Volume +5.3% / price/mix -0.3% — VOLUME-LED quality; Q1'25 -1.2% trough → +5.0% Q1'26 = sharp re-acceleration; ~2pts retail destock lap, underlying ~3%

Adj EPS

$0.95 (+4.4% / +9% beat)

Beat $0.92 Street by +$0.03; 8/8 L8Q EPS beat streak; Adj GM record 46.4% (+130 bps YoY) — productivity/acq/FX offset 190 bps inflation/tariffs

FY26 Guide

REITERATED (no raise)

Organic +3-4%, reported -1.5% to -0.5%, Adj EPS +5-8%, GM +~100 bps; $25-30M Mid East oil-derivative inflation absorbs Q1 upside; Q2 EPS guide $0.88 ~$0.09 below ~$0.97 Street

High-quality double beat with reiterated (not raised) FY26 — middle east oil-derivative inflation absorbs Q1 upside. Net sales $1.47B (+0.2% YoY) beat ~$1.46B Street; reported sales -8% optical (FX + 2025 divestitures of VitaFusion, Spinbrush, Flawless). Organic sales +5.0% smashed +3% guide with volume +5.3% / price/mix -0.3% — volume-led re-acceleration from a 2025 trough (Q1'25 -1.2%, Q2 +0.1%, Q3 +3.4%, Q4 +0.7%). Adj EPS $0.95 (+4.4%) beat $0.92 by +$0.03 — extending CHD's streak to 8 consecutive Adj EPS beats and 7-of-8 sales beats over L8Q. Adj GM record 46.4% (+130 bps YoY) — productivity programs + acquisitions + FX more than offset 190 bps inflation/tariffs. Quality of organic upside: ~2 pts of the +5% was retail destock lap (Q1'25 inventory drawdown); underlying ~3%. Mgmt was explicit/transparent on this. Consumer Domestic organic +5.4% with TheraBreath, ARM & HAMMER, Hero, OxiClean leading; Consumer International decelerating (3.7% from 9-10% peak); SPD stable +3.1%. FY26 Guidance: REITERATED, NOT RAISED — organic +3-4%, reported -1.5% to -0.5%, GM +~100 bps, EPS +5-8%. Despite Q1 beat, $25-30M Middle East oil-derivative inflation absorbs the upside (Brent assumption $95-100). Q2'26 EPS guide $0.88 sits ~$0.09 below ~$0.97 Street — H1 is the near-term overhang; H2 leans on productivity, distribution gains (#1 in CPG with TDPs gained YoY, +10-11% in recent resets vs ~5-6% peers), and Touchland/TheraBreath/Hero activations. Inflation walk: 160bps → ~200bps headwind, offset by productivity to keep GM +100 bps guide. "No plans to push price — worst thing to do is push price" (CEO). First call with Dierker as CEO — confident, on the front foot. Touchland (acquired): Q1 all-channel consumption +12-13% (tracked-channel optics distorted by Q4 holiday + club timing); advertising and major partnerships skew 2H'26; international (Canada, Middle East) underway — the next Hero/TheraBreath-style growth driver. 6 contradictions identified: (1) HARD — vitafusion "green shoots" trajectory Q2'25 → low-20s declines through year-end, divested in 2025 portfolio actions; (2) HARD — Q2'25 "Evergreen alive and well" / "this year is an aberration" → Investor Day formal walk-down of category growth from 3%+ historical to 2% structural, requiring three internal growth initiatives to bridge; (3) Soft — "running VMS like we'll own it forever" while concurrently exploring three exit paths; (4) Soft — A&H laundry promo "right in line with history" (Q2) vs -400 bps YoY (Q3); (5) Soft — Tariff arc whipsaw $190M gross → $25M → "could be an opportunity" → $25-30M new commodity headwind 90 days later; (6) Soft — "No further portfolio plans" Q2 vs VMS sale + Touchland acquisition + specialty hair/skin pod reorg by Q4. Most consequential: structural Evergreen reframe (2026 EPS guide of 5-8% sits below 8% Evergreen number, making three growth initiatives — ARM & HAMMER $2→$3B, oral care via TheraBreath, international M&A — load-bearing rather than supplemental). Top catalysts: (1) Distribution-gain wave — CHD #1 in CPG on TDPs gained YoY; recent resets +10-11% (~2x peers); new product launches expected to drive ~half of FY26 organic growth; (2) Touchland ramp — Q1 +12-13% all-channel; ad + partnerships skew 2H'26; international rollout underway; the next Hero/TheraBreath-style growth driver; (3) GM defense vs Middle East oil shock — $25-30M FY26 inflation; ~100 bps GM expansion entirely via productivity, no pricing planned; Q1 GM +130 bps already de-risks the bridge. Watch items: (1) Q2 print — H1 overhang already telegraphed via $0.88 Q2 EPS guide vs ~$0.97 Street; (2) FY26 organic raise potential if H1 momentum continues; (3) Touchland 2H ramp from advertising; (4) ARM & HAMMER laundry detergent share with LESS promo while PG/Henkel promote MORE; (5) Brent crude trajectory and oil-derivative input pass-through; (6) M&A activity (active U.S./international with no specifics disclosed). Read: solid quality print with disciplined guide reaffirmation that creates upside potential in H2; stock optics challenged by Q2 EPS guide below Street and reiteration (not raise); structural Evergreen reframe is the longer-term concern requiring growth-initiative execution; private label / branded competitive dynamic favorable for CHD now (record A&H laundry share with less promo).

