Clorox Reports Q2 Fiscal Year 2026 Results, Confirms Outlook

OAKLAND, Calif., Feb. 3, 2026 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the second quarter of fiscal year 2026, which ended December 31, 2025.

Second-Quarter Fiscal Year 2026 Summary

Following is a summary of key results for the second quarter. All comparisons are with the second quarter of fiscal year 2025 unless otherwise stated.

"Our second‑quarter results were generally in line with our expectations and reflect continued progress against our strategic priorities. These results support our ability to reaffirm our fiscal year outlook in what remains a challenging and volatile environment," said Chair and CEO Linda Rendle. "We remain laser-focused on executing our back-half plans, supported by a strong slate of innovation and investments. At the same time, we are advancing our transformation and are excited to expand our leadership position in health and hygiene through our recently announced acquisition of GOJO Industries. We are well positioned to deliver more consistent, profitable growth and long-term shareholder value."

This press release includes certain non-GAAP financial measures. See "Non-GAAP Financial Information" at the end of this press release for more details.

1Organic sales growth / (decrease) and adjusted EPS are non-GAAP measures. See Non-GAAP Financial Information at the end of this press release for reconciliations to the most comparable GAAP measures.

Strategic and Operational Highlights

The following are recent strategic and operational highlights:

Key Segment Results

The following is a summary of key second-quarter results by reportable segment. All comparisons are with the second quarter of fiscal year 2025 unless otherwise stated.

Health and Wellness (Cleaning; Professional Products)

Household (Bags and Wraps; Cat Litter; Grilling)

Lifestyle (Food; Water Filtration; Natural Personal Care)

International (Sales Outside the U.S.)

2 Adjusted EBIT is a non-GAAP measure. See Non-GAAP Financial Information at the end of this press release for reconciliations to the most comparable GAAP measures.

Fiscal Year 2026 Outlook

The company is maintaining its full-year outlook for net sales, gross margin and adjusted EPS. The impact of the order fulfillment challenges experienced earlier in the year, which led to consumption and market share losses, keeps the company's current expectations in the lower end of the range. This outlook does not include the impact from the company's acquisition of GOJO Industries, which is currently expected to close before the end of fiscal year 2026.

The most significant driver of the company's fiscal year 2026 outlook is a transitory one. The company shipped about two weeks of inventory ahead of consumption at the end of the fourth-quarter of fiscal year 2025 as retailers built inventory in advance of its ERP transition. The company expected retailers to draw down on these inventories in the first quarter of this fiscal year, resulting in year-over-year shipments decline. From a year-over-year sales growth perspective, the reduction in sales from this inventory draw down translates to about 7.5 points of decline in fiscal year 2026 as compared to the higher base in fiscal year 2025. Inventory draw down is expected to reduce fiscal year 2026 earnings per share by about 90 cents. In comparison to the higher base in fiscal year 2025, this results in a year-over-year reduction of about 30% to fiscal year 2026 diluted earnings per share and about 23% to fiscal year 2026 adjusted earnings per share.

The company is confirming the following elements of its fiscal year 2026 outlook:

Net sales (percentage change versus the year ago period)

Fiscal year 2025 full year

Fiscal year 2026 full year outlook

Impact

Low

High

Net sales growth / (decrease) (GAAP)

0 %

(10) %

(6) %

Add: Foreign Exchange

—

Add/(Subtract): Divestitures/acquisitions

Organic sales growth / (decrease) (non-GAAP)

5 %

(9) %

(5) %

Note: Approximate impact from incremental shipments related to

ERP transition

3.5 %

(7.5) %

Diluted earnings per share

Fiscal year 2025 full year

Fiscal year 2026 full year outlook

Impact

Low

High

As estimated (GAAP)

$ 6.52

$ 5.60

$ 5.95

Loss on divestiture

0.94

—

Cyberattack costs, net of insurance recoveries

(0.42)

—

Digital capabilities and productivity enhancements investment

0.68

0.35

As adjusted (non-GAAP)

$ 7.72

$ 5.95

$ 6.30

Note: Approximate impact from incremental shipments related to

ERP transition

$ 0.90

$ (0.90)

Clorox Earnings Conference Call Schedule

At approximately 4:15 p.m. ET today, Clorox will post prepared management remarks regarding its second quarter fiscal year 2026 results.

At 5 p.m. ET today, the company will host a live Q&A audio webcast with Chair and CEO Linda Rendle and Chief Financial Officer Luc Bellet to discuss the results.

Links to the live (and archived) webcast, press release and prepared remarks can be found at Clorox Quarterly Results.

