COLGATE PALMOLIVE CO

Three Months

Worldwide Net sales were $5,369 in the third quarter of 2026, up 4.6% from the third quarter of 2025, due to volume growth of 1.7%, net selling price increases of 2.0% and positive foreign exchange of 1.0%. Organic sales (Net sales excluding the impact of foreign exchange, acquisitions and divestments), a non-GAAP financial measure, increased 3.6% in the third quarter of 2026, including a negative impact from lower private label pet food sales (20 bps). A reconciliation of net sales growth to organic sales growth is provided under “Non-GAAP Financial Measures” below.

Net sales in the Oral, Personal and Home Care product segment were $4,164 in the third quarter of 2026, up 4.4% from the third quarter of 2025, due to volume growth of 1.6%, net selling price increases of 1.4% and positive foreign exchange of 1.3%. Organic sales in the Oral, Personal and Home Care product segment increased 3.1% in the third quarter of 2026.

The increase in organic sales in the third quarter of 2026 versus the third quarter of 2025 was primarily due to an increase in Oral Care and Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Home Care was primarily due to organic sales growth in the surface cleaner category.

The Company’s share of the global toothpaste market was 41.4% on a year-to-date basis, up 0.3 share points from the year ago period, and its share of the global manual toothbrush market was 33.1% on a year-to-date basis, up 0.8 share points from the year ago period. Year-to-date market shares in toothpaste were up in Latin America and EMEA and down in North America and Asia Pacific versus the comparable 2025 period. In the manual toothbrush category, year-to-date market shares were up in North America, Latin America, EMEA and Asia Pacific versus the comparable 2025 period. For additional information regarding market shares, see “Market Share Information” below.

Net sales in the Hill’s Pet Nutrition segment were $1,205 in the third quarter of 2026, up 5.6% from the third quarter of 2025, due to volume growth of 1.8% and net selling price increases of 3.9%, partially offset by negative foreign exchange of 0.1%. Organic sales in the Hill’s Pet Nutrition segment increased 5.7% in the third quarter of 2026, including a negative impact from lower private label pet food sales (70 bps).

Gross Profit/Margin

Worldwide Gross profit increased to $3,233 in the third quarter of 2026 compared to $3,049 in the third quarter of 2025. Worldwide Gross profit in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Worldwide Gross profit increased to $3,238 in the third quarter of 2026 compared to $3,049 in the third quarter of 2025, reflecting an increase of $141 from higher Net sales and $47 from higher Gross profit margin.

Worldwide Gross profit margin increased to 60.2% in the third quarter of 2026 from 59.4% in the third quarter of 2025. Excluding the charges resulting from the Strategic Growth and Productivity Program in the third quarter of 2026, Gross profit margin increased to 60.3% in the third quarter of 2026 from 59.4% in the third quarter of 2025. This increase in Gross profit margin was due to cost savings from the Company’s funding-the-growth initiatives (290 bps), higher pricing (80 bps) and favorable mix (20 bps), partially offset by significantly higher raw and packaging material costs (300 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 7% to $2,111 in the third quarter of 2026 compared to $1,971 in the third quarter of 2025. Selling, general and administrative expenses in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Selling, general and administrative expenses increased 7% to $2,102 in the third quarter of 2026 compared to $1,971 in the third quarter of 2025, reflecting increased advertising investment of $101 and higher overhead expenses of $30.

Selling, general and administrative expenses as a percentage of Net sales increased by 90 bps to 39.3% in the third quarter of 2026 as compared to 38.4% in the third quarter of 2025. Excluding the charges resulting from the Strategic Growth and Productivity Program in the third quarter of 2026, Selling, general and administrative expenses as a percentage of Net sales increased by 70 bps to 39.1% in the third quarter of 2026 compared to 38.4% in the third quarter of 2025. This increase was due to increased advertising investment (130 bps), partially offset by lower overhead expenses (60 bps), both as a percentage of Net sales. Lower overhead expenses were driven by overhead efficiencies (90 bps), partially offset by higher logistics costs (30 bps). In the third quarter of 2026, advertising investment increased as a percentage of Net sales to 14.4% from 13.1% in the third quarter of 2025, or 15% in absolute terms, to $775 as compared to $674 in the third quarter of 2025.

Other (Income) Expense, Net

Other (income) expense, net was $34 and $19 in the third quarter of 2026 and 2025, respectively. Other (income) expense, net in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Other (income) expense, net was $19 in the third quarter of 2026 and 2025.

