The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The company offers home care cleaning and disinfecting products, laundry additives, skin sanitization and cleaning products, professional cleaning and disinfecting products, and professional food service products under brands such as Clorox, Clorox2, Pine-Sol, Scentiva, Tilex, Liquid-Plumr, Formula 409, Purell, GOJO, CloroxPro, Clorox Healthcare, Hidden Valley, Poett, Clorinda, and Chux. It also provides bags and wraps, cat litter, and grilling products under the Glad, Fresh Step, Scoop Away, Kingsford, and Ever Clean brands, as well as dressings, dips, seasonings, sauces, water-filtration products, and natural personal care products under the Brita and Burt's Bees brands. The company sells through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet, and military stores, third-party and owned e-commerce channels, distributors, and other retail outlets via a direct sales force. Founded in 1913, it is headquartered in Oakland, California.
Fiscal 2026 profit slump Clorox's fiscal 2026 revenue fell 5.4% and earnings per share dropped 26%, with gross margin down 290 basis points on higher manufacturing and logistics costs. This weak profit picture weighs on the stock because it shows the company's core business is struggling.
It is the latest hard evidence of the company's weak underlying profitability, directly pressuring the stock.
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Soft consumer demand and inflation Management warned that inflation and value-seeking shoppers will challenge fiscal 2027, offsetting cost savings. Persistent cost inflation and soft demand could keep profits under pressure and limit the company's ability to invest in growth.
It explains the ongoing demand and cost headwinds that are a key reason the stock is under pressure.
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GOJO acquisition boosts sales Clorox expects its GOJO acquisition, maker of Purell, to add about 9.5 percentage points to fiscal 2027 sales growth and be accretive to earnings. This deal is a major reason revenue is projected to rise 13-14%, giving the stock a growth catalyst.
It is the main positive force behind the sales growth outlook and a key support for the stock.
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Earnings beat but guidance miss Clorox's Q2 revenue and earnings beat estimates, but its fiscal 2027 earnings guidance slightly missed expectations. The beat shows some resilience, but the soft outlook and concerns about muted category growth and market share keep a lid on the stock.
It captures the mixed near-term signals that are driving investor sentiment and the stock's recent moves.
Fiscal 2026 profit slump Clorox's fiscal 2026 revenue fell 5.4% and earnings per share dropped 26%, with gross margin down 290 basis points on higher manufacturing and logistics costs. This weak profit picture weighs on the stock because it shows the company's core business is struggling.
It is the latest hard evidence of the company's weak underlying profitability, directly pressuring the stock.
▼
Soft consumer demand and inflation Management warned that inflation and value-seeking shoppers will challenge fiscal 2027, offsetting cost savings. Persistent cost inflation and soft demand could keep profits under pressure and limit the company's ability to invest in growth.
It explains the ongoing demand and cost headwinds that are a key reason the stock is under pressure.
▲
GOJO acquisition boosts sales Clorox expects its GOJO acquisition, maker of Purell, to add about 9.5 percentage points to fiscal 2027 sales growth and be accretive to earnings. This deal is a major reason revenue is projected to rise 13-14%, giving the stock a growth catalyst.
It is the main positive force behind the sales growth outlook and a key support for the stock.
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Earnings beat but guidance miss Clorox's Q2 revenue and earnings beat estimates, but its fiscal 2027 earnings guidance slightly missed expectations. The beat shows some resilience, but the soft outlook and concerns about muted category growth and market share keep a lid on the stock.
It captures the mixed near-term signals that are driving investor sentiment and the stock's recent moves.
News & notes movingCLX
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Clorox Fiscal 2026 Revenue Falls 5.4% as Margins and EPS Decline
Clorox reported sharply weaker fiscal 2026 results, with revenue falling 5.4% to $6.72 billion and diluted EPS dropping 26% to $4.81. Net income declined from $810 million to $587 million, while gross margin fell 290 basis points to 42.3% on higher manufacturing and logistics costs. The company, whose brands include Clorox, Glad, Fresh Step, Kingsford, Hidden Valley, Brita and Burt's Bees, said the results were also affected by ERP implementation issues, sales timing and soft consumer demand. Clorox added GOJO, the maker of Purell, in 2026 and bought P&G's remaining 20% stake in the Glad bags and wraps business. At around $80 a share, the stock trades at roughly 18 times trailing earnings and about 15 times forward earnings, down from 17.2 times in September 2025, leaving a forward earnings yield of roughly 6.7% against a 10-year Treasury yield of around 5.3% to 5.4%.
