Clorox Projects 5%-9% Sales Decline for Fiscal 2026 Amid ERP Transition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Source: NASDAQ.COM
- Sales Outlook Decline: Clorox anticipates a 5%-9% decline in organic sales for fiscal 2026, primarily due to the ERP transition, reflecting the company's vulnerability amid consumer spending pressures, which may dampen investor confidence.
- Dividend Appeal: Despite challenges, Clorox's dividend yield has risen to 4.9%, with the company achieving its 48th consecutive quarterly dividend increase in 2023, indicating potential for stable cash flow that attracts passive income-seeking investors.
- Brand Competitiveness: Approximately 80% of Clorox's brands rank in the top two of their categories, and despite intensified market competition and consumer spending pressures, the company is adapting by offering smaller and larger packaging options to meet value-seeking consumer demands.
- Financial Stability: Clorox maintains less than $3 billion in long-term debt with a debt-to-equity ratio of 0.2, which, while slightly higher than peers, still reflects relative financial health and supports future growth opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CLX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CLX
Wall Street analysts forecast CLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLX is 118.09 USD with a low forecast of 94.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 117.610
Low
94.00
Averages
118.09
High
152.00
Current: 117.610
Low
94.00
Averages
118.09
High
152.00
About CLX
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products. The Company operates through four segments: Health and Wellness, Household, Lifestyle, and International. Its Health and Wellness segment consists of cleaning, disinfecting and professional products marketed and sold under the Clorox, Clorox2, Pine-Sol, Scentiva, Tilex, Liquid-Plumr and Formula 409 brands in the United States. Its Household segment consists of bags and wraps, cat litter and grilling products marketed and sold under the Glad, Fresh Step and Scoop Away, and Kingsford brands in the United States. The lifestyle segment consists of food, water-filtration and natural personal care products marketed and sold under the Hidden Valley, Brita and Burt’s Bees brands. International consists of products sold outside the United States. Its products within this segment include laundry additives, home care products, bags and wraps, cat litter, water-filtration products and 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.
Market Volatility Increases; Top Dividend Stocks to Consider
- REIT Investment: Realty Income (O), a leading real estate investment trust, owns over 15,000 commercial properties primarily leased to consumer-facing businesses, offering a 5.3% dividend yield that ensures steady cash flow for investors amid economic fluctuations.
- Food Industry Leader: General Mills (GIS) boasts annual sales exceeding $18 billion; despite challenges from consumers shifting to generic brands, its long dividend history and current valuation at just 12 times earnings make it an attractive buy with a consistent payout.
- Cleaning Products Leader: Clorox (CLX) is renowned for its bleach and cleaning products, recently acquiring Purell for $2.25 billion, and as a Dividend King with 50 consecutive years of dividend increases, it offers a 4.4% yield, appealing to income-focused investors.
- Market Environment Analysis: While the broader market remains near highs, increased volatility in tech stocks serves as a reminder for investors to diversify their portfolios, with steady consumer goods stocks providing effective risk mitigation, especially in the face of rising economic uncertainty.
See More
Clorox Executives to Speak at CAGNY Conference
- Executive Attendance: Clorox's Chair and CEO Linda Rendle, along with CFO Luc Bellet, will speak at the CAGNY annual conference in Orlando, Florida, on February 19, 2026, showcasing the company's leadership in consumer analysis.
- Live Webcast Details: The presentation will be broadcast live at 2:00 PM ET (11:00 AM PT), allowing for broad audience participation and brand exposure through access on Clorox's official website.
- Replay Availability: Following the event, a replay of the webcast will be made available, further enhancing information dissemination and interaction with investors and consumers.
- Company Background: Founded in 1913, Clorox integrates sustainability into its operations and boasts a portfolio of trusted brands, including Brita, Burt's Bees, and Clorox, emphasizing its significance in consumers' daily lives.
See More
Analysis of Strategies for Investing in High-Yield Stocks
- Portfolio Adjustment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its diversification in renewable energy, including hydro, solar, wind, and nuclear power, which is expected to drive future revenue growth.
