Chair and CEO Linda Rendle on Q3 FY26 performance and outlook
By Linda Rendle, Chair and Chief Executive Officer
We just reported our third‑quarter fiscal year 2026 results, reflecting mixed performance across the business.
As we entered the year, we were clear that fiscal 2026 would require a disciplined, phased approach. The front half was deliberately focused on implementing and stabilizing our new U.S. ERP system, knowing it would create near-term disruption while establishing a stronger operating foundation. As we moved into the back half of the year, our focus shifted to regaining momentum, bringing innovation to shelf, and sharpening execution—led by our top priority: delivering value superiority across our brands to drive category and share growth. That sequencing remains right, but improvement has taken longer in some parts of the portfolio than we expected.
We continue to make progress on market share, but in some businesses it’s coming more slowly than planned. Gross margin also came in below expectations, driven by higher‑than‑anticipated supply chain costs and delayed cost savings as we prioritized ERP stabilization.
At the same time, we are seeing clear areas of strength. Cleaning remains our biggest growth driver as we continue to see strong consumer engagement and successful innovation. The launch of Clorox PURE is gaining traction with encouraging early performance, strong distribution, and favorable shelf placement, reinforcing our confidence in the platform’s long‑term potential. Scentiva also continues to resonate, with Cherry Blossom emerging as a top‑performing scent.
We’re also seeing meaningful contributions from our International and Professional businesses, supporting a path to outsized growth over time. And in Glad, share trends are improving. We remain focused on managing margin pressures tied to commodities costs while balancing growth and profitability.
Where we need sharper execution, we’re being equally clear. In Litter, we just relaunched our Fresh Step brand as part of our multi‑year plan to rebuild category superiority. The foundation of the relaunch is now largely in place, and our focus has shifted to improving on‑shelf execution and restoring velocity to drive share recovery over time. In Food, results were impacted by continued GLP‑1 headwinds and elevated promotion. Even so, we grew share by sharpening our focus on value through price‑pack architecture, while expanding our innovation pipeline, including more protein‑forward offerings.
The consumer environment remains challenging. Value‑seeking behavior stayed elevated throughout the quarter, and promotional intensity remained high across most categories. As gas prices rose and confidence weakened, consumers became more selective—shifting pack sizes, channels, and price points depending on income level. We’re responding by meeting consumers where they are, focusing on value superiority by offering the right mix of sizing, pricing, and channels to serve both value‑seeking and premium‑oriented shoppers.
While we can’t control the macro backdrop, we are tightly focused on what is within our control: leveraging revenue growth management tools, strengthening assortment choices, and ramping demand creation in line with distribution builds and shelf resets. These efforts are building month over month and will continue into the fourth quarter as our innovation pipeline reaches fuller distribution.
One of the most important milestones this quarter was completing the third and final phase of our U.S. ERP implementation. Service levels have stabilized and complexity is coming down. Over time, this positions us to unlock productivity across our organization while also improving decision‑making speed and execution.
We also closed the GOJO Industries acquisition on April 1, expanding our leadership in health and hygiene with the addition of Purell to our portfolio of trusted brands. GOJO brings an iconic brand, attractive category tailwinds, and a complementary business model. Integration is off to a strong start and we’re confident in the long‑term value creation this acquisition supports.
Looking ahead, we’ve updated our fiscal year outlook to reflect current consumption trends, input‑cost assumptions, and the impact of the GOJO acquisition. The environment will remain dynamic, and we’re planning accordingly. Our immediate priority is a strong finish to the fourth quarter, with teams focused on the fundamentals so we’re positioned to capitalize on key consumer moments in the months ahead.
Our confidence in the path forward is grounded in tangible progress, a stronger operating foundation, and a clearer line of sight into improvement. We know where execution needs to be better, and we’re taking the right actions. With disciplined focus, continued investment behind our brands, and confidence in our teams, we believe we are positioned to finish the year stronger and move forward with purpose.
Finally, I want to thank our teammates for their resilience and commitment during a period of meaningful transformation, and our customers for their continued partnership and trust. We don’t take that responsibility lightly, and we remain focused on delivering for the consumers who rely on our brands every day.
