Clorox reports fiscal 2026 second-quarter profit decline, revenue beats estimates, and confirms full-year outlook

Quarterly results show lower earnings amid modest sales decline

Clorox reported fiscal second-quarter results for the period ending Dec. 31, 2025, posting net income of $157 million. That equated to $1.29 per diluted share, down from $1.54 per diluted share in the same quarter a year earlier.

On an adjusted basis, Clorox reported earnings of $1.39 per share, compared with $1.55 a year earlier. Analyst expectations compiled by Zacks Investment Research had centered on adjusted earnings of about $1.43 per share for the quarter.

Revenue tops forecasts, while organic sales edge lower

Net sales were $1.67 billion, a 1% decline year over year. The company said the decrease was primarily driven by lower consumption, partially offset by shipments that ran ahead of consumption in several businesses. Organic sales also declined 1%.

Despite the year-over-year dip, quarterly revenue exceeded the consensus estimate of $1.63 billion cited by Zacks Investment Research.

Margins narrow as manufacturing and logistics costs rise

Clorox reported gross margin of 43.2%, down 60 basis points from 43.8% in the year-ago quarter. The company attributed the compression primarily to higher manufacturing and logistics costs, partially offset by cost savings initiatives.

The company also pointed to year-over-year comparisons that included prior-period benefits from cyberattack insurance recoveries, which affected earnings comparisons.

Cash flow holds steady year to date

For the first half of fiscal 2026, year-to-date net cash provided by operations was $404 million, compared with $401 million in the prior-year period, representing a 1% increase.

Company maintains full-year earnings guidance

Clorox confirmed its fiscal 2026 outlook and reiterated a full-year earnings range of $5.95 to $6.30 per share.

• Fiscal Q2 net income: $157 million

• Fiscal Q2 diluted EPS: $1.29 (vs. $1.54 a year earlier)

• Fiscal Q2 adjusted EPS: $1.39 (vs. $1.55 a year earlier)

• Fiscal Q2 net sales: $1.67 billion (down 1% year over year)

• Fiscal Q2 gross margin: 43.2% (down 60 basis points)

In prepared remarks accompanying the results, the company said it reaffirmed its fiscal-year outlook while it continues a broader operational transformation, including investments in digital capabilities and productivity enhancements.