CLX · Q4 2026 Earnings

Cautious

Clorox

Reported August 3, 2026

30-second summary

Clorox closed FY26 with Q4 adjusted EPS of $1.66 (beating consensus $1.65 by 0.6%) and revenue of $1.95B (+1.9% vs $1.91B consensus), and landed FY26 adjusted EPS in line with the prior $5.45–$5.65 guide at $5.53 (near midpoint). The FY27 algorithm is the real story: 13–14% net sales growth (largely GOJO consolidation), 3.5–4.5% organic growth, ~42% gross margin, and adjusted EPS of $5.70–$6.00 (+3% to +8%) — a clean inflection framing after two years of ERP-related noise, but the organic algorithm still leans on >3.5 points of inventory-drawdown lapping benefit that must be stripped out before calling it real recovery.

Headline numbers

EPS

Q4 FY2026

$1.66

+0.6% vs est.

Revenue

Q4 FY2026

$1.95B

-2.0% YoY

+1.9% vs est.

Gross margin

Q4 FY2026

41.3%

Key financials

Q4 FY2026

Metric	Q4 FY2026	Q4 FY2025	YoY	Q3 FY2026	QoQ
Revenue	$1.95B	$1.99B	-2.0%	$1.67B	+16.6%
EPS	$1.66	$2.87	-42.2%	$1.64	+1.2%
Gross margin	41.3%	46.5%	-520bps	43.2%	-190bps

Guidance

Company raised FY2027 guidance dramatically, projecting 13–14% net sales growth and 3.5–4.5% organic growth recovery after FY2026 declines, with FY2026 Adjusted EPS guidance also raised $0.25–0.35 above prior quarter.

Guidance is issued for both next quarter and the full year. Both may appear below.

New guidance

Metric	Period	Guide	YoY
Diluted EPS (GAAP)	FY2027	$5.41 to $5.71	+12% to +19%
Adjusted EPS	FY2027	$5.70 to $6.00	+3% to +8%
Net sales growth	FY2027	13% to 14%	—
Organic sales growth	FY2027	3.5% to 4.5%	—
Gross margin	FY2027	about 42%	—
Selling and administrative expenses	FY2027	about 16% of net sales	—
Advertising and sales promotion spending	FY2027	about 10% of net sales	—
Effective tax rate	FY2027	about 23%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted EPS	FY2026	$5.45 to $5.65	$5.70 to $6.00	+$0.25–$0.35 at midpoint	Raised
Organic sales growth	FY2026	decrease about 9%	-8%	~+1 point	Lowered

Segment performance

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Health and Wellness	$0.86B	$0.741B	+16.1%
Household	$0.524B	$0.639B	-18.0%
Lifestyle	$0.28B	$0.339B	-17.4%
Health and Wellness Portfolio % of Net Sales	>50%	—	—
GOJO Acquisition Contribution to Q4 Net Sales Growth	28 points	—	—

Platform metrics

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Organic Sales Growth (Q4)	-13%	—	—
Organic Sales Growth (FY2026)	-8%	—	—
FY2027 Organic Sales Growth Outlook	3.5% to 4.5%	—	—
ERP Transition Impact on FY2026 EPS	-$0.90	—	—

Profitability

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Adjusted EBIT (Q4)	$318M	—	—
FY2027 Adjusted EPS Outlook	$5.70 to $6.00	—	—

Other KPIs

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
International	$0.281B	$0.269B	+4.5%

Management tone

Q1 walked-back recovery confidence → Q2 price-investment capitulation → Q3 broad-based guide cut and FY27 hedge → Q4 confidence reset around GOJO-completed algorithm.

One quarter ago Bellet refused to frame FY27; this quarter the company delivered a full algorithm with net sales, organic, gross margin, SG&A, A&SP, tax rate, and both GAAP and adjusted EPS. At Q3, Bellet explicitly said it was "too early to share any perspective for next fiscal year…working on a wide range of scenarios." This quarter the press release enumerates seven distinct FY27 line items with point estimates or narrow ranges. From the release: "we are starting the year from a stronger position to execute our strategy with discipline." The visibility loss Q3 flagged has resolved — but the algorithm itself is modest, and the confidence reset comes at the cost of a lower EPS trajectory ($5.70–$6.00 vs the $5.95–$6.30 that anchored FY26 pre-cut).