Clorox Bets on GOJO Deal and Digital Optimization for Growth
Clorox is leaning on portfolio expansion, innovation and a completed digital transformation to rebuild market share as it navigates a challenging consumer environment. The company has finished its five-year digital transformation program, including the rollout of its U.S. enterprise resource planning system, and is now shifting from implementation to optimization, with productivity benefits expected to begin in the latter part of fiscal 2027 and build into fiscal 2028. The acquisition of GOJO Industries has broadened Clorox's health and hygiene presence, a portfolio that now accounts for more than half of net sales on a combined basis, and GOJO is expected to contribute significantly to fiscal 2027 sales growth. Clorox has increased innovation spending and plans further investment in health and wellness, pet care, convenience and value, pairing product innovation with packaging improvements, targeted promotions and optimized price-pack architecture. Shares of Clorox have lost 19.4% in the past six months against the industry's growth of 3.9%, and the stock trades at a forward price-to-earnings ratio of 13.62X versus the industry's average of 18.11X. The Zacks Consensus Estimate for Clorox's fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 6% and 8.9%, respectively, and the stock currently carries a Zacks Rank #3 (Hold).
CLX · Capital · Positive Clorox completed its five-year digital transformation and is shifting to optimization, with productivity benefits expected in fiscal 2027-2028.
CLX · Demand · Positive The GOJO acquisition broadened Clorox's health and hygiene portfolio and is expected to contribute significantly to fiscal 2027 sales growth.
GOJO Industries · Demand · Positive Clorox's acquisition of GOJO Industries is expected to contribute significantly to fiscal 2027 sales growth.
Clorox Shares Down 9.3% Since Q4 Earnings, Outlook Weak
Clorox shares have fallen 9.3% since its fiscal fourth-quarter earnings report a month ago, underperforming the S&P 500, as the company faces margin pressure and a weak outlook. In the quarter, Clorox reported adjusted earnings of $1.66 per share, down 42% year over year but beating estimates by 1.2%, while net sales declined 2% to $1.95 billion, also beating consensus. The GOJO acquisition contributed about 10 percentage points to sales, but organic sales fell 13% due to ERP-related shipment comparisons. Gross margin contracted 520 basis points to 41.3% on higher commodity, manufacturing, and logistics costs. For fiscal 2027, Clorox expects net sales growth of 13-14% including 9.5 points from GOJO, with organic sales up 3.5-4.5%, and adjusted earnings between $5.70 and $6.00 per share, implying 3-8% growth. The company also guided to a gross margin of 42% and free cash flow of 11-13% of net sales. Analysts have revised estimates downward by 21.06% over the past month, and Clorox holds a Zacks Rank #4 (Sell).
GOJO Acquisition to Drive Clorox's Fiscal 2027 Sales Growth
Clorox expects its GOJO Industries acquisition, completed in April 2026 and now operating as Clorox Purell, to drive most of its reported sales growth in fiscal 2027. The company projects net sales to increase 13-14%, with GOJO contributing about 9.5 percentage points, and the combined global health and hygiene portfolio now represents more than half of net sales. Adjusted earnings are projected at $5.70-$6.00 per share, up 3-8%, while reported earnings are expected at $5.41-$5.71 per share, including about 29 cents of GOJO transaction-related costs. Clorox expects fiscal 2027 gross margin of about 42%, including roughly 20 basis points of pressure mainly from GOJO inventory step-up costs, and inflation to exceed $200 million, more than double its historical $75-$100 million range.
Clorox Stock Jumps 13.1% in a Month on Earnings Beat and GOJO Acquisition
Clorox shares have climbed 13.1% over the past month as investors digest the company's fiscal fourth-quarter results and fiscal 2027 outlook. The company reported adjusted earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.64, while sales of $1.95 billion also topped expectations despite a 2% year-over-year decline. Management projects fiscal 2027 net sales growth of 13-14%, including about 9.5 points from the GOJO acquisition, and adjusted earnings per share of $5.70 to $6.00. However, profitability remains a concern, with fiscal 2026 gross margin falling 290 basis points to 42.3% and inflation expected to exceed $200 million, more than double the historical range. The Zacks Consensus Estimate for fiscal 2027 earnings has declined 3.8% in the past four weeks to $5.82 per share, and the stock currently carries a Zacks Rank #4 (Sell).
