Church & Dwight (CHD) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 0.2% to $1,469.3M, exceeding expectations of a 1% decline, driven by 5.0% organic sales growth and strong volume gains across all divisions, supported by the Touchland acquisition and innovation.

• Adjusted EPS increased 4.4% to $0.95, surpassing the $0.92 outlook, with reported EPS at $0.91.

• Gross margin expanded 130–140 bps to 46.4%, reflecting productivity gains, favorable mix, and acquisition benefits.

• Strong brand performance and innovation, with significant distribution gains and market share expansion across categories.

• Operating income was $291.0M, down 1.5% year-over-year, with margin decline due to increased SG&A and marketing investments.

Financial highlights

• Organic sales growth of 5% year-over-year, with volume up 5.3% and negative price/mix of 0.3%.

• Net income for Q1 2026 was $216.3M, down from $220.1M in Q1 2025.

• Adjusted income from operations was $302.6M, flat versus prior year, as higher gross margin was offset by increased marketing and SG&A.

• Cash flow from operations was $174.8M; capital expenditures were $31.9M.

• Marketing expense was 9.5% of sales, up 20 basis points year-over-year.

Outlook and guidance

• Full-year 2026 organic sales growth guidance reiterated at 3–4%; reported sales expected to decline 1.5–0.5% due to prior portfolio actions.

• Adjusted EPS growth expected at 5–8% for 2026; reported EPS up 18–22%.

• Full-year gross margin expansion of ~100 bps expected; cash from operations forecast at $1.15B.

• Q2 2026 guidance: reported sales to decline ~1%, organic sales growth ~3%, gross margin expansion of 50 bps, adjusted EPS of $0.88.

• Capital expenditures for 2026 projected at $130M, focused on manufacturing capacity and ERP investments.