Colgate-Palmolive Co Earnings
Colgate-Palmolive Company has reported their financial performance for the fourth quarter and full year of 2025, highlighting their ability to drive growth despite numerous industry challenges. The company experienced a solid increase in net sales and successfully boosted its base business earnings per share (EPS) both quarterly and annually. However, the performance was tempered by significant impairments in its skin health business, which impacted their GAAP EPS.
Colgate-Palmolive Co Results
Key Financial Metrics
In the table below, we provide a summary of the financial results for the fourth quarter and the full year 2025, as compared to the previous year.
| Metric | Q4 2025 | Q4 2024 | % Change Q/Q | FY 2025 | FY 2024 | % Change Y/Y |
|---|---|---|---|---|---|---|
| Net Sales | $4.197 billion | $3.967 billion | +5.8% | $17.421 billion | $17.184 billion | +1.4% |
| GAAP EPS | $(0.05) | $0.84 | -106% | $2.63 | $3.51 | -25% |
| Base Business EPS* | $0.95 | $0.91 | +4% | $3.69 | $3.58 | +3% |
| Gross Profit Margin (GAAP) | 60.2% | 60.3% | -10 bps | 60.2% | 60.3% | -10 bps |
*Base Business EPS excludes non-recurring items such as goodwill impairments and other unique charges.
Revenue Breakdown
The following table provides a breakdown of revenue performance across key segments for the fourth quarter of 2025:
| Segment | Q4 2025 Revenue ($ billion) | % Change Y/Y | Notable Insights |
|---|---|---|---|
| Oral Care | 2.101 | +6.3% | Strong global market share, leading in toothpaste and manual toothbrushes. |
| Personal Care | 1.018 | +5.1% | Resilience across most markets, bolstered by innovation. |
| Home Care | 0.563 | +4.5% | Continued optimization of home cleaning products portfolio. |
| Pet Nutrition* | 0.515 | +5.4% | Growth in branded products, offsetting lower private label volumes. |
*Pet Nutrition performance includes a 0.9% negative impact due to lower private label volume.
Analysis of Segment Performance
Colgate-Palmolive’s largest segment, Oral Care, experienced a robust 6.3% growth, thanks largely to innovative products and effective global distribution strategies. The segment maintained a commendable market share of 41.3% in toothpaste and 32.4% in manual toothbrushes, affirming their leadership position. Personal Care and Home Care also saw reasonable growth, attributed to consumer preference for trusted brands in hygiene and cleanliness during uncertain times. Meanwhile, Pet Nutrition managed growth by focusing on branded offerings despite declines in private label demand.
Key Developments
One of the significant developments during the quarter was the impairment of the skin health business, primarily related to Filorga, resulting in a $794 million non-cash charge. This charge was prompted by lower-than-expected growth rates and diminished performance, particularly in China. While this dented the GAAP EPS, the company is taking corrective action and remains optimistic about future growth opportunities.
Comments from Company Officers
Noel Wallace, the Chairman, President, and CEO commented, “We are pleased to have exited 2025 with accelerated growth momentum [...] Our 2025 performance highlights the resilience of our business model and the strength of our brands.” He further emphasized the company's new strategy for 2030, which aims to accelerate growth by leveraging their global brand reach and enhancing innovation capabilities.
Dividends and Share Repurchases
For the full year, Colgate-Palmolive returned $2.9 billion to shareholders through dividends and share repurchases, reflecting its commitment to returning value to investors. This payout underscores the company’s solid cash flow generation capability, with a record net cash of $4.198 billion provided by operations for the year.
Colgate-Palmolive Co Stock Forecast
Given the current trajectory of sales growth, segment performance, and strategic initiatives outlined for 2030, Colgate-Palmolive is positioned to experience stable upward movement in its stock price. Here’s a projection for the next 12 months:
- High Projection : $85 per share
- Low Projection : $70 per share
These price estimates consider the company's operational resilience, market leadership in core segments, and robust cash flow generation, alongside industry factors that might weigh on the stock, such as geopolitical tensions and varying market conditions.
In conclusion, Colgate-Palmolive's financial performance during 2025 showcased its ability to nimbly navigate challenges and maintain growth momentum. The company's strategic emphasis on innovation and market leadership will be crucial as it seeks to deliver enhanced shareholder value in the coming years.