Operating Profit

Operating profit increased 3% to $1,088 in the third quarter of 2026 from $1,059 in the third quarter of 2025. Operating profit in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Operating profit increased 5% to $1,117 in the third quarter of 2026 from $1,059 in the third quarter of 2025 due to an increase in Gross profit, partially offset by an increase in Selling, general and administrative expenses.

Operating profit margin was 20.3% in the third quarter of 2026, a decrease of 30 bps compared to 20.6% in the third quarter of 2025. Excluding the charges resulting from the Strategic Growth and Productivity Program in the third quarter of 2026, Operating profit margin was 20.8% in the third quarter of 2026, an increase of 20 bps compared to 20.6% in the third quarter of 2025. This increase in Operating profit margin was due to an increase in Gross profit (90 bps), partially offset by an increase in Selling, general and administrative expenses (70 bps), both as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $24 and $21 in the third quarter of 2026 and 2025, respectively. Non-service related postretirement costs in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Non-service related postretirement costs were $23 in the third quarter of 2026 and $21 in the third quarter of 2025.

Net Income Attributable to Colgate-Palmolive Company and Earnings Per Share

Net income attributable to Colgate-Palmolive Company in the third quarter of 2026 increased to $751 from $735 in the third quarter of 2025 and Earnings per common share on a diluted basis increased to $0.94 per share in the third quarter of 2026 from $0.91 in the third quarter of 2025. Net income attributable to Colgate-Palmolive Company in the third quarter of 2026 included charges resulting from the Strategic Growth and Productivity Program.

Excluding the charges described above, Net income attributable to Colgate-Palmolive Company in the third quarter of 2026 increased 6% to $777 from $735 in the third quarter of 2025 and Earnings per common share on a diluted basis increased 7% to $0.97 in the third quarter of 2026 from $0.91 in the third quarter of 2025.

(2)The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Net Sales and Operating Profit by Segment

Oral, Personal and Home Care

North America

Net sales in North America decreased 1.7% in the third quarter of 2026 to $905, driven by volume declines of 3.7% and negative foreign exchange of 0.2%, partially offset by net selling price increases of 2.2%. Organic sales in North America decreased 1.6% in the third quarter of 2026. The organic sales decline was driven by the United States.

The decrease in organic sales in North America in the third quarter of 2026 versus the third quarter of 2025 was primarily due to decreases in Personal Care and Oral Care organic sales. The decrease in Personal Care was primarily due to organic sales declines in the body wash and underarm protection categories. The decrease in Oral Care was primarily due to an organic sales decline in the toothpaste category.

Operating profit in North America decreased 11% in the third quarter of 2026 to $177, or 210 bps to 19.5% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was primarily due to a decrease in Gross profit (70 bps) and an increase in Selling, general and administrative expenses (160 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (520 bps) and unfavorable mix (10 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (350 bps) and higher pricing. This increase in Selling, general and administrative expenses was due to increased advertising investment (100 bps) and higher overhead expenses (60 bps).

Latin America

Net sales in Latin America increased 12.5% in the third quarter of 2026 to $1,326, driven by volume growth of 3.9%, net selling price increases of 2.1% and positive foreign exchange of 6.5%. Organic sales in Latin America increased 6.0% in the third quarter of 2026. Organic sales growth was led by Brazil, Argentina and Colombia.

The increase in organic sales in Latin America in the third quarter of 2026 versus the third quarter of 2025 was primarily due to increases in Oral Care and Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Home Care was primarily due to organic sales growth in the surface cleaner category.

Operating profit in Latin America increased 17% in the third quarter of 2026 to $392, or 100 bps to 29.6% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was due to an increase in Gross profit (290 bps), partially offset by an increase in Selling, general and administrative expenses (160 bps) and an increase in Other (income) expense, net (40 bps), all as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (250 bps), higher pricing and favorable mix (30 bps), partially offset by higher raw and packaging material costs (80 bps). This increase in Selling, general and administrative expenses was primarily due to increased advertising investment (130 bps).

Europe, Middle East & Africa

Net sales in EMEA increased 1.4% in the third quarter of 2026 to $1,130, driven by volume growth of 3.5%, partially offset by net selling price decreases of 0.9% and negative foreign exchange of 1.2%. Organic sales in EMEA increased 2.7% in the third quarter of 2026. Organic sales growth was led by Türkiye, the United Kingdom and Spain, partially offset by organic sales declines in the Middle East region.

The increase in organic sales in EMEA in the third quarter of 2026 versus the third quarter of 2025 was due to increases in Oral Care and Personal Care organic sales, partially offset by a decrease in Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Personal Care was primarily due to organic sales growth in the body wash and skin health categories. The decrease in Home Care was primarily due to an organic sales decline in the fabric softener category.

