Colgate-Palmolive operates in a highly competitive global omni-channel marketplace that is increasingly defined by the integration of traditional and digital retail operations and evolving consumer purchasing behaviors and preferences, as consumers continue to shop online and increasingly through social commerce and with the assistance of AI. The increased presence of alternative retail channels, such as subscription services and direct-to-customer businesses, has also intensified competition for consumer attention. The Company markets its products in over 200 countries and territories throughout the world, with approximately two-thirds of its Net sales originating in markets outside the United States and approximately 45% of its Net sales coming from emerging markets, which consist of Latin America, Asia (excluding Japan), Africa/Eurasia and Central Europe.

The Company faces vigorous competition worldwide from multinational and local competitors, some of which may have greater resources, as well as from private label brands sold by retailers and new competitors entering via eCommerce and direct-to-consumer channels. The Company is a leader in Oral Care with global leadership in the toothpaste and manual toothbrush categories according to market share data, and a leader in many product categories of the Personal Care market with global leadership in liquid hand soap. The Company's share of the global toothpaste market was 41.3% ¹ for the full year 2025, down 0.4 share points from full year 2024, and its share of the global manual toothbrush market was 32.4% ² for the full year 2025, up 0.4 share points versus full year 2024. Sales to Walmart, Inc. and its affiliates represented approximately 11% ³ of Net sales in 2025.

The Company generates revenue through the sale of well-known consumer products to trade customers under established trading terms, with revenue recognized when control of products is transferred to trade customers. The Company operates in two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products are sold primarily to a variety of retailers, wholesalers, distributors, dentists and, in some geographies, skin health professionals. Pet Nutrition products are sold principally through authorized pet supply retailers, veterinarians and eCommerce retailers, and certain products are also sold direct-to-consumer.

Sales of Oral, Personal and Home Care products accounted for 44% ⁴, 17% ⁵ and 16% ⁶, respectively, of total worldwide Net sales in 2025. Oral Care products include toothpastes, toothbrushes, mouthwashes and pharmaceutical products for dentists, sold under brands such as Colgate, Darlie, elmex, hello, meridol, Sorriso and Tom's of Maine. Personal Care products include liquid hand soaps, bar soaps, shower gels, deodorants, antiperspirants, skin health products and shampoos, sold under brands such as Palmolive, Protex, Softsoap, Irish Spring, Sanex, Lady Speed Stick, Speed Stick, Tom's of Maine, EltaMD, Filorga and PCA SKIN. Home Care products include dishwashing liquids, household cleaners and fabric conditioners, sold under brands such as Ajax, Axion, Palmolive, Fabuloso, Murphy, Suavitel, Soupline, Fluffy and Cuddly.

Sales of Pet Nutrition products accounted for 23% ⁷ of total worldwide Net sales in 2025. Through the Hill's Pet Nutrition segment, the Company is a leader in specialty pet nutrition products for dogs and cats, marketed in over 80 countries and territories worldwide under three primary brands: Hill's Science Diet (called Hill's Science Plan in Europe), Hill's Prescription Diet, and Prime100, a leading fresh pet food brand sold in Australia. The Pet Nutrition segment's net sales were $4,613 ⁸ in 2025, up 2.9% ⁹ from 2024.

On April 30, 2025, the Company acquired Care TopCo Pty Ltd, the owner of the Prime100 pet food business, for cash consideration of AU $471 ¹⁰ (approximately $301 ¹¹), providing the Hill's Pet Nutrition segment with an entry into the fast-growing fresh pet food category in Australia. On July 31, 2025, the Board approved a new three-year productivity program, the Strategic Growth and Productivity Program, estimated to result in cumulative pre-tax charges of between $200 ¹² and $300 ¹³, with substantially all charges to be incurred by December 31, 2028. On March 20, 2025, the Board authorized the repurchase of shares of common stock having an aggregate purchase price of up to $5 billion ¹⁴ under a new share repurchase program. During the year ended December 31, 2025, the Company redeemed at maturity $130 ¹⁵ of 30-year Medium-Term Notes with a fixed coupon of 7.60% and $500 ¹⁶ of three-year Senior Notes with a fixed coupon of 3.10%, and issued $500 ¹⁷ of five-year Senior Notes at a fixed coupon rate of 4.20% and €600 ¹⁸ of ten-year Senior Notes at a fixed coupon rate of 3.25%.

Worldwide Net sales were $20,382 ¹⁹ in 2025, up 1.4% ²⁰ from 2024. Net income attributable to Colgate-Palmolive Company was $2,132 ²¹, or $2.63 ²² per share on a diluted basis, in 2025, a decrease from $2,889 ²³, or $3.51 ²⁴ per share on a diluted basis, in 2024. Worldwide Gross profit margin decreased to 60.1% ²⁵ in 2025 from 60.5% ²⁶ in 2024. Operating profit decreased 23% ²⁷ to $3,306 ²⁸ in 2025 from $4,268 ²⁹ in 2024, including goodwill and intangible assets impairment charges of $919 ³⁰ pretax ($794 ³¹ aftertax) related to the skin health business. Net cash provided by operations increased 2% ³² to $4,198 ³³ in 2025 as compared to $4,107 ³⁴ in 2024.

