Colgate-Palmolive Company Announces 4th Quarter and Full Year 2025 Results

NEW YORK--( BUSINESS WIRE)--Colgate-Palmolive Company (NYSE:CL):

Full Year

Full Year Total Company Results (GAAP)

($ in millions except per share amounts)

2025

2024

Change

Net Sales

$20,382

$20,101

+1.4%

EPS (diluted)

$2.63

$3.51

-25%

Full Year Total Company Results (Base Business - Non-GAAP)*

($ in millions except per share amounts)

2025

2024

Change

Organic Sales Growth

+1.4%

Base Business EPS (diluted)

$3.69

$3.60

+3%

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 7 - Geographic Sales Analysis Percentage Changes” and “Table 9 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Fourth Quarter

Fourth Quarter Total Company Results (GAAP)

($ in millions except per share amounts)

2025

2024

Change

Net Sales

$5,230

$4,944

+5.8%

EPS (diluted)

$(0.05)

$0.90

-106%

Fourth Quarter Total Company Results (Base Business - Non-GAAP)*

($ in millions except per share amounts)

2025

2024

Change

Organic Sales Growth

+2.2%

Base Business EPS (diluted)

$0.95

$0.91

+4%

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” and “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Colgate-Palmolive Company (NYSE:CL) today reported results for fourth quarter and full year 2025. Noel Wallace, Chairman, President and Chief Executive Officer, commented on the Base Business fourth quarter and full year results, “We are pleased to have exited 2025 with accelerated growth momentum on both the top and bottom lines, even in the face of sluggish category growth in many markets. Net sales and organic sales grew in every category during the quarter, led by strength in oral care and pet nutrition, excluding private label.

"Our 2025 performance highlights the resilience of our business model and the strength of our brands. Through the successful execution of our 2025 strategy, we have grown our company significantly over the last five years despite many challenges. Our new 2030 strategy builds on that success. We have laid out a clear path to accelerate our growth going forward with a focus on leveraging the global reach and penetration of our brands, building the incremental benefit of superior, science-based innovation, harnessing the power of best-in-class omni-channel demand generation, leading in capabilities like data, analytics and AI and evolving our high-impact, inclusive culture.

"As we begin 2026, while we expect the difficult operating environment and slower category growth to continue in the short term, we are operating from a position of strength and are confident that the changes we are making will enable us to deliver consistent, compounded earnings per share growth and drive shareholder value in the long term.”

Goodwill and Intangible Assets Impairment

During the fourth quarter, the Company took a non-cash, after-tax charge of $794 million to adjust the carrying values of goodwill and intangible assets related to the skin health business. Given lower than expected category growth rates and weaker than expected performance, particularly in China, the Company has lowered its outlook for the skin health business, primarily Filorga. The Company is taking the appropriate actions to improve performance and continues to believe in the growth prospects of the business.

Full Year 2026 Guidance

Based on current spot rates and including the estimated impact of tariffs announced and finalized as of January 28, 2026:

Divisional Performance

The following are comments about divisional performance for fourth quarter 2025 versus the year ago period. See attached "Table 6 - Geographic Sales Analysis Percentage Changes" and "Table 5 - Segment Information" for additional information on net sales and operating profit by division.

Fourth Quarter Sales Growth By Division

(% change 4Q 2025 vs. 4Q 2024)

% of Total

Company

Sales

Net

Sales

Organic

Sales*

As Reported

Volume**

Pricing

North America

19%

-1.5%

-1.8%

-2.3%

+0.5%

+0.3%

Latin America

24%

+12.8%

+6.5%

+2.3%

+4.2%

+6.3%

Europe

14%

+9.8%

+1.8%

+0.8%

+1.0%

+8.1%

Asia Pacific

14%

-0.3%

+0.1%

-2.2%

+2.3%

-0.4%

Africa/Eurasia

+15.0%

+10.3%

+1.1%

+9.1%

+4.7%

Hill's Pet Nutrition

23%

+4.9%

+1.5%

+0.3%

+3.0%

+1.6%

Total Company

100%

+5.8%

+2.2%

—%

+2.7%

+3.1%

Note: Table may not sum due to rounding.

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 6 - Geographic Sales Analysis Percentage Changes” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

**The impact of the acquisition of the Prime100 pet food business on as reported volume was 1.8% and 0.5% for Hill's Pet Nutrition and Total Company, respectively.