Key Metrics Trends

Metric	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026
Consumer Domestic net sales	$1.2B	$1.2B	$1.2B	$1.2B	$1.1B	$1.2B	$1.2B	$1.3B	$1.1B
Consumer Domestic net sales YoY %	-	-	-	-	-3.0%	-1.4%	+4.2%	+3.7%	-1.1%
Consumer International net sales	$255M	$264M	$268M	$285M	$262M	$278M	$290M	$300M	$274M
Consumer International net sales YoY %	-	-	-	-	+2.7%	+5.3%	+8.4%	+5.2%	+4.6%
Specialty Products net sales	$83M	$77M	$72M	$71M	$75M	$75M	$76M	$73M	$78M
Specialty Products net sales YoY %	-	-	-	-	-9.3%	-3.0%	+5.1%	+2.8%	+3.1%
Total net sales	$1.5B	$1.5B	$1.5B	$1.6B	$1.5B	$1.5B	$1.6B	$1.6B	$1.5B
Total net sales YoY %	-	-	-	-	-2.4%	-0.3%	+5.0%	+3.9%	+0.1%
Adj Gross Profit	$687M	$686M	$680M	$706M	$662M	$677M	$714M	$748M	$681M
Adj Gross Profit YoY %	-	-	-	-	-3.7%	-1.3%	+5.1%	+6.1%	+3.0%
CD Income from Ops	$258M	$290M	$-98M	$235M	$245M	$217M	$217M	$242M	$240M
CD Income from Ops YoY %	-	-	-	-	-4.9%	-25.0%	-322.7%	+2.7%	-1.9%
CI Income from Ops	$36M	$35M	$-3M	$15M	$38M	$32M	$29M	$17M	$40M
CI Income from Ops YoY %	-	-	-	-	+5.0%	-7.2%	-1060.0%	+13.1%	+5.8%
SPD Income from Ops	$12M	$12M	$9M	$6M	$13M	$12M	$9M	$7M	$11M
SPD Income from Ops YoY %	-	-	-	-	+10.3%	-2.5%	-3.3%	+14.3%	-14.8%
Adj Gross Margin %	45.7%	45.4%	45.0%	44.6%	45.1%	45.0%	45.1%	45.5%	46.4%
Adj Gross Margin % YoY chg (bps)	-	-	-	-	-60	-40	+10	+90	+130
Adj Diluted EPS	$0.96	$0.93	$0.79	$0.77	$0.91	$0.94	$0.81	$0.86	$0.95
Adj Diluted EPS YoY %	-	-	-	-	-5.2%	+1.1%	+2.5%	+11.7%	+4.4%
Reported Diluted EPS	$0.93	$0.99	$-0.31	$0.76	$0.89	$0.78	$0.75	$0.60	$0.91
Reported Diluted EPS YoY %	-	-	-	-	-4.3%	-21.2%	-341.9%	-21.1%	+2.2%