Operating profit in EMEA increased 8% in the third quarter of 2026 to $262, or 140 bps to 23.2% as a percentage of Net sales. This increase in Operating profit as a percentage of Net sales was due to an increase in Gross profit (40 bps), a decrease in Selling, general and administrative expenses (40 bps) and a decrease in Other (income) expense, net (50 bps), all as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (250 bps) and favorable mix (20 bps), partially offset by higher raw and packaging material costs (200 bps) and lower pricing. This decrease in Selling, general and administrative expenses was due to lower overhead expenses (80 bps), partially offset by increased advertising investment (50 bps).

Asia Pacific

Net sales in Asia Pacific increased 3.5% in the third quarter of 2026 to $802, driven by volume growth of 1.9% and net selling price increases of 2.8%, partially offset by negative foreign exchange of 1.1%. Organic sales in Asia Pacific increased 4.6% in the third quarter of 2026. Organic sales growth was driven by India, the Greater China region and the Philippines.

The increase in organic sales in Asia Pacific in the third quarter of 2026 versus the third quarter of 2025 was primarily due to an increase in Oral Care organic sales, which was largely due to organic sales growth in the toothpaste and manual toothbrush categories.

Operating profit in Asia Pacific decreased 1% in the third quarter of 2026 to $211, or 110 bps to 26.4% as a percentage of Net sales. This decrease in Operating profit as a percentage of Net sales was due to a decrease in Gross profit (40 bps) and an increase in Selling, general and administrative expenses (70 bps), both as a percentage of Net sales. This decrease in Gross profit was due to significantly higher raw and packaging material costs (550 bps), partially offset by cost savings from the Company’s funding-the-growth initiatives (380 bps), higher pricing and favorable mix (30 bps). This increase in Selling, general and administrative expenses was due to increased advertising investment (130 bps), partially offset by lower overhead expenses (60 bps).

Hill’s Pet Nutrition

Net sales for Hill’s Pet Nutrition increased 5.6% in the third quarter of 2026 to $1,205, driven by volume growth of 1.8% and net selling price increases of 3.9%, partially offset by negative foreign exchange of 0.1%. Organic sales in Hill’s Pet Nutrition increased 5.7% in the third quarter of 2026, including a negative impact from lower private label pet food sales (70 bps). Organic sales growth was led by the United States and Europe.

The increase in organic sales in Hill’s Pet Nutrition in the third quarter of 2026 versus the third quarter of 2025 was due to organic sales growth in the therapeutic and wellness categories.

Operating profit in Hill’s Pet Nutrition increased 5% in the third quarter of 2026 to $267, while as a percentage of Net sales it decreased by 20 bps to 22.2%. This decrease in Operating profit as a percentage of Net sales was primarily due to an increase in Gross profit (170 bps), more than offset by an increase in Selling, general and administrative expenses (200 bps), both as a percentage of Net sales. This increase in Gross profit was due to cost savings from the Company’s funding-the-growth initiatives (290 bps), higher pricing and favorable mix (20 bps), partially offset by significantly higher raw and packaging material costs (290 bps). This increase in Selling, general and administrative expenses was due to increased advertising investment (290 bps), partially offset by lower overhead expenses (90 bps).

Corporate

Operating profit (loss) related to Corporate was $(221) in the third quarter of 2026 as compared to $(189) in the third quarter of 2025.

In the third quarter of 2026, Corporate Operating profit (loss) included charges of $29 resulting from the Strategic Growth and Productivity Program.

Nine Months

Worldwide Net sales were $16,055 in the first nine months of 2026, up 6.0% as compared to the first nine months of 2025, due to volume growth of 1.2%, net selling price increases of 1.9% and positive foreign exchange of 2.8%. The Prime100 acquisition contributed 0.2% to volume. Organic sales increased 3.0% in the first nine months of 2026, including a negative impact from lower private label pet food sales (40 bps).

Net sales in the Oral, Personal and Home Care product segment were $12,461 in the first nine months of 2026, up 6.2% from the first nine months of 2025, due to volume growth of 1.5%, net selling price increases of 1.4% and positive foreign exchange of 3.3%. Organic sales in the Oral, Personal and Home Care product segment increased 2.9% in the first nine months of 2026.

The increase in organic sales in the first nine months of 2026 versus the first nine months of 2025 was primarily due to increases in Oral Care and Home Care organic sales. The increase in Oral Care was primarily due to organic sales growth in the toothpaste and manual toothbrush categories. The increase in Home Care was primarily due to organic sales growth in the surface cleaner and hand dish categories.

