Colgate-Palmolive Company (CL) Stock: Cuts Annual Sales Forecast Amid Consumer Weakness

TLDR

• Q3 2025 earnings release date: October 31, 2025
• Net sales at $5.13 billion, matching analyst estimates
• EPS of $0.91 beat expectations of $0.89 per share
• Annual sales forecast cut to 1%-2% organic growth
• Tariff and inflation costs continue to weigh on margins

Colgate-Palmolive Company (NYSE: CL) closed at $77.07, up 0.73% on Friday, before edging down slightly in after-hours trading.

Colgate-Palmolive Company, CL

The company reported its third-quarter 2025 earnings on October 31, 2025, meeting Wall Street revenue expectations but lowering its annual sales outlook due to weakened consumer demand and inflationary pressures.

Sales and Profit Performance

For the quarter, Colgate-Palmolive reported net sales of $5.13 billion, aligning with analyst estimates. Adjusted earnings per share came in at $0.91, topping consensus projections of $0.89. Rising input costs and consumer pushback on price increases dented the company’s overall growth.

Gross profit margins fell 190 basis points to 59.4%, reflecting higher costs for raw and packaging materials. The company continues to absorb about $75 million in tariff-related expenses, stemming from its reliance on imported raw materials like vitamins and amino acids.

Price Sensitivity and Consumer Weakness

CEO Noel Wallace acknowledged the mounting strain on household spending, noting that discount-seeking behavior is on the rise while category growth in North America remains weak. “Consumers still remain relatively weak across North America,” Wallace said, adding that Hispanic traffic remains down and demand in markets such as Canada, Colombia, and India has slowed.

Price hikes of 2.3% failed to offset a 1.9% volume decline, indicating that higher pricing is pushing consumers toward private-label and budget alternatives. The company also cited the “Buy Canadian” movement as a factor hurting performance in Canada.

Strategic Shifts and AI-Driven Efficiency

Despite these challenges, Colgate-Palmolive remains committed to its 2030 strategy, focused on innovation, AI integration, and omnichannel demand generation. The company has been leveraging predictive analytics to optimize supply chain operations and improve service delivery. Nearly 50% of its revenue exposure now comes from faster-growing emerging markets, which continue to drive long-term growth potential.

Colgate-Palmolive’s strong cash flow generation supports continued investment in marketing and shareholder returns. The company is ramping up its advertising to compete with cheaper private-label brands and sustain brand loyalty.

Outlook and Market Reaction

After outperforming expectations for profit, Colgate-Palmolive revised its annual organic sales growth guidance to 1%-2%, down from its earlier 2%-4% forecast. Analysts noted that the reduced outlook was largely priced in, with J.P. Morgan’s Andrea Teixeira saying investors were already braced for softer guidance.

While peer Procter & Gamble reported stronger performance as consumers accepted higher prices, Colgate’s weaker volume trends highlight its exposure to price-sensitive segments.

Colgate-Palmolive’s mixed results reflect a balancing act between cost management, innovation, and demand headwinds, underscoring the tough environment for consumer goods makers navigating inflation and changing shopper behavior.

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