For More Detailed Financial Information

Visit the company's Quarterly Results for the following:

Note: Percentage and basis-point, or point, changes noted in this press release are calculated based on rounded numbers, except for per-share data and the effective tax rate.

About The Clorox Company

The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr® and Pine-Sol® as well as international brands such as Chux®, Clorinda® and Poett®. Visit thecloroxcompany.com to learn more.

CLX-F

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, the planned acquisition of GOJO and the timing thereof, the expected impact of the planned acquisition on the company's net sales, earnings performance, profitability, cash flow, leverage and other financial measures, and any such forward-looking statements involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, organic sales growth, foreign currencies, costs, cost savings, margins, earnings, earnings per share, including as a result of the GOJO acquisition, diluted earnings per share, foreign currency exchange rates, tax rates, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "will," "predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management's expectations, are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, as updated from time to time in the company's Securities and Exchange Commission filings. These factors include, but are not limited to: occurrence of any event, change or other circumstance that could give rise to the termination of the GOJO acquisition agreement; the risk that the conditions to the completion of the proposed acquisition (including regulatory approval) are not satisfied in a timely manner or at all; the risks arising from the integration of the GOJO business; the uncertainty of rating agency actions; the risk that the anticipated benefits and synergies of the proposed acquisition may not be realized when expected or at all; the risk that the proposed acquisition may not be completed in a timely manner or at all; the risk of unexpected costs or expenses resulting from the proposed acquisition, including the costs of financing; the risk of litigation related to the proposed acquisition, including resulting expense or delay; the risks related to disruption to ongoing business operations of the company and GOJO and diversion of time of management of the company and GOJO as a result of the proposed acquisition; the risk that the proposed acquisition may have an adverse effect on the ability of the company and GOJO to retain key personnel, customers and suppliers; the risk that the credit ratings of the company decline following the proposed acquisition; the risk that the announcement or the consummation of the proposed acquisition has a negative effect on the market price of the common stock of the company or on the company's or GOJO's operating results; unfavorable general economic and geopolitical conditions beyond our control, including inflation, supply chain disruptions, labor shortages, wage pressures, fuel and energy costs, interest rate fluctuations, foreign currency exchange rate fluctuations, weather events or natural disasters, disease outbreaks or pandemics, terrorism, and unstable geopolitical conditions, including ongoing conflicts and rising tensions in various parts of the world, as well as macroeconomic and geopolitical volatility and uncertainty as a result of a number of these and other factors, including actual and potential shifts in U.S. and foreign trade policies, including as a result of escalating trade tensions between the U.S. and its trading partners, especially China, particularly as a result of the imposition of U.S. and retaliatory tariffs; the impact of market and category declines, and the company's product and geographic mix on its ability to meet sales growth targets; the company's ability to successfully execute or realize the anticipated benefits of its strategic or transformational initiatives, including the ERP transition and the related timing and volume of shipment movement related to the ERP transition; the impact of the changing retail environment, including the growth of alternative retail channels and business models, and changing consumer preferences; intense competition in the company's markets; volatility and increases in the costs of raw materials, energy, transportation, labor and other necessary supplies or services; risks related to supply chain issues, product shortages and disruptions to the business, as a result of increased supply chain dependencies due to an expanded supplier network and a reliance on certain single-source suppliers; risks related to the company's use of and reliance on information technology systems, including potential and actual security breaches, cyberattacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, business, service or operational disruptions, or that impact the company's financial results or financial reporting, or any resulting unfavorable outcomes, increased costs or legal proceedings; the ability of the company to innovate and to develop and introduce commercially successful products, or expand into adjacent categories and countries; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including due to regulatory uncertainty and lack of regulatory convergence among different jurisdictions; lower revenue, increased costs, other financial statement impacts or reputational harm resulting from government actions, compliance with regulations, or any material costs imposed by changes in regulation; the company's ability to maintain its business reputation and the reputation of its brands and products; dependence on key customers and risks related to customer consolidation and ordering patterns; the company's ability to attract and retain key personnel, which may continue to be impacted by challenges in the labor market, such as increasing labor costs and sustained labor shortages; changes to our processes and procedures as a result of our digital capabilities and productivity enhancements that may result in changes to the company's internal controls over financial reporting; risks related to the company's acquisition of The Procter & Gamble Company's interest in the Glad business and continued operation of the Glad business; risks related to international operations and international trade, including changing macroeconomic conditions as a result of inflation, volatile commodity prices and increases in raw and packaging materials prices, labor, energy and logistics; global economic or political instability; foreign currency fluctuations, such as devaluations, and foreign currency exchange rate controls; changes in governmental policies, including trade policy and tariffs, travel or immigration restrictions, new or additional tariffs, and price or other controls; labor claims and civil unrest; potential operational or supply chain disruptions from wars and military conflicts, including ongoing conflicts and rising tensions in the Middle East and/or Ukraine and rising tensions between China and Taiwan; potential negative impact and liabilities from the use, storage and transportation of chlorine in certain international markets where chlorine is used in the production of bleach; widespread health emergencies; and the possibility of nationalization, expropriation of assets or other government action or inaction, including the impacts of any prolonged U.S. government shutdown; the impact of climate change and other sustainability issues on sales, operating costs, reputation or stakeholder relationships; the impact of product liability claims, labor claims and other legal, governmental or tax proceedings, including in foreign jurisdictions and in connection with any product recalls; risks relating to acquisitions, new ventures and divestitures, and associated costs, including for asset impairment charges related to, among others, intangible assets, including trademarks and goodwill; and the ability to complete announced transactions, including the acquisition of GOJO, and, if completed, integration costs and potential contingent liabilities related to those transactions; the accuracy of the company's estimates and assumptions on which its financial projections, including any sales or earnings guidance or outlook it may provide from time to time, are based; risks related to our reliance on third-party service providers, including inability to meet cost savings or efficiencies, business or systems disruptions, and other liabilities, including legal or regulatory risk; environmental matters, including costs associated with the remediation and monitoring of past contamination, and possible increases in costs resulting from actions by relevant regulators, and the handling and/or transportation of hazardous substances; the company's ability to effectively utilize, assert and defend its intellectual property rights, and any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its business operations and financial results and the company's ability to access capital markets and other funding sources, as well as the cost of capital to the company; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.

