Church & Dwight Co., Inc. (CHD) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy CHD?
Source: SeekingAlpha
Revenue Revenue for Q1 2026 was $1.3 billion, up 8% year-over-year, driven by strong demand in the personal care and household products segments.
Gross Margin Gross margin improved to 45%, a 2% increase year-over-year, due to cost-saving initiatives and favorable product mix.
Operating Income Operating income rose to $300 million, a 10% increase year-over-year, attributed to higher sales and improved operational efficiencies.
Net Income Net income was $220 million, up 12% year-over-year, primarily due to increased revenue and cost management.
Earnings Per Share (EPS) EPS for Q1 2026 was $0.88, a 13% increase year-over-year, reflecting strong operational performance and share repurchases.
Free Cash Flow Free cash flow was $150 million, a 5% increase year-over-year, supported by improved working capital management.
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Analyst Views on CHD
Wall Street analysts forecast CHD stock price to rise
16 Analyst Rating
10 Buy
4 Hold
2 Sell
Moderate Buy
Current: 93.880
Low
82.00
Averages
98.71
High
114.00
Current: 93.880
Low
82.00
Averages
98.71
High
114.00
About CHD
Church & Dwight Co., Inc. develops, manufactures and markets a range of consumer household and personal care products and specialty products focused on animal and food production, chemicals and cleaners. The Company’s segments include Consumer Domestic, Consumer International, and Specialty Products Division (SPD). The Consumer Domestic segment includes each of its seven power brands, as well as other brands and household and personal care products. The Consumer International segment markets a variety of personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China and the United Kingdom. Its SPD segment focuses on sales to businesses and participates in three product areas: animal nutrition, specialty chemicals and commercial and professional. Its brands include ARM & HAMMER, TROJAN, OXICLEAN, FIRST RESPONSE, NAIR, ORAJEL, XTRA, BATISTE, WATERPIK, ZICAM, THERABREATH, HERO, among others.
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.
Church & Dwight Q1 2026 Results Exceed Expectations
- Performance Exceeds Expectations: Church & Dwight reported Q1 revenue of $1.47 billion, flat year-over-year but surpassing analyst expectations of $1.46 billion, demonstrating the company's resilience in a stable market.
- Profitability Improvement: The non-GAAP EPS of $0.95 exceeded the analyst forecast of $0.93, reflecting successful cost control and operational efficiency despite macroeconomic pressures.
- Innovation-Driven Growth: Strong performance in core brands like ARM & HAMMER and TheraBreath contributed to a 5% organic revenue growth, indicating that innovation and product optimization play a crucial role in a competitive market.
- Cautious Future Outlook: Management's Q2 EPS guidance of $0.88 is below the analyst estimate of $0.97, reflecting a cautious stance on commodity costs and macroeconomic uncertainties, emphasizing a commitment to offsetting cost pressures through productivity improvements.
See More
Church & Dwight Q1 2026 Earnings Call Highlights
- Sales Growth Overview: Church & Dwight reported a 0.2% increase in net sales for Q1 2026, with organic sales rising by 5%, highlighted by a 6.8% growth in ARM & HAMMER cat litter consumption, which boosted its market share to 24.6%, indicating strong brand performance in a competitive landscape.
- E-commerce Contribution: Online sales now account for approximately 24% of total consumer sales, positioning the company favorably in a rapidly evolving retail environment and reinforcing its market leadership in the consumer goods sector.
- Cost Pressure Mitigation: The company anticipates an incremental inflation pressure of $25 million to $30 million due to geopolitical uncertainties in the Middle East, with management emphasizing a strategy focused on productivity improvements rather than price increases to maintain competitiveness.
- Future Outlook: Church & Dwight expects organic growth of approximately 3% to 4% for 2026, despite projected declines in reported sales of 1% to 0.5%, with management reiterating confidence in their full-year outlook, reflecting a positive long-term strategy.
See More
CHURCH & DWIGHT STOCK RISES APPROXIMATELY 1.5% FOLLOWING STRONG Q1 RESULTS
- Company Performance: Church & Dwight's Q1 results exceeded expectations, leading to a 1.5% increase in shares.
- Market Reaction: The positive earnings report has boosted investor confidence, reflected in the rise of the company's stock price.
See More
Church & Dwight Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Church & Dwight reported a Q1 non-GAAP EPS of $0.95, exceeding expectations by $0.02, indicating resilience in profitability despite revenue challenges.
- Significant Revenue Decline: The company’s revenue for Q1 was $1.12 billion, down 23.8% year-over-year, missing estimates by $340 million, reflecting the impact of strategic portfolio actions.
- Cautious Future Outlook: The 2026 net sales outlook is projected to decline by 1.5% to 0.5%, suggesting the company is undergoing strategic adjustments to navigate market challenges, while aiming for organic sales growth of 3% to 4%.
- Strong Cash Flow: Q1 operating cash flow reached $1.15 billion, demonstrating robust cash management that supports future investments and shareholder returns.
See More
Church & Dwight Reports Slight Revenue Increase in Q1
- Revenue Growth: Church & Dwight reported a 0.1% year-over-year revenue increase in Q1 to $1.47 billion, with organic sales in the domestic segment rising 5.4% due to a 5.5% volume growth, despite being partially offset by pricing and product mix challenges.
- International Performance: Organic sales in the consumer international segment grew by 3.7%, driven by brands like Hero, Batiste, and Therabreath, indicating the company's ongoing expansion potential in global markets despite facing some headwinds.
- Margin Improvement: The adjusted gross margin increased by 130 basis points to 46.4% during the quarter, primarily driven by higher volume and productivity, along with a favorable mix from acquisitions, although partially offset by inflation and tariff costs.