Management expects global macroeconomic, geopolitical and market conditions to remain challenging, including as a result of inflation, high interest rates, foreign currency volatility and developments in trade relations. The Company expects developments in trade relations, including the imposition of new or increased tariffs by the United States and/or other countries as well as the ongoing implementation and potential renegotiation of the United States-Mexico-Canada Agreement, to continue to contribute to inflationary pressures, geopolitical tensions, macroeconomic and market volatility. The Company expects the softness across its categories that it witnessed in 2025 to continue into 2026. Given that approximately two-thirds of Net sales originate in markets outside the United States, the Company has experienced and will likely continue to experience volatile foreign currency fluctuations, particularly acute in hyper-inflationary economies including Argentina, Nigeria and Türkiye.

The Company's 2030 strategy is intended to accelerate growth through several key initiatives, including leveraging the global reach and penetration of its brands; building the incremental benefit of superior, science-based innovation supported by an agile and resilient supply chain; harnessing the power of best-in-class omni-channel demand generation; leading in capabilities such as data, analytics and AI; and evolving its high-impact, inclusive culture. The Company believes its new 2030 business strategy and the Strategic Growth and Productivity Program will help ensure it has the right capabilities and support to achieve its goals in the near term and deliver consistent compounded earnings per share growth over the long term. The Company continues to prioritize investments in high growth and high margin segments within its Oral Care, Personal Care and Pet Nutrition businesses.

The Company expects to continue experiencing higher raw and packaging material costs, including the impact of transactional foreign exchange. The Company has taken, and will continue to take, measures to mitigate the effect of these conditions, such as its funding-the-growth and revenue growth management initiatives and the Strategic Growth and Productivity Program. However, in the current environment it may become increasingly difficult to implement certain of these mitigation strategies. The Company anticipates consumers may forgo purchasing certain of its products or switch to private label or to its lower-priced product offerings, and demand for and sales volumes of its categories and/or its products may decline or shift from higher margin to lower margin product offerings.

The Company's new three-year productivity program, the Strategic Growth and Productivity Program, includes initiatives to better align the organizational structure to support strategic initiatives, optimize the global supply chain to drive agility and efficiencies, and simplify and streamline the organizational structure to reduce overhead costs. The program is estimated to result in cumulative pre-tax charges of between $200 ³⁵ and $300 ³⁶, with approximately 75% ³⁷ to 85% ³⁸ of the charges resulting in cash expenditures, and substantially all charges to be incurred by December 31, 2028. The Company's prior targeted productivity program, the 2022 Global Productivity Initiative, concluded on December 31, 2024, resulting in total pretax charges of $228 ³⁹ ($186 ⁴⁰ aftertax) and total annualized pretax savings of approximately $125 ⁴¹ ($100 ⁴² aftertax).

Capital expenditures for 2026 are expected to be approximately 3.0% ⁴³ of Net sales. The Company continues to focus its capital spending on projects that are expected to yield high aftertax returns. The Company expects cash flow from operations and debt issuances will be sufficient to meet foreseeable business operating and recurring cash needs, including for debt service, dividends, capital expenditures, share repurchases and acquisitions. The Company believes its strong cash generation and financial position should continue to allow it broad access to global credit and capital markets.

On March 20, 2025, the Board authorized the repurchase of shares of common stock having an aggregate purchase price of up to $5 billion ⁴⁴ under a new share repurchase program. The Company also has authorized share repurchases on an ongoing basis to fulfill certain requirements of its compensation and benefit programs. In the first quarter of 2025, the Company increased the quarterly common stock dividend to $0.52 ⁴⁵ per share from $0.50 ⁴⁶ per share previously, effective in the second quarter of 2025. Dividend payments in 2025 were $1,823 ⁴⁷, an increase from $1,789 ⁴⁸ in 2024, and dividends paid increased to $2.06 ⁴⁹ per share in 2025 from $1.98 ⁵⁰ per share in 2024.

The Company faces headwinds from uncertain or unfavorable global macroeconomic conditions, including a recession, economic slowdown, inflation, high interest rates and/or reduced category growth rates, including as a result of geopolitical events and tensions, wars and military conflicts such as in Ukraine, the Middle East and Venezuela, and developments in trade relations. The war in Ukraine has had and continues to have a significant impact on operations in Ukraine and Russia, though it has not been material to the Consolidated Financial Statements; for the year ended December 31, 2025, the business in the Eurasia region constituted approximately 1% ⁵¹ of consolidated net sales and approximately 2% ⁵² of consolidated operating profit. The Company also faces risks from the rapidly changing retail landscape, changing consumer preferences, and the substantial growth of eCommerce and the emergence and adoption of social commerce and AI, which have encouraged the entry of new competitors.

