CHD · Church & Dwight Co., Inc.

Church & Dwight delivered a strong Q1 2026, significantly outperforming its own outlook on multiple fronts: net sales rose 0.2% to $1,469.3 million (vs. an expected 1% decline), organic sales grew 5.0% (vs. 3% outlook), and adjusted gross margin expanded 130 bps to 46.4%, driven by volume leverage, productivity gains, and favorable mix from recent acquisitions including TOUCHLAND™, THERABREATH™, and HERO™ — though partially offset by inflation and tariff costs. Adjusted EPS of $0.95 exceeded the $0.92 outlook, reflecting both top-line strength and disciplined cost management. Management attributed the broad-based growth to innovation-led distribution wins across domestic classes of trade, continued international expansion (especially in GMG and subsidiaries), and robust e-commerce performance (now 24% of total consumer sales). While Q1 results were exceptional, the company reaffirmed its more conservative full-year 2026 guidance — organic growth of 3%–4%, adjusted EPS growth of 5%–8%, and gross margin expansion of 100 bps — citing transitory headwinds from Middle East-related commodity and transportation pressures, as well as front-loaded investments tied to the TOUCHLAND acquisition (including $6.3M in related SG&A charges and amortization) and ERP upgrade expenses. The guidance explicitly offsets $400 million in lost revenue and stranded costs from 2025 strategic portfolio actions, underscoring the company’s focus on quality growth over scale. With $1.15 billion in expected full-year operating cash flow and a strong balance sheet ($503.4M cash vs. $2.2B debt), Church & Dwight maintains significant flexibility to fund innovation, marketing, and future M&A in fast-moving consumables.