Clorox reported second-quarter revenue of $1.95 billion, surpassing analyst estimates of $1.90 billion despite a 2% year-over-year decline. Adjusted earnings per share came in at $1.66, slightly above the $1.65 consensus. The company issued adjusted EPS guidance for fiscal 2027 of $5.85 at the midpoint, missing analyst estimates by 1.7%. During the earnings call, analysts questioned management on muted category growth, market share trends, the GOJO integration, dividend payout policy, and SG&A efficiency, with CEO Linda Rendle and CFO Luc Bellet providing detailed responses.
Clorox warns inflation and value-seeking consumers will challenge fiscal 2027
Clorox projected a difficult fiscal 2027, warning that inflation and value-focused shoppers would offset recent cost savings. The company expects net sales to rise 13% to 14% for the current fiscal year, with roughly 9.5 percentage points of that growth coming from its acquisition of GOJO Industries, the maker of Purell hand sanitizer. Adjusted earnings per share are forecast at $5.70 to $6.00, representing growth of 3% to 8% over the prior year, while GAAP diluted EPS is expected between $5.41 and $5.71. Gross margin is projected at roughly 42%, as higher-than-normal inflationary headwinds and unfavorable product mix more than offset cost savings. Organic sales are expected to grow approximately 3.5% to 4.5%, with more than 3.5 percentage points of that growth coming from lapping the prior year's ERP-related inventory drawdown.
Clorox projects over $200 million in inflation and 11% to 13% free cash flow for fiscal 2027
The Clorox Company expects fiscal 2027 inflation to exceed $200 million and targets free cash flow in the 11% to 13% range, executives said during the company's fourth-quarter fiscal 2026 earnings call. Executive VP and CFO Luc Bellet stated that inflation will be above $200 million, with the impact more pronounced in the first half of the year, and that the outlook assumes Brent crude oil at about $90 per barrel. CEO and Chairman Linda Rendle noted that categories are expected to remain muted amid value-seeking consumer behavior, but the company anticipates continued market share progress, citing turnarounds in Glad and Hidden Valley Ranch. Management highlighted early momentum for Clorox Purell and reiterated its commitment to the dividend, while acknowledging that the Litter business remains a persistent execution challenge. The CEO search is progressing as expected, and the company plans to use productivity and targeted pricing to navigate cost pressures.
Seeking Alpha flags 39 large-cap US stocks with Sell or Strong Sell ratings ahead of Q2 earnings
As second-quarter earnings season begins, Seeking Alpha's Quant Rating system identifies 39 large-cap US stocks carrying Sell or Strong Sell ratings, reflecting weaker scores across valuation, growth, profitability, momentum, and earnings estimate revisions. Seven of these companies hold the lowest Strong Sell designation with Quant Ratings below 1.50: Crown Castle, SBA Communications, Honeywell, Strategy, Zoetis, Erie Indemnity, and Tractor Supply. The remaining 32 stocks are rated Sell, including widely followed names such as Coinbase Global, Blackstone, S&P Global, Domino's Pizza, Lennar, Clorox, and Fidelity National Information Services. While some of these companies have delivered positive share-price returns this year, their Quant Ratings suggest investors should watch for potential downside risks as quarterly results and guidance are released.
CCI · Capital · Negative Quant Rating system assigns Strong Sell rating (below 1.50) indicating weak scores across valuation, growth, profitability, momentum, and earnings revisions.
CLX · Capital · Negative Quant Rating system assigns Sell rating, suggesting downside risk ahead of Q2 earnings.
COIN · Capital · Negative Quant Rating system assigns Sell rating, indicating potential downside risk as earnings approach.
DPZ · Capital · Negative Quant Rating system assigns Sell rating, suggesting weaker scores and downside risk.
ERIE · Capital · Negative Quant Rating system assigns Strong Sell rating (below 1.50) indicating weak scores across multiple factors.
HON · Capital · Negative Honeywell is one of seven stocks with the lowest Strong Sell rating (Quant Rating below 1.50), signaling poor scores across valuation, growth, and momentum.
