Clorox (NYSE:CLX) Announces Quarterly Earnings Results

Key Points

• Q3 EPS beat: Clorox reported adjusted EPS of $1.64 versus the $1.57 consensus and revenue of $1.67 billion (flat year‑over‑year), and updated FY2026 guidance to a range of $5.45–$5.65 per share.
• Margins are under pressure from higher supply‑chain/fulfillment costs and delayed savings, with management warning of roughly a $20–25 million Q4 headwind from higher oil/resin prices and planning targeted pricing, RGM and productivity to mitigate.
• ERP implementation is complete and the company closed the GOJO acquisition on April 1 (adds about $800M of revenue); management expects near‑term gross‑margin dilution and an inventory step‑up but at least $50M of run‑rate synergies and multi‑year accretion.

Clorox (NYSE:CLX - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.64 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.07, FiscalAI reports. Clorox had a return on equity of 383.01% and a net margin of 11.17%.The business had revenue of $1.67 billion for the quarter, compared to analysts' expectations of $1.67 billion. During the same period in the previous year, the firm posted $1.45 EPS. The business's revenue was up .1% on a year-over-year basis. Clorox updated its FY 2026 guidance to 5.450-5.650 EPS.

Here are the key takeaways from Clorox's conference call:

• ERP implementation is complete, service levels have stabilized, and management says this foundation will enable better execution and convert innovation and distribution gains into improved results.
• Q3 results fell short of expectations—gross margin was pressured by higher-than-expected supply-chain/fulfillment costs and delayed cost savings, and several businesses (notably Fresh Step litter and parts of Food) improved more slowly than planned.
• Management reports strong innovation and shelf gains in Cleaning (including Clorox PURE and Scentiva), improving momentum at Glad after price/pack actions, and Hidden Valley share recovery following product and pack changes.
• Near-term cost risk from higher oil/resin prices related to the Middle East conflict is material—management estimates roughly $20–25 million of Q4 headwinds at ~$100/barrel—and expects to use RGM, targeted pricing, productivity and accelerated cost savings to mitigate.
• The GOJO acquisition closed April 1 and adds about $800M of revenue with mid-single-digit growth; company expects year‑1 gross margin dilution and a Q4 inventory step-up one-time hit but forecasts at least $50M of run‑rate synergies and multi-year accretion.

Clorox Stock Up 1.8%

CLX stock traded up $1.71 during trading on Thursday, hitting $96.48. 4,636,560 shares of the stock traded hands, compared to its average volume of 2,258,288. The stock has a market cap of $11.66 billion, a price-to-earnings ratio of 15.76, a price-to-earnings-growth ratio of 0.47 and a beta of 0.65. The company has a debt-to-equity ratio of 71.03, a current ratio of 0.74 and a quick ratio of 0.48. Clorox has a 1 year low of $93.39 and a 1 year high of $141.50. The firm's 50 day moving average is $108.21 and its two-hundred day moving average is $108.82.

Clorox Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Wednesday, April 22nd will be paid a $1.24 dividend. The ex-dividend date is Wednesday, April 22nd. This represents a $4.96 dividend on an annualized basis and a yield of 5.1%. Clorox's payout ratio is presently 81.05%.

Analyst Ratings Changes

A number of analysts have recently weighed in on CLX shares. Barclays reduced their target price on shares of Clorox from $109.00 to $102.00 and set an "underweight" rating on the stock in a research report on Tuesday, April 14th. The Goldman Sachs Group lowered their price target on shares of Clorox from $110.00 to $94.00 and set a "sell" rating for the company in a research report on Wednesday, January 7th. Wall Street Zen raised shares of Clorox from a "sell" rating to a "hold" rating in a research note on Saturday, February 7th. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Clorox from $101.00 to $100.00 and set a "hold" rating on the stock in a report on Monday, April 20th. Finally, TD Cowen lifted their target price on shares of Clorox from $98.00 to $111.00 and gave the company a "hold" rating in a report on Tuesday, March 31st. One research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $111.33.

Institutional Investors Weigh In On Clorox

Several large investors have recently bought and sold shares of the business. Darwin Wealth Management LLC bought a new position in Clorox during the 2nd quarter valued at about $29,000. Caitlin John LLC grew its stake in shares of Clorox by 1,807.1% in the fourth quarter. Caitlin John LLC now owns 267 shares of the company's stock worth $27,000 after acquiring an additional 253 shares during the period. MUFG Securities EMEA plc purchased a new position in shares of Clorox during the second quarter valued at approximately $44,000. Golden State Wealth Management LLC lifted its position in Clorox by 28.2% during the fourth quarter. Golden State Wealth Management LLC now owns 454 shares of the company's stock valued at $46,000 after purchasing an additional 100 shares during the period. Finally, DV Equities LLC purchased a new stake in Clorox in the fourth quarter worth approximately $46,000. 78.53% of the stock is currently owned by institutional investors.

Key Stories Impacting Clorox

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Q3 results beat profit expectations — non-GAAP EPS of $1.64 topped consensus and revenue of $1.67B was roughly in line, showing marginal growth versus a year ago; the beat provided immediate relief to investors. Clorox Reports Q3 Fiscal Year 2026 Results, Updates Outlook
• Neutral Sentiment: Company released an official PR/earnings snapshot confirming Q3 metrics (quarter ended March 31) and provided details on revenue mix and margins; facts from the release will guide further analyst commentary. Clorox Reports Q3 Fiscal Year 2026 Results, Updates Outlook (PR Newswire)
• Negative Sentiment: Management lowered FY2026 EPS guidance below Wall Street’s prior view (company set a new range below consensus), citing weaker consumer demand and higher input/operating costs — a key reason for downward pressure on the stock beyond the initial earnings beat. Clorox cuts annual profit forecast on weaker demand, rising costs
• Negative Sentiment: Market reaction included steeper weakness in some sessions, with coverage noting shares hit new 52-week lows after the guidance update — indicating investors are focused on downside to near-term earnings trajectory and margin recovery. Consumer Products Giant Clorox Shares Are Hitting New 52-Week Lows Thursday: Here's Why

About Clorox

The Clorox Company is a leading manufacturer and marketer of consumer and professional products designed to help people care for their homes and live healthy, sustainable lives. Its portfolio spans cleaning and household products, food and beverages, water filtration systems and cat litter, serving both retail and institutional customers. The company's flagship bleach and disinfecting products are well known in the United States and many international markets, where they help prevent the spread of germs in homes, hospitals, schools and businesses.

Clorox's diverse brand lineup includes liquid bleach and surface cleaners, eco-friendly cleaning tools, food preservation and preparation items, charcoal grills and briquettes, specialty foods and beverages, pet care products and personal care lines.

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