Colgate-Palmolive Company (NYSE:CL) shares rose Friday after the consumer products maker reported first-quarter results that beat Wall Street expectations, as steady demand and category leadership helped offset margin pressure and mixed regional performance.

The company reported adjusted earnings of 97 cents per share, topping analyst estimates of 94 cents. Revenue came in at $5.324 billion, ahead of the $5.215 billion consensus.

Sales Growth And Market Leadership

Net sales increased 8.4%, while organic sales rose 2.9%, including a 0.6% headwind from lower private-label pet food sales. Colgate-Palmolive said it maintained global leadership, with a 41.1% share in toothpaste and 32.6% in manual toothbrushes year to date.

Performance varied by region. North America net sales declined 1.8%, with operating profit falling 28% to $141 million. Latin America net sales rose 14.8%, with operating profit up 15% to $401 million. Europe, Middle East and Africa posted an 11.9% increase in net sales and a 20% rise in operating profit to $266 million.

“These results underscore the resilience of our business model as we are able to execute against our long-term strategy while delivering strong results in a difficult operating environment,” said CEO Noel Wallace.

Margin Pressure And Profit Decline

Gross profit increased to $3.226 billion from $2.987 billion a year earlier, though gross margin edged down to 60.6% from 60.8%. Operating profit fell to $964 million from $1.076 billion, with operating margin narrowing to 18.1% from 21.9%.

As of March 31, 2026, the company held $1.335 billion in cash and equivalents.

Strategic Program Expansion And Cost Savings

Colgate-Palmolive said its board approved an expansion of its Strategic Growth and Productivity Program to support long-term growth and its 2030 strategy.

The company now expects total pretax charges of $350 million to $550 million, up from prior estimates, and projects annual pretax savings of $200 million to $300 million once fully implemented by 2028.

Colgate-Palmolive 2026 Outlook

The company reaffirmed its 2026 sales outlook in a range of $20.79 billion to $21.605 billion, compared with the $21.294 billion analyst estimate.

It said it continues to expect net sales growth of 2% to 6%, including a low-single-digit positive impact from foreign exchange, and organic sales growth of 1% to 4%, reflecting the impact of exiting the private-label pet food business.

On a GAAP basis, the company now expects gross profit margin to decline, versus prior expectations for an increase, while advertising is still projected to rise both in dollar terms and as a percentage of net sales, alongside double-digit earnings per share growth.

On a non-GAAP, or base business, basis, Colgate-Palmolive also expects gross margin to decline, with advertising increasing and earnings per share growth in the low- to mid-single-digit range.

“While we expect volatile macroeconomic conditions and slower category growth to continue in 2026, we are aligned behind our 2030 strategy to deliver consistent, compounded earnings per share growth and drive long-term shareholder value,” Wallace added.

“The follow-on effects of the conflict in the Middle East are putting pressure on our raw and packaging material and logistics costs, and have the potential to impact consumer spending around the world,” the company said in a statement.

Colgate-Palmolive Price Action

CL Price Action: Colgate-Palmolive shares were up 3.42% at $88.28 at the time of publication on Friday, according to Benzinga Pro data.

Image via Shutterstock