Colgate-Palmolive Q1 sales rise 8% but EPS falls 6%, raising caution on growth sustainability.

Colgate-Palmolive reported an 8% increase in sales for Q1 2026, driven largely by favorable currency effects in Latin America, EMEA, and APAC. However, earnings per share (EPS) declined by 6%, reflecting margin pressures and a 2.9% organic growth rate. North American sales fell due to tougher toothpaste competition and higher input costs, including a $300 million impact from the Middle East. These factors, combined with weak U.S. consumer confidence, suggest near-term challenges and raise concerns about the sustainability of recent growth trends, leading to a conservative hold rating.