Fourth Quarter Operating Profit By Division

($ in millions)

4Q 2025

% Change vs

4Q 2024

% to Net Sales

Change in basis

points vs 4Q 2024

% to Net Sales

North America

$203

-1%

19.9%

—

Latin America

$360

28.8%

-180

Europe

$183

17%

24.9%

+160

Asia Pacific

$188

-11%

26.0%

-310

Africa/Eurasia

$65

13%

21.1%

-40

Hill's Pet Nutrition

$286

23.9%

-20

Total Company, As Reported

$92

-91%

1.8%

Total Company, Base Business*

$1,108

21.2%

-50

NM - Not meaningful

*Indicates a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” later in this release for definitions of non-GAAP financial measures and to “Table 8 - Non-GAAP Reconciliations” included with this release for a reconciliation of these non-GAAP financial measures to the related GAAP measures.

Prepared Materials and Webcast Information

At approximately 7:00 a.m. ET today, the Company will post its prepared materials regarding fourth quarter and full year 2025 results to the Investor Center section of its website at https://investor.colgatepalmolive.com/events-and-presentations.

At 8:30 a.m. ET today, the Company will host a conference call regarding fourth quarter and full year 2025 results. To access this call as a webcast, please go to Colgate-Palmolive’s website at www.colgatepalmolive.com.

About Colgate-Palmolive

Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, Ajax, Axion, Darlie, elmex, EltaMD, Fabuloso, Filorga, hello, Hill’s Prescription Diet, Hill’s Science Diet, Irish Spring, Lady Speed Stick, meridol, PCA SKIN, Prime100, Protex, Sanex, Softsoap, Sorriso, Soupline, Speed Stick, Suavitel and Tom’s of Maine. We are recognized for our leadership and innovation in promoting sustainability and community wellbeing, including our achievements in decreasing plastic waste and promoting recyclability, saving water and improving children’s oral health through our Colgate Bright Smiles, Bright Futures program, which has reached approximately two billion children and their families since 1991. For more information about Colgate-Palmolive and how we make more smiles, visit www.colgatepalmolive.com. CL-E

The Company's annual meeting of stockholders is currently scheduled for Friday, May 8, 2026.

Market Share Information

Management uses market share information as a key indicator to monitor business health and performance. References to market share in this press release are based on a combination of consumption and market share data provided by third-party vendors, primarily Nielsen, and internal estimates. Except as otherwise noted, 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 and certain club retailers and 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 it uses to provide data are reliable, but it has not verified the accuracy or completeness of the data or any assumptions underlying the data. In addition, market share information reported by the Company may be different from market share information reported 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 press release and the related prepared materials and webcast may contain forward-looking statements (as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission (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, the Middle East and Venezuela, 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, except as otherwise noted with respect to tariffs, on the basis of the Company’s views and assumptions as of January 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 these 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. For more information about factors that could impact the Company’s business and cause actual results to differ materially from forward-looking statements, investors should 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, 2024 and subsequent filings with the SEC). Copies of these filings may be obtained upon request from the Company’s Investor Relations Department or on the Company’s website at www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides definitions and other information regarding the non-GAAP financial measures used in this press release and the related prepared materials and webcast, which may not be the same as or comparable to similar measures presented by other companies:

This press release and the related prepared materials and webcast discuss Net sales growth (GAAP) and Organic sales growth (non-GAAP). 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 from acquisitions and divestments. See “Geographic Sales Analysis Percentage Changes” for the three and twelve months ended December 31, 2025 versus 2024 included with this release for a comparison of Organic sales growth to Net sales growth in accordance with GAAP.

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 Diluted earnings per common share are disclosed on both an as reported (GAAP) and Base Business (non-GAAP) basis. 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. See “Non-GAAP Reconciliations” for the three and twelve months ended December 31, 2025 and 2024 included with this release for a reconciliation of these financial measures to the related GAAP measures.

The Company uses these financial measures internally in its budgeting process, to evaluate segment and overall operating performance and as factors in determining compensation. While the Company believes that these financial measures are useful in evaluating the Company’s underlying business performance and trends, 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.

As management uses free cash flow before dividends to evaluate the Company’s ability to satisfy current and future obligations, pay dividends, fund future business opportunities and repurchase stock, the Company believes that it provides useful information to investors. Free cash flow before dividends is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. See “Condensed Consolidated Statements of Cash Flows” for the twelve months ended December 31, 2025 and 2024 for a comparison of free cash flow before dividends to Net cash provided by operations as reported in accordance with GAAP.

(See attached tables for fourth quarter and full year results.)

