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Dec 31, 2025
Clorox Q2 2026 Earnings Report
Clorox reported results for the second quarter of fiscal year 2026, which ended December 31, 2025.
Key Takeaways
Clorox's second-quarter fiscal year 2026 results were generally in line with expectations, with net sales decreasing 1% to $1.67 billion and diluted EPS decreasing 16% to $1.29. The company reaffirmed its fiscal year outlook, emphasizing continued progress on strategic priorities and the acquisition of GOJO Industries.
Net sales decreased 1% to $1.67 billion, primarily due to lower consumption, partially offset by shipments ahead of consumption for some businesses.
Gross margin decreased 60 basis points to 43.2%, mainly driven by higher manufacturing and logistics costs, partially offset by cost savings.
Diluted net earnings per share (diluted EPS) decreased 16% to $1.29, impacted by lapping cyberattack insurance recoveries and lower costs from digital capabilities investments.
Adjusted EPS decreased 10% to $1.39, primarily due to lapping prior period tax rate benefits and lower gross profit.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Clorox is maintaining its full-year fiscal 2026 outlook for net sales, gross margin, and adjusted EPS, with expectations at the lower end of the range due to prior order fulfillment challenges. This outlook does not include the impact of the GOJO Industries acquisition.
Positive Outlook
- The company is maintaining its full-year outlook for net sales, gross margin, and adjusted EPS.
- Strategic investments in digital capabilities and productivity enhancements are expected to continue.
- Advertising and sales promotion spending is expected to be about 11% of net sales, reflecting ongoing commitment to invest behind brands.
- The company is well positioned to deliver more consistent, profitable growth and long-term shareholder value.
- The acquisition of GOJO Industries is expected to expand leadership in health and hygiene.
Challenges Ahead
- Net sales are still expected to be down 6% to 10%, including a negative impact from the VMS business divestiture.
- Organic sales are still expected to decrease 5% to 9%, including a negative impact of about 7.5 points related to the reversal of incremental shipments from the ERP transition.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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