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Clorox reported Q4 FY2026 revenue above the consensus by 2.16%, while adjusted earnings per share of $1.66 exceeded the $1.64 consensus. Revenue was $1.9 billion, compared with $2.0 billion a year earlier; the reported year-over-year change was −2.01%.
The company’s diluted EPS fell to $1.34 from $2.68. Gross margin declined to 41.3% from 46.5%, with lower volume, a GOJO inventory step-up and higher commodity and logistics costs contributing to the decline. Operating margin was 13.2%, compared with 21.4% a year earlier. Free cash flow rose to $244.0 million from $219.0 million.
On the earnings call, CEO Linda Rendle said Clorox’s home care business continued to gain market share, while Glad trash and Hidden Valley Ranch saw share turnarounds. She said litter remained an area where the company wanted to make progress.
In a subsequent update, Clorox reported first-quarter FY2027 net sales of $1.91 billion and diluted EPS of $1.39.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.9 billion | $2.0 billion | −2.01% |
| Diluted EPS | $1.34 | $2.68 | −50.0% |
| Gross margin | 41.3% | 46.5% | −5.2 percentage points |
| Operating margin | 13.2% | 21.4% | −8.1 percentage points |
| Free cash flow | $244.0 million | $219.0 million | 11.4% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.66 | $1.64 | Beat by 1.22% |
| Revenue | $1.9 billion | $1.9 billion | Beat by 2.16% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Gross margin | Q4 FY2026 | 1.30% | 41.3% | Above the guide |
What management said on the call
CEO Linda Rendle said consumers continued to seek value amid inflation and economic uncertainty. Asked about category growth and market share, she said Clorox expected categories to remain muted and assumed a continuation of the growth seen in fiscal 2026. Rendle added that the company expected to keep making market-share progress.
Rendle said consumption improved sequentially during fiscal 2026, returning to flat consumption in Q4. She described Q1 as primarily a timing issue, particularly for Kingsford, and expected the remainder of the year, especially the second half, to be more in line with fiscal 2026 trends.
On competitive performance, Rendle said home care had recorded eight consecutive quarters of share growth and that Glad trash and Hidden Valley Ranch had turned around their share. She said Clorox was still working on litter, including product, packaging and marketing improvements, after operational challenges following the cyberattack.
Asked about promotions, Rendle attributed higher Q4 category promotion partly to the shift of Prime Day into the quarter. She expected an elevated promotional environment in fiscal 2027 as consumers focus on value. Rendle said Clorox also planned product and packaging upgrades and targeted pricing investments in some businesses.
CFO Luc Bellet said fiscal 2027 inflation would be above $200 million, with the impact more pronounced in the first half. He said cost pressure extended beyond commodities to supplier costs, freight, trucking and other logistics expenses.
On GOJO, Rendle said integration was going as planned and in some areas slightly ahead. Bellet said the acquired business contributed to adjusted EPS in Q4 rather than diluting it as anticipated, and he expected it to add to adjusted EPS in fiscal 2027. He also expected revenue synergies to start appearing as early as the following year.
Guidance
In its November update, Clorox lowered its fiscal 2027 gross-margin expectation to about 41.5%, citing inflation and unfavorable mix that more than offset cost savings and pricing actions. The company now expects selling and administrative expenses to be about 15.5% of net sales, compared with its earlier expectation of about 16.0%.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| EPS, non-GAAP | FY2027 | $5.70–$6.00 | $5.70–$6.00 | Held |
| EPS, GAAP | FY2027 | $5.41–$5.71 | $5.41–$5.71 | Held |
| Tax rate | FY2027 | 23.0% | 23.0% | Held |
| Operating expenses growth, Retail Advertising and Sales Promotion | FY2027 | 12.0% | — | New |
| Operating expenses growth, Advertising and Sales Promotion | FY2027 | 10.0% | 10.0% | Held |
| Operating expenses growth, Selling and Administrative | FY2027 | 15.5% | — | New |
| Gross margin | FY2027 | 41.5% | 42.0% | Cut |
| Revenue growth, Organic | FY2027 | 3.50%–4.50% | 3.50%–4.50% | Held |
| Revenue growth | FY2027 | 13.0%–14.0% | 13.0%–14.0% | Held |
| Operating expenses growth, Selling and Administrative Expenses | FY2027 | 16.0% | — | New |
| Operating expenses growth, Advertising and Sales Promotion Ex Gojo | FY2027 | 11.0% | — | New |
| Free cash flow growth | FY2027 | 11.0%–13.0% | — | New |
| Gross margin, Gojo | FY2027 | 0.50% | — | New |