Net sales in the Hill’s Pet Nutrition segment were $3,594 in the first nine months of 2026, an increase of 5.2% from the first nine months of 2025, due to volume growth of 0.3%, net selling price increases of 3.9% and positive foreign exchange of 1.1%. The Prime100 acquisition contributed 0.8% to volume. Organic sales in the Hill’s Pet Nutrition segment increased 3.3% in the first nine months of 2026, including a negative impact from lower private label pet food sales (180 bps).

Net Sales and Operating Profit by Segment

Net sales and Operating profit by segment were as follows:

(1)The Company has recast its historical geographic segment information to conform to the reporting structure effective as of March 31, 2026.

Net sales and Organic sales change by segment were as follows:

(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.8% and 0.2% for Hill's Pet Nutrition and Total Company, respectively.

(2) The Company has recast its historical geographic segment information to conform to the reporting structure effective as of March 31, 2026.

In the first nine months of 2026, Operating profit (loss) related to Corporate was $(902) as compared to $(523) in the first nine months of 2025. Corporate Operating profit (loss) for the nine months ended September 30, 2026 included charges resulting from the Strategic Growth and Productivity Program of $327. Corporate Operating profit (loss) for the nine months ended September 30, 2025 included charges resulting from the ERISA litigation matter of $15 and acquisition-related costs of $9.

Gross Profit/Margin

Worldwide Gross profit increased to $9,755 in the first nine months of 2026 from $9,105 in the first nine months of 2025. Worldwide Gross profit in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Excluding these charges, Worldwide Gross profit increased to $9,762 in the first nine months of 2026 from $9,105 in the first nine months of 2025, reflecting an increase of $544 resulting from higher Net sales and $113 from higher Gross profit margin.

Worldwide Gross profit margin increased to 60.8% in the first nine months of 2026 from 60.1% in the first nine months of 2025. This increase in Gross profit margin was due to cost savings from the Company’s funding-the-growth initiatives (270 bps), higher pricing (70 bps) and favorable mix (20 bps), partially offset by significantly higher raw and packaging material costs (290 bps).

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 8% to $6,316 in the first nine months of 2026 from $5,833 in the first nine months of 2025. Selling, general and administrative expenses in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Selling, general and administrative expenses in the first nine months of 2025 included charges related to the ERISA litigation matter. Excluding these charges in both periods, as applicable, Selling, general and administrative expenses increased to $6,296 in the first nine months of 2026 from $5,817 in the first nine months of 2025, reflecting increased advertising investment of $266 and higher overhead expenses of $213.

Selling, general and administrative expenses as a percentage of Net sales increased to 39.3% in the first nine months of 2026 from 38.5% in the first nine months of 2025. Excluding the charges described above in both periods, as applicable, Selling, general and administrative expenses as a percentage of Net sales increased to 39.2% in the first nine months of 2026 from 38.4% in the first nine months of 2025. This increase was primarily due to increased advertising investment (90 bps) as a percentage of Net sales. In the first nine months of 2026, advertising investment increased as a percentage of Net sales to 14.2% from 13.3% in the first nine months of 2025, or 13% in absolute terms, to $2,286 as compared to $2,020 in the first nine months of 2025.

Other (Income) Expense, Net

Other (income) expense, net was $370 and $58 in the first nine months of 2026 and 2025, respectively. Other (income) expense, net in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Other (income) expense, net in the first nine months of 2025 included acquisition-related costs. Excluding these items in both periods, as applicable, Other (income) expense, net was $70 in the first nine months of 2026 and $48 in the first nine months of 2025.

Operating Profit

Operating profit decreased 5% to $3,069 in the first nine months of 2026 from $3,214 in the first nine months of 2025. Operating profit in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Operating profit in the first nine months of 2025 included charges related to the ERISA litigation matter and acquisition-related costs. Excluding these items in both periods, as applicable, Operating profit increased to $3,396 in the first nine months of 2026 from $3,240 in the first nine months of 2025, due to an increase in Gross profit, partially offset by an increase in Selling, general and administrative expenses and an increase in Other (income) expense, net.

Operating profit margin was 19.1% in the first nine months of 2026, a decrease of 210 bps compared to 21.2% in the first nine months of 2025. Excluding the items described above in both periods, as applicable, Operating profit margin was 21.2% in the first nine months of 2026, a decrease of 20 bps compared to 21.4% in the first nine months of 2025, primarily due to an increase in Gross profit (70 bps), more than offset by an increase in Selling, general and administrative expenses (80 bps), both as a percentage of Net sales.

