Earnings call transcript: Church & Dwight tops Q3 2026 forecasts, lifts outlook

Church & Dwight reported a strong third quarter of 2026, surpassing Wall Street expectations. The company's adjusted earnings per share (EPS) of $0.92 exceeded the forecasted $0.90 by $0.02, while revenue reached $1.6 billion, which was approximately 1.3% higher than the predicted $1.58 billion. The stock closed at $107.23, up 1.16% in regular trading and unchanged in after-hours trading.

Church & Dwight's organic sales growth of 5.1% was notably stronger than the company's earlier 3% forecast, marking the third consecutive quarter of 5%+ profitable organic growth. Gross margin expanded to 46.8%, up 170 basis points from the previous year, driven by productivity gains and portfolio actions. The company raised its full-year 2026 outlook, citing robust year-to-date performance and confidence in the fourth-quarter momentum.

Brands such as THERABREATH, ARM & HAMMER, Hero, Waterpik, and Batiste continued to gain share. In total, revenue for the first nine months of 2026 was $1.6 billion, up 1% year-over-year. Adjusted operating income was $298 million, a $27 million increase or 10.1% year-over-year. Marketing spending accounted for 11.9% of sales, while adjusted SG&A was $261 million, or 16.3% of sales.

Cash from operations was $841 million for the first nine months of 2026, with $447 million in cash on hand. Total debt stood at $2.2 billion. Church & Dwight's positive earnings report, driven by strong organic sales growth and margin expansion, suggests a sustained trend rather than a one-time boost. The company's leadership attributes the success to innovation, distribution gains, and marketing efforts, particularly with the THERABREATH brand, which holds a significant share in the mouthwash category.

Management also highlighted the company's "evergreen model" of gross margin expansion as a key strategy amidst ongoing inflation and industry headwinds.