--- title: "Clorox | 8-K: FY2026 Revenue Beats Estimate at USD 6.72 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/294733359.md" datetime: "2026-08-03T20:16:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294733359.md) - [en](https://longbridge.com/en/news/294733359.md) - [zh-HK](https://longbridge.com/zh-HK/news/294733359.md) generator: "portal-rs" --- # Clorox | 8-K: FY2026 Revenue Beats Estimate at USD 6.72 B Revenue: As of FY2026, the actual value is USD 6.72 B, beating the estimate of USD 6.684 B. EPS: As of FY2026, the actual value is USD 4.81, missing the estimate of USD 4.9001. EBIT: As of FY2026, the actual value is USD 913 M. ### Fourth-Quarter Fiscal Year 2026 Financial Summary #### Net Sales - Total net sales decreased 2% to $1.95 billion, with organic sales decreasing 13%. - The GOJO acquisition contributed approximately 10 points to sales growth, while organic sales were negatively impacted by about 13.5 points due to lapping incremental shipments from an ERP transition. #### Gross Margin - Gross margin decreased 520 basis points to 41.3% from 46.5% in the prior-year quarter. - This decline was primarily due to lower volume, the impact of the GOJO acquisition’s inventory step-up, higher commodity costs, and increased manufacturing and logistics costs. - The ERP-related shipment comparison and GOJO inventory step-up each reduced gross margin by about 150 basis points. - GAAP Gross Margin was 41.3%, and Adjusted Gross Margin was 42.8%. - Key drivers for the change in gross margin included cost savings (+170 basis points), price changes (+50 basis points), market movement (commodities) (-50 basis points), manufacturing & logistics (-170 basis points), and other factors (-280 basis points). #### Net Earnings Attributable to The Clorox Company - Net earnings were $163 million, down from $332 million in the prior-year quarter. #### Operating Costs - Selling and administrative expenses were $298 million, compared to $296 million in the prior-year quarter. - Advertising costs increased to $216 million from $171 million in the prior-year quarter. - Research and development costs remained flat at $32 million. #### Operating Profit (EBIT and Adjusted EBIT) - EBIT was $267 million, with an EBIT margin of 13.7%. - Adjusted EBIT was $318 million, with an Adjusted EBIT margin of 16.3%. #### Cash Flow - Capital expenditures were $86 million, and depreciation and amortization expense was $78 million. - Net cash provided by operations was $330 million, representing 16.9% of net sales. ### Fourth-Quarter Fiscal Year 2026 Key Segment Results #### Health and Wellness - Net sales increased 16%, driven by 10 points of higher volume and 6 points of favorable price mix, with the GOJO acquisition contributing approximately 28 points. - Organic sales declined 12%, primarily due to the impact of lapping incremental ERP-related shipments. - Segment adjusted EBIT decreased 15%. - Reported Volume increased by 10%, while Organic Volume decreased by -15%. #### Household - Net sales decreased 18%, driven by 16 points of lower volume and 2 points of unfavorable price mix. - Segment adjusted EBIT decreased 56%. - Reported and Organic Volume both decreased by -16%. #### Lifestyle - Net sales decreased 17%, driven by 14 points of lower volume and 3 points of unfavorable price mix. - Segment adjusted EBIT decreased 60%. - Reported and Organic Volume both decreased by -14%. #### International - Net sales increased 4%, primarily due to favorable foreign exchange rates, with organic sales growing 1%. - Segment adjusted EBIT increased 17%. - Reported and Organic Volume both decreased by -1%. ### Fiscal Year 2026 Financial Summary #### Net Sales - Total net sales decreased 5% to $6.72 billion, with organic sales decreasing 8%. - The GOJO acquisition added about 3 points to sales, while organic sales were negatively impacted by approximately 7.5 points due to the ERP transition in the fourth quarter. #### Gross Margin - Gross margin decreased 290 basis points to 42.3% from 45.2% in the prior-year period. - This was primarily driven by lower net sales and higher manufacturing and logistics costs, partially offset by cost savings. - The ERP-related shipment comparison reduced gross margin by about 100 basis points, and GOJO transaction-related costs had a negative impact of about 50 basis points. - GAAP Gross Margin was 42.3%, and Adjusted Gross Margin was 42.8%. - Key drivers for the change in gross margin included cost savings (+160 basis points), price changes (+50 basis points), market movement (commodities) (-50 basis points), manufacturing & logistics (-170 basis points), and other factors (-280 basis points). #### Net Earnings Attributable to The Clorox Company - Net earnings were $587 million, compared to $810 million in the prior-year period. #### Cash Flow - Net cash provided by operations was $612 million, a 38% decrease from $981 million in fiscal year 2025, mainly due to the Glad Venture Agreement termination payment. - Capital expenditures totaled $207 million, and depreciation and amortization expense was $247 million. - Net cash provided by operations was $612 million, or 9.1% of net sales. - Adjusted Free Cash Flow for fiscal year 2026 was $881 million, up from $761 million in fiscal year 2025, representing 13.1% of net sales in fiscal year 2026 versus 10.7% in fiscal year 2025. - This includes a $476 million add-back for a venture agreement termination payment in fiscal year 2026. #### Operating Costs - Selling and administrative expenses were $1,066 million, compared to $1,124 million in fiscal year 2025. - Advertising costs were $749 million, down from $770 million in fiscal year 2025. - Research and development costs were $116 million, compared to $121 million in fiscal year 2025. #### Operating Profit (EBIT and Adjusted EBIT) - EBIT was $913 million, with an EBIT margin of 13.6%. - Adjusted EBIT was $1,030 million, with an Adjusted EBIT margin of 15.3%. - Adjustments to EBIT for fiscal year 2026 included $58 million for acquisition and integration costs and $59 million for digital capabilities and productivity enhancements investment. ### Fiscal Year 2027 Outlook - The Clorox Company anticipates net sales to increase by 13% to 14%, with organic sales projected to grow by approximately 3.5% to 4.5%. - Gross margin is expected to be around 42%, reflecting inflationary pressures and a negative mix. - Diluted EPS is forecasted to range between $5.41 and $5.71, while adjusted EPS is projected to be between $5.70 and $6.00, including an estimated $0.29 per share in acquisition and integration costs. ### Related Stocks - [CLX.US](https://longbridge.com/en/quote/CLX.US.md) ## Related News & Research - [Clorox (CLX) Stock Looks Fully Valued Despite A 23% Five Year Slide](https://longbridge.com/en/news/296685126.md) - [Hidden Valley Ranch dressing may be a victim of this summer's salad scare](https://longbridge.com/en/news/296268903.md) - [Clorox to Present at Barclays Global Consumer Staples Conference | CLX Stock News](https://longbridge.com/en/news/296398401.md) - [3 Dividend Stocks Raising Their Payouts as Investors Search for Growth and Income](https://longbridge.com/en/news/296780069.md) - [These Analysts Boost Their Forecasts On Clorox Following Better-Than-Expected Q4 Results](https://longbridge.com/en/news/294832230.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**