CL · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

COLGATE PALMOLIVE CO · 2026-10-30 · Importance 30 · Surprise 14 · Matches filing data

Worldwide gross profit increased to $3,233 in third-quarter 2026 from $3,049 a year earlier; excluding Strategic Growth and Productivity Program charges, it was $3,238. Third-quarter gross margin rose to 60.2% from 59.4%, or to 60.3% excluding program charges. Nine-month gross margin increased to 60.8% from 60.1%, with funding-the-growth savings contributing 270 basis points, pricing 70 basis points and mix 20 basis points, partly offset by raw and packaging material costs of 290 basis points. In the third quarter, savings contributed 290 basis points and pricing 80 basis points, while higher raw and packaging costs reduced margin by 300 basis points.

Key facts

• Worldwide gross profit was $9,755 million in the first nine months of 2026 versus $9,105 million in 2025; excluding program charges, it was $9,762 million, reflecting $544 million from higher sales and $113 million from higher margin. source
• Worldwide gross profit was $3,233 million in the third quarter of 2026 versus $3,049 million in 2025; excluding program charges, it was $3,238 million, reflecting $141 million from higher net sales and $47 million from higher gross margin. source
• Colgate-Palmolive continues to experience higher raw and packaging material costs, including transactional foreign exchange, and says mitigation strategies may become increasingly difficult to implement; persistent inflation and high interest rates could adversely affect future results. source
• Worldwide gross profit margin increased to 60.2% in Q3 2026 from 59.4% in Q3 2025, or to 60.3% excluding program charges; savings contributed 290 basis points, pricing 80, and mix 20, partly offset by raw and packaging costs of 300 basis points. source
• Worldwide gross profit margin increased to 60.8% in the first nine months of 2026 from 60.1% in 2025; savings contributed 270 basis points, pricing 70 and mix 20, offset partly by raw and packaging costs of 290 basis points. source

Impact estimates