-- Colgate-Palmolive's (CL) strong organic sales growth and margin delivery drove Q1 upside, and the company maintained its 2026 earnings guidance despite expecting contracting gross margins, UBS Securities said in an emailed note Monday.
Colgate reaffirmed its initial 2026 guidance and expects low to mid-single-digit earnings per share growth, implying $3.73 to $3.92 range, versus UBS and Street estimates of $3.76 and $3.83, respectively, according to the note.
The company expects gross margins to contract due to more significant raw material, packaging, and logistics inflation, the note added.
Other components of the guidance include higher advertising spend in dollars and as a percentage of sales, flat interest expense, and a tax rate of 23% to 24%, the brokerage said.
UBS has a buy rating on Colgate-Palmolive with a price target of $98.
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