CL · 10-Q · 2026Q3 · Full report

Operating Expense Trends

COLGATE PALMOLIVE CO · 2026-10-30 · Importance 35 · Surprise 22 · From source text

Third-quarter SG&A increased 7% to $2,111; excluding Strategic Growth and Productivity Program charges, it increased 7% to $2,102, reflecting $101 more advertising and $30 higher overhead expenses. SG&A excluding those charges rose to 39.1% of sales from 38.4%, as advertising added 130 basis points and lower overhead costs offset 60 basis points. Advertising spending increased 15% to $775 in the quarter and rose to 14.4% of sales from 13.1%. For the first nine months, adjusted SG&A increased to $6,296 from $5,817, including $266 higher advertising and $213 higher overhead; advertising reached $2,286, up 13%, and 14.2% of sales.

Key facts

• SG&A increased 8% to $6,316 million in the first nine months of 2026 from $5,833 million; excluding applicable charges, it increased to $6,296 million from $5,817 million, reflecting $266 million higher advertising and $213 million higher overhead. source
• Colgate-Palmolive recorded a $65 million charge in the quarter ended March 31, 2025, following an appellate decision affirming a ruling on calculation issues in ERISA litigation concerning a 2005 residual annuity amendment to its Employees’ Retirement Income Plan. source
• Corporate operating loss was $902 million in the first nine months of 2026 versus $523 million in 2025, including $327 million of program charges; 2025 included $15 million of ERISA litigation charges and $9 million of acquisition-related costs. source
• SG&A expenses increased 7% to $2,111 million in Q3 2026 from $1,971 million; excluding program charges, they rose 7% to $2,102 million, including $101 million higher advertising investment and $30 million higher overhead. source
• First-nine-months 2026 advertising investment increased to 14.2% of net sales from 13.3%, up 13% in absolute terms to $2,286 million from $2,020 million. source
• Q3 2026 advertising investment was 14.4% of net sales versus 13.1% in Q3 2025, up 15% in absolute terms to $775 million from $674 million. source
• Non-service related postretirement costs were $70 in the first nine months of 2026 and $116 in the first nine months of 2025; excluding applicable program and litigation charges, they were $64 and $66, respectively. source
• Q3 2026 SG&A as a percentage of sales was 39.3% versus 38.4%; excluding program charges it was 39.1% versus 38.4%, with advertising investment adding 130 basis points and lower overhead subtracting 60 basis points. source

Impact estimates