Clorox lowers 2026 profit outlook as demand softens

The Clorox

30/04/2026 21:20

Overview

U.S. household products maker's fiscal Q3 revenue was flat, meeting analyst expectations

Adjusted EPS for fiscal Q3 rose 13% and beat analyst expectations

Company completed GOJO Industries acquisition, adding Purell to its portfolio

Outlook

Clorox now expects fiscal 2026 net sales to decline about 6%, versus prior low end of 6%-10% range

Company sees fiscal 2026 adjusted EPS between $5.45 and $5.65, down from prior low end of $5.95-$6.30

Clorox expects fiscal 2026 gross margin to decline 250-300 basis points, versus prior low end of 50-100 basis points

Result Drivers

HIGHER COSTS - Gross margin fell due to increased manufacturing and logistics costs and unfavorable product mix, partially offset by cost savings

COST SAVINGS AND LOWER SPENDING - Adjusted EPS benefited from cost savings, lower advertising investments, and reduced selling and administrative expenses

SEGMENT VARIATION - Household and International segments saw sales growth, while Lifestyle declined and Health and Wellness was flat

Company press release: ID:nPn9flWLa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.67 bln
$1.67 bln (12 Analysts)
Q3 Adjusted EPS
Beat
$1.64
$1.55 (15 Analysts)
Q3 EPS
$1.54
Q3 Gross Margin
43.20%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the household products peer group is "buy."

Wall Street's median 12-month price target for Clorox Co is $111.00, about 17.1% above its April 29 closing price of $94.77

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)