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Clorox sells household and professional cleaning, hygiene and other consumer products. Its sales rebound reflects GOJO and an easier inventory comparison, while input costs reduced gross margin and pushed annual adjusted earnings expectations toward the low end.
The Clorox Company (NYSE: CLX) sells consumer and professional products across cleaning and hygiene, bags and wraps, cat litter, grilling, food, water filtration and personal care. Its fiscal year ends in June.
The table compares the three months ended September 30, 2026 and 2025. Amounts are USD millions, except per-share figures and percentages.
| Results | FY2027 Q1 | FY2026 Q1 |
|---|---|---|
| Sales | 1,905 | 1,429 |
| Gross margin | 40.4% | 41.7% |
| Net income attributable to Clorox, GAAP | 170 | 80 |
| Diluted EPS, GAAP | 1.39 | 0.65 |
| Adjusted EPS | 1.55 | 0.85 |
| Operating cash flow, GAAP | 143 | 93 |
| Free cash flow | 105 | 57 |
Current adjusted EPS removes $26 million of pretax GOJO acquisition and integration costs, or $20 million after tax. Last year's adjusted EPS removed digital-transformation expenses. Free cash flow is operating cash less capital spending of $38 million, versus $36 million a year earlier.
Reported sales grew 33%, including approximately 15 percentage points from GOJO. Organic growth was 18%, including approximately 18 points from the comparison with last year's inventory drawdown around the planning-system transition.
Retailers had built inventory ahead of the system change and then used it during fiscal 2026, reducing orders from Clorox. Comparing with that period helps fiscal 2027 growth. Management estimates the quarterly earnings comparison benefited by about $0.90 a share.
Gross margin fell despite higher sales, pricing and cost savings. Commodity, manufacturing and logistics costs increased, and acquisition inventory accounting also reduced the margin.
Fiscal 2027 adjusted EPS remains forecast at $5.70 to $6.00, unchanged from August, but Clorox now expects results closer to the low end. The GAAP EPS range remains $5.41 to $5.71.
The gross-margin expectation fell to 41.5% from about 42%. Selling and administrative expenses are now expected at 15.5% of sales, versus 16% previously.
Sales growth remains forecast at 13% to 14%, including approximately 9.5 points from GOJO. Organic growth is forecast at 3.5% to 4.5%, including more than 3.5 points from the inventory comparison.
Clorox completed the GOJO acquisition on April 1, 2026. Consideration was approximately $2.147 billion, including post-closing adjustments, funded with commercial paper and new debt. GOJO is part of Clorox Purell ProCare; integration continues, including a unified sales and service organization.
Clorox also completed the purchase of Procter & Gamble's 20% Glad interest after their joint venture expired on January 31, 2026. It paid $476 million in cash on March 2 and now owns 100% of Glad.
Cash was $184 million at September 30, versus $143 million in June. Debt carrying values totaled $5.158 billion, comprising $1.175 billion of notes and loans, $1 million of current long-term maturities and $3.982 billion of long-term debt.
Commercial paper has helped fund both GOJO and the Glad purchase. Revolving credit agreements totaling $1.964 billion were undrawn at September 30; they provide backup for its commercial-paper borrowing.
Clorox paid $151 million of dividends in the quarter, while free cash flow was $105 million. Net cash borrowing through notes and loans was $89 million.
Analysis CLX
Clorox's sales rebound comes with a lower gross margin and annual adjusted earnings expectations near the bottom of an unchanged range. Our comparison explains the inventory effect and the cost pressure.