Clorox Reports Q2 Fiscal Year 2026 Results, Confirms Outlook OAKLAND, Calif., Feb. 3, 2026 — The Clorox Company (NYSE: CLX) today reported results for the second quarter of fiscal year 2026, which ended December 31, 2025. Second-Quarter Fiscal Year 2026 Summary Following is a summary of key results for the second quarter. All comparisons are with the second quarter of fiscal year 2025 unless otherwise stated. "Our second‑quarter results were generally in line with our expectations and reflect continued prog ...

OAKLAND, Calif., Feb. 3, 2026 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the second quarter of fiscal year 2026, which ended December 31, 2025. Second-Quarter Fiscal Year 2026 Summary Following is a summary of key results for the second quarter. All comparisons are with the second quarter of fiscal year 2025 unless otherwise stated. 1 "Our secondquarter results were generally in line with our expectations and reflect continued progress against our strategic priorities. These r ...

Core Viewpoint - Clorox Company (CLX) is expected to report declines in both revenue and earnings for the second quarter of fiscal 2026, with significant cost pressures impacting profitability [1][4][8]. Financial Performance Expectations - The Zacks Consensus Estimate for fiscal second-quarter revenues is $1.63 billion, reflecting a 3.3% decline from the previous year [2]. - The consensus estimate for earnings per share (EPS) has decreased by 2.1% over the past 30 days to $1.43, indicating a 7.7% decline year-over-year [2]. - Clorox has a trailing four-quarter earnings surprise of 10.2%, including a 9% surprise in the last reported quarter [2]. Earnings Prediction Model - The current model indicates that Clorox is unlikely to achieve an earnings beat this quarter, with an Earnings ESP of -1.04% and a Zacks Rank of 3 (Hold) [3]. Cost Pressures and Profitability - Clorox is facing elevated cost pressures from manufacturing, logistics, and promotional spending, which are expected to negatively impact profitability throughout fiscal 2026 [4][6]. - Operating income is projected to decline by 8.4% year-over-year, with a contraction of 90 basis points in operating margin [5]. Market and Competitive Environment - The company anticipates a challenging external environment in 2026, with consumers remaining value-conscious and overall category consumption expected to be sluggish [7]. - Competitive intensity is expected to remain high, alongside tariff-related uncertainties [7]. Strategic Initiatives - Clorox is focusing on brand strength, disciplined cost management, and the execution of its IGNITE strategy to support recovery [10]. - The company is nearing completion of a multi-year digital transformation, including a new ERP system aimed at enhancing operational efficiency [12]. - A holistic margin-management program is in place to optimize costs and productivity, which is expected to support growth initiatives despite near-term challenges [11]. Valuation Metrics - Clorox stock is currently trading at a forward 12-month price-to-earnings ratio of 17.13X, which is below the industry average of 18.15X [14]. - Over the past three months, Clorox has seen a decline of 2.5%, underperforming the industry’s decline of 0.2% [15].

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Core Insights - The competition between Procter & Gamble (PG) and Clorox (CLX) highlights the contrast between scale and specialization in the consumer goods market [2][4] Procter & Gamble (PG) - Procter & Gamble commands approximately 25% of the global daily-use consumer staples market, with leading positions in various categories including Fabric Care, Baby Care, Grooming, Oral Care, and Home Care [5] - In Q1 fiscal 2026, PG achieved its 40th consecutive quarter of organic sales growth, despite a 30 basis point decline in global market share due to increased competition [6] - PG's strategy focuses on "integrated superiority," emphasizing product innovation and digital commerce, particularly targeting younger demographics in markets like China and Latin America [7] - The near-term outlook for PG is challenged by slowing consumption in North America and Europe, increased promotional activities, and margin pressures [8] Clorox (CLX) - Clorox operates as a focused category leader, holding significant market shares in disinfecting wipes and bleach, while representing a low-single-digit share of the global consumer goods market [9] - The company is enhancing its brand positioning and operational agility through the IGNITE strategy, which includes innovations in product formats and sizes to cater to e-commerce [10][11] - Clorox's financial performance indicates a healthy gross margin, supporting innovation and brand investment, while maintaining stable household penetration and brand loyalty [13] - The Zacks Consensus Estimate for Clorox's fiscal 2026 sales and EPS suggests declines of 8.7% and 24.7%, respectively [15] Financial Performance & Valuation - Over the past three months, PG's stock has decreased by 0.3%, while CLX's stock has increased by 2.2% [16] - PG is trading at a forward P/E of 20.71X, below its five-year median of 23.44X, while CLX's forward P/E is at 17.83X, below its median of 24.52X [18] - Clorox's valuation appears attractive compared to PG, indicating potential for multiple expansion as operational momentum builds [19] - Clorox shares have shown better recent performance, suggesting improving investor sentiment and potential upside if operational progress continues [22] Conclusion - Procter & Gamble is recognized for its extensive portfolio and market stability, but faces near-term pressures and a higher valuation [23] - Clorox is positioned as a stronger choice due to better recent performance, attractive valuation, and focused growth initiatives, making it a compelling pick in the current market cycle [24]

