Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2026 and 2025 (Dollars in Millions) (Unaudited) | |||
2026 | 2025 | ||
Operating Activities | |||
Net income including noncontrolling interests | $ 2,181 | $ 2,266 | |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operations: | |||
Depreciation and amortization | 470 | 457 | |
ERISA litigation matter | - | 65 | |
Restructuring and termination benefits, net of cash | 177 | (15) | |
Stock-based compensation expense | 141 | 127 | |
Deferred income taxes | 54 | 8 | |
Cash effects of changes in: Receivables | (224) | (180) | |
Inventories | (104) | 9 | |
Accounts payable and other working capital | 254 | 30 | |
Other non-current assets | 48 | 48 | |
Other non-current liabilities | (84) | (70) | |
Net cash provided by (used in) operations | 2,913 | 2,745 | |
Investing Activities | |||
Capital expenditures | (400) | (387) | |
Purchases of marketable securities and investments | (163) | (537) | |
Proceeds from sale of marketable securities and investments | 187 | 508 | |
Payment for acquisition, net of cash acquired | - | (293) | |
Other investing activities | (5) | (5) | |
Net cash provided by (used in) investing activities | (381) | (714) | |
Financing Activities | |||
Short-term borrowing (repayment) less than 90 days, net | 947 | 139 | |
Principal payments on debt | (1,087) | (655) | |
Proceeds from issuance of debt | - | 497 | |
Dividends paid | (1,308) | (1,300) | |
Purchases of treasury shares | (927) | (804) | |
Proceeds from exercise of stock options | 178 | 83 | |
Other financing activities | (75) | 145 | |
Net cash provided by (used in) financing activities | (2,272) | (1,895) | |
Effect of exchange rate changes on Cash and cash equivalents | (21) | 47 | |
Net increase (decrease) in Cash and cash equivalents | 239 | 183 | |
Cash and cash equivalents at beginning of the period | 1,288 | 1,096 | |
Cash and cash equivalents at end of the period | $ 1,527 | $ 1,279 | |
Supplemental Cash Flow Information | |||
Free cash flow before dividends (Net cash provided by operations less Capital expenditures) Net cash provided by operations | $ 2,913 | $ 2,745 | |
Less: Capital expenditures | (400) | (387) | |
Free cash flow before dividends | $ 2,513 | $ 2,358 | |
Income taxes paid | $ 648 | $ 712 |
Interest paid | $ 205 | $ 235 |
Pricing | |||||
Coupons | |||||
Sales | Consumer & | ||||
Change | Organic | Trade | Foreign | ||
Region | As Reported | Sales Change | Volume | Incentives | Exchange |
Total Company | 4.6 % | 3.6 % | 1.7 % | 2.0 % | 1.0 % |
North America(1) | (1.7)% | (1.6)% | (3.7)% | 2.2 % | (0.2)% |
Latin America | 12.5 % | 6.0 % | 3.9 % | 2.1 % | 6.5 % |
Europe, Middle East & Africa(1) | 1.4 % | 2.7 % | 3.5 % | (0.9)% | (1.2)% |
Asia Pacific(1) | 3.5 % | 4.6 % | 1.9 % | 2.8 % | (1.1)% |
Total CP Products | 4.4 % | 3.1 % | 1.6 % | 1.4 % | 1.3 % |
Hill's Pet Nutrition | 5.6 % | 5.7 % | 1.8 % | 3.9 % | (0.1)% |
Emerging Markets(2) | 8.0 % | 5.4 % | 3.7 % | 1.7 % | 2.7 % |
Developed Markets Table may not sum due to rounding. | 2.0 % | 2.3 % | 0.1 % | 2.2 % | (0.3)% |
Notes:
The Company has recast its historical geographic segment information to conform to the reporting structure effective for the quarter ended March 31, 2026.
Emerging Markets include Latin America, Asia (excluding Japan), Africa, the Middle East and Eastern and Central Europe.