Table 1

Colgate-Palmolive Company

Condensed Consolidated Statements of Income

For the Three Months Ended December 31, 2025 and 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2025

2024

Net sales

5,230

4,944

Cost of sales

2,084

1,962

Gross profit

3,146

2,982

Gross profit margin

60.2

60.3

Selling, general and administrative expenses

2,069

1,895

Other (income) expense, net

Goodwill and intangible assets impairment charges

919

—

Operating profit

1,064

Operating profit margin

1.8

21.5

Non-service related postretirement costs

(61

)

Interest expense

Interest income

Income before income taxes

107

994

Provision for income taxes

112

215

Effective tax rate

104.7

21.6

Net income (loss) including noncontrolling interests

)

779

Less: Net income attributable to noncontrolling interests

Net income (loss) attributable to Colgate-Palmolive Company

(37

)

739

Earnings (loss) per common share

Basic

(0.05

)

0.91

Diluted (1)

(0.05

)

0.90

Supplemental Income Statement Information

Average common shares outstanding

Basic

804.7

816.0

Diluted (1)

804.7

819.7

Advertising

682

648

Note:

(1) The computation for diluted (loss) per common share for the three months ended December 31, 2025 excludes 1.3 million of incremental common shares outstanding during the period as they are anti-dilutive.

Table 2

Colgate-Palmolive Company

Condensed Consolidated Statements of Income

For the Twelve Months Ended December 31, 2025 and 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2025

2024

Net sales

20,382

20,101

Cost of sales

8,131

7,940

Gross profit

12,251

12,161

Gross profit margin

60.1

60.5

Selling, general and administrative expenses

7,903

7,729

Other (income) expense, net

123

164

Goodwill and intangible assets impairment charges

919

—

Operating profit

3,306

4,268

Operating profit margin

16.2

21.2

Non-service related postretirement costs

Interest expense

267

292

Interest income

Income before income taxes

3,059

3,956

Provision for income taxes

798

907

Effective tax rate

26.1

22.9

Net income including noncontrolling interests

2,261

3,049

Less: Net income attributable to noncontrolling interests

129

160

Net income attributable to Colgate-Palmolive Company

2,132

2,889

Earnings per common share

Basic (1)

2.64

3.53

Diluted (1)

2.63

3.51

Supplemental Income Statement Information

Average common shares outstanding

Basic

808.7

819.1

Diluted

811.1

823.2

Advertising

2,703

2,720

Note:

(1) Basic and diluted earnings per share are computed independently for each quarter and any year-to-date period presented. As a result of changes in shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to-date period.

Table 3

Colgate-Palmolive Company

Condensed Consolidated Balance Sheets

As of December 31, 2025 and December 31, 2024

(Dollars in Millions) (Unaudited)

2025

2024

Cash and cash equivalents

1,288

1,096

Receivables, net

1,675

1,521

Inventories

2,032

1,987

Other current assets

714

713

Property, plant and equipment, net

4,660

4,422

Goodwill

3,122

3,272

Other intangible assets, net

1,536

1,756

Other assets

1,303

1,279

Total assets

16,330

16,046

Total debt

7,988

7,949

Other current liabilities

5,736

5,099

Other non-current liabilities

2,241

2,454

Total liabilities

15,965

15,502

Total Colgate-Palmolive Company shareholders’ equity

212

Noncontrolling interests

311

332

Total liabilities and equity

16,330

16,046

Supplemental Balance Sheet Information

Debt less cash, cash equivalents and marketable securities (1)

6,593

6,693

Working capital % of sales

(7.0

(5.2

Note:

(1) Marketable securities of $107 and $160 as of December 31, 2025 and 2024, respectively, are included in Other current assets.

Table 4

Colgate-Palmolive Company

Condensed Consolidated Statements of Cash Flows

For the Twelve Months Ended December 31, 2025 and 2024

(Dollars in Millions) (Unaudited)

2025

2024

Operating Activities

Net income including noncontrolling interests

2,261

3,049

Adjustments to reconcile Net income including noncontrolling interests to Net cash provided by operations:

Depreciation and amortization

630

605

ERISA litigation matter

—

Restructuring and termination benefits, net of cash

)

Stock-based compensation expense

155

135

Goodwill and intangible assets impairment charges

919

—

Deferred income taxes

(109

)

(77

)

Cash effects of changes in:

Receivables

(16

)

(56

)

Inventories

109

(100

)

Accounts payable and other accruals

251

516

Other non-current assets and liabilities

(60

)

(16

)

