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    Does Colgate-Palmolive’s Q4 Loss and 2026 Margin Push Reshape the Bull Case for CL?

    Simply Wall St·02/09/2026 14:22:09
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    • In late January 2026, Colgate-Palmolive reported fourth-quarter 2025 results showing sales rising to US$5,230 million while moving from a US$739 million net profit to a US$37 million net loss, alongside a swing from earnings per share to a US$0.05 loss per share.
    • Despite this loss, management issued guidance for 2026 calling for modest net and organic sales growth, gross margin expansion, double-digit earnings per share growth, and higher advertising investment while exiting its private label pet food business.
    • With this backdrop, we'll examine how Colgate-Palmolive's emphasis on margin expansion and increased brand investment shapes its investment narrative.

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    What Is Colgate-Palmolive's Investment Narrative?

    For Colgate-Palmolive, the core investment story still leans on resilient demand for everyday brands, disciplined capital returns and the potential for margin repair rather than rapid top-line expansion. The fourth-quarter 2025 swing to a US$37 million loss and the large one-off items matter mainly because they sharpen the focus on execution: management is now explicitly asking investors to believe it can expand gross margins, grow GAAP earnings and increase advertising all at once, while carrying a high debt load and exiting lower-return private label pet food. The recent guidance keeps the near-term catalyst firmly tied to delivery on that margin and brand-investment plan, rather than a change in category demand, but it also nudges risk higher if those improvements take longer or cost more than expected.

    Colgate-Palmolive's shares have been on the rise but are still potentially undervalued by 24%. Find out what it's worth.

    Exploring Other Perspectives

    CL 1-Year Stock Price Chart
    CL 1-Year Stock Price Chart

    Four fair value estimates from the Simply Wall St Community sit between US$87 and about US$124.69 per share, with views spreading across that range. Set against management’s renewed push for margin expansion and higher brand investment, this underlines how differently people may weigh execution risk and potential upside, and why it can be useful to compare several perspectives before forming your own view.

    Explore 4 other fair value estimates on Colgate-Palmolive - why the stock might be worth as much as 32% more than the current price!

    Build Your Own Colgate-Palmolive Narrative

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

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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.