_Trajectory: Sharp re-acceleration after a 4-quarter slump. 2025 saw US-consumer-driven organic reset (Q1 -1.2%, Q2 +0.1%, Q3 +3.4%, Q4 +0.7%); Q1'26 marks clean re-acceleration to +5.0% organic, driven by Consumer Domestic volume snapping to +5.5% (8Q high) and Adj GM expanding to 46.4% (also 8Q high, +130 bps YoY). Adj EPS grew +4.4% YoY to $0.95. Composition is volume-led with slightly negative price/mix — healthier mix than price-led growth. Caveats: (1) reported sales only +0.2% (FX + 2025 divestiture drag); (2) International price/mix turned negative for first time at -1.6%; (3) ~2 pts of the +5% was retail destock lap (Q1'25 inventory drawdown), underlying ~3%. One yellow flag: CD income from operations $240.2M declined -1.9% YoY despite revenue growth — likely tariff/marketing reinvestment offset to monitor. Verdict: volume-led re-acceleration on pristine GM expansion; underlying ~3% organic + 2pt destock lap is a healthy quality profile; H2 leans on productivity + distribution wins + Touchland ramp + Hero/TheraBreath momentum._

Beat/Miss

Guidance

Catalysts

Street Q&A

Contradictions

Read-Throughs

This Quarter vs Consensus

Metric	Consensus	Actual	Variance	Read
Net sales	~$1.46B	$1.469B	+$9M / +0.6%	Beat
Organic Sales	+3% guide	+5.0%	+200 bps	Smashed guide
Volume	—	+5.3%	—	Volume-led
Price/mix	—	-0.3%	—	Slight drag
Adj EPS	$0.92-$0.93	$0.95	+$0.02-$0.03 / +3-9%	Beat — 8/8 L8Q streak
Reported EPS	—	$0.91	+2% YoY	Solid
Adj GM %	~45.5%	46.4%	+90 bps	Record — 8Q high
Adj GM YoY chg	—	+130 bps	—	Productivity/acq/FX offset 190 bps inflation
US Consumer organic	—	+5.4%	—	TheraBreath, A&H, Hero, OxiClean
Reported sales YoY	—	+0.2% (vs decline guide)	Beat	Optical -8% from FX/divestitures
L4Q EPS beat rate	—	4/4 = 100%	—	Consistent
L8Q EPS beat rate	—	8/8 = 100%	—	Unbroken streak
L8Q sales beat rate	—	7/8 = 88%	—	Strong

Pattern: 8-consecutive Adj EPS beat streak; high-quality volume-led organic upside. CHD has now beat Adj EPS in every quarter for the L8Q period; sales beats 7-of-8. Q1'26 Organic +5% vs +3% guide is the cleanest beat of the cycle — volume +5.3% / price/mix -0.3% = healthy quality. Mgmt's variance commentary: "Distribution gains contributing ~half of FY26 organic; ~2 pts of Q1 was Q1'25 destock lap (underlying ~3%); productivity programs offsetting 190 bps inflation/tariffs; Touchland +12-13% all-channel; ARM & HAMMER record share with LESS promo while PG/Henkel promoted MORE; TheraBreath +3.5 pts to 24.1% (#2 mouthwash); first call with Dierker as CEO was confident." Three escalation tiers if Middle East oil headwind grows: productivity → RGM/promo → pricing (only if 2-3x current). Quality caveat: CD income from ops -1.9% YoY despite revenue growth — tariff/marketing reinvestment offset to monitor.