Non-Service Related Postretirement Costs

Non-service related postretirement costs were $70 and $116 in the first nine months of 2026 and 2025, respectively. Non-service related postretirement costs in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Non-service related postretirement costs in the first nine months of 2025 included charges related to the ERISA litigation matter. Excluding these charges in both periods, as applicable, Non-service related postretirement costs were $64 in the first nine months of 2026 and $66 in the first nine months of 2025.

Income Taxes

The effective income tax rate was 23.6% and 22.8% for the third quarter of 2026 and 2025, respectively. As reflected in the table below, the non-GAAP effective income tax rate was 23.3% and 22.8% for the third quarter of 2026 and 2025, respectively.

The effective income tax rate was 23.8% and 23.2% for the first nine months of 2026 and 2025, respectively. As reflected in the table below, the non-GAAP effective income tax rate was 23.3% for the first nine months of 2026 and 23.2% for the first nine months of 2025.

The quarterly provision for income taxes is determined based on the Company’s estimated full year effective income tax rate adjusted by the amount of tax attributable to infrequent or unusual items that are separately recognized on a discrete basis in the income tax provision in the quarter in which they occur. The Company’s current estimate of its full year effective income tax rate before discrete period items is 23.5%, compared to 23.3% in 2025.

On July 4, 2025, U.S. tax legislation was signed into law (the “OBBBA”) which made permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the OBBBA made changes to certain U.S. corporate tax provisions, many of which were effective beginning January 1, 2026. The OBBBA did not have a material effect on the Company’s Consolidated Financial Statements for the nine months ended September 30, 2026.

In the third quarter of 2023, the Internal Revenue Service (the “IRS”) issued a notice giving taxpayers temporary relief from the effects of certain U.S. tax regulations that were issued in December 2021 which place greater restrictions on foreign taxes that are creditable against U.S. taxes on foreign source income. This notice allowed taxpayers to defer the application of these new regulations through the end of 2023. In December 2023, the IRS issued further guidance modifying this temporary relief period to the date that a notice or other guidance withdrawing or modifying the temporary relief is issued. The Company will recognize the impact, if any, in the period in which the temporary relief is withdrawn or modified.

On December 15, 2022, the 27 member states of the European Union (“EU”) reached an agreement to establish a minimum level of taxation for certain large corporations by paying a minimum corporate tax rate of 15% in every jurisdiction in which they operate. This agreement, which is part of the Pillar II Model Rules initiative (“Pillar II”) agreed by all members of the Organization for Economic Cooperation and Development (“OECD”) and its Inclusive Framework (“IF”), was transposed into the laws of most EU member states by December 31, 2023. Subsequently, many other jurisdictions outside the EU have enacted similar minimum tax regimes consistent with the policy of Pillar II.

Based on current legislation and available guidance, apart from the significant additional time and resources required to comply, Pillar II did not have a material impact on the Company’s Consolidated Financial Statements for the nine months ended September 30, 2026 and the Company does not believe it will have a material impact going forward.

On January 5, 2026, IF reached an agreement known as the “Side-by-Side Package” that modifies key aspects of Pillar II and was effective beginning January 1, 2026. The Side-by-Side Package introduces various new safe harbors that the Company is expected to be eligible for and that, when fully enacted, should result in a reduction of compliance costs of Pillar II, among other benefits. However, as these rules and related regulations are revised and implemented, the Company will evaluate the impact, if any, on its Consolidated Financial Statements.

The Company has ongoing federal, state and international income tax audits in various jurisdictions and evaluates uncertain tax positions that may be challenged by local tax authorities and not fully sustained. All U.S. federal income tax returns through December 31, 2013 have been audited by the IRS and there are limited matters which the Company plans to appeal for years 2010 through 2013. One such matter relates to the IRS assessment of taxes on the Company by imputing income on certain activities within one of our international operations, which is also under audit for the years 2014 through 2018. There were U.S. Tax Court rulings during 2023 in favor of the IRS against two unrelated third parties on similar matters. In October 2025, in one of those cases, the applicable U.S. Court of Appeals reversed the U.S. Tax Court’s decision and ruled in favor of the taxpayer. The case involving the other third party is still pending. The Company continues to believe that the tax assessment against the Company is without merit. While there can be no assurances, the Company believes this matter will ultimately be decided in favor of the Company. The amount of tax plus interest for the years 2010 through 2021 is estimated to be approximately $170, which is not included in the Company’s uncertain tax positions. In May 2024, the IRS initiated an audit for the years 2019 through 2021, which is still ongoing.

