CLX -- Fiscal Q3 2026 Earnings Preview

The Clorox Company | Results April 30, 2026 at 4:15 p.m. ET | Q&A webcast at 5:00 p.m. ET | Prepared April 28, 2026

Earnings Date

Apr 30

FY2026 Q3 results

FY26 Sales Guide

-10% to -6%

Full-year reported sales

FY26 Organic Guide

-9% to -5%

Organic sales growth

FY26 Adj. EPS

$5.95-$6.30

Non-GAAP diluted EPS

Executive Summary

Clorox's fiscal Q3 print is about normalization after a disruptive start to fiscal 2026. Fiscal Q1 sales fell to $1.43B and organic sales declined 17%, but fiscal Q2 improved to $1.67B, with organic sales down only 1%. The quarter needs to prove that the ERP-related shipment and market-share pressure is fading.

The full-year guide remains conservative: reported sales down 10% to 6%, organic sales down 9% to 5%, gross margin down 100 bps to 50 bps, and adjusted diluted EPS of $5.95 to $6.30. A good Q3 does not need heroic growth; it needs credible recovery in volume, service levels, and margins.

Guidance & Earnings Hurdle

| Metric | FY2026 Guide | Preview Read | |---|---:|---| | Reported sales growth | -10% to -6% | Q3 must show the decline is narrowing | | Organic sales growth | -9% to -5% | Core demand and recovery scorecard | | Gross margin change | -100 bps to -50 bps | Watch manufacturing/logistics and fixed-cost absorption | | GAAP diluted EPS | $5.60 to $5.95 | Still pressured by transition costs | | Adjusted diluted EPS | $5.95 to $6.30 | Needs cost savings plus recovery in sales base |

Fiscal Q2 recovered sequentially from the fiscal Q1 trough, but net sales were still down year over year. Fiscal Q3 needs to show that shipment timing is normalizing and that distribution losses are being repaired.

Gross margin improved from 41.7% in fiscal Q1 to 43.2% in fiscal Q2, helped by cost savings and price. The full-year guide still embeds gross margin pressure, so Q3 margin quality is central.

Segment Sales

The fiscal Q2 recovery was broad but uneven. Health & Wellness improved from $565M in fiscal Q1 to $643M in fiscal Q2. Household improved from $362M to $419M, while Lifestyle rebounded from $245M to $321M. The call should clarify whether these gains reflect real replenishment and share recovery or just catch-up shipments.

Key Metrics

| Metric | FY25 Q3 | FY25 Q4 | FY26 Q1 | FY26 Q2 | |---|---:|---:|---:|---:| | Net sales | $1.67B | $1.99B | $1.43B | $1.67B | | Gross profit | $744M | $924M | $596M | $722M | | Gross margin | 44.6% | 46.5% | 41.7% | 43.2% | | Organic sales growth | -2% | +8% | -17% | -1% | | Net earnings | $186M | $332M | $80M | $157M | | Diluted EPS | $1.50 | $2.68 | $0.65 | $1.29 |

Margin Drivers

| Driver | FY26 Q1 | FY26 Q2 | Why It Matters | |---|---:|---:|---| | Gross margin | 41.7% | 43.2% | Sequential recovery but still below FY25 exit | | YoY gross margin change | -410 bps | -60 bps | Q2 narrowed the pressure meaningfully | | Cost savings contribution | 140 bps | 170 bps | Productivity is cushioning sales disruption | | Price contribution | 20 bps | 60 bps | Pricing is no longer the main driver, but still supportive | | Organic volume | -15% | -1% | Biggest evidence of normalization |

Set Up Analysis

This is not a standard staples print. The market is evaluating operating recovery, not just category growth. Fiscal Q1 was distorted by the ERP transition; fiscal Q2 showed a sharp sequential improvement, but the full-year guide still implies negative sales and gross margin pressure. The central questions are whether service levels and distribution have normalized, whether volume weakness is now only temporary, and whether Clorox can keep spending behind brands without losing the EPS bridge.

The best Q3 outcome would include organic sales close to flat or better, gross-margin pressure narrowing further, and management confidence that Household and Health & Wellness shelf availability has improved. The worst outcome would be another quarter where sales recovery relies on catch-up shipments while consumer takeaway and market share remain weak.

Key Catalysts

| Catalyst | Timing | What Matters | |---|---|---| | ERP recovery update | Apr 30 | Service levels, shipment cadence, and distribution repair | | Organic sales | Apr 30 | Progress against FY2026 guide of -9% to -5% | | Gross margin | Apr 30 | Whether Q2's 43.2% margin improves further | | Segment stabilization | Apr 30 | Health & Wellness and Household volume/share recovery | | FY2026 EPS guide | Apr 30 | Reaffirm adjusted EPS guide of $5.95-$6.30 / high |

Beat / Miss Pattern

| Quarter | Net Sales | Organic Sales Growth | Quality Signal | |---|---:|---:|---| | FY26 Q2 | $1.67B | -1% | Sequential recovery, still weak YoY | | FY26 Q1 | $1.43B | -17% | ERP transition disruption | | FY25 Q4 | $1.99B | +8% | Pre-transition shipment strength | | FY25 Q3 | $1.67B | -2% | Better baseline but still volume-sensitive |

Earnings timing: Clorox investor relations release dated Apr. 9, 2026. Historical fundamentals, KPIs, and guidance: Daloopa. Data sourced from Daloopa.