Group 1 - Clorox Company is recognized as one of the Best Low Risk Stocks for a Retirement Stock Portfolio [1] - Deutsche Bank raised its price target for Clorox from $110 to $114 while maintaining a Hold rating [2] - Clorox announced the acquisition of GOJO Industries for $2.25 billion, aiming to enhance its presence in the health and hygiene sector [3][4] Group 2 - The acquisition values GOJO at $1.92 billion, with $330 million attributed to expected tax benefits, totaling $2.25 billion [4] - Clorox plans to finance the majority of the acquisition through debt and aims to finalize the deal by the end of fiscal 2026 [4] - The acquisition is expected to generate at least $50 million in annual cost synergies once fully integrated [4] Group 3 - Clorox operates as a global producer of consumer and professional products across four main segments: Health and Wellness, Household, Lifestyle, and International [5]

Core Insights - The Clorox Company (CLX) is initiating 2026 with a significant deal, prompting an update to the investment thesis established in fall 2023, which indicated that the company was facing challenges [1] Group 1: Company Overview - The Clorox Company is perceived to be struggling, as indicated by the investment thesis from fall 2023 [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" focuses on identifying actionable ideas related to major corporate events such as earnings reports, mergers and acquisitions, and IPOs, providing coverage of 10 major events monthly [1]

Group 1 - The core point of the article is that Clorox (CLX.US) announced a $2.25 billion cash acquisition of GOJO Industries, the manufacturer of Purell hand sanitizer, to expand its consumer health and hygiene product portfolio [1][2] - The acquisition includes a purchase price of $1.92 billion and an estimated tax benefit of approximately $330 million, with GOJO's annual sales nearing $800 million and a stable three-year revenue growth rate of 5% [1] - Clorox plans to finance the acquisition primarily through debt and expects the transaction to be completed before the end of its fiscal year 2026, anticipating at least $50 million in annual cost synergies from the deal [1] Group 2 - GOJO will continue to operate in Akron, Ohio, and its business will be integrated into Clorox [2] - This acquisition is part of a trend among consumer goods giants seeking to accelerate growth, especially as Clorox reported a 19% year-over-year decline in revenue in the previous quarter due to underperformance in its health and wellness segment and issues related to software upgrades affecting its operations [2] - Clorox reaffirmed its annual performance forecast, expecting a sales decline of 6% to 10% and adjusted earnings per share between $5.95 and $6.30 [2]

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Core Viewpoint - The Clorox Company announced the acquisition of GOJO Industries, the maker of the Purell brand, indicating a strategic move to enhance its product portfolio and market presence [2]. Group 1: Acquisition Details - The acquisition of GOJO Industries is a significant development for The Clorox Company, as it aims to strengthen its position in the hygiene and cleaning products market [2]. - The announcement was made during a conference call, which included key executives from The Clorox Company, highlighting the importance of this acquisition [2]. Group 2: Management Statements - The management provided forward-looking statements regarding the acquisition, emphasizing that these statements are based on current expectations and may differ from actual outcomes [3]. - The company referenced non-GAAP measures in its discussion, indicating a focus on providing a comprehensive view of its financial performance [3].