Colgate-Palmolive Company research snapshot
CL AI stock analysis reads Colgate-Palmolive Company as a high-quality global consumer staples compounder that grew net sales 4.9% and base business EPS 8% in Q2 2026, expanded gross margin to 61.5%, and raised its full-year gross margin and base business EPS guidance. The offset is North America, where organic sales declined 3.0% in the quarter, and a full valuation at about 36x trailing earnings and 23x forward earnings, which leaves little room for execution slips. At the August 2, 2026 data cutoff, CL closed near $91.30 on July 31, 2026 with an implied market capitalization of about $72.78 billion. The analysis supports a scenario framework, not a certain price prediction, and should be used for information only.
Current price
$91.30
Market cap
$72.78 billion verified market cap
AI score
70 / 100
Rating
High-quality staples franchise with full valuation and North America softness
Trend status
Neutral technical trend holding above the 50-day and 200-day moving averages
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Colgate sells repeat-purchase oral care, personal care, home care, and Hill's Pet Nutrition products across global markets, with toothpaste leadership near 41.3% global share and strong cash conversion. | High |
| Moat | Brand trust, dentist and veterinarian recommendation, shelf space, global distribution, scale purchasing, product science, and pet nutrition relationships support the moat, though private label and local brands cap pricing power. | High |
| Management | Noel Wallace leads a mature capital allocation model built around innovation, advertising, productivity programs, dividends, and buybacks, and Q2 2026 delivered base business EPS growth of 8% with gross margin up 140 basis points. | Medium-high |
| Financial trend | Q2 2026 net sales rose 4.9% to $5.36 billion with organic sales up 2.4%, gross margin expanded 140 basis points to 61.5%, base business EPS rose 8% to $0.99, and first-half operating cash flow reached $1.74 billion. | High |
| Valuation | At $91.30, CL screens near 36.0x trailing earnings, 23.3x forward earnings, 3.46x sales, 18.9x free cash flow, and a 2.32% dividend yield, a full multiple for a mid-single-digit grower. | High |
| Technical trend | The stock closed at $91.30 on July 31, 2026, just above the 50-day moving average near $90.88 and above the 200-day near $86.04, with RSI near 48.91 and 20-day average volume near 4.5 million shares. | Medium |
| Risk level | Main risks are the full valuation, back-half tariff and raw material cost pressure, North America demand weakness, retailer inventory reductions, pet category softness, thin book equity, and a high payout ratio near 84%. | Medium |
| AI confidence | Descriptive confidence is high because filings, market data, and valuation math cross-validated across StockAnalysis.com, the Q2 2026 earnings release, and financial_rigor.py. Return confidence is lower because a premium staples multiple leaves less room for a growth or margin miss. | High data confidence |
| Investment certainty | CL is a durable franchise, but the current price needs steady organic growth, gross margin stability, and continued free cash flow conversion before the margin of safety looks compelling. | Medium |
CL AI stock forecast
The CL AI stock forecast uses scenario math around the July 31, 2026 close of $91.30 and the 2026 consensus adjusted EPS near $3.81. The audited three-year framework produced a bearish area near $71, a base area near $94, and a bullish area near $113 before dividends, using adjusted EPS growth of 1%, 4%, and 6% and exit multiples of 18x, 22x, and 25x. The company's own guidance calls for organic sales of 1% to 4%, gross margin roughly flat, and mid-single-digit base business EPS growth.
$105 to $120 before dividends
More likely if CL sustains toothpaste share above 41%, keeps organic sales near the top of the 1% to 4% guidance range, holds gross margin roughly flat to up, keeps emerging markets in mid-single digits, and sees Hill's fresh pet food scale without hurting margins.
$88 to $98 before dividends
More likely if Colgate compounds adjusted EPS at a mid-single-digit rate, gross margin holds roughly flat, North America stabilizes in the second half, and investors keep the stock near a 21x to 23x forward multiple.
$66 to $76 before dividends
More likely if North America demand stays weak, tariffs and raw material costs compress margins in the back half, the pet category keeps dragging Hill's volume, or the market compresses the multiple toward the high teens as growth stays low single digits.
