Colgate-Palmolive Q2 Earnings Surpass Estimates Amid Margin Challenges

Colgate-Palmolive Co. (NYSE: CL) delivered a stronger-than-anticipated Q2 2025 performance, with adjusted EPS of $0.92 outpacing the $0.89 consensus. Revenue edged up 1.0% to $5.11 billion, slightly above expectations, while organic sales grew 1.8% despite headwinds from pet product sales.

The company maintained its dominant position in oral care, commanding 41.1% of the global toothpaste market and 32.4% of manual toothbrush sales. Geographic performance varied sharply, with Africa/Eurasia leading at 7.7% organic growth versus Latin America's 3.4% increase.

Investors showed cautious optimism, driving shares up 1.4% in premarket trading before settling 0.44% lower at $83.48 during the session. Margin pressures emerged as the key concern, with base business gross margins contracting 70 basis points to 60.1%.