Net cash provided by operations

4,198

4,107

Investing Activities

Capital expenditures

(564

)

(561

)

Purchases of marketable securities and investments

(698

)

(574

)

Proceeds from sale of marketable securities and investments

752

564

Payment for acquisition, net of cash acquired

(293

)

—

Other investing activities

(14

)

Net cash used in investing activities

(817

)

(534

)

Financing Activities

Short-term borrowing (repayment) less than 90 days, net

(989

)

Principal payments on debt

(655

)

(503

)

Proceeds from issuance of debt

1,188

Dividends paid

(1,823

)

(1,789

)

Purchases of treasury shares

(1,210

)

(1,739

)

Proceeds from exercise of stock options

101

638

Other financing activities

132

(91

)

Net cash used in financing activities

(3,256

)

(3,389

)

Effect of exchange rate changes on Cash and cash equivalents

(54

)

Net increase (decrease) in Cash and cash equivalents

192

130

Cash and cash equivalents at beginning of the period

1,096

966

Cash and cash equivalents at end of the period

1,288

1,096

Supplemental Cash Flow Information

Free cash flow before dividends (Net cash provided by operations less Capital expenditures)

Net cash provided by operations

4,198

4,107

Less: Capital expenditures

(564

)

(561

)

Free cash flow before dividends

3,634

3,546

Income taxes paid

913

933

Interest paid

270

302

Table 5

Colgate-Palmolive Company

Segment Information

For the Three and Twelve Months Ended December 31, 2025 and 2024

(Dollars in Millions) (Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Net Sales

Oral, Personal and Home Care

North America

1,021

1,036

4,045

4,113

Latin America

1,248

1,106

4,776

4,782

Europe

734

668

2,962

2,770

Asia Pacific

722

724

2,814

2,858

Africa/Eurasia

309

269

1,172

1,095

Total Oral, Personal and Home Care

4,034

3,804

15,769

15,618

Pet Nutrition

1,196

1,140

4,613

4,483

Total Net Sales

5,230

4,944

20,382

20,101

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Operating Profit

Oral, Personal and Home Care

North America

203

206

784

839

Latin America

360

339

1,411

1,526

Europe

183

155

748

658

Asia Pacific

188

211

760

812

Africa/Eurasia

255

253

Total Oral, Personal and Home Care

999

969

3,959

4,088

Pet Nutrition

286

275

1,064

965

Corporate (1)

(1,194

)

(179

)

(1,717

)

(784

)

Total Operating Profit

1,064

3,306

4,268

Notes: Tables may not sum due to rounding.

(1) Corporate operations include costs related to stock options and restricted stock units, research and development costs, Corporate overhead costs, restructuring and related implementation charges and gains and losses on sales of non-core product lines and assets.

Corporate Operating profit (loss) for the three months ended December 31, 2025 included goodwill and intangible assets impairment charges of $919 and charges resulting from the ERISA litigation matter and the Strategic Growth and Productivity Program of $84 and $13, respectively.

Corporate Operating profit (loss) for the three months ended December 31, 2024 included charges resulting from the 2022 Global Productivity Initiative of $7.

Corporate Operating profit (loss) for the twelve months ended December 31, 2025 included goodwill and intangible assets impairment charges of $919, charges resulting from the ERISA litigation matter and the Strategic Growth and Productivity Program of $99 and $13, respectively, and acquisition-related costs of $9.

Corporate Operating profit (loss) for the twelve months ended December 31, 2024 included charges resulting from the 2022 Global Productivity Initiative of $85.

Table 6

Colgate-Palmolive Company

Geographic Sales Analysis Percentage Changes

For the Three Months Ended December 31, 2025 vs. 2024

(Unaudited)

COMPONENTS OF SALES CHANGE

Pricing

Coupons

Sales

Consumer &

Change

Organic

As Reported

Organic

Trade

Foreign

Region

As Reported

Sales Change

Volume (1)

Volume

Incentives

Exchange

Total Company

5.8

2.2

—

(0.5

2.7

3.1

North America

(1.5

(1.8

(2.3

0.5

0.3

Latin America

12.8

6.5

2.3

4.2

6.3

Europe

9.8

1.8

0.8

1.0

8.1

Asia Pacific

(0.3

0.1

(2.2

2.3

(0.4

Africa/Eurasia

15.0

10.3

1.1

9.1

4.7

Total CP Products

6.0

2.5

(0.1

2.6

3.6

Hill’s Pet Nutrition

4.9

1.5

0.3

(1.5

3.0

1.6

Emerging Markets (2)

8.7

4.5

0.3

4.2

4.3

Developed Markets

3.5

0.5

(0.3

(1.0

1.5

2.2

Notes: Table may not sum due to rounding.