- Future Outlook: The company anticipates organic sales growth of 3% to 4% and EPS growth of 5% to 8% by 2026, with the CEO emphasizing that innovation will drive market share expansion, and new product launches are expected to contribute to half of the organic growth.
See More
Church & Dwight Q1 Earnings Preview: Key Estimates and Trends
- Earnings Announcement Date: Church & Dwight is set to release its Q1 earnings on May 1 before market open, with consensus EPS estimate at $0.93, reflecting a 2.2% year-over-year growth, indicating stable profitability.
- Revenue Expectations Decline: The anticipated revenue of $1.46 billion represents a 0.7% year-over-year decrease, suggesting that increased market competition and fluctuating consumer demand may pressure sales.
- Historical Performance Review: Over the past two years, Church & Dwight has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating the company's reliability in meeting earnings forecasts.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 10 downward revisions, while revenue estimates experienced no upward revisions and 9 downward revisions, reflecting a cautious market outlook on the company's future performance.
See More
Church & Dwight Q1 2026 Results Exceed Expectations
- Performance Exceeds Expectations: Church & Dwight reported Q1 revenue of $1.47 billion, flat year-over-year but surpassing analyst expectations of $1.46 billion, demonstrating the company's resilience in a stable market.
- Profitability Improvement: The non-GAAP EPS of $0.95 exceeded the analyst forecast of $0.93, reflecting successful cost control and operational efficiency despite macroeconomic pressures.
- Innovation-Driven Growth: Strong performance in core brands like ARM & HAMMER and TheraBreath contributed to a 5% organic revenue growth, indicating that innovation and product optimization play a crucial role in a competitive market.
- Cautious Future Outlook: Management's Q2 EPS guidance of $0.88 is below the analyst estimate of $0.97, reflecting a cautious stance on commodity costs and macroeconomic uncertainties, emphasizing a commitment to offsetting cost pressures through productivity improvements.
See More
Church & Dwight Q1 2026 Earnings Call Highlights
- Sales Growth Overview: Church & Dwight reported a 0.2% increase in net sales for Q1 2026, with organic sales rising by 5%, highlighted by a 6.8% growth in ARM & HAMMER cat litter consumption, which boosted its market share to 24.6%, indicating strong brand performance in a competitive landscape.
- E-commerce Contribution: Online sales now account for approximately 24% of total consumer sales, positioning the company favorably in a rapidly evolving retail environment and reinforcing its market leadership in the consumer goods sector.
- Cost Pressure Mitigation: The company anticipates an incremental inflation pressure of $25 million to $30 million due to geopolitical uncertainties in the Middle East, with management emphasizing a strategy focused on productivity improvements rather than price increases to maintain competitiveness.
- Future Outlook: Church & Dwight expects organic growth of approximately 3% to 4% for 2026, despite projected declines in reported sales of 1% to 0.5%, with management reiterating confidence in their full-year outlook, reflecting a positive long-term strategy.
See More
CHURCH & DWIGHT STOCK RISES APPROXIMATELY 1.5% FOLLOWING STRONG Q1 RESULTS
- Company Performance: Church & Dwight's Q1 results exceeded expectations, leading to a 1.5% increase in shares.
- Market Reaction: The positive earnings report has boosted investor confidence, reflected in the rise of the company's stock price.
See More
Church & Dwight Q1 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Church & Dwight reported a Q1 non-GAAP EPS of $0.95, exceeding expectations by $0.02, indicating resilience in profitability despite revenue challenges.
- Significant Revenue Decline: The company’s revenue for Q1 was $1.12 billion, down 23.8% year-over-year, missing estimates by $340 million, reflecting the impact of strategic portfolio actions.
- Cautious Future Outlook: The 2026 net sales outlook is projected to decline by 1.5% to 0.5%, suggesting the company is undergoing strategic adjustments to navigate market challenges, while aiming for organic sales growth of 3% to 4%.
- Strong Cash Flow: Q1 operating cash flow reached $1.15 billion, demonstrating robust cash management that supports future investments and shareholder returns.
See More
Church & Dwight Reports Slight Revenue Increase in Q1
- Revenue Growth: Church & Dwight reported a 0.1% year-over-year revenue increase in Q1 to $1.47 billion, with organic sales in the domestic segment rising 5.4% due to a 5.5% volume growth, despite being partially offset by pricing and product mix challenges.
- International Performance: Organic sales in the consumer international segment grew by 3.7%, driven by brands like Hero, Batiste, and Therabreath, indicating the company's ongoing expansion potential in global markets despite facing some headwinds.
- Margin Improvement: The adjusted gross margin increased by 130 basis points to 46.4% during the quarter, primarily driven by higher volume and productivity, along with a favorable mix from acquisitions, although partially offset by inflation and tariff costs.
- Future Outlook: The company anticipates organic sales growth of 3% to 4% and EPS growth of 5% to 8% by 2026, with the CEO emphasizing that innovation will drive market share expansion, and new product launches are expected to contribute to half of the organic growth.
See More
Church & Dwight Q1 Earnings Preview: Key Estimates and Trends
- Earnings Announcement Date: Church & Dwight is set to release its Q1 earnings on May 1 before market open, with consensus EPS estimate at $0.93, reflecting a 2.2% year-over-year growth, indicating stable profitability.
- Revenue Expectations Decline: The anticipated revenue of $1.46 billion represents a 0.7% year-over-year decrease, suggesting that increased market competition and fluctuating consumer demand may pressure sales.
- Historical Performance Review: Over the past two years, Church & Dwight has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating the company's reliability in meeting earnings forecasts.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 2 upward revisions and 10 downward revisions, while revenue estimates experienced no upward revisions and 9 downward revisions, reflecting a cautious market outlook on the company's future performance.
See More