Note: Tables may not sum due to rounding.

(2)The impact of non-GAAP items on the Company’s effective tax rate represents the difference in the effective tax rate calculated with and without the non-GAAP adjustment on Income before income taxes and Provision for income taxes.

Net Income Attributable to Colgate-Palmolive Company and Earnings Per Share

Net income attributable to Colgate-Palmolive Company in the first nine months of 2026 decreased to $2,090 from $2,169 in the comparable 2025 period. Earnings per common share on a diluted basis decreased to $2.61 in the first nine months of 2026 from $2.67 in the comparable 2025 period. Net income attributable to Colgate-Palmolive Company in the first nine months of 2026 included charges resulting from the Strategic Growth and Productivity Program. Net income attributable to Colgate-Palmolive Company in the first nine months of 2025 included charges related to the ERISA litigation matter and acquisition-related costs.

Excluding the items described above in both periods, as applicable, Net income attributable to Colgate-Palmolive Company in the first nine months of 2026 increased 6% to $2,359 from $2,228 in the first nine months of 2025, and Earnings per common share on a diluted basis increased 7% to $2.94 in the first nine months of 2026 from $2.74 in the first nine months of 2025.

Note: Tables may not sum due to rounding.

(2) The impact of non-GAAP adjustments on diluted earnings per share may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Restructuring and Related Implementation Charges

Strategic Growth and Productivity Program

On July 31, 2025, the Board approved the Strategic Growth and Productivity Program. The program includes initiatives to better align the Company’s organizational structure to support its strategic initiatives, optimize the Company’s global supply chain to drive agility and efficiencies and simplify and streamline its organizational structure to reduce overhead costs.

On April 30, 2026, the Company’s Board approved an expansion of the program to continue to align the Company’s operations to drive future growth and support the Company’s 2030 strategy.

The Strategic Growth and Productivity Program is estimated to result in cumulative pre-tax charges, once all initiatives are approved and implemented, totaling between $350 and $550. These pre-tax charges are currently estimated to be comprised of the following: employee-related costs, including severance and other termination benefits (70% to 80%) and asset-related costs and other charges (20% to 30%), which include accelerated depreciation, asset write-downs, contract termination and other exit costs. It is estimated that approximately 80% to 90% of the charges will result in cash expenditures and substantially all charges resulting from the program will be incurred by December 31, 2028. Annualized pretax savings are projected to be in the range of $200 to $300, once all projects are approved and implemented.

It is estimated that the cumulative pre-tax charges, once all projects are approved and implemented, will relate to initiatives undertaken in North America (5% to 10%), Latin America (15% to 20%), EMEA (25% to 30%), Asia Pacific (10% to 15%), Hill’s Pet Nutrition (10% to 15%) and Corporate (20% to 25%).

For the three and nine months ended September 30, 2026, charges resulting from the Strategic Growth and Productivity Program are reflected in the income statement as follows:

Restructuring and related implementation charges are recorded in the Corporate segment as these initiatives are predominantly centrally directed and controlled and are not included in internal measures of segment operating performance.

Total charges incurred for the Strategic Growth and Productivity Program relate to initiatives undertaken by the following reportable operating segments and Corporate:

Since the inception of the Strategic Growth and Productivity Program, the Company has incurred cumulative pre-tax charges of $346 ($278 after-tax) in connection with the implementation of various projects as follows:

The following table summarizes the activity for the restructuring accrual:

Employee-Related Costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, written severance policies, local statutory requirements and, in certain cases, voluntary termination arrangements. Employee-Related Costs also include postretirement benefit enhancements of $1 and $6 for the three and nine months ended September 30, 2026, respectively. These amounts are reflected as Charges against assets and liabilities within Employee-Related Costs in the preceding tables as the corresponding balance sheet amounts are reflected as an increase in postretirement liabilities.

Non-GAAP Financial Measures

This Quarterly Report on Form 10-Q discusses certain financial measures on both a GAAP and a non-GAAP basis. The Company uses the non-GAAP financial measures described below internally in its budgeting process, to evaluate segment and overall operating performance and as a factor in determining compensation. The Company believes that these non-GAAP financial measures are useful in evaluating the Company’s underlying business performance and trends; however, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies.

Net sales growth (GAAP) and organic sales growth (Net sales growth excluding the impact of foreign exchange, acquisitions and divestments) (non-GAAP) are discussed in this Quarterly Report on Form 10-Q. Management believes the organic sales growth measure provides investors and analysts with useful supplemental information regarding the Company’s underlying sales trends by presenting sales growth excluding the external factor of foreign exchange, as well as the impact of acquisitions and divestments, as applicable. A reconciliation of organic sales growth to Net sales growth for the three and nine months ended September 30, 2026 is provided below.

