Can Clorox (CLX) Sustain Its Transformation While Raising Dividends and Integrating Purell?

• In early February 2026, The Clorox Company reported second-quarter sales of US$1,673 million and net income of US$157 million, both slightly below the prior year, while continuing to repurchase shares under its longstanding buyback program.
• At the same time, Clorox extended its 48-year streak of dividend increases and pressed ahead with a complex business transformation, including a completed ERP rollout and the integration of its US$2.25 billion GOJO (Purell) acquisition, even as margins faced pressure from consumers trading down.
• We’ll now examine how Clorox’s reaffirmed full-year earnings guidance, despite ERP-related margin pressures, may influence its existing investment narrative.

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Clorox Investment Narrative Recap

To own Clorox today, you need to believe its core household and hygiene brands can weather weak category growth and ongoing consumer trade down while the ERP overhaul and GOJO (Purell) acquisition eventually support steadier margins. The key near term catalyst is execution on margin recovery as ERP disruption fades, and this quarter’s slight revenue and earnings slippage, alongside reaffirmed guidance, does not fundamentally change that. The biggest risk remains sustained pricing pressure from value options and private label.

The most relevant recent update is management’s decision to reaffirm full year fiscal 2026 earnings guidance despite ERP and integration related margin headwinds. That stance sits alongside continued share repurchases and the completion of a multi year ERP rollout, all while Clorox integrates the US$2.25 billion GOJO deal. Together, these moves keep the focus firmly on whether cost savings, innovation and health and hygiene growth can offset ongoing competitive and promotional pressure.

Yet beneath the dividend streak and guidance reaffirmation, there is a margin risk investors should be aware of if...

Read the full narrative on Clorox (it's free!)

Clorox's narrative projects $7.0 billion revenue and $881.8 million earnings by 2028. This requires a 0.4% yearly revenue decline and about a $71.8 million earnings increase from $810.0 million today.

Uncover how Clorox's forecasts yield a $119.76 fair value, a 5% downside to its current price.

Exploring Other Perspectives

While consensus centers on modest growth and margin recovery, the most optimistic analysts once expected earnings near US$940 million by 2028 and faster ERP driven margin gains, highlighting how sharply opinions can diverge and why this quarter’s pressures may prompt some to revisit those assumptions.

Explore 7 other fair value estimates on Clorox - why the stock might be worth as much as 81% more than the current price!

Build Your Own Clorox 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 Clorox research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Clorox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clorox'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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