Clorox Inc. reported second‑quarter fiscal 2026 revenue of $1.67 billion, a 1% decline from the same period a year earlier, and gross margin of 43.2%, down 60 basis points from the prior year. Adjusted earnings per share were $1.39, missing the consensus estimate of $1.43 by $0.04 per share.
Revenue beat expectations by roughly $30–$40 million, driven by resilient demand in the company’s core Health & Wellness and Household segments. The beat was offset by a 7.5‑percentage‑point inventory drawdown that followed the transition to a new enterprise resource planning system, which temporarily reduced sales volume in the quarter.
The adjusted EPS miss was largely a consequence of the ERP‑related inventory drawdown and higher manufacturing and logistics costs. While the company’s cost‑control initiatives helped limit margin erosion, the combined effect of the inventory adjustment and cost inflation pushed earnings below analyst expectations.
Management reaffirmed its full‑year outlook, projecting net sales to decline 6% to 10% and adjusted EPS to range from $5.95 to $6.30. The guidance reflects continued headwinds from the ERP transition, but also signals confidence that the system will stabilize by the fourth quarter and that the company’s strategic investments will support future growth.
Clorox also highlighted its upcoming acquisition of GOJO Industries, the maker of Purell hand sanitizers, for approximately $2.25 billion, a deal that is expected to add significant revenue and margin upside once closed. In addition, the company is buying out Procter & Gamble’s 20% stake in the Glad bags and wraps joint venture for $476 million, giving it full economic ownership of the venture. CEO Linda Rendle emphasized that the company remains laser‑focused on executing its back‑half plans, supported by a strong slate of innovation and investments, and that the ERP transition is “very smooth” with full stabilization expected in Q4.
"Our second‑quarter results were generally in line with our expectations and reflect continued progress against our strategic priorities," Rendle said. "We remain laser‑focused on executing our back‑half plans, supported by a strong slate of innovation and investments."
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