Clorox Co /de/ (CLX) · Nov 2, 2026 · Earnings
Beat — Adj. EPS $1.55 vs ~$1.07 consensus
Clorox’s Q1 earnings beat consensus on a shipment rebound and GOJO contribution, but higher costs lowered its FY27 margin outlook.
Clorox is in a transition year: it is integrating GOJO/Purell to build a larger health-and-hygiene platform, while moving beyond its completed ERP transformation and trying to restore underlying growth. GOJO expanded Clorox’s professional and healthcare exposure, and the company’s strategy is centered on combining consumer brands with B2B distribution capabilities.
The quarter was a clear earnings beat, but not a clean underlying acceleration. Adjusted EPS was $1.55 versus a published consensus of roughly $1.07, while sales were $1.905 billion versus approximately $1.88 billion expected. The comparison was helped by lapping last year’s ERP-related inventory drawdown, which had depressed the prior-year quarter by about 90 cents of EPS; GOJO also supplied roughly 15 points of reported sales growth.
| Figure | Q1 FY27 | Q1 FY26 | Consensus / prior outlook |
|---|---|---|---|
| Net sales (Financial Statements) | $1,905M (+33%) | $1,429M | ~$1,880M |
| Organic sales (Organic Sales Reconciliation) | +18% | — | — |
| Adjusted EPS (Adjusted EPS Reconciliation) | $1.55 (+82%) | $0.85 | ~$1.07 |
| Gross margin (Financial Highlights) | 40.4% (-130 bps) | 41.7% | — |
| FY27 adjusted EPS outlook (Outlook) | $5.70–$6.00 | — | Prior range unchanged |
The growth engine is working, but the margin engine is under pressure. Organic sales rose 18%, and every segment grew, led by Health and Wellness, where GOJO drove much of the reported increase. But gross margin fell 130 basis points to 40.4% as commodities, manufacturing and logistics costs overwhelmed savings and pricing.
Management held the earnings range but effectively made the quality of that outlook less comfortable. Sales and adjusted EPS ranges remain unchanged, yet expected FY27 gross margin was reduced to about 41.5% from the roughly 42% outlook issued in August, reflecting higher inflation and unfavorable mix. Management now expects adjusted EPS toward the low end of the range rather than raising it after the strong quarter. 〔0〕 〔1〕
GOJO integration is advancing operationally, but it is not yet proving out the full payoff. Clorox launched the unified Purell ProCare organization during the quarter, a concrete integration milestone, while recording $26 million of acquisition and integration costs. That supports the strategic rationale, but the acquisition is also adding costs and inventory step-up pressure as the company absorbs the business. 〔2〕
Bottom line: Clorox beat a low quarterly bar, helped by the known ERP comparison and GOJO contribution, but the unchanged EPS outlook and lower margin view keep this from being a clean upgrade to the business story. The company is executing the transition, yet inflation is taking more of the benefit than expected.
Q2 earnings report, early February 2027
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