Colgate-Palmolive reported broad-based organic sales growth, gross margin expansion of 100 basis points, and an 18% increase in free cash flow in its second quarter of 2026, while outlining steps to improve performance in North America. Organic sales grew in four of the company's five divisions and in three of its four categories, led by emerging markets including India, Brazil, Mexico, and China, with Europe and the Hill's pet nutrition business also contributing. The company returned $1.4 billion to shareholders and increased advertising investment by double digits. Management now expects full-year gross margin to be roughly flat, an improvement from its prior expectation for a decline, though raw-material costs and tariffs are expected to be higher in the second half. In North America, softer category trends, retailer inventory reductions, and heightened competition weighed on results, and the company plans to increase brand support, expand premium innovation, and selectively address pricing and promotional gaps to drive second-half improvement.
Colgate-Palmolive CompanyBroad-based organic sales growth, gross margin expansion, and increased free cash flow in Q2 2026, with improved full-year gross margin guidance.