Church & Dwight Stock Rises: Q2 Organic Sales Beat Masks EPS Miss

Church & Dwight Co., Inc. (NYSE: CHD ) reported mixed second-quarter 2026 results on Friday.

The consumer products company posted adjusted earnings of 89 cents per share, missing the consensus estimate of 90 cents.

Revenue rose 1.6% year over year to $1.530 billion, ahead of estimates of $1.503 billion.

Organic sales grew 5.8%, above the company’s prior outlook of 3%, supported by volume growth of 4.3% and positive price and mix of 1.5%.

Domestic organic sales increased 5.1%, while international organic sales rose 9.1%.

Margin Expansion And Profitability Adjusted gross margin expanded 40 basis points to 45.4%, driven by higher volumes, productivity gains and favorable product mix, partially offset by inflation and recent transportation cost increases.

Reported earnings per share were 85 cents, up from 78 cents a year earlier, while adjusted EPS decreased 5.3% year over year.

Operating income totaled $276.4 million, with adjusted operating income of $287.2 million, down by 9.1% from the prior year as increased investments in marketing and the higher SG&A expenses offset top-line gains.

Segment Performance Shows Broad Organic Growth Consumer Domestic net sales rose 0.1% to $1.16 billion, while organic sales increased 5.1%.

Higher volume contributed 3.6 percentage points, and favorable price and product mix added 1.5 percentage points.

THERABREATH mouthwash and toothpaste, HERO, ARM & HAMMER cat litter and ZICAM drove organic growth.

Acquisitions of TOUCHLAND and MISS MOUTH’S also supported reported sales, partly offset by the impact of last year’s strategic portfolio actions.

Consumer International net sales increased 7.2% to $297.5 million, with organic sales up 9.1%.

Volume growth added 7.3 percentage points, while favorable price and product mix contributed 1.8 percentage points.

THERABREATH, HERO and BATISTE led the segment’s growth.

Specialty Products net sales rose 2.8% to $76.7 million.

Organic sales also increased 2.8%, supported by 1.3 percentage points of volume growth and 1.5 percentage points from hi Cash Flow And Balance Sheet Cash from operations totaled $286.8 million during the quarter.

Capital expenditures rose to $29.9 million in the second quarter from $22.5 million a year earlier.

As of June 30, the company held $254.8 million in cash and reported total debt of $2.3 billion.

Outlook Improves Despite Cost Pressures Church & Dwight said it is raising its 2026 outlook as volume growth, market-share gains and gross margin expansion strengthen its operating performance despite a challenging environment.

CEO Rick Dierker said the company is focused on offering consumers high-quality, solution-oriented products at the right value.

He said inflationary pressure from the Middle East remains a headwind, but the company still expects to offset the temporary cost impact in 2026.

Church & Dwight raised its full-year 2026 adjusted EPS guidance (from the prior range of $3.71-$3.81), to $3.74-$3.81 versus the $$3.76 analyst estimate.

It lowered net sales outlook (from the previous range of $6.110 billion-$6.172 billion) to $6.107 billion-$6.168 billion, compared with estimates of $$6.182 billion.

The company raised its outlook for organic sales growth (from the prior range of 3%-4%) to 4%-5%.

It also increased its reported sales guidance (from the previous range of a decline of 1.5%-0.5%) to a growth of flat to 1%.

The company said the improved outlook reflects stronger organic momentum and the contribution from MISS MOUTH’S.

Church & Dwight expects third-quarter adjusted EPS of $0.89 versus $0.94 analyst estimate and sales of $1.578 billion against $1.572 billion analyst estimate.

The company also expects about $15 million of phase II tariff refund benefits in the second half and plans to invest those proceeds in consumer-facing activities and inflation offsets.

CHD Stock Price Activity: Church & Dwight shares were up 1.26% at $98.92 on Friday, according to Pro data.

Photo via Shutterstock Read Also: Procter & Gamble Reports Flat Organic Sales Amid Rising Costs