Pricing | ||||||
Coupons | ||||||
Sales | Consumer & | |||||
Change | Organic | As Reported | Organic | Trade | Foreign | |
Region | As Reported | Sales Change | Volume(1) | Volume | Incentives | Exchange |
Total Company | 6.0 % | 3.0 % | 1.2 % | 1.0 % | 1.9 % | 2.8 % |
North America(2) | (2.2)% | (2.3)% | (3.6)% | (3.6)% | 1.4 % | 0.1 % |
Latin America | 13.7 % | 5.6 % | 2.8 % | 2.8 % | 2.7 % | 8.1 % |
Europe, Middle East & Africa(2) | 5.4 % | 2.7 % | 3.0 % | 3.0 % | (0.3)% | 2.8 % |
Asia Pacific(2) | 5.7 % | 5.1 % | 3.5 % | 3.5 % | 1.6 % | 0.6 % |
Total CP Products | 6.2 % | 2.9 % | 1.5 % | 1.5 % | 1.4 % | 3.3 % |
Hill's Pet Nutrition | 5.2 % | 3.3 % | 0.3 % | (0.6)% | 3.9 % | 1.1 % |
Emerging Markets(3) | 10.0 % | 5.4 % | 3.3 % | 3.3 % | 2.1 % | 4.6 % |
Developed Markets | 2.8 % | 1.0 % | (0.5)% | (0.8)% | 1.8 % | 1.4 % |
Table may not sum due to rounding. | ||||||
Notes:
The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.2%, 0.8% and 0.3% for Total Company, Hill's Pet Nutrition and Developed Markets, respectively.
The Company has recast its historical geographic segment information to conform to the reporting structure effective for the quarter ended March 31, 2026.
Emerging Markets include Latin America, Asia (excluding Japan), Africa, the Middle East and Eastern and Central Europe.
Gross profit, GAAP $ 3,233 $ 3,049
Strategic Growth and Productivity Program 5 -
Gross profit, non-GAAP | $ 3,238 | $ 3,049 | |
Gross Profit Margin | 2026 | 2025 | Basis Point Change |
Gross profit margin, GAAP | 60.2 % | 59.4 % | 80 |
Strategic Growth and Productivity Program | 0.1 % | - % | |
Gross profit margin, non-GAAP | 60.3 % | 59.4 % | 90 |
Selling, General and Administrative Expenses | 2026 | 2025 | |
Selling, general and administrative expenses, GAAP | $ 2,111 | $ 1,971 | |
Strategic Growth and Productivity Program | (9) | - | |
Selling, general and administrative expenses, non-GAAP | $ 2,102 | $ 1,971 | |
Basis Point | |||
Selling, General and Administrative Expenses as a Percentage of Net Sales | 2026 | 2025 | Change |
Selling, general and administrative expenses as a percentage of Net sales, GAAP | 39.3 % | 38.4 % | 90 |
Strategic Growth and Productivity Program | (0.2)% | - % | |
Selling, general and administrative expenses as a percentage of Net sales, non-GAAP | 39.1 % | 38.4 % | 70 |
Other (Income) Expense, Net | 2026 | 2025 | |
Other (income) expense, net, GAAP | $ 34 | $ 19 | |
Strategic Growth and Productivity Program | (15) | - | |
Other (income) expense, net, non-GAAP | $ 19 | $ 19 | |
Operating Profit | 2026 | 2025 | % Change |
Operating profit, GAAP | $ 1,088 | $ 1,059 | 3 % |
Strategic Growth and Productivity Program | 29 | - | |
Operating profit, non-GAAP | $ 1,117 | $ 1,059 | 5 % |
Operating Profit Margin | 2026 | 2025 | Basis Point Change |
Operating profit margin, GAAP | 20.3 % | 20.6 % | (30) |
Strategic Growth and Productivity Program | 0.5 % | - % | |
Operating profit margin, non-GAAP | 20.8 % | 20.6 % | 20 |
Non-Service Related Postretirement Costs | 2026 | 2025 | |
Non-service related postretirement costs, GAAP | $ 24 | $ 21 | |
Strategic Growth and Productivity Program | (1) | - | |
Non-service related postretirement costs, non-GAAP | $ 23 | $ 21 |
Note: The impact of non-GAAP adjustments may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding.
Colgate-Palmolive Company Non-GAAP Reconciliations For the Three Months Ended September 30, 2026 (Dollars in Millions Except Per Share Amounts) (Unaudited) Continued Income Before Income Taxes Provision For Income Taxes(1) Net Income Including Noncontrolling Interests 2026 Less: Income Attributable to Noncontrolling Interests Net Income Attributable To Colgate-Palmolive Company Effective Income Tax Rate(2) Diluted Earnings Per ShareAs Reported GAAP $ 1,019 $ 240 $ 779 $ 28 $ 751 23.6 % $ 0.94
Strategic Growth and Productivity
Program 30 3 26 - 26 (0.3)% 0.03
Non-GAAP $ 1,049 $ 244 $ 805 $ 28 $ 777 23.3 % $ 0.97
The impact of non-GAAP adjustments may not necessarily equal the difference between "GAAP" and "non-GAAP" as a result of rounding. Notes:
The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
The impact of non-GAAP items on the Company's effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.