full-year outlook. The key negative for investors was the reset to full-year profitability expectations, which outweighed quarter-specific profit metrics and kept focus on near-term earnings power.

Clorox now expects fiscal 2026 net sales to be down about 6% and organic sales to fall about 9%. The company cut its fiscal 2026 EPS outlook to diluted EPS of $4.78–$4.98 and adjusted EPS of $5.45–$5.65, and also guided to a larger gross-margin decline (down 250–300 basis points) than previously expected. (stocktitan.net)

Clorox framed the biggest driver as a transitory shipment/consumption mismatch tied to its ERP transition: retailers previously built inventory ahead of the system change, and the subsequent drawdown is pressuring reported shipments and earnings comparisons. The company quantified the earnings impact from this inventory drawdown at roughly $0.90 per share for fiscal 2026. (stocktitan.net)

The outlook also incorporates the recently closed GOJO acquisition (Purell), which Clorox expects to add to reported sales but bring near-term EPS dilution and transaction-related costs, while costs such as energy, manufacturing, and logistics remain a margin overhang. The GOJO deal closed April 1, 2026, expanding Clorox into the Purell brand and related health and hygiene offerings. (stocktitan.net)