Colgate-Palmolive began 2026 with positive momentum, as Q1 results exceeded Wall Street’s revenue and non-GAAP profit expectations. Management credited improved sales volumes and strong brand performance in emerging markets, particularly in Asia Pacific, as key contributors. CEO Noel Wallace highlighted that “emerging markets have accelerated,” citing successful interventions in the Hawley & Hazel business and continued investments in advertising and innovation as drivers of broad-based growth across categories and geographies.
Is now the time to buy CL? Find out in our full research report (it’s free for active Edge members).
Colgate-Palmolive (CL) Q1 CY2026 Highlights:
- Revenue: $5.32 billion vs analyst estimates of $5.23 billion (8.4% year-on-year growth, 1.8% beat)
- Adjusted EPS: $0.97 vs analyst estimates of $0.94 (2.7% beat)
- Adjusted EBITDA: $1.29 billion vs analyst estimates of $1.27 billion (24.2% margin, 1.9% beat)
- Operating Margin: 18.1%, down from 21.9% in the same quarter last year
- Organic Revenue rose 2.9% year on year (beat)
- Sales Volumes rose 1.1% year on year (-0.1% in the same quarter last year)
- Market Capitalization: $69.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Colgate-Palmolive’s Q1 Earnings Call
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Dara Mohsenian (Morgan Stanley) asked about the sustainability of volume growth in emerging markets and the path to improvement in North America. CEO Noel Wallace stressed ongoing brand investment and innovation, particularly in Asia Pacific, as well as strategic resets for North America.
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Filippo Falorni (Citi) questioned assumptions around cost inflation and how Colgate-Palmolive plans to offset raw material pressures. CFO Stanley Sutula detailed the $300 million increase in costs, mainly from oil-based inputs, and highlighted productivity and pricing as mitigation strategies.
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Bonnie Herzog (Goldman Sachs) sought clarity on gross margin headwinds and the company’s flexibility to deliver on EPS targets despite higher costs. Wallace explained that pricing, innovation, and cost savings would help offset margin declines, but lower gross margins were expected for the year.
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Peter Galbo (Bank of America) asked for more detail on Asia Pacific and India’s role in driving growth. Wallace cited innovation, digital execution, and strong performance in both China and India as critical factors.
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Andrea Teixeira (JPMorgan) inquired about competitiveness in U.S. Oral Care and improvement in market share. Wallace pointed to late-quarter innovation and increased brand support as catalysts for expected sequential gains.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will watch (1) whether emerging market momentum persists as new product launches and increased advertising continue, (2) the effectiveness of North America’s strategy reset in driving share gains and margin recovery, and (3) the company’s ability to offset raw material and logistics cost inflation through pricing and productivity. Progress in digital initiatives and supply chain simplification will also be key markers for execution against long-term goals.
Colgate-Palmolive currently trades at $87.25, up from $85.36 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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