CL AI technical analysis
CL AI technical analysis is neutral as of the August 2, 2026 data cutoff. The stock closed near $91.30 on July 31, 2026, holding just above the 50-day moving average near $90.88 and above the 200-day near $86.04, with 14-day RSI near 48.91, 20-day average volume near 4.5 million shares, and a 52-week range of $74.55 to $99.33.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $91.30 | StockAnalysis.com real-time quote at the July 31, 2026 close; the day ranged from $89.60 to $91.68 and market cap math uses 797.17 million shares. |
| Near support | $89 to $91 | This zone brackets the July 31, 2026 day low near $89.60 and the 50-day moving average near $90.88. |
| Deeper support | $86 to $87 | This area aligns with the 200-day moving average near $86.04 and is the next line for longer-term trend confidence. |
| Near resistance | $95 to $99 | Recent swing highs and the 52-week high of $99.33 cap the upside; a reclaim of $95 would improve the short-term picture. |
| 50-day moving average | $90.88 | StockAnalysis.com reported the 50-day moving average near $90.88, essentially at the current price. |
| 200-day moving average | $86.04 | StockAnalysis.com reported the 200-day trend line near $86.04, below the current price and still rising. |
| Momentum | RSI near 48.91 | 14-day RSI near 48.91 is neutral, neither overbought nor oversold, after the post-earnings pullback. |
| Volume | 20-day average near 4.5 million shares | Average volume of about 4.50 million shares per day on StockAnalysis.com, with higher volume around the July 31, 2026 earnings print. |
| Volatility | Beta near 0.33 | CL has low market beta, but earnings, currency, input costs, tariffs, and pet food commentary can still move the stock. |
| Invalidation | Close below $86, then below $84 | A sustained close below the 50-day average weakens the near-term picture. A move below the 200-day average near $86 would shift the technical read toward defensive caution. |
CL AI trading strategy
The CL AI trading strategy below is a rules-based research framework, not personal advice. It connects chart levels with organic sales, toothpaste share, Hill's Pet Nutrition demand, gross margin, raw material and tariff costs, advertising productivity, free cash flow, dividend coverage, and valuation discipline.
Watch for CL to hold the $89 to $91 support zone and then clear $95 to $99 on volume, ideally with guidance confirming organic sales stability, flat-to-up gross margin, and North America stabilization.
A failed breakout followed by a close below $89 should reduce trend confidence, especially if management lowers margin or top-line expectations or reports weaker North America demand.
If CL pulls back toward the 200-day average near $86 to $87 while free cash flow and dividend coverage remain intact, compare the lower price with the company's normalized global staples earnings power and the 2026 guidance path.
Do not treat a lower price as attractive if organic sales fall below the 1% to 4% guidance range, tariffs and raw materials keep squeezing margins, or the payout ratio keeps rising against weak EPS growth.
Track toothpaste and manual toothbrush share, organic sales by division, Hill's Pet Nutrition growth, gross margin, advertising spend, strategic growth program savings, free cash flow, net debt, dividend payout, and buyback pace.
Position sizing should reflect that CL is a premium defensive stock with limited margin for valuation disappointment and a payout ratio near 84%.
Investment research summary
Customers pay Colgate-Palmolive because oral hygiene, pet nutrition, personal care, and home care are recurring needs. The business converts daily-use habits, brand trust, professional recommendation, and broad retail distribution into repeat purchase economics.
Colgate has global oral care leadership with about 41.3% toothpaste share, deep retail relationships, product science, dentist trust, Hill's veterinarian-linked credibility, and scale. The moat is real, but it is not immune to private label, local challengers, retailer pressure, and currency cycles.
The thesis fails if CL pays too much for low single-digit growth, loses share in key oral care or North America markets, sees Hill's growth slow, cannot offset input inflation and tariffs, or uses restructuring charges without producing durable productivity gains.
Management emphasized innovation, advertising, productivity, dividends, and buybacks, and Q2 2026 showed execution with 8% base business EPS growth and a 15% advertising increase. The current test is whether 2030 strategy investments improve growth without eroding already high margins.
Oral care, personal care, household care, and pet nutrition are durable categories, not explosive technology markets. Long-term growth comes from premiumization, emerging-market penetration, health routines, and pet humanization, all visible in the Q2 2026 emerging market and Hill's results.
