Colgate-Palmolive (NYSE:CL) Shares Gap Up on Better-Than-Expected Earnings

Colgate-Palmolive Company (NYSE:CL) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $85.24, but opened at $88.70. Colgate-Palmolive shares last traded at $88.1410, with a volume of 1,091,895 shares trading hands.

The company reported $0.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.91 by $0.04. Colgate-Palmolive had a net margin of 14.47% and a return on equity of 333.39%. The firm had revenue of $5.23 billion for the quarter, compared to the consensus estimate of $5.13 billion. During the same quarter last year, the firm posted $0.91 EPS. The business’s quarterly revenue was up 5.8% compared to the same quarter last year.

Colgate-Palmolive Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 13th. Shareholders of record on Wednesday, January 21st will be paid a dividend of $0.52 per share. The ex-dividend date is Wednesday, January 21st. This represents a $2.08 dividend on an annualized basis and a yield of 2.3%. Colgate-Palmolive’s payout ratio is currently 58.26%.

Key Stories Impacting Colgate-Palmolive

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Q4 results beat Street estimates — EPS of $0.95 vs. $0.91 expected and revenue above consensus; management cited strong pricing and brand leadership as drivers of performance. Colgate Q4 Earnings Top Estimates, Strong Pricing Drives Results
• Positive Sentiment: Management issued FY‑2026 revenue guidance that’s above consensus (guidance range provided), signaling confidence in sustained demand for essentials across key regions — a primary catalyst for the stock rally. Colgate-Palmolive forecasts upbeat annual sales as essentials spending holds firm
• Positive Sentiment: Core categories showed resilience — oral care and pet nutrition strength plus a Latin America rebound helped sales growth; Market commentary highlights this operating improvement as a near-term positive for margins and top-line momentum. Colgate-Palmolive’s Core Strength Lifts Q4 Results
• Positive Sentiment: Strong cash generation and shareholder returns: record operating cash flow and ~$2.9B returned to shareholders in the year — supports buyback/dividend expectations and investor confidence. Colgate-Palmolive Company Announces 4th Quarter and Full Year 2025 Results
• Neutral Sentiment: Analysts and models are being updated after the print — some price‑target revisions were posted ahead/after the call; watch analyst notes for guidance sensitivity and margin assumptions. Colgate-Palmolive Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Negative Sentiment: Company recorded a large goodwill/intangible impairment tied to its skin‑health business that drove a GAAP loss for the quarter — this one‑time charge reduced headline EPS and highlights ongoing challenges in that segment. Colgate-Palmolive Swings to a Loss on Charges
• Negative Sentiment: Softer trends in China and margin pressure in parts of the portfolio were noted on the call — a reminder the recovery is uneven and could limit upside if those regions don’t stabilize. Colgate-Palmolive’s Core Strength Lifts Q4 Results

Analysts Set New Price Targets

Several brokerages recently commented on CL. Piper Sandler reaffirmed an “overweight” rating and issued a $96.00 price objective on shares of Colgate-Palmolive in a report on Friday. Evercore ISI dropped their target price on Colgate-Palmolive from $100.00 to $94.00 and set an “outperform” rating on the stock in a research report on Monday, November 3rd. TD Cowen reduced their price target on shares of Colgate-Palmolive from $90.00 to $86.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Colgate-Palmolive in a research note on Wednesday, January 21st. Finally, Deutsche Bank Aktiengesellschaft set a $86.00 target price on shares of Colgate-Palmolive in a research report on Friday, October 10th. Eleven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Colgate-Palmolive presently has a consensus rating of “Moderate Buy” and an average target price of $90.13.

Hedge Funds Weigh In On Colgate-Palmolive

Several large investors have recently added to or reduced their stakes in CL. Vanguard Group Inc. raised its position in shares of Colgate-Palmolive by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 83,947,987 shares of the company’s stock valued at $6,633,570,000 after purchasing an additional 1,026,985 shares during the period. Norges Bank purchased a new position in shares of Colgate-Palmolive during the 2nd quarter valued at $960,390,000. Invesco Ltd. boosted its holdings in Colgate-Palmolive by 13.1% in the 3rd quarter. Invesco Ltd. now owns 8,467,993 shares of the company’s stock worth $676,931,000 after buying an additional 978,943 shares during the period. Diamond Hill Capital Management Inc. increased its stake in Colgate-Palmolive by 46.7% in the 3rd quarter. Diamond Hill Capital Management Inc. now owns 8,077,549 shares of the company’s stock worth $645,719,000 after buying an additional 2,572,796 shares in the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in Colgate-Palmolive by 5.1% during the third quarter. Ameriprise Financial Inc. now owns 6,423,764 shares of the company’s stock valued at $517,167,000 after acquiring an additional 314,584 shares during the period. Hedge funds and other institutional investors own 80.41% of the company’s stock.

Colgate-Palmolive Trading Up 5.9%

The stock has a fifty day simple moving average of $80.77 and a 200 day simple moving average of $81.43. The firm has a market capitalization of $72.77 billion, a P/E ratio of 25.29, a PEG ratio of 5.74 and a beta of 0.30. The company has a quick ratio of 0.60, a current ratio of 0.93 and a debt-to-equity ratio of 5.90.

About Colgate-Palmolive

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.