(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.5%, 1.8%, and 0.7% for Total Company, Hill's Pet Nutrition and Developed Markets, respectively.

(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 7

Colgate-Palmolive Company

Geographic Sales Analysis Percentage Changes

For the Twelve Months Ended December 31, 2025 vs. 2024

(Unaudited)

COMPONENTS OF SALES CHANGE

Pricing

Coupons

Sales

Consumer &

Change

Organic

As Reported

Organic

Trade

Foreign

Region

As Reported

Sales Change

Volume (1)

Volume

Incentives

Exchange

Total Company

1.4

(0.4

(0.7

2.1

(0.3

North America

(1.6

(1.4

(0.2

(0.1

Latin America

(0.1

3.9

0.9

2.9

(4.0

Europe

6.9

2.6

1.1

1.5

4.4

Asia Pacific

(1.5

(1.0

(2.7

1.7

(0.5

Africa/Eurasia

7.0

6.5

0.5

6.0

0.5

Total CP Products

1.0

1.5

(0.3

1.8

(0.5

Hill’s Pet Nutrition

2.9

1.2

(0.6

(1.7

3.0

0.5

Emerging Markets (2)

0.6

2.5

(0.5

2.9

(1.9

Developed Markets

2.0

0.6

(0.4

(0.8

1.4

1.0

Notes: Table may not sum due to rounding.

(1) The impact of the acquisition of the Prime100 pet food business on as reported volume was 0.3%, 1.1% and 0.4% for Total Company, Hill's Pet Nutrition and Developed Markets, respectively.

(2) Emerging Markets include Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

Table 8

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Three Months Ended December 31, 2025 and 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

Gross Profit

2025

2024

Gross profit, GAAP

3,146

2,982

Restructuring programs (1)

—

Gross profit, non-GAAP

3,146

2,983

Selling, General and Administrative Expenses

2025

2024

Selling, general and administrative expenses, GAAP

2,069

1,895

ERISA litigation matter

(84

)

—

Restructuring programs (1)

)

Selling, general and administrative expenses, non-GAAP

1,980

1,894

Basis Point

Selling, General and Administrative Expenses as a Percentage of Net Sales

2025

2024

Change

Selling, general and administrative expenses as a percentage of Net sales, GAAP

39.6

38.3

130

ERISA litigation matter

(1.6

—

Restructuring programs (1)

(0.1

—

Selling, general and administrative expenses as a percentage of Net sales, non-GAAP

37.9

38.3

(40

)

Other (Income) Expense, Net

2025

2024

Other (income) expense, net, GAAP

Restructuring programs (1)

)

Other (income) expense, net, non-GAAP

Operating Profit

2025

2024

% Change

Operating profit, GAAP

1,064

(91

Goodwill and intangible assets impairment charges

919

—

ERISA litigation matter

—

Restructuring programs (1)

Operating profit, non-GAAP

1,108

1,071

Basis Point

Operating Profit Margin

2025

2024

Change

Operating profit margin, GAAP

1.8

21.5

Goodwill and intangible assets impairment charges

17.6

—

ERISA litigation matter

1.6

—

Restructuring programs (1)

0.2

Operating profit margin, non-GAAP

21.2

21.7

(50

)

Non-Service Related Postretirement Costs

2025

2024

Non-service related postretirement costs, GAAP

(61

)

ERISA litigation matter

—

Non-service related postretirement costs, non-GAAP

NM - Not meaningful

Table 8

Continued

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Three Months Ended December 31, 2025 vs. 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2025

Income Before

Income Taxes

Provision

For Income

Taxes (2)

Net Income

(Loss)

Including

Noncontrolling

Interests

Less: Income

Attributable to

Noncontrolling

Interests

Net Income

(Loss)

Attributable

Colgate-

Palmolive

Company

Effective

Income

Tax Rate (3)

Diluted

Earnings

(Loss)

Per Share

As Reported GAAP

107

112

)

(37

)

104.7

(0.05

)

Goodwill and intangible assets

impairment charges

919

125

794

—

794

(81.7

0.99

Restructuring programs (1)

—

(0.1

0.01

Non-GAAP

1,038

238

800

768

22.9

0.95

2024

Income Before

Income Taxes

Provision

For Income

Taxes (2)

Net Income

Including

Noncontrolling

Interests

Less: Income

Attributable to

Noncontrolling

Interests

Net Income

Attributable

Colgate-

Palmolive

Company

Effective

Income

Tax Rate (3)

Diluted

Earnings

Per Share

As Reported GAAP

994

215

779

739

21.6

0.90

Restructuring programs (1)

—

0.01

Non-GAAP

1,001

216

785

745

21.6

0.91

The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Notes:

(1) The restructuring program charges relate to the Strategic Growth and Productivity Program in 2025 and the 2022 Global Productivity Initiative in 2024.

