Will Colgate-Palmolive’s (CL) Lowered Sales Outlook Shift Its Long-Term Growth Priorities?

• Colgate-Palmolive reported third-quarter 2025 results, with net sales rising to US$5.13 billion and earnings per share of US$0.91, slightly above consensus expectations, but the company revised its full-year organic sales growth guidance down to 1%–2% from its previous 2%–4% range.
• Despite steady performance, Colgate-Palmolive cited weaker consumer demand due to higher prices and announced a multi-year productivity program to optimize operations and support long-term growth amid ongoing margin pressures.
• We'll examine how the lowered organic sales guidance and evolving consumer demand trends could reshape Colgate-Palmolive's investment narrative.

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Colgate-Palmolive Investment Narrative Recap

To be a Colgate-Palmolive shareholder, you need to believe in sustained long-term value from global brand strength and steady demand in essential consumer products. The recent downward revision to organic sales growth guidance directly spotlights softer consumer demand as the most significant short-term risk, although it does not materially disrupt the primary long-term growth catalysts for the business.

Among recent announcements, the introduction of a multi-year productivity program stands out. In the context of guidance revision and margin pressures, this program is relevant as it is designed to optimize operations and fund reinvestment for innovation and efficiency, which could support the company's ability to weather current margin headwinds.

In contrast, investors should be aware that prolonged margin pressure from higher raw material and packaging costs could...

Read the full narrative on Colgate-Palmolive (it's free!)

Colgate-Palmolive's outlook anticipates $22.4 billion in revenue and $3.5 billion in earnings by 2028. This projection is based on a 3.8% annual revenue growth rate and a $0.6 billion increase in earnings from the current $2.9 billion.

Uncover how Colgate-Palmolive's forecasts yield a $88.84 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community place Colgate-Palmolive’s worth between US$87 and US$129.64 per share. Against this backdrop, margin pressure from rising input costs remains a central concern for the company’s future resilience.

Explore 4 other fair value estimates on Colgate-Palmolive - why the stock might be worth just $87.00!

Build Your Own Colgate-Palmolive Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Colgate-Palmolive research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Colgate-Palmolive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Colgate-Palmolive's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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