The Company faces risks from volatility in material and other costs, as raw and packaging material commodities such as resins, essential oils, tropical oils, pulp, tallow, corn, poultry and soybeans are subject to market price variations. Increases in the costs of and/or a reduction in the availability of commodities, energy, logistics or other necessary services, including as a result of macroeconomic and geopolitical tensions, conflicts and uncertainty, have affected and are likely to continue to adversely affect profit margins. The Company has taken and may continue to take actions to mitigate these cost increases in the form of price increases and efforts to achieve cost efficiencies, but these actions may not fully offset these higher costs.

Management's message emphasizes that the Company is a caring, innovative growth company united behind its purpose to reimagine a healthier future for all people, their pets and our planet. The key themes are a focus on driving organic sales growth; delivering consistent, compounded earnings per share growth; achieving operational efficiencies; and driving growth in free cash flow along with the efficient use of the balance sheet. Management states that the Company has concluded its 2025 strategic plan, delivering improved organic sales growth, consistent dollar-based earnings per share growth and increased capabilities in areas such as science-led core and premium innovation, digital, data, analytics and AI, despite macroeconomic and geopolitical challenges. The strategic priorities emphasized for the period ahead are leveraging the global reach and penetration of brands; building the incremental benefit of superior, science-based innovation supported by an agile and resilient supply chain; harnessing the power of best-in-class omni-channel demand generation; leading in capabilities such as data, analytics and AI; and evolving the high-impact, inclusive culture. Management believes the new 2030 business strategy and the Strategic Growth and Productivity Program will help ensure the Company has the right capabilities and support to achieve its goals in the near term and deliver consistent compounded earnings per share growth over the long term.

Total worldwide Net sales were $20,382 ⁵⁶ in 2025, compared to $20,101 ⁵⁷ in 2024. Net income attributable to Colgate-Palmolive Company was $2,132 ⁵⁸ in 2025, compared to $2,889 ⁵⁹ in 2024. Diluted earnings per share were $2.63 ⁶⁰ in 2025, compared to $3.51 ⁶¹ in 2024. Operating profit was $3,306 ⁶² in 2025, compared to $4,268 ⁶³ in 2024. Gross profit margin was 60.1% ⁶⁴ in 2025, compared to 60.5% ⁶⁵ in 2024. Net cash provided by operations was $4,198 ⁶⁶ in 2025, compared to $4,107 ⁶⁷ in 2024. Cash and cash equivalents were $1,288 ⁶⁸ at December 31, 2025, compared to $1,096 ⁶⁹ at December 31, 2024. Total debt was $7,988 ⁷⁰ at December 31, 2025, compared to $7,949 ⁷¹ at December 31, 2024. Reported results were materially affected by a non-cash, aftertax impairment charge of $794 ⁷² ($919 ⁷³ pretax) to adjust the carrying values of goodwill and intangible assets related to the skin health business, which reduced headline metrics. In the Oral, Personal and Home Care segment, North America net sales were $4,045 ⁷⁴ in 2025, Latin America net sales were $4,776 ⁷⁵, Europe net sales were $2,962 ⁷⁶, Asia Pacific net sales were $2,814 ⁷⁷, and Africa/Eurasia net sales were $1,172 ⁷⁸. In the Pet Nutrition segment, net sales were $4,613 ⁷⁹ and operating profit was $1,064 ⁸⁰.

The Company faces significant risks from its extensive international operations, with approximately two-thirds of Net sales originating outside the United States, exposing it to foreign currency fluctuations, changing macroeconomic conditions, political instability, and trade policy changes including new or increased tariffs. The war in Ukraine has impacted operations, with the Eurasia region constituting approximately 1% ⁵³ of consolidated net sales and approximately 2% ⁵⁴ of consolidated operating profit for the year ended December 31, 2025. The Company faces vigorous competition worldwide, including from private label brands and new entrants via eCommerce and AI, and is increasingly dependent on certain key retailers that exercise greater bargaining strength. Volatility in raw and packaging material costs, such as resins, essential oils, tropical oils, pulp, tallow, corn, poultry and soybeans, has adversely impacted and may continue to adversely impact profitability. The Company recorded a non-cash, aftertax impairment charge of $794 ⁵⁵ in the fourth quarter of 2025 related to the skin health business, reflecting risks associated with acquisitions and the potential for further impairments if category growth rates or performance weaken. The Company is subject to extensive legal and regulatory risks, including talc-related litigation, the outcomes of which are highly uncertain and could result in outsized jury awards.