(2) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

(3) 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.

Table 9

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Twelve Months Ended December 31, 2025 vs. 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

Gross Profit

2025

2024

Gross profit, GAAP

12,251

12,161

Restructuring programs (1)

—

Gross profit, non-GAAP

12,251

12,181

Basis Point

Gross Profit Margin

2025

2024

Change

Gross profit margin, GAAP

60.1

60.5

(40

)

Restructuring programs (1)

—

0.1

Gross profit margin, non-GAAP

60.1

60.6

(50

)

Selling, General and Administrative Expenses

2025

2024

Selling, general and administrative expenses, GAAP

7,903

7,729

ERISA litigation matter

(99

)

—

Restructuring programs (1)

)

Selling, general and administrative expenses, non-GAAP

7,797

7,723

Basis Point

Selling, General and Administrative Expenses as a Percentage of Net Sales

2025

2024

Change

Selling, general and administrative expenses as a percentage of Net sales, GAAP

38.8

38.5

ERISA litigation matter

(0.5

—

Restructuring programs (1)

—

(0.1

Selling, general and administrative expenses as a percentage of Net sales, non-GAAP

38.3

38.4

(10

)

Other (Income) Expense, Net

2025

2024

Other (income) expense, net, GAAP

123

164

Acquisition-related costs

)

—

Restructuring programs (1)

)

(59

)

Other (income) expense, net, non-GAAP

107

105

Operating Profit

2025

2024

% Change

Operating profit, GAAP

3,306

4,268

(23

Goodwill and intangible assets impairment charges

919

—

ERISA litigation matter

—

Restructuring programs (1)

Acquisition-related costs

—

Operating profit, non-GAAP

4,347

4,353

—

Basis Point

Operating Profit Margin

2025

2024

Change

Operating profit margin, GAAP

16.2

21.2

(500

)

Goodwill and intangible assets impairment charges

4.5

—

ERISA litigation matter

0.5

—

Restructuring programs (1)

0.1

0.5

Acquisition-related costs

—

Operating profit margin, non-GAAP

21.3

21.7

(40

)

Non-Service Related Postretirement Costs

2025

2024

Non-service related postretirement costs, GAAP

ERISA litigation matter

—

Non-service related postretirement costs, non-GAAP

Note: The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Table 9

Continued

Colgate-Palmolive Company

Non-GAAP Reconciliations

For the Twelve Months Ended December 31, 2025 vs. 2024

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2025

Income

Before

Income Taxes

Provision

For Income

Taxes (2)

Net Income

Including

Noncontrolling

Interests

Less: Income

Attributable to

Noncontrolling

Interests

Net Income

Attributable

Colgate-

Palmolive

Company

Effective

Income

Tax Rate (3)

Diluted

Earnings

Per Share

As Reported GAAP

3,059

798

2,261

129

2,132

26.1

2.63

Goodwill and intangible assets

impairment charges

919

125

794

—

794

(2.9

0.98

ERISA litigation matter

—

(0.1

0.06

Restructuring programs (1)

—

0.01

Acquisition-related costs

—

0.01

Non-GAAP

4,065

940

3,125

129

2,996

23.1

3.69

2024

Income

Before

Income Taxes

Provision

For Income

Taxes (2)

Net Income

Including

Noncontrolling

Interests

Less: Income

Attributable to

Noncontrolling

Interests

Net Income

Attributable

Colgate-

Palmolive

Company

Effective

Income

Tax Rate (3)

Diluted

Earnings

Per Share

As Reported GAAP

3,956

907

3,049

160

2,889

22.9

3.51

Restructuring programs (1)

—

(0.2

0.09

Non-GAAP

4,041

919

3,122

160

2,962

22.7

3.60

The impact of non-GAAP adjustments may not necessarily equal the difference between “GAAP” and “non-GAAP” as a result of rounding.

Notes:

(1) The restructuring program charges relate to the Strategic Growth and Productivity Program in 2025 and the 2022 Global Productivity Initiative in 2024.

(2) The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.