The Clorox Company (CLX) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 was marked by value-seeking consumer behavior, increased competition, inflation, and macroeconomic uncertainty, prompting urgent actions to enhance competitiveness and operational excellence.

• Q4 and FY26 results met expectations amid ongoing consumer and macroeconomic pressures, with strategic investments in digital transformation and the acquisition of GOJO Industries completed in April 2026.

• Most business segments performed at or above expectations, with targeted improvements underway in underperforming areas and a focus on long-term value creation.

• The GOJO acquisition expanded the health and hygiene portfolio, now representing over half of net sales, and is expected to drive future growth synergies and be accretive to adjusted EPS in FY27.

• The company completed its five-year digital transformation and ERP implementation, now focusing on optimization and productivity gains.

Financial highlights

• Fiscal 2027 inflation is expected to exceed $200 million, more than double historical levels, with the impact most pronounced in the first half.

• Q4 net sales decreased 2% year-over-year to $1.95B; organic sales fell 13% due to lapping ERP-related shipments, while GOJO added about 10 points.

• FY26 net sales declined 5% to $6.72B; organic sales down 8%.

• Gross margin guidance is around 42%, with Q4 gross margin at 41.3% and FY26 gross margin at 42.3%.

• Free cash flow is projected to be strong, targeting 11%-13% of sales, supported by disciplined working capital management and GOJO's stable cash flows.

Outlook and guidance

• FY27 net sales expected to rise 13–14%, with 9.5 points from GOJO and organic growth of 3.5–4.5%.

• FY27 organic sales are expected to be flat to slightly up, with a slower start in Q1 due to timing impacts, followed by improvement in the back half.

• Gross margin forecast at ~42%, with inflation and negative mix offsetting cost savings.

• FY27 diluted EPS projected at $5.41–$5.71 (up 12–19%); adjusted EPS at $5.70–$6.00 (up 3–8%).

• Lapping the ERP-related inventory drawdown expected to benefit both sales and EPS growth.