Clorox Company Q2 2026 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy CLX?
Source: seekingalpha
- Digital Transformation Progress: CEO Linda Rendle emphasized significant advancements in digital transformation and execution enhancements, with the planned acquisition of GOJO Industries seen as a crucial step to expand leadership in health and hygiene, expected to unlock long-term growth opportunities.
- Optimistic Financial Outlook: CFO Luc Bellet noted that despite temporary impacts from ERP implementation, Q2 shipments exceeded expectations, with a reversal anticipated in Q3; overall financial performance remains in line with expectations, reflecting the company's confidence in the future.
- Innovation-Driven Growth: Rendle stated that future innovations will focus on major brand launches, with significant impacts expected in the latter half of Q3 and early Q4, enhancing the company's competitive position in the market.
- Cost Savings Expectations: Bellet projected that cost savings in the back half will be higher than in the front half, with gross margins expected to expand, although a price mix headwind of about 1% for the full year indicates ongoing efforts to optimize operations are gradually showing results.
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Analyst Views on CLX
Wall Street analysts forecast CLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLX is 118.09 USD with a low forecast of 94.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 117.610
Low
94.00
Averages
118.09
High
152.00
Current: 117.610
Low
94.00
Averages
118.09
High
152.00
About CLX
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products. The Company operates through four segments: Health and Wellness, Household, Lifestyle, and International. Its Health and Wellness segment consists of cleaning, disinfecting and professional products marketed and sold under the Clorox, Clorox2, Pine-Sol, Scentiva, Tilex, Liquid-Plumr and Formula 409 brands in the United States. Its Household segment consists of bags and wraps, cat litter and grilling products marketed and sold under the Glad, Fresh Step and Scoop Away, and Kingsford brands in the United States. The lifestyle segment consists of food, water-filtration and natural personal care products marketed and sold under the Hidden Valley, Brita and Burt’s Bees brands. International consists of products sold outside the United States. Its products within this segment include laundry additives, home care products, bags and wraps, cat litter, water-filtration products and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Live Webcast Details: The presentation will be broadcast live at 2:00 PM ET (11:00 AM PT), allowing for broad audience participation and brand exposure through access on Clorox's official website.
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- Changing Competitive Landscape: With Alphabet's ongoing investments and successes in AI, YouTube's user base has grown to 750 million, and Waymo's self-driving business is outpacing Tesla, suggesting a strengthening competitive advantage that may attract more investor interest.
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- Food Industry Leader: General Mills (GIS) boasts annual sales exceeding $18 billion; despite challenges from consumers shifting to generic brands, its long dividend history and current valuation at just 12 times earnings make it an attractive buy with a consistent payout.
- Cleaning Products Leader: Clorox (CLX) is renowned for its bleach and cleaning products, recently acquiring Purell for $2.25 billion, and as a Dividend King with 50 consecutive years of dividend increases, it offers a 4.4% yield, appealing to income-focused investors.
- Market Environment Analysis: While the broader market remains near highs, increased volatility in tech stocks serves as a reminder for investors to diversify their portfolios, with steady consumer goods stocks providing effective risk mitigation, especially in the face of rising economic uncertainty.
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- Executive Attendance: Clorox's Chair and CEO Linda Rendle, along with CFO Luc Bellet, will speak at the CAGNY annual conference in Orlando, Florida, on February 19, 2026, showcasing the company's leadership in consumer analysis.
- Live Webcast Details: The presentation will be broadcast live at 2:00 PM ET (11:00 AM PT), allowing for broad audience participation and brand exposure through access on Clorox's official website.
- Replay Availability: Following the event, a replay of the webcast will be made available, further enhancing information dissemination and interaction with investors and consumers.
- Company Background: Founded in 1913, Clorox integrates sustainability into its operations and boasts a portfolio of trusted brands, including Brita, Burt's Bees, and Clorox, emphasizing its significance in consumers' daily lives.
See More
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- Portfolio Adjustment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its diversification in renewable energy, including hydro, solar, wind, and nuclear power, which is expected to drive future revenue growth.
- Attractive Yield: Brookfield Renewable Partners currently offers a high yield of 5%, and its partnerships with Microsoft and Google further enhance its market competitiveness, attracting more investor interest.
- Market Dynamics Response: Due to tightening consumer spending, I sold Hormel Foods and Clorox at the end of 2025 to offset gains elsewhere, but I reinvested in both stocks in early 2026, reflecting confidence in their long-term growth potential.
- Growth Potential: Hormel Foods and Clorox offer yields of 4.7% and 4.5%, respectively, and both companies have a history of dividend growth, with expectations that new leadership and the acquisition of Gojo will help them return to growth trajectories.
See More
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- Renewable Energy Investment: In the second half of 2025, I increased my investment in Brookfield Renewable Partners due to its presence in hydroelectric, solar, wind, and nuclear energy sectors, with partnerships with Microsoft and Google providing strong growth potential.
- Dividend Appeal: Brookfield Renewable offers a 5% dividend yield, making it an attractive option for investors, especially as global demand for renewable energy continues to rise, likely enhancing its market position.
- Consumer Goods Market Dynamics: With a shift towards healthier eating impacting the consumer staples sector negatively, I sold Hormel Foods and Clorox in late 2025 to realize losses, but I increased my positions in both stocks in early 2026, reflecting confidence in their growth potential.
- Growth Potential: Hormel Foods' new CEO and restructuring efforts are expected to drive a return to growth, while Clorox's planned acquisition of Gojo, a leading hand sanitizer company, is anticipated to strengthen its market competitiveness and enhance shareholder returns.
See More
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- Earnings Highlights: Clorox reported an adjusted EPS of $1.39 for Q2, missing the analyst consensus of $1.43, although sales reached $1.673 billion, exceeding expectations of $1.64 billion, indicating resilience in revenue generation.
- Sales Decline: Net sales fell 1% year-over-year, primarily due to reduced consumption, despite a 2% increase in the Health and Wellness segment, demonstrating ongoing demand in that area.
- Margin Pressure: Gross margin decreased by 60 basis points to 43.2% year-over-year, driven by rising manufacturing and logistics costs, reflecting challenges in cost management for the company.
- Outlook Reaffirmed: Clorox reaffirmed its fiscal 2026 adjusted EPS guidance at $5.95 to $6.30, although a temporary inventory issue is expected to reduce sales growth by 7.5 percentage points, showcasing the company's ability to navigate uncertainties in the market.
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