Guidance Deep Dive

Metric	Prior (Feb'26)	New (May'26)	Δ	Read
FY26 Organic Sales Growth	+3-4%	+3-4% REITERATED	Maintained	Conservative — no raise despite Q1 +5%
FY26 Reported Sales Growth	-1.5% to -0.5%	-1.5% to -0.5%	Maintained	2025 portfolio divestitures drag
FY26 Adj GM Expansion	~+100 bps	~+100 bps	Maintained	Q1 already +130 bps
FY26 Adj EPS Growth	+5-8%	+5-8% REITERATED	Maintained	Below 8% Evergreen target
Q2'26 Adj EPS	—	$0.88	~$0.09 below ~$0.97 Street	H1 overhang
Q2'26 Organic Sales	—	+3% (lap of Q1'25 destock loses)	—	Comp normalization
Middle East inflation absorption	—	$25-30M FY26 (oil derivatives, transport)	New headwind	Absorbs Q1 upside
Brent assumption	—	$95-100/bbl	—	Disclosed
FY26 Inflation walk	160 bps	~200 bps	+40 bps	Productivity offsets
Pricing action	None planned	None planned ("worst thing to do is push price")	Maintained	Volume defense
FY26 capex / FCF	Strong	Strong	Maintained	—
FY26 portfolio actions	VMS divested, Touchland acquired	Lapping in late 2026 / early 2027	—	Comp cleanup
M&A pipeline	Active	Active U.S./International	Maintained	No specifics disclosed

Tone: Confident reiteration; new CEO Dierker on the front foot but disciplined. Held FY26 guide despite Q1 beat — Middle East oil-derivative inflation ($25-30M) absorbs upside. Risk caveats: (1) Q2'26 EPS guide $0.88 ~$0.09 below ~$0.97 Street = H1 overhang already telegraphed; (2) Q2 organic guide +3% (loses Q1'25 destock lap); (3) Inflation walk increased 160 bps → ~200 bps but productivity offsets keep GM +100 bps guide intact; (4) FY26 EPS guide 5-8% sits below 8% Evergreen target — three growth initiatives (ARM & HAMMER $2→$3B, oral care via TheraBreath, international M&A) load-bearing rather than supplemental; (5) Three escalation tiers if Middle East oil headwind grows: productivity → RGM/promo → pricing (only if 2-3x current); (6) International price/mix turned negative for first time at -1.6%; (7) CD income from ops -1.9% YoY despite revenue growth = tariff/marketing reinvestment to monitor. 6 contradictions identified — pattern is portfolio repositioning + framing whiplash post Investor Day reset. Watch: H2 distribution wave; Touchland 2H ramp; FY26 raise potential if H1 momentum continues.

Upcoming Catalysts

#	Catalyst	Timing	What to Watch	Read
1	Distribution-gain wave	FY26 ongoing	CHD #1 in CPG on TDPs gained YoY; recent resets +10-11% (~2x peers); spread across portfolio; new product launches expected to drive ~half of FY26 organic growth	HIGH — primary driver
2	Touchland ramp	2H'26	Q1 all-channel consumption +12-13% (tracked optics distorted by Q4 holiday + club timing); advertising and major partnerships skew 2H'26; international (Canada, Middle East) underway	Next Hero/TheraBreath growth driver
3	GM defense vs Middle East oil shock	FY26	$25-30M incremental FY26 inflation; ~100 bps GM expansion entirely via productivity, no pricing planned; Q1 GM +130 bps already de-risks the bridge; productivity playbook proven on 2025 tariff response	De-risked
4	ARM & HAMMER laundry detergent record share	Ongoing	Record share with LESS promo while PG/Henkel promoted MORE; structural attack on premium laundry; goal $2B → $3B brand	Share momentum
5	TheraBreath toothpaste launch	FY26	+3.5 pts to 24.1% mouthwash share (#2); toothpaste line extension launching; rollout cadence	Category expansion
6	Hero (acne) growth durability	FY26	Continued share gains in acne care; Mighty Patch leadership; rollout international	Sustained
7	M&A pipeline (active U.S./international)	FY26	No specifics disclosed; Touchland integration as model; balance sheet capacity	Optionality
8	FY26 organic raise potential at Q2/Q3	Q2/Q3 prints	If H1 momentum continues, +3-4% organic guide could move to +4-5%; Touchland 2H ramp supportive	Upside catalyst
9	Lapping 2025 portfolio divestitures	Late 2026 / early 2027	VitaFusion, Spinbrush, Flawless lap = clean comp arrives	Optical reset
10	Brent crude trajectory	Ongoing	Mgmt assumes $95-100/bbl; further escalation triggers RGM/promo (not pricing) tier	Watch item
11	Private label competitive dynamic	Ongoing	ARM & HAMMER share gains with LESS promo signal favorable competitive dynamic now	Tailwind
12	International recovery	FY26	CI organic decelerated 9-10% peak → 3.7%; price/mix turned negative -1.6% for first time	Watch — soft pivot
13	Toppik/Touchland transcription confusion	Note	Q1'26 transcript repeatedly says "Toppik" where context (founder Andrea, $130M brand, recent acquisition, low household penetration, 2H ad ramp) clearly refers to Touchland — likely transcription artifact	Note