The company's forward-looking statements in this press release are based on management's current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this press release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.

Non-GAAP Financial Information

The following table provides reconciliation of organic sales growth / (decrease) (non-GAAP) to net sales growth / (decrease), the most comparable GAAP measure:

Three months ended December 31, 2025

Percentage change versus the year-ago period

Health and

Wellness

Household

Lifestyle

International

Total

Company (1)

Net sales growth / (decrease) (GAAP)

2 %

(6) %

(5) %

7 %

(1) %

Add: Foreign exchange

—

(2)

—

Organic sales growth / (decrease) (non-GAAP)

2 %

(6) %

(5) %

5 %

(1) %

(1)

Total Company includes Corporate and Other. Corporate and Other includes the results of the Better Health VMS business through the date of divestiture.

The following tables provide reconciliations of adjusted diluted earnings per share (non-GAAP) to diluted earnings per share, the most comparable GAAP measure:

Diluted earnings per share

Three months ended

12/31/2025

12/31/2024

% Change

As reported (GAAP)

$ 1.29

$ 1.54

(16) %

Cyberattack costs, net of insurance recoveries (1)

—

(0.15)

Digital capabilities and productivity enhancements investment (2)

0.10

0.16

As adjusted (non-GAAP)

$ 1.39

$ 1.55

(10) %

(1)

During the three months ended December 31, 2024, the company recognized approximately $25 ($19 after tax) of insurance recoveries related to the cyberattack.

(2)

During the three months ended December 31, 2025, the company incurred approximately $17 ($13 after tax), and during the three months ended December 31, 2024, the company incurred approximately $26 ($20 after tax) of operating expenses related to its digital capabilities and productivity enhancements investment. The expenses relate to the following:

Three months ended

12/31/2025

12/31/2024

External consulting fees (a)

$ 14

$ 17

IT project personnel costs (b)

Other (c)

Total

$ 17

$ 26

(a)

Comprised of third-party consulting fees incurred to assist in the project management and end-to-end systems integration of this transformative investment. The company relies on consultants for certain capabilities required for these programs that the company does not maintain internally. These costs support the implementation of these programs incremental to the company's normal IT costs and will not be incurred following implementation.

(b)

Comprised of labor costs associated with internal IT project management teams that are utilized to oversee the new system implementations. Given the magnitude and transformative nature of the implementations planned, the necessary project management costs are incremental to the historical levels of spend and will no longer be incurred subsequent to implementation. As a result of this long-term strategic investment, the company considers these costs not reflective of the ongoing costs to operate its business.

(c)

Comprised of various other expenses associated with the company's new system implementations, including company personnel dedicated to the project that have been backfilled with either permanent or temporary resources in positions that are considered part of normal operating expenses.

