Clorox

CLX Q1 2026 Earnings

Reported Nov 3, 2025 at 4:12 PM ET · SEC Source

Q1 26 EPS

$0.85

BEAT +9.23%

Est. $0.78

Q1 26 Revenue

$1.43B

BEAT +2.21%

Est. $1.40B

vs S&P Since Q1 26

-27.6%

TRAILING MARKET

CLX -20.9% vs S&P +6.7%

Market Reaction

Did CLX Beat Earnings? Q1 2026 Results

Clorox posted a headline beat in fiscal Q1 2026, but the underlying story was decidedly more complicated. The consumer products giant reported adjusted EPS of $0.85, clearing the $0.78 consensus estimate by 9.23%, while revenue of $1.43 billion edged… Read more Clorox posted a headline beat in fiscal Q1 2026, but the underlying story was decidedly more complicated. The consumer products giant reported adjusted EPS of $0.85, clearing the $0.78 consensus estimate by 9.23%, while revenue of $1.43 billion edged past expectations by 2.21%, yet still tumbled 18.9% year-over-year as the company absorbed the full weight of its U.S. ERP system transition. That single operational shift accounted for roughly 14 percentage points of the quarterly sales decline, as retailers drew down approximately two weeks of pre-shipped inventory that had been built ahead of the ERP go-live at the end of fiscal Q4 2025. Gross margin contracted 410 basis points to 41.7%, and free cash flow fell sharply to $57.00 million from $182.00 million a year ago. With Morgan Stanley trimming its price target to $125 from $137 in the wake of results, management acknowledged that its full-year outlook, which calls for net sales down 6% to 10% and adjusted EPS of $5.95 to $6.30, is now tracking toward the lower end of those ranges.

Key Takeaways

  • ERP transition caused retailers to draw down pre-built inventory, reducing Q1 shipments by approximately 14 percentage points
  • Gross margin declined 410 basis points to 41.7% due to lower volume and higher manufacturing and logistics costs
  • Cost savings provided 140 basis points of gross margin benefit
  • Lower advertising spending in Lifestyle segment partially offset lower net sales
  • Strong shipments to Club channel drove unfavorable price mix in Health and Wellness
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CLX YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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CLX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“This quarter's ERP launch marks a significant milestone in our transformation journey, empowering faster execution, greater productivity, and deeper insights — all aimed at delivering superior value to our consumers.”

— Linda Rendle, Q1 2026 Earnings Press Release