- Attractive Yield: Brookfield Renewable Partners currently offers a high yield of 5%, and its partnerships with Microsoft and Google further enhance its market competitiveness, attracting more investor interest.
- Market Dynamics Response: Due to tightening consumer spending, I sold Hormel Foods and Clorox at the end of 2025 to offset gains elsewhere, but I reinvested in both stocks in early 2026, reflecting confidence in their long-term growth potential.
- Growth Potential: Hormel Foods and Clorox offer yields of 4.7% and 4.5%, respectively, and both companies have a history of dividend growth, with expectations that new leadership and the acquisition of Gojo will help them return to growth trajectories.
See More
Increased Stakes in Three High-Dividend Stocks
- Renewable Energy Investment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its presence in hydroelectric, solar, wind, and nuclear energy sectors, with partnerships with Microsoft and Google providing strong growth potential.
- Dividend Appeal: Brookfield Renewable offers a 5% dividend yield, making it an attractive option for investors, especially as global demand for renewable energy continues to rise, likely enhancing its market position.
- Consumer Goods Market Dynamics: With a shift towards healthier eating impacting the consumer staples sector negatively, I sold Hormel Foods and Clorox in late 2025 to realize losses, but I increased my positions in both stocks in early 2026, reflecting confidence in their growth potential.
- Growth Potential: Hormel Foods' new CEO and restructuring efforts are expected to drive a return to growth, while Clorox's planned acquisition of Gojo, a leading hand sanitizer company, is anticipated to strengthen its market competitiveness and enhance shareholder returns.
See More
Clorox Reports Mixed Q2 Results, Stock Declines
- Earnings Highlights: Clorox reported an adjusted EPS of $1.39 for Q2, missing the analyst consensus of $1.43, although sales reached $1.673 billion, exceeding expectations of $1.64 billion, indicating resilience in revenue generation.
- Sales Decline: Net sales fell 1% year-over-year, primarily due to reduced consumption, despite a 2% increase in the Health and Wellness segment, demonstrating ongoing demand in that area.
- Margin Pressure: Gross margin decreased by 60 basis points to 43.2% year-over-year, driven by rising manufacturing and logistics costs, reflecting challenges in cost management for the company.
- Outlook Reaffirmed: Clorox reaffirmed its fiscal 2026 adjusted EPS guidance at $5.95 to $6.30, although a temporary inventory issue is expected to reduce sales growth by 7.5 percentage points, showcasing the company's ability to navigate uncertainties in the market.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
Market Volatility Increases; Top Dividend Stocks to Consider
- REIT Investment: Realty Income (O), a leading real estate investment trust, owns over 15,000 commercial properties primarily leased to consumer-facing businesses, offering a 5.3% dividend yield that ensures steady cash flow for investors amid economic fluctuations.
- Food Industry Leader: General Mills (GIS) boasts annual sales exceeding $18 billion; despite challenges from consumers shifting to generic brands, its long dividend history and current valuation at just 12 times earnings make it an attractive buy with a consistent payout.
- Cleaning Products Leader: Clorox (CLX) is renowned for its bleach and cleaning products, recently acquiring Purell for $2.25 billion, and as a Dividend King with 50 consecutive years of dividend increases, it offers a 4.4% yield, appealing to income-focused investors.
- Market Environment Analysis: While the broader market remains near highs, increased volatility in tech stocks serves as a reminder for investors to diversify their portfolios, with steady consumer goods stocks providing effective risk mitigation, especially in the face of rising economic uncertainty.
See More
Clorox Executives to Speak at CAGNY Conference
- Executive Attendance: Clorox's Chair and CEO Linda Rendle, along with CFO Luc Bellet, will speak at the CAGNY annual conference in Orlando, Florida, on February 19, 2026, showcasing the company's leadership in consumer analysis.
- Live Webcast Details: The presentation will be broadcast live at 2:00 PM ET (11:00 AM PT), allowing for broad audience participation and brand exposure through access on Clorox's official website.
