CL · Q2 FY2026
COLGATE PALMOLIVE CO Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $5.36B | $5.11B (yr ago) | Beat |
| EPS | $0.86 | $0.91 (yr ago) | Miss |
| Free Cash Flow | $0.99B | $0.88B (yr ago) | Beat |
| Gross Margin | 61.5% | 60.1% (yr ago) | Beat |
| Operating Margin | 19.0% | 21.1% (yr ago) | Miss |
What changed
Revenue increased 4.9% year over year to $5.36 billion, while gross margin expanded 140 basis points to 61.5% and free cash flow rose 12.5% to $0.99 billion. Those gains did not reach the bottom line: operating margin contracted 210 basis points to 19.0%, and EPS declined 5.5% to $0.86. With no company guidance or earnings release supplied, the comparison uses Q2 FY2025 as the reference.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish a base-case fair value of $102 per share: better revenue, gross margin and cash generation support normalization, but weaker operating margin and EPS prevent a more aggressive valuation.