"Challenging consumer environment" language has softened but not disappeared. Q2 and Q3 leaned heavily on consumer stress and promotional intensity as active constraints. This quarter's release still notes "the operating environment is expected to remain challenging, with continued cost volatility and a value-seeking consumer" — the phrasing is now boilerplate risk-factor language rather than the active guidance-cut rationale it was two quarters ago. The consumer overlay has moved from foreground constraint to background caveat.

ERP framing completed its arc from "just noise between years" to explicit -$0.90 quantified drag. At Q4 FY25 Bellet called the ERP impact "just noise between years and nothing structural." Q3 FY26 pushed cost savings into FY27. This quarter the company disclosed the ERP transition impact on FY26 EPS at -$0.90 — a specific dollar quantification that retroactively confirms the drag was neither noise nor transitory. That the number lands with FY26 in the books rather than at the start of the disruption is a disclosure choice worth noting.

Innovation and pricing language has receded from the release entirely. Q2's price-investment capitulation and Q3's Lifestyle/litter innovation bifurcation are not referenced in the FY27 framing. The A&SP guide of ~10% of net sales is disclosed for the first time as a discrete category, suggesting management is anchoring investors to a spending rule rather than a case-by-case share-defense narrative. Whether that discipline holds when Household and Lifestyle print another -17% to -18% quarter is the open question.

Answers to last quarter's watch list

Q4 FY2026 gross margin print vs the new -250 to -300 bps FY guide — Q4 gross margin came in at 41.3%, and the FY landed at 42.3%. The FY print is meaningfully better than the -250 to -300 bps FY guide implied; the Q3 guide had embedded a cushion that management didn't need to fully spend.

Resolved positively

Litter franchise: stabilization or further break — The press release does not disclose specific litter velocity, shelf placement, or scanner share data. Household segment revenue declined 18% YoY in Q4, and without transcript detail, the franchise cannot be called healed.

Resolved negatively

FY27 guidance framework at Q4 FY2026 — Management delivered a full FY27 algorithm: net sales +13–14%, organic +3.5–4.5%, gross margin ~42%, adjusted EPS $5.70–$6.00 (+3–8%), with SG&A, A&SP, and tax rate all quantified. The Q3 punt has been replaced with a concrete framework.

Resolved positively

Oil-related commodity headwind size for FY27 — The press release did not disclose an explicit oil or commodity dollar quantification for FY27; the ~42% gross margin guide is the only forward margin data point. Without transcript commentary, the specific FY27 commodity headwind size that Luke flagged at Q3 remains unquantified.

Not resolved

Lifestyle revenue trajectory — Lifestyle revenue declined 17% YoY in Q4. The seasonal charcoal/food/dressings quarter that should have provided lift instead delivered a deep double-digit decline.

Resolved negatively

What to watch into next quarter

Q1 FY27 organic growth ex-inventory-lapping benefit: management flagged >3.5 points of FY27 organic benefit from lapping the ERP inventory drawdown. Watch whether Q1 FY27 organic prints inside the FY 3.5–4.5% band on a reported basis; a reported print at or below the lapping benefit alone would mean underlying growth ex-lap is negative and the FY algorithm depends entirely on a technical tailwind.

Household and Lifestyle YoY revenue trajectory ex-ERP-reversal: Q4 FY26 printed Household -18% and Lifestyle -17% on a comp that no longer has the same ERP-reversal alibi. Watch whether either segment inflects to flat or better in Q1 FY27; another double-digit decline in either would mean the GOJO-and-International growth composition is the entire company thesis.

Adjusted EBIT margin trajectory vs FY27 ~42% gross margin and ~16% SG&A guide: implied FY27 adjusted EBIT margin is roughly 16% (42% GM - 16% SG&A - 10% A&SP). Watch Q1 FY27 gross margin against the 41.3% Q4 print and 42.3% FY print — sequential deterioration would signal the ~42% FY guide requires back-half recovery again.

GOJO contribution disclosure discipline: GOJO contributed 28 points to Q4 net sales growth. Watch whether management continues to disclose the acquisition contribution separately in FY27 quarterly prints; opacity here would mean organic growth math becomes harder to verify externally.

A&SP spend actualization vs the ~10% of sales guide: the new A&SP disclosure category is untested. Watch Q1 FY27 A&SP as a percentage of sales — a print materially above 10% would mean the promotional posture that opened at Q2 FY26 remains an active share-defense cost, contradicting the "discipline" language in the release.

Sources

Clorox Q4 FY2026 press release, August 3 2026 — https://www.sec.gov/Archives/edgar/data/21076/000002107626000028/ex991-pressreleasedatedaug.htm

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