Gross profit, Gross profit margin, Selling, general and administrative expenses, Selling, general and administrative expenses as a percentage of Net sales, Other (income) expense, net, Operating profit, Operating profit margin, Non-service related postretirement costs, Effective income tax rate, Net income attributable to Colgate-Palmolive Company and Earnings per share on a diluted basis are discussed in this Quarterly Report on Form 10-Q both on a GAAP basis and excluding, as applicable, charges resulting from the Strategic Growth and Productivity Program and the ERISA litigation matter and acquisition-related costs. These non-GAAP financial measures exclude items that, either by their nature or amount, management would not expect to occur as part of the Company’s normal business on a regular basis, such as restructuring charges, charges for certain litigation and tax matters, acquisition-related costs, gains and losses from certain divestitures and certain other unusual, non-recurring items. Investors and analysts use these financial measures in assessing the Company’s business performance, and management believes that presenting these financial measures on a non-GAAP basis provides them with useful supplemental information to enhance their understanding of the Company’s underlying business performance and trends. These non-GAAP financial measures also enhance the ability to compare period-to-period financial results. A reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures for the three and nine months ended September 30, 2026 and 2025 is presented within the applicable section of Results of Operations.

The following tables provide a quantitative reconciliation of Net sales growth to organic sales growth for the three and nine months ended September 30, 2026:

(1)The Company has recast its historical geographic segment information to conform to the reporting structure effective for the quarter ended March 31, 2026.

(1)The Company has recast its historical geographic segment information to conform to the reporting structure effective for the quarter ended March 31, 2026.

Liquidity and Capital Resources

The Company expects cash flow from operations and debt issuances will be sufficient to meet foreseeable business operating and recurring cash needs (including for debt service, dividends, capital expenditures, share repurchases and acquisitions). The Company believes its strong cash generation and financial position should continue to allow it broad access to global credit and capital markets.

Cash Flow

Net cash provided by operations increased 6% to $2,913 in the first nine months of 2026, compared to $2,745 in the first nine months of 2025, primarily due to higher net income, excluding non-cash items in the period, and changes in working capital. The Company’s working capital was (6.3%) as a percentage of Net sales as of September 30, 2026 as compared to (4.0%) as of September 30, 2025. The Company defines working capital as the difference between current assets (excluding Cash and cash equivalents and marketable securities, the latter of which is reported in Other current assets) and current liabilities (excluding short-term debt).

Investing activities used $381 of cash in the first nine months of 2026, compared to $714 used in the first nine months of 2025. Investing activities in the first nine months of 2025 included the Company’s acquisition of Care TopCo Pty Ltd, the owner of the Prime100 pet food business, as discussed in Note 4, Acquisitions to the Condensed Consolidated Financial Statements.

Capital expenditures were $400 in the first nine months of 2026 compared to $387 in the first nine months of 2025. Capital expenditures for 2026 are expected to be approximately 3.0% of Net sales. The Company continues to focus its capital spending on projects that are expected to yield high after-tax returns.

Financing activities used $2,272 of cash during the first nine months of 2026, compared to $1,895 used in the first nine months of 2025. The increase in cash used in financing activities was primarily due to higher principal payments of debt and share repurchases in the first nine months of 2026 and the receipt of proceeds from the issuance of debt in the first nine months of 2025, partially offset by an increase in short-term borrowing in the first nine months of 2026.

Total debt decreased to $7,716 as of September 30, 2026, compared to $7,988 as of December 31, 2025. During the second quarter of 2025, the Company redeemed at maturity $130 of 30-year Medium-Term Notes with a fixed coupon of 7.60%. During the third quarter of 2025, the Company redeemed at maturity $500 of three-year Senior Notes with a fixed coupon of 3.10%. During the first quarter of 2026, the Company redeemed at maturity $500 of three-year Senior Notes with a fixed coupon of 4.800% and €500 of seven-year Medium-Term Notes with a fixed coupon rate of 0.500%. The redemptions were financed with commercial paper borrowings.

In April 2025, the Company issued $500 of five-year Senior Notes at a fixed coupon rate of 4.200%. The Company’s debt issuances support the Company’s capital structure objectives of funding its business and growth initiatives while minimizing its risk-adjusted cost of capital.