Street Q&A

#	Analyst (Firm)	Topic	Mgmt Response	Quality
1	Bonnie Herzog (Wells Fargo)	Pricing discipline + inflation playbook	$25-30M Middle East inflation handled via productivity, no pricing planned; "consumer too pressed; worst thing to do is push price"	Well Answered
2	Anna Lizzul (BofA)	Distribution / innovation flywheel	#1 in CPG on TDP gains (~10-11% in recent resets, 2x peers); Q1 5% organic = ~3% base + 2pt retail inventory comp tailwind, NOT Q2 pull-forward	Well Answered
3	Rupesh Parikh (Oppenheimer)	Touchland (Toppik) trajectory + M&A	Tracked -20% misleading vs. all-in +12-13%; FY DD reiterated; M&A active U.S./international with no specifics	Partial — no M&A specifics
4	Robert Ottenstein (Evercore)	Value-player pricing leadership	Mgmt declined to comment on PG/Henkel pricing posture	Deflected
5	Olivia Tong (Raymond James)	Oil $-sensitivity heuristic	Declined to give per-$/bbl elasticity; ranges $25-30M at $95-100/bbl Brent	Deflected
6	Lauren Lieberman (Barclays)	FY26 organic raise potential	Held +3-4% organic guide; H2 leans on productivity + distribution + Touchland 2H ramp	Well Answered
7	Steve Powers (DB)	Q2 EPS guide $0.88 vs Street $0.97 explanation	Q1'25 destock lap loses; H1 inflation absorption; H2 productivity rolls in; deliberate	Well Answered
8	Andrea Teixeira (JPMorgan)	ARM & HAMMER record share with less promo	Goal $2B → $3B brand; structural attack on premium laundry; PG/Henkel promoting MORE while CHD wins share	Well Answered
9	Peter Grom (UBS)	TheraBreath market share + toothpaste launch	+3.5 pts to 24.1% mouthwash share (#2); toothpaste line extension launching; rollout cadence	Well Answered
10	Various	M&A specifics	Active U.S./international, no specifics disclosed	Deflected
11	Various	International -1.6% price/mix	First time negative; modest soft pivot; under monitoring	Well Answered — candid
12	Various	CD income from ops -1.9% YoY despite rev growth	Tariff + marketing reinvestment offset; expected to normalize 2H	Well Answered
13	Various	Touchland (Toppik) ramp 2H'26	Advertising + major partnerships skew 2H; international rollout (Canada, Middle East) underway	Well Answered
14	Various	First call with Dierker as CEO	Confident, on the front foot; productivity + distribution + brand-building playbook intact	Well Answered

