Colgate-Palmolive rises 2.3% after earnings beat and raised profitability outlook

What happened

Colgate-Palmolive (CL) rose 2.3% on October 30, 2026, after third-quarter results beat estimates and the company raised its 2026 profitability outlook. The company reported earnings per share of $0.97 against $0.93 expected, 4.8% above estimates, and management cited organic sales growth, pricing, productivity programs and strength at Hill's pet nutrition. Trading was heavier than normal, with volume at 1.8 times its 20-day average, while the S&P 500 fell 1.8% on the day.

How big was the move

The stock closed at $95.29, having opened 5.2% above the previous close, and the one-session change was 2.3%. The move was 1.7 times a typical daily move for this stock and 1.5 percentage points better than the Consumer Defensive sector median on the day. Over the last five sessions the stock rose 1.3%, while the S&P 500 over five sessions fell 0.6% and the Consumer Defensive sector median rose 0.7%.

The technical picture

The stock sat 3.9% above its 20-day moving average and 6.4% above its 50-day moving average, while it was 6.3% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend, yet the shares have spent 15 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) read 62, in a neutral range between 30 and 70, and the shares were 4.1% below the 52-week high. Price momentum showed a one-month change of rose 12.7% and a three-month change of rose 6.0%.

Those technicals point to recent strength after a longer period of underperformance: the stock has risen 25.8% over one year, 15.8 percentage points ahead of the S&P 500. Volatility is 21% annualized over 60 days, higher than 72% of its own readings over five years, which may make short-term moves more pronounced despite the stock's market sensitivity; the beta is 0.13, meaning the stock tends to move less than the market.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $21.28 billion, having grown 5.9% from a year earlier and showing growth of 5.2% one quarter earlier. Diluted earnings per share for that period were $2.55, which fell 28.5% from a year earlier. Gross margin read 60.6% (a year earlier: 60.2%) and operating margin was 20.5% (a year earlier: 21.6%). Free-cash-flow margin stood at 17.8% and return on invested capital was 29.9%. The balance sheet showed net debt of 1.6 times EBITDA, and share count over one year decreased by 1.4%.

Valuation based on reported figures put the stock at 37.3 times trailing earnings and 24.7 times expected earnings, with a free-cash-flow yield of 5.1%. Its price to trailing earnings was higher than 86% of its own readings over the past five years (five-year median: 31.8 times earnings). PromtFinance scores rank Quality at 99 (Exceptional) and Momentum at 81 (Strong), while Value is 13 (Very weak) and Growth is 52 (Neutral). Those measures show a company delivering high returns and steady cash flow but trading at a premium to its recent history.

Earnings and analyst expectations

The company reported last on October 30, 2026: earnings per share of $0.97 against $0.93 expected, 4.8% above estimates, marking 15 consecutive quarters beating estimates. The release, reported by Business Wire and Seeking Alpha, said net sales increased 4.6% and organic sales increased 3.6%, with a small 0.2% drag from lower private-label pet food volumes. GAAP EPS rose 3% to $0.94 while Base Business EPS was $0.97 (up 7%). Gross profit margin expanded about 80 basis points to 60.2% (Base Business Gross profit margin up 90 basis points to 60.3%). The company raised its 2026 profitability outlook following the quarter.

Analysts covering the stock number 45, with a consensus rating of Hold and 40% of ratings at Buy or Strong Buy. The consensus price target is $100.14, which is 5.1% above the closing price. Typical two-day reactions after recent reports showed the stock rose 0.9%, and the average surprise over the last four reports was 4.1% above estimates. The next scheduled report is January 29, 2027.

What to watch

• January 29, 2027: next quarterly report date.
• PromtFinance Quality score 99 and Momentum score 81, versus Value 13.
• Price to trailing earnings 37.3 times and price to forward earnings 24.7 times.
• In the past five years the stock had 32 sessions with a gain of at least 2.3%; twenty trading days later the median result was a decline of 0.2%.