At $91.30, CL prices in a strong franchise and defensive reliability at about 36x trailing and 23x forward earnings. Margin of safety improves if earnings growth accelerates toward mid-single digits, free cash flow stays near $3.9 billion, and the market accepts the premium multiple.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| CL quote reference | $91.30 close on July 31, 2026, day range $89.60 to $91.68 | StockAnalysis.com CL overview and statistics | July 31, 2026 |
| Market capitalization verification | $72.78 billion reported and $72.78 billion calculated from $91.30 x 797.17 million shares, 0.00% deviation | financial_rigor.py market cap verification and StockAnalysis.com | August 2, 2026 |
| Shares outstanding | 797.17 million shares outstanding, down 1.49% year over year | StockAnalysis.com CL statistics | July 31, 2026 |
| Q2 2026 results | Net sales $5,361 million, up 4.9%; organic sales up 2.4% including a 0.4% negative impact from the private label pet food exit | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| Q2 2026 EPS | GAAP diluted EPS $0.86, down 5%; Base Business diluted EPS $0.99, up 8% | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| Q2 2026 gross margin | GAAP and Base Business gross profit margin both up 140 basis points to 61.5% | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| FY2026 guidance | Net sales up 2% to 6%, organic sales up 1% to 4%, GAAP and Base Business gross margin roughly flat, advertising up, and Base Business EPS growth raised to mid-single digits | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| Q2 2026 divisional sales | North America net sales down 3.0% and organic down 3.0%; Latin America net up 13.7% and organic up 5.3%; Europe, Middle East and Africa net up 3.5% and organic up 2.0%; Asia Pacific net up 4.9% and organic up 5.2%; Hill's Pet Nutrition net up 3.4% and organic up 2.1% | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| Market share | Global toothpaste share of 41.3% and manual toothbrush share of 32.7%, year to date | Colgate-Palmolive Q2 2026 earnings release | July 31, 2026 |
| First-half 2026 cash flow | Net cash provided by operations of $1,742 million for the first six months of 2026, with $1.4 billion returned to shareholders in Q2 | Colgate-Palmolive Q2 2026 earnings release and conference call | July 31, 2026 |
| FY2025 revenue | $20.382 billion worldwide net sales, up 1.40% from $20.101 billion | Colgate-Palmolive financial highlights and StockAnalysis.com cross-check | August 2, 2026 |
| TTM revenue and EPS | $21.046 billion revenue and $2.52 diluted EPS for the TTM period ended June 30, 2026 | StockAnalysis.com CL income statement | July 31, 2026 |
| TTM free cash flow | Operating cash flow of $4.456 billion, capital expenditures of $0.598 billion, free cash flow of $3.858 billion, and about $4.79 FCF per share | StockAnalysis.com CL cash flow statement | July 31, 2026 |
| Cash and debt | $1.370 billion cash and equivalents and $7.857 billion total debt as of June 30, 2026, implying net debt of about $6.49 billion | StockAnalysis.com CL balance sheet | July 31, 2026 |
| Valuation check | 36.09x trailing GAAP EPS, 3.46x sales, 18.86x free cash flow, 2.32% dividend yield | financial_rigor.py valuation verification and StockAnalysis.com statistics | August 2, 2026 |
| Forward valuation | 23.31x forward PE, EV/EBITDA 20.99, EV/FCF 20.53, PEG 4.57, PB 128.59 | StockAnalysis.com CL statistics | July 31, 2026 |
| Analyst consensus | Buy with an average target of $98.00 across 21 analysts, low $85, median $100, high $110 | StockAnalysis.com CL forecast and analyst ratings | July 31, 2026 |
| Analyst rating mix, July 2026 | 7 Strong Buy, 6 Buy, 7 Hold, 1 Sell out of 21 analysts | StockAnalysis.com CL forecast recommendation trends | July 31, 2026 |
| Recent analyst target updates | Barclays $87 Hold, RBC Capital $102 Buy, Bank of America $102 Buy, UBS $100 to $106 Buy, J.P. Morgan $96 to $104 Buy, Citi $110 Buy, Piper Sandler $96, Wells Fargo $95, Bernstein $96 | StockAnalysis.com CL forecast and TipRanks analyst news | July 31, 2026 |
| Short interest | 16.72 million shares short, 2.10% of shares outstanding, 3.19 days to cover | StockAnalysis.com CL statistics | July 31, 2026 |
| 2026 and 2027 consensus estimates | FY2026 revenue estimate $21.42B with adjusted EPS $3.81, FY2027 revenue $22.12B with adjusted EPS $4.05 | StockAnalysis.com CL forecast financial forecast | July 31, 2026 |
| Technical snapshot | 50-day SMA near $90.88, 200-day SMA near $86.04, RSI near 48.91, 20-day average volume near 4.50 million | StockAnalysis.com CL statistics | July 31, 2026 |
| Dividend profile | $2.12 annual dividend, 2.32% yield, 63 years of dividend growth | StockAnalysis.com CL statistics and Colgate dividend announcement | July 31, 2026 |
This CL AI stock analysis is an informational research tool only. It is not investment advice, a recommendation, or a promise of future returns. Forecast scenarios are based on available data as of August 2, 2026, and can be wrong if earnings, currency, tariffs, raw material costs, interest rates, competitive conditions, or market sentiment change.
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