The quarter edged past low expectations. Adjusted EPS was $1.66 versus a published consensus of approximately $1.64, while net sales were $1.95 billion versus an external estimate near $1.91 billion. That makes the headline result a narrow beat, not a major upside surprise.
| Metric | Q4 FY2026 | Q4 FY2025 | Change / expectation |
|---|---|---|---|
| Net sales | $1,948 million (Condensed Consolidated Statements of Earnings) | $1,988 million (Condensed Consolidated Statements of Earnings) | -2%; ~$1.91 billion consensus |
| Organic sales | -13% (Organic sales reconciliation) | — | GOJO added roughly 10 points; ERP comparison was about 13.5 points |
| Adjusted EPS | $1.66 (Adjusted EPS reconciliation) | $2.87 (Adjusted EPS reconciliation) | -42%; ~$1.64 consensus |
| Gross margin | 41.3% (Financial Highlights) | 46.5% (Financial Highlights) | -520 basis points |
| Adjusted EBIT | $318 million (Adjusted EBIT reconciliation) | $460 million (Adjusted EBIT reconciliation) | -31% |
The underlying operating picture was much weaker than the EPS headline. Organic sales fell 13%, with Household down 18% and Lifestyle down 17%; Health and Wellness also declined 12% organically despite the GOJO acquisition lifting reported sales. Adjusted EBIT fell 31%, and gross margin compressed to 41.3% as lower volume, manufacturing and logistics costs, commodities and GOJO inventory step-up charges outweighed savings. (Segment results; Organic sales reconciliation; Financial Highlights)
The ERP distortion explains much of the year-over-year collapse, but not all of it. Clorox says the prior-year quarter benefited from roughly 3.5 points of advance shipments and about $0.90 of EPS, while the current year absorbed the corresponding drawdown. That effect was known and should already have lowered expectations; excluding it, however, the filing still shows substantial weakness across the legacy Household and Lifestyle businesses. (ERP transition discussion; Adjusted EPS reconciliation)
Fiscal 2027 guidance offers recovery, but much of the growth is mechanical. Management expects organic sales growth of 3.5% to 4.5% and adjusted EPS of $5.70 to $6.00, helped by lapping the ERP-related drawdown and adding a full year of GOJO. The guidance also assumes gross margin of only about 42%, with inflation and unfavorable mix offsetting cost savings. (Fiscal year 2027 outlook)
Net read: a small earnings beat against subdued expectations, with no clear improvement yet in the core business. The result is modestly better than consensus, but the quality of the beat is limited by steep organic declines, margin pressure, higher interest expense and materially greater debt following the GOJO acquisition. (Condensed Consolidated Statements of Earnings; Condensed Consolidated Balance Sheets)
Read the original 8-K on SEC EDGAR ↗