The Clorox Company Q3 2026 Earnings Recap

Clorox shares closed down 8.1% following Q3 FY26 results, as investors were disappointed by gross margin compression and slower-than-expected recovery in key segments, notably Litter and Food. Progress on market share gains and ERP stabilization were overshadowed by underwhelming improvement in several businesses and margin pressure from higher supply chain costs.

Key Takeaways

• Gross margin fell short of expectations, impacted by elevated supply chain costs and delayed cost savings due to ERP stabilization priorities.
• Litter segment transformation is proving more protracted and disruptive than anticipated, with share recovery efforts off to a bumpier, multi-year start.
• Food category performance lagged due to a weaker than expected category (mid-single digit decline vs expected low single) and heightened promotional activity by competitors.
• Cleaning and International businesses remained areas of relative strength, with innovation and share gains noted, and Glad saw sequential share improvement.
• Management expects operational momentum to improve in the fourth quarter, but acknowledged certain segments may remain challenged into fiscal 2027.