Church & Dwight Co., Inc. CHD delivered a solid second quarter of 2026, supported by broad-based organic growth, higher volumes and continued momentum across its key consumer brands. The company also raised its full-year sales, earnings and cash flow outlook.
Adjusted earnings were 89 cents per share, down 5.3% year over year, and in line with the Zacks Consensus Estimate. Net sales increased 1.6% to $1,530 million, beating the consensus mark of $1,503 million. Organic sales rose 5.8%, driven by 4.3% volume growth and a 1.5% contribution from pricing and product mix.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote
CHD Benefits From Broad-Based Brand Strength
Organic sales growth exceeded management’s 3% expectation for the quarter. Performance was supported by THERABREATH mouthwash and toothpaste, HERO, ARM & HAMMER cat litter and ZICAM.
Global e-commerce sales advanced 22.7% and represented 25.5% of total consumer sales. Management also cited encouraging initial sales from MISS MOUTH’S MESSY EATER following the brand’s acquisition in June.
Church & Dwight’s Adjusted Gross Margin Expands
Adjusted gross margin increased 40 basis points year over year to 45.4%. The improvement reflected higher volumes, productivity and favorable mix from acquisitions and portfolio actions.
These benefits were partly offset by inflation and higher transportation costs. Marketing expenses rose $8.2 million to $165.3 million and represented 10.8% of net sales, up 40 basis points from the prior-year quarter.
CHD Sees Pressure From Higher Operating Costs
Adjusted selling, general and administrative expenses were $241.4 million, or 15.8% of net sales. The expense ratio increased 220 basis points year over year, reflecting TOUCHLAND-related amortization and operating costs.
Adjusted income from operations declined $28.7 million to $287.2 million. Adjusted operating margin contracted 220 basis points to 18.8%, as gross margin expansion and organic growth were more than offset by higher marketing and administrative spending.
Church & Dwight Posts Growth Across Divisions
Consumer Domestic net sales increased 0.1% to $1,155.8 million. Organic sales rose 5.1%, supported by 3.6% volume growth and a 1.5% contribution from pricing and product mix.
Consumer International net sales increased 7.2% to $297.5 million. Organic sales climbed 9.1%, driven by a 7.3% jump in volume and a 1.8% benefit from price and mix. THERABREATH, HERO and BATISTE were the main growth contributors.
Specialty Products net sales advanced 2.8% to $76.7 million. Organic sales also increased 2.8%, reflecting a 1.3% rise in volume and a 1.5% contribution from pricing and product mix.
CHD Maintains Strong Cash Generation
Cash from operations totaled $461.6 million in the first six months of 2026, up 10.8% year over year. Capital expenditures increased $22.8 million to $61.8 million as the company continued to invest in capacity and sales growth initiatives.
Church & Dwight ended June with $254.8 million in cash and approximately $2,300 million in total debt. Full-year capital expenditures are still expected to be approximately $130 million, or about 2% of sales.
Church & Dwight Raises Its Full-Year Outlook
Management now expects organic sales growth of 4% to 5% in 2026, up from its prior forecast of 3% to 4%. Reported sales are projected to range from flat to growth of 1% compared with the earlier expectation for a decline of 1.5% to 0.5%.
Adjusted earnings are now expected to increase 6% to 8% compared with the previous forecast of 5% to 8% growth. Adjusted gross margin is projected to expand 100 to 120 basis points, while cash from operations is expected to reach approximately $1,175 million.
CHD Sets Q3 Targets
For the third quarter of 2026, the company expects organic sales growth of approximately 3%. Reported sales are projected to decline about 1%, reflecting strategic portfolio actions completed in 2025.
Adjusted earnings are expected to be approximately 89 cents per share, up 10% year over year. The outlook also assumes continued gross margin expansion, marketing expenses of roughly 12% of sales, higher SG&A expenses and an adjusted tax rate of approximately 21.5%.
This Zacks Rank #3 (Hold) stock has risen 1.7% over the past three months compared with the industry’s 2.6% growth.
Better-Ranked Stocks to Consider
United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The consensus estimate for United Natural’s current fiscal-year earnings per share (EPS) stands at $2.52, which implies substantial growth from the year-ago period earnings of 71 cents. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.
The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
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