Colgate-Palmolive (CL) has just posted its latest quarterly scorecard with Q4 2025 revenue of US$5.2 billion, basic EPS of US$0.91 and net income of US$735 million, setting the stage for how Q1 2026 will be judged. Over recent quarters, revenue has held close to the US$5.0 billion mark, moving from US$4.9 billion in Q1 2025 to US$5.1 billion in Q3 2025, while basic EPS ranged from US$0.85 to US$0.92 across that same stretch, giving investors a clear view of how profits track against a relatively stable top line. With trailing twelve month revenue at US$20.4 billion and EPS of US$2.64, the key question now is how Q1 2026 margins measure up against that recent earnings run.

See our full analysis for Colgate-Palmolive.

With the latest results on the table, the next step is to see how these revenue, EPS and margin trends line up with the big narratives investors follow about Colgate-Palmolive's strengths, risks and long term potential.

Margins Hit By One Off Loss

• Over the last 12 months, Colgate-Palmolive reported a net margin of 10.5% versus 14.4% in the prior year, with a US$1.0b one off loss weighing on profitability.
• Consensus narrative points to cost pressures and cautious consumers limiting margin expansion, and the margin step down alongside that one off loss directly reflects those concerns.
  • Rising raw material and packaging costs, especially for items like palm oil and fats, are cited as squeezing gross margins, which is consistent with the lower 10.5% net margin.
  • Greater focus on value offerings and price pack architecture for cautious shoppers can support volumes. However, as the consensus view suggests, it can also cap pricing power and keep margins from returning to the prior 14.4% level.

Revenue Growth Steady But Modest

• Trailing twelve month revenue sits at about US$20.4b, and the dataset cites forecast revenue growth of 3.3% per year compared with a referenced 11% for the broader US market.
• Analysts' consensus view highlights expansion in oral care and a focus on emerging markets as drivers of volume growth. Yet the modest 3.3% revenue growth outlook shows how category softness and competition can limit that potential.
  • Roll out of premium oral care lines across 75 markets and focus on regions such as India, Latin America and Southeast Asia are expected to support revenue, but the forecast still trails the referenced market rate.
  • Consensus commentary flags pressure in key markets like North America, Brazil, China and India, which helps explain why the growth rate in the data remains in the low single digits despite the broader product and market push.

Curious how these growth numbers line up with the broader market view on Colgate-Palmolive, and where investors see the story going next? 📊 Read the what the Community is saying about Colgate-Palmolive.

Rich P/E And Dividend Trade Off

• The shares trade on a P/E of 32.8x compared with peer and industry averages of 21.2x and 18.5x, while the stock offers a 2.43% dividend yield and the dataset notes higher debt and recent insider selling.
• Consensus narrative talks about long term brand strength, productivity efforts and digital investment supporting earnings, and the combination of a higher 32.8x P/E and 2.43% yield shows how investors may already be paying up for that quality, even as balance sheet leverage and insider selling are flagged as risks.
  • Against these risks, the data also includes a DCF fair value of US$120.40 versus the current share price of US$87.26, which suggests the cash flow model sees more value than the simple P/E peer comparison indicates.
  • At the same time, the one off US$1.0b loss that pulled net margin down to 10.5% complicates how investors interpret that DCF signal, since it affects recent reported earnings and may help explain why the market multiple differs from the modelled fair value.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Colgate-Palmolive on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Mixed feelings after all of this analysis? Take a moment to review the numbers yourself, weigh both the concerns and the positives, then check out 3 key rewards and 3 important warning signs

See What Else Is Out There

Colgate-Palmolive faces modest 3.3% forecast revenue growth, thinner margins after a US$1.0b one off loss and a rich 32.8x P/E multiple.

If that mix of slower growth, compressed profitability and a premium valuation leaves you hesitant, you may wish to compare it with companies highlighted in the 51 high quality undervalued stocks for potentially better value.

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.