Colgate-Palmolive jumps as Q1 base EPS rises to $0.97, cost-savings plan expands
Colgate-Palmolive shares are rising after the company reported Q1 2026 results showing net sales of $5.324 billion (+8.4%) and base business EPS of $0.97 (+7%), slightly ahead of expectations. Investors also reacted to an expanded multi-year productivity program targeting $200 million to $300 million in annual pretax savings once implemented.
1. What’s moving the stock
Colgate-Palmolive (CL) is up after posting a stronger-than-expected first quarter and pairing the print with a bigger productivity roadmap. The company reported Q1 2026 net sales of $5.324 billion, up 8.4% year over year, and base business (non-GAAP) EPS of $0.97, up 7%, while GAAP EPS declined to $0.80. Organic sales grew 2.9%, with management emphasizing a more balanced mix of volume and pricing and improved momentum versus late 2025. (uk.marketscreener.com)
2. Key numbers investors are focusing on
The quarter showed record net sales and a return to positive volume contribution, with management citing 1.1% volume growth overall (including benefits from Prime100 and headwinds from exiting private label pet food). Pricing growth was 2.2%, and the company highlighted continued category leadership in oral care with global toothpaste share at 41.1% year to date and manual toothbrush share at 32.6% year to date. Cash generation was also solid, with $747 million of net cash provided by operations in the first three months of 2026 and a noted increase in free cash flow year over year in management’s commentary. (uk.marketscreener.com)
3. Guidance and the new cost-savings catalyst
Colgate maintained its full-year 2026 net sales, organic sales, and EPS guidance but updated its gross margin outlook: it now expects gross profit margin to be down year over year (on both GAAP and base business measures), citing higher oil/commodity-driven cost pressure and logistics inputs. Separately, the company said its board approved an expansion of its Strategic Growth and Productivity Program on April 30, 2026, lifting the estimate for cumulative pretax charges to $350 million to $550 million (from $200 million to $300 million) and projecting $200 million to $300 million of annual pretax savings once projects are implemented, with substantially all charges expected to be incurred by December 31, 2028. (uk.marketscreener.com)
4. What to watch next
Investors will be tracking whether the stronger start to 2026—especially improved volumes—can persist as the company navigates input-cost inflation and slower category growth in parts of the portfolio. The upcoming earnings Q&A and subsequent disclosures should provide more detail on the timing of SGPP savings realization, any incremental reinvestment into advertising, and whether the updated margin outlook changes the cadence of profit delivery through the year. (marketscreener.com)