Domestic and foreign commercial paper outstanding was $1,037 and $147 as of September 30, 2026 and December 31, 2025, respectively. The average daily balances outstanding for commercial paper in the first nine months of 2026 and 2025 were $1,405 and $1,733, respectively. The Company classifies commercial paper and certain long-term debt that is subject to a put option as long-term debt when it has the intent and ability to refinance such obligations on a long-term basis, including, if necessary, by utilizing its available lines of credit.

Certain of the agreements with respect to the Company’s bank borrowings contain financial and other covenants as well as cross-default provisions. Noncompliance with these requirements could ultimately result in the acceleration of amounts owed. The Company is in full compliance with all such requirements and believes the likelihood of noncompliance is remote. Refer to Note 6, Long Term Debt and Credit Facilities to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for further information about the Company’s long-term debt and credit facilities.

In the first quarter of 2026, the Company increased the quarterly common stock dividend to $0.53 per share from $0.52 per share previously, effective in the second quarter of 2026.

Cash and cash equivalents increased $239 during the first nine months of 2026 to $1,527 at September 30, 2026, compared to $1,288 at December 31, 2025, the majority of which ($1,515 and $1,234, respectively) was held by the Company’s foreign subsidiaries.

For additional information regarding liquidity and capital resources, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Market Share Information

Management uses market share information as a key indicator to monitor business health and performance. References to market share in this Quarterly Report on Form 10-Q are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. All market share references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company competes and purchases data (excluding Venezuela from all periods).

Market share data is subject to limitations on the availability of up-to-date information. In particular, market share data is currently not generally available for certain retail channels, such as eCommerce or certain discounters. The Company measures year-to-date market shares from January 1 of the relevant year through the most recent period for which market share data is available, which typically reflects a lag time of one or two months. The Company believes that the third-party vendors we use to provide data are reliable, but we have not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information calculated by the Company may be different from market share information calculated by other companies due to differences in category definitions, the use of data from different countries, internal estimates and other factors.

Cautionary Statement on Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995 or by the SEC in its rules, regulations and releases) that set forth anticipated results based on management’s current plans and assumptions. Such statements may relate, for example, to sales or volume growth, net selling price increases, organic sales growth, profit or profit margin levels, earnings per share levels, financial goals, category growth rates, the impact of foreign exchange, the impact of developments in global trade relations and tariffs, the impact of geopolitical events and tensions, wars and military conflicts, such as in Ukraine and the Middle East, cost-reduction plans (including the Strategic Growth and Productivity Program), tax rates, interest rates, new product introductions, digital capabilities, commercial investment levels, acquisitions, divestitures, share repurchases or legal or tax proceedings, among other matters. These statements are made on the basis of the Company’s views and assumptions as of October 30, 2026. The Company undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, except as required by law or by the rules and regulations of the SEC. Moreover, the Company does not, nor does any other person, assume responsibility for the accuracy and completeness of those statements. The Company cautions investors that any such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from those statements. Actual events or results may differ materially because of factors that affect international businesses and global macroeconomic and geopolitical conditions, as well as matters specific to the Company and the markets it serves, including the uncertain macroeconomic and political environment in different countries, including as a result of inflation and high interest rates and their effect on consumer sentiment and spending, foreign currency rate fluctuations, exchange controls, import restrictions, tariffs, sanctions, price or profit controls, labor relations, changes in foreign or domestic laws or regulations or their interpretation, political and fiscal developments, including developments in trade relations and the negotiation of trade agreements, tax and immigration policies, significant competition and a highly competitive omni-channel marketplace, including as a result of the growth of eCommerce and AI, a rapidly changing retail landscape and changes in the policies of retail trade customers, the ability to manage disruptions in our global supply chain and/or key office facilities, the ability to manage the availability and cost of raw and packaging materials and logistics costs, the ability to maintain or increase selling prices as needed, the emergence of alternative retail channels, the ability to develop innovative new products and successfully leverage AI and other new and emerging technologies, the ability to continue lowering costs and operate in an agile manner, the ability to successfully implement and realize the benefits of the Strategic Growth and Productivity Program, the ability to maintain the security of our information and operational technology systems from cybersecurity or data incidents, the ability to address the effects of climate change and implement our sustainability strategy and achieve our targets, the ability to complete acquisitions and divestitures as planned and successfully integrate acquired businesses, the ability to attract and retain key employees, the uncertainty of the outcome of legal proceedings, whether or not the Company believes they have merit, and the ability to address uncertain or unfavorable macroeconomic conditions, including inflation, disruptions in the credit markets and tax matters. For information about these and other factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, refer to the Company’s filings with the SEC (including, but not limited to, the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings with the SEC).