Colgate-palmolive Company Stock Earnings Reports

Colgate reported a soft Q3 2025 top-line environment driven by broad category weakness, consumer uncertainty, tariffs, raw material inflation (notably fats and oils), and some trade destocking. Organic sales were low (around 1.2% year-to-date), with Latin America impacted by a Colgate Total formula replacement (~150 bps negative to regional organic and a 40–50 bps gross margin hit) and Hill's affected by exit from private-label contracts. Management reiterated commitment to dollar-based EPS growth and strong cash flow, and kept full-year EPS guidance intact. Key strategic response is the launch and acceleration of the 2030 Strategy: a new innovation model (science-based, tiered, AI-enabled), omnichannel/omnidemand initiatives, stronger revenue growth management (RGM) via prescriptive analytics and agentic AI, and a Sales Growth & Productivity Program (SGPP) designed to fund investments and deliver savings while transforming processes. SGPP charges are expected to be $200–300 million (concluding by end of 2028) with initial charges beginning in Q4. Management expects modest sequential improvement into Q4 (full-year organic roughly in line with year-to-date ~1.2%), improved gross margin sequentially as certain one-offs and raw material pressures ease, and FX moving toward a tailwind at current spots. Hill's underlying performance was described as resilient (growth in premium, wet, cat, prescription segments) despite channel/e-commerce inventory effects. Management emphasized investments in AI as both growth and productivity enablers rather than a large new one-time cost, citing multi-year prior investments and reallocations of resources to scale capabilities.