Contradictions

#	Topic	Severity	Statement A	Statement B	Why it's a tension
1	vitafusion "green shoots" → divested	HARD	Q2'25: vitafusion "green shoots" — single-digit declines, units positive	Q3-Q4'25: low-20s declines through year-end; divested in 2025 portfolio actions	Trajectory call did not hold. Divestiture validates that recovery thesis was wrong.
2	Evergreen "alive and well" → structural reframe	HARD	Q2'25: "This year is an aberration / Evergreen alive and well" (3%+ category growth, 8% EPS algorithm)	Investor Day: Formal walk-down of category growth from 3%+ historical to 2% structural; requires three internal growth initiatives to bridge to Evergreen	Most consequential contradiction. FY26 EPS guide of 5-8% sits below 8% Evergreen number. Three growth initiatives (ARM & HAMMER $2→$3B, oral care via TheraBreath, international M&A) load-bearing rather than supplemental.
3	VMS "running like we'll own forever" → exit paths	SOFT	VMS commentary across calls: "running like we'll own it forever"	Concurrently exploring three exit paths (sale, spin, JV)	Framing inconsistency. VMS divested in 2025 portfolio actions.
4	A&H laundry promo level	SOFT	Q2'25: A&H laundry promo "right in line with history"	Q3'25: Down -400 bps YoY	Direction call did not hold within one quarter.
5	Tariff arc whipsaw	SOFT	Across quarters: $190M gross → $25M after mitigation → "could be an opportunity"	Q1'26: $25-30M new commodity headwind 90 days later	Tariff narrative kept changing rapidly; productivity playbook proven but framing too optimistic at peak.
6	"No further portfolio plans" → 3 actions	SOFT	Q2'25: "No further portfolio plans"	By Q4: VMS sale + Touchland acquisition + specialty hair/skin pod reorg	Strategic pivot vs telegraphed posture. Indicates active portfolio repositioning.

Indirect Read-Throughs

Name	Relationship	What CHD signaled	Read-through
Procter & Gamble (PG)	Direct competitor — laundry, oral care	ARM & HAMMER record laundry share with LESS promo while PG (Tide/Gain) promoted MORE; TheraBreath +3.5 pts to 24.1% mouthwash share (#2); structural attack on premium categories	NEGATIVE — share donor
Colgate (CL)	Direct competitor — oral care	TheraBreath share gains in mouthwash; toothpaste launching; CL Total franchise pressure	NEGATIVE
Henkel (HEN3.DE)	Direct competitor — laundry (Persil)	ARM & HAMMER record share with LESS promo while Henkel promoted MORE	NEGATIVE
Kimberly-Clark (KMB)	Consumer staples peer	CPG vol cycle inflected positive; haircut Q1'26 prints by 1.5-2 pts (destock lap); categories genuinely growing 2.5-3%+	SLIGHT NEGATIVE — comp distortion
Clorox (CLX)	Direct competitor — household	Fresh Step litter share donor (CHD ARM & HAMMER cat litter winning); inflation pressure on commodity-heavy mix	NEGATIVE — multiple fronts
Energizer (ENR)	Battery / household peer	Productivity-over-pricing posture sets peer bar; cycle-inflection signal	NEUTRAL
Reynolds (REYN)	Household peer	Same — destock lap distortion + cycle inflection	NEUTRAL
Edgewell (EPC)	Personal care peer	Productivity-over-pricing posture; high-oil-input names with weak productivity pipelines at risk	SLIGHT NEGATIVE
Kenvue (KVUE)	Consumer health peer	TheraBreath vs Listerine; Hero vs Neutrogena acne	NEGATIVE — share pressure
Pfizer (PFE) consumer / Haleon (HLN)	Consumer health peer	VMS divested by CHD; Listerine pressured; oral care competitive	NEGATIVE — VMS, oral care
J&J / Bayer consumer	Consumer health adjacents	Oral care + acne competitive dynamics	NEGATIVE
Walmart (WMT)	Major retailer	Distribution shelf-reset winner; CHD #1 in CPG on TDP gains	NEUTRAL/POSITIVE
Amazon (AMZN)	Major retailer (24% of CHD consumer sales)	Significant channel exposure; productivity playbook critical	POSITIVE — channel
Costco (COST)	Major retailer	Mixed — Touchland strong; OxiClean lap reminder	MIXED
Target (TGT) / Kroger (KR)	Major retailers	Standard distribution channels	NEUTRAL
Touchland (acquired)	M&A	Q1 +12-13% all-channel consumption; ad + partnerships skew 2H'26; international rollout underway	Strategic asset
VitaFusion / Spinbrush / Flawless (divested)	M&A	Divested in 2025 portfolio actions; comp lap late 2026 / early 2027	Cleanup

Data sourced from Daloopa. Document search is currently in beta; transcript and filing snippets may vary.