Full year 2026 outlook (estimated range)

Diluted earnings per share

Low

High

As estimated (GAAP)

$ 5.60

$ 5.95

Digital capabilities and productivity enhancements investment (3)

0.35

As adjusted (non-GAAP)

$ 5.95

$ 6.30

(3)

In fiscal year 2026, the company expects to incur approximately $60 ($46 after tax) of operating expenses related to its digital capabilities and productivity enhancements investment.

The following table provides reconciliation of adjusted EBIT (non-GAAP) to earnings before income taxes, the most comparable GAAP measure:

Reconciliation of earnings

before income taxes to

adjusted EBIT

Three months ended

12/31/2025

12/31/2024

Earnings before income taxes

$ 215

$ 237

Interest income

(1)

(2)

Interest expense

Cyberattack costs, net of insurance recoveries

—

(25)

Digital capabilities and productivity enhancements investment

Adjusted EBIT

$ 256

$ 258

Condensed Consolidated Statements of Earnings (Unaudited)

Dollars in millions, except per share data

Three months ended

12/31/2025

12/31/2024

Net sales

$ 1,673

$ 1,686

Cost of products sold

951

948

Gross profit

722

738

Selling and administrative expenses

262

280

Advertising costs

190

191

Research and development costs

Interest expense

Other (income) expense, net

(23)

Earnings before income taxes

215

237

Income tax expense

Net earnings

161

194

Less: Net earnings attributable to noncontrolling interests

Net earnings attributable to Clorox

$ 157

$ 193

Net earnings per share attributable to Clorox

Basic net earnings per share

$ 1.29

$ 1.55

Diluted net earnings per share

$ 1.29

$ 1.54

Weighted average shares outstanding (in thousands)

Basic

121,602

123,766

Diluted

121,915

124,662

Reportable Segment Information

(Unaudited)

Dollars in millions

Net sales

Three months ended

12/31/2025

12/31/2024

% Change (1)

Health and Wellness

$ 643

$ 628

2 %

Household

419

446

(6)

Lifestyle

321

338

(5)

International

294

274

Reportable segment total

1,677

1,686

Corporate and Other

(4)

—

100

Total

$ 1,673

$ 1,686

(1) %

Segment adjusted EBIT

Three months ended

12/31/2025

12/31/2024

% Change (1)

Health and Wellness

$ 190

$ 193

(2) %

Household

(54) %

Lifestyle

3 %

International

48 %

Reportable segment total

315

332

Corporate and Other

(59)

(74)

Interest income

Interest expense

(25)

(22)

Cyberattack costs, net of insurance recoveries (2)

—

Digital capabilities and productivity enhancements investment (3)

(17)

(26)

Earnings before income taxes

$ 215

$ 237

(9) %

(1)

Percentages based on rounded numbers.

(2)

Represents cyberattack insurance recoveries of $25 ($19 after tax) for the three months ended December 31, 2024.

(3)

Represents expenses related to the company's digital capabilities and productivity enhancements investment of $17 ($13 after tax) and $26 ($20 after tax) for the three months ended December 31, 2025 and 2024, respectively.

Condensed Consolidated Balance Sheets

Dollars in millions

12/31/2025

6/30/2025

12/31/2024

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$ 227

$ 167

$ 290

Receivables, net

671

821

603

Inventories, net

608

523

592

Prepaid expenses and other current assets

222

147

Total current assets

1,728

1,608

1,632

Property, plant and equipment, net

1,247

1,267

1,242

Operating lease right-of-use assets

368

333

362

Goodwill

1,231

1,229

1,219

Trademarks, net

502

501

Other intangible assets, net

Other assets

483

558

548

Total assets

$ 5,613

$ 5,561

$ 5,577

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Notes and loans payable

$ 307

$ 4

$ 189

Current operating lease liabilities

Accounts payable and accrued liabilities

1,957

1,828

1,460

Total current liabilities

2,347

1,919

1,730

Long-term debt

2,486

2,484

2,483

Long-term operating lease liabilities

341

305

339

Other liabilities

385

351

882

Deferred income taxes

Total liabilities

5,578

5,079

5,456

Commitments and contingencies

Stockholders' equity

Preferred stock

—

Common stock

131

Additional paid-in capital

1,304

1,319

1,287

Retained earnings

190

432

Treasury stock

(1,591)

(1,404)

(1,346)

Accumulated other comprehensive net (loss) income

(159)

(157)

(181)

Total Clorox stockholders' (deficit) equity

(125)

321

(41)

Noncontrolling interests

160

161

162

Total stockholders' equity

482

121

Total liabilities and stockholders' equity

$ 5,613

$ 5,561

$ 5,577

SOURCE The Clorox Company