- Replay Availability: Following the event, a replay of the webcast will be made available, further enhancing information dissemination and interaction with investors and consumers.
- Company Background: Founded in 1913, Clorox integrates sustainability into its operations and boasts a portfolio of trusted brands, including Brita, Burt's Bees, and Clorox, emphasizing its significance in consumers' daily lives.
See More
Analysis of Strategies for Investing in High-Yield Stocks
- Portfolio Adjustment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its diversification in renewable energy, including hydro, solar, wind, and nuclear power, which is expected to drive future revenue growth.
- Attractive Yield: Brookfield Renewable Partners currently offers a high yield of 5%, and its partnerships with Microsoft and Google further enhance its market competitiveness, attracting more investor interest.
- Market Dynamics Response: Due to tightening consumer spending, I sold Hormel Foods and Clorox at the end of 2025 to offset gains elsewhere, but I reinvested in both stocks in early 2026, reflecting confidence in their long-term growth potential.
- Growth Potential: Hormel Foods and Clorox offer yields of 4.7% and 4.5%, respectively, and both companies have a history of dividend growth, with expectations that new leadership and the acquisition of Gojo will help them return to growth trajectories.
See More
Increased Stakes in Three High-Dividend Stocks
- Renewable Energy Investment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its presence in hydroelectric, solar, wind, and nuclear energy sectors, with partnerships with Microsoft and Google providing strong growth potential.
- Dividend Appeal: Brookfield Renewable offers a 5% dividend yield, making it an attractive option for investors, especially as global demand for renewable energy continues to rise, likely enhancing its market position.
- Consumer Goods Market Dynamics: With a shift towards healthier eating impacting the consumer staples sector negatively, I sold Hormel Foods and Clorox in late 2025 to realize losses, but I increased my positions in both stocks in early 2026, reflecting confidence in their growth potential.
- Growth Potential: Hormel Foods' new CEO and restructuring efforts are expected to drive a return to growth, while Clorox's planned acquisition of Gojo, a leading hand sanitizer company, is anticipated to strengthen its market competitiveness and enhance shareholder returns.
See More
Clorox Reports Mixed Q2 Results, Stock Declines
- Earnings Highlights: Clorox reported an adjusted EPS of $1.39 for Q2, missing the analyst consensus of $1.43, although sales reached $1.673 billion, exceeding expectations of $1.64 billion, indicating resilience in revenue generation.
- Sales Decline: Net sales fell 1% year-over-year, primarily due to reduced consumption, despite a 2% increase in the Health and Wellness segment, demonstrating ongoing demand in that area.
- Margin Pressure: Gross margin decreased by 60 basis points to 43.2% year-over-year, driven by rising manufacturing and logistics costs, reflecting challenges in cost management for the company.
- Outlook Reaffirmed: Clorox reaffirmed its fiscal 2026 adjusted EPS guidance at $5.95 to $6.30, although a temporary inventory issue is expected to reduce sales growth by 7.5 percentage points, showcasing the company's ability to navigate uncertainties in the market.
See More
Dividend Growth Potential in Consumer Stocks
- Stability of REITs: Realty Income owns over 15,500 single-tenant commercial properties, with clients like Home Depot and Dollar General, and a 99% occupancy rate ensures steady cash flows, with expectations for profit and stock price increases as interest rates decline.
- Transformation Plans at Target: Target, with nearly 2,000 stores, faces inventory challenges and market pressures, yet its 54-year history of dividend growth and a $5 billion investment plan under the new CEO could help revitalize performance and attract investor interest.
- Challenges in Cleaning Products Market: Clorox, known for brands like Kingsford and Hidden Valley Ranch, has seen stock price declines due to reduced post-pandemic demand and a cyberattack, but its 4.4% dividend yield and improving business efficiencies may position it as a future growth stock.
- Attractive Dividend Yields: All three companies demonstrate strong dividend growth potential, with Realty Income's 5.3% yield, Target's 4.3%, and Clorox's 4.4%, all exceeding market averages, appealing to investors seeking stable income.
See More
