Clorox Lowers Annual Profit Forecast Amid Rising Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
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Source: Newsfilter
Clorox shares fell 5.64% and hit a 52-week low following the company's announcement of a reduced annual profit forecast.
The company has lowered its annual adjusted earnings per share forecast to between $5.45 and $5.65, down from $5.95 to $6.30, indicating significant profitability challenges due to weak demand and rising costs. Clorox also anticipates a 6% decline in annual net sales, reflecting its adaptability in navigating market changes, despite reporting adjusted earnings of $1.64 per share for the third quarter, which exceeded analyst expectations of $1.55.
This adjustment in profit outlook raises concerns about Clorox's ability to maintain its market position amid increasing cost pressures and declining sales, potentially impacting investor confidence.
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Analyst Views on CLX
Wall Street analysts forecast CLX stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 89.630
Low
94.00
Averages
118.69
High
152.00
Current: 89.630
Low
94.00
Averages
118.69
High
152.00
About CLX
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products. Its brands include Brita, Burt's Bees, Clorox, Fresh Step, Glad, Hidden Valley, Kingsford, Liquid-Plumr, Pine-Sol and Purell as well as international brands such as Chux, Clorinda and Poett. Its segments include Health and Wellness, Household, Lifestyle and International. Health and Wellness segment consists of cleaning, disinfecting and professional products marketed and sold in the United States. Products within this segment include home care, cleaning and disinfecting products and laundry additives; professional cleaning and disinfecting products, and others. Household segment consists of bags and wraps, cat litter and grilling products marketed and sold in the United States. Lifestyle segment consists of food, water filtration and natural personal care products marketed and sold in the United States. International segment consists of products sold outside the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Employment Data: US nonfarm payrolls rose by 172,000 in May, significantly exceeding expectations of 88,000, while the unemployment rate held steady at 4.3%, potentially prompting the Fed to consider a rate hike at the upcoming meeting, thereby affecting market liquidity and investor sentiment.
- Rising Bond Yields: The 10-year Treasury yield climbed to 4.55%, a two-week high, reflecting heightened expectations for future rate hikes, which may lead to capital outflows from the stock market, further exacerbating market volatility.
- Tech Stock Retreat: Following Broadcom's disappointing chip sales outlook, Marvell and Micron stocks plummeted over 16% and 13%, respectively, suggesting that the market's overly optimistic sentiment towards tech stocks may be correcting, impacting investor confidence.
See More
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- Healthcare Sector Leader: Becton, Dickinson (BD) leads in medical devices, producing over 34 billion devices annually, with a 2025 report indicating 125 new product launches and a dividend yield of 2.8%, ensuring stable revenue streams.
- Clorox's Dividend Appeal: Clorox (CLX) has seen a 25% stock price decline, resulting in a forward P/E ratio of 13, below the five-year average of 24, and a dividend yield of 5.1%, making it appealing for long-term investors.
- Market Challenges and Responses: Despite facing cost pressures from rising oil prices, Clorox's management reported positive performance in consumer categories, indicating brand resilience and sustained market demand.
See More
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- BD's Steady Growth: Becton, Dickinson produces over 34 billion medical devices annually, and its 2025 report highlights the launch of over 125 new products and an additional $1.3 billion in revenue from more than 20 acquisitions, showcasing its robust innovation in the medical supply sector.
- Clorox's Dividend Appeal: Clorox boasts a dividend yield of 5.1% and has increased its payout for 48 consecutive years; despite a more than 25% drop in stock price over the past year, its forward P/E ratio stands at 13, well below the five-year average of 24, suggesting investment value.
- Market Environment Impact: Facing rising oil prices that could cost over $20 million in quarterly gross profit, Clorox is working on efficiency improvements, with the CEO noting that consumer spending on brands remains strong, indicating resilience in challenging market conditions.
See More
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- Executive Change: Clorox announced that CEO Linda Rendle is stepping down for health reasons, prompting the board to initiate a comprehensive search for a new CEO, indicating challenges in leadership stability for the company.
- Transition Plan: Rendle will remain in her role until a successor is appointed and will provide advisory support during the transition period, aiming to ensure continuity and stability in company operations.
- Market Reaction: This executive change may impact Clorox's stock price, as investor concerns about the company's future strategic direction could intensify, especially following the company's lowered FY26 outlook.
- Industry Context: Clorox faces intense competition and market pressures in the consumer goods sector, and the board's decisions will have significant implications for the company's long-term strategic development.
See More
Comparing Investment Value of Kimberly-Clark and Clorox
- Kimberly-Clark Financial Performance: In FY 2025, Kimberly-Clark reported nearly $16.4 billion in revenue, down from $16.8 billion the previous year, with a net income of approximately $2.0 billion and a net margin of 12.2%, indicating profitability pressures amid shifting consumer demand, necessitating attention to its international business sale and potential merger impacts.
- Clorox Profit Recovery: Clorox generated about $7.1 billion in revenue for FY 2025, with net income significantly rising to approximately $810 million and a net margin of 11.4%, reflecting a gradual recovery in profitability post-pandemic, despite facing customer concentration risks and cybersecurity challenges.
- Competition and Risk Analysis: Kimberly-Clark faces intense competition from Procter & Gamble and generic brands, with geopolitical and currency fluctuations impacting its international sales, while Clorox's 27% sales dependency on Walmart poses pricing pressures, compounded by ongoing recovery from a recent cyberattack.
- Valuation Comparison: Kimberly-Clark's forward P/E ratio stands at 13.2x, making it more attractive compared to Clorox's 17.4x, although both are below sector averages, prompting investors to weigh potential merger risks against market performance.
See More
