Monday, February 23

Is Colgate (CL) Quietly Rewriting Its Investment Story With AI Marketing and Premium Pet Nutrition?


  • In recent coverage, Colgate-Palmolive has been portrayed as evolving from a traditional toothpaste maker into a broader consumer-products group focused on dividend growth, AI-enabled marketing, and premium offerings in oral care and pet nutrition.

  • This shift highlights how a long-established household brand is seeking fresh growth by pairing pricing power and sustainability initiatives with technology-driven brand building.

  • Next, we’ll examine how Colgate-Palmolive’s push into AI-driven marketing and premium categories could influence its existing investment narrative.

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To own Colgate-Palmolive today, you need to believe that its shift toward premium oral care, pet nutrition and AI-enabled marketing can support resilient cash flows despite recent earnings volatility and input cost pressures. The latest coverage around pricing power, margin expansion and dividend focus broadly aligns with this view, but does not materially change the near term risk that persistent consumer caution and higher raw material costs could squeeze volumes and profitability.

Among recent announcements, the affirmation of a US$0.52 quarterly dividend in December 2025 stands out, because it underlines the company’s emphasis on steady cash returns even after a Q4 2025 net loss linked to one off items. For investors, that combination of continued dividends, ongoing buybacks under the 2025 program and guidance for modest organic sales growth in 2026 sits alongside the key catalyst of premiumization in oral care and pet nutrition as they weigh the stock’s risk and reward.

Yet behind the renewed focus on growth and dividends, investors should be aware of the ongoing pressure from rising raw material and packaging costs that could…

Read the full narrative on Colgate-Palmolive (it’s free!)

Colgate-Palmolive’s narrative projects $22.4 billion revenue and $3.5 billion earnings by 2028. This requires 3.8% yearly revenue growth and a $0.6 billion earnings increase from $2.9 billion today.

Uncover how Colgate-Palmolive’s forecasts yield a $88.89 fair value, a 7% downside to its current price.

CL 1-Year Stock Price Chart
CL 1-Year Stock Price Chart

Four members of the Simply Wall St Community currently see Colgate-Palmolive’s fair value between US$87 and about US$124.69, highlighting a wide spread of expectations. Set against this, concerns about sustained consumer caution and higher input costs remind you that differing views on growth and margin resilience can materially shape how you think about the company’s prospects, so it is worth comparing several of these perspectives before making up your mind.

Explore 4 other fair value estimates on Colgate-Palmolive – why the stock might be worth 9% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com



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