Clorox to webcast Q4 and fiscal year 2026 results on August 3
The Clorox Company will release its fourth-quarter and fiscal year 2026 results on August 3, 2026. A press release and prepared management remarks will be posted on the company's website at 1:15 p.m. Pacific Time, followed by a live Q&A audio webcast for analysts at 2 p.m. Pacific Time featuring Chair and CEO Linda Rendle and Chief Financial Officer Luc Bellet. Links to the webcast and materials will be available on the Clorox quarterly results page.
Clorox Cuts Fiscal 2026 Outlook on Flat Sales and Margin Pressure
Clorox has lowered its fiscal 2026 guidance, now expecting net sales to decline about 6% and gross margin to contract, as the company faces flat net sales and higher manufacturing and logistics costs. Management’s revised outlook sharpens investor focus on whether upcoming fourth-quarter results can show progress in stabilizing margins. The lowered guidance frames a tougher near-term backdrop for the ERP benefits, innovation pipeline, and cost savings that many investors had counted on to support future earnings. Persistent cost inflation and tariff headwinds could have a larger and longer-lasting impact than expected, potentially eroding profitability and limiting the company’s flexibility to invest for growth.
Palm Valley Capital adds Clorox as new position in Q2 2026
Palm Valley Capital Management acquired a new position in The Clorox Company during the second quarter of 2026, alongside new stakes in Molson Coors Beverage Company and Vontier Corp. The firm noted that Clorox, which manufactures household and professional products under brands like Clorox bleach, Pine-Sol, and Glad, has faced a slow recovery from a 2023 cyberattack and ongoing disruptions from a large ERP implementation. In April, Clorox cut its fiscal 2026 outlook as price-sensitive consumers traded down to private-label alternatives. Palm Valley Capital views Clorox as a slow-growth consumer staples company with historically stable cash flows and acquired a small position near the lows, though shares have since bounced. The fund's investor class gained 1.80% in the second quarter, underperforming the S&P SmallCap 600's 19.7% return, partly due to a 75% allocation to cash equivalents.
Clorox Stock Underperforms the Dow Jones Industrial Average
Clorox shares have underperformed the Dow Jones Industrial Average over multiple time frames. The stock has declined 14.8% over the past three months, while the Dow gained 9.6%. On a year-to-date basis, Clorox fell 5.8% versus the Dow's 7.1% advance, and over the past 52 weeks it dropped 22.2% compared with the Dow's 22% return. The company cited ERP rollout disruptions, higher supply chain costs, competitive pressure in Litter and Food, and $20 million to $25 million in fourth-quarter oil-cost headwinds as factors weighing on performance. Clorox reported fiscal third-quarter adjusted earnings of $1.64 per share on revenue of $1.67 billion, both exceeding consensus estimates, but shares fell 9.7% the following session after it issued full-year adjusted EPS guidance of $5.45 to $5.65. Analysts rate the stock a consensus Hold with a mean price target of $99.87, implying a potential upside of 5.2% from current levels.
Clorox announces simplified operating structure to improve execution and accelerate growth
The Clorox Company announced a simplified operating structure to streamline leadership oversight and accelerate growth. Chris Hyder has been appointed executive vice president and chief operating officer, consolidating leadership of all business units under a single executive. Nina Barton moves to executive vice president and chief growth and strategy officer, focusing on innovation, value superiority, and portfolio shaping. Chair and CEO Linda Rendle said the changes will help the company move faster and deliver stronger results by focusing investment behind faster-growing health and hygiene categories.
StockStory Highlights Casella Waste as Cash-Producing Stock to Watch, Flags Bentley Systems and Clorox as Sells
StockStory identifies Casella Waste Systems as a cash-producing stock to watch this week, while recommending selling Bentley Systems and Clorox. Casella, with a trailing 12-month free cash flow margin of 9.7%, posted annual revenue growth of 18.2% over the past two years and earnings per share growth of 24.2% annually, with forecasted revenue growth of 13% for the next 12 months. Bentley Systems, despite a 31.6% free cash flow margin, saw average annual recurring revenue growth of only 12.8% and estimated sales growth of 11.9%, with no operating margin improvement. Clorox, with a 5.6% free cash flow margin, experienced a 1.9% annual sales decline over three years and a 5.8 percentage point drop in free cash flow margin, trading at 15.9 times forward price-to-earnings.
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