Clorox reported fourth-quarter fiscal 2026 results ending 30 June, with net sales decreasing 2% to $1.95 billion. The company completed its acquisition of GOJO Industries in April 2026, which added approximately 10 percentage points to sales. Organic sales fell 13%, primarily due to lapping incremental shipments related to an ERP transition. Diluted earnings per share dropped 50% to $1.34 from $2.68 year-over-year. Gross margin decreased 520 basis points to 41.3%. For fiscal 2027, Clorox expects net sales growth of 13% to 14%, including 9.5 points from the GOJO acquisition. Organic sales are projected to increase 3.5% to 4.5%. Adjusted EPS is forecast between $5.70 and $6.00, representing growth of 3% to 8%. The company completed its five-year US ERP implementation during the fiscal year.

Clorox faces a challenging outlook ahead of its June 2026 quarter earnings call on 3 August. Analysts expect quarterly earnings of $1.64 per share and revenues of $1.91 billion, representing year-over-year declines. The company's weaker forecast is accompanied by bearish analyst sentiment, including a negative Earnings ESP and lower independent ranking. These factors highlight concerns about Clorox's near-term earnings trajectory. In April, Clorox cut its fiscal 2026 guidance, projecting net sales to fall approximately 6% and diluted EPS between $4.78 and $4.98. The company attributes the weakness to demand pressures and cost headwinds, despite the GOJO acquisition and VMS divestiture. Success will depend on whether its ERP rollout and late fiscal 2026 product launches can offset current pressures from value-seeking consumers and aggressive competition.

Clorox has returned $3.8 billion to shareholders over the past five years through dividends and buybacks, representing 33% of its current market capitalisation. Despite this substantial payout, the stock has fallen 37% during that period, whilst the S&P 500 gained 82%. The consumer staples company generates $6.76 billion in annual revenue from household brands. Management attributes the stock's underperformance to slower-than-expected business improvements and execution challenges. Key initiatives, including the Fresh Step litter brand reinvention, have faced difficulties. Clorox's capital return programme significantly exceeds the S&P 500 median of 16.6% of market value, reflecting a mature business generating excess cash. However, operational struggles have left the stock trading around $96.32, approximately 40% below its two-year high.