Clorox’s third quarter results were received positively by the market, as the company beat Wall Street’s revenue and non-GAAP profit expectations despite a sharp year-over-year sales decline. Management attributed the performance to operational progress following the U.S. launch of a new enterprise resource planning (ERP) system, which strengthened Clorox’s digital infrastructure but contributed to short-term disruptions. CEO Linda Rendle emphasized that, while the ERP transition presented challenges, its successful implementation has already begun delivering operational benefits and will support future efficiency gains.
Is now the time to buy CLX? Find out in our full research report (it’s free for active Edge members).
Clorox (CLX) Q3 CY2025 Highlights:
- Revenue: $1.43 billion vs analyst estimates of $1.40 billion (18.9% year-on-year decline, 2% beat)
- Adjusted EPS: $0.85 vs analyst estimates of $0.78 (9.2% beat)
- Adjusted EBITDA: $212.3 million vs analyst estimates of $192.3 million (14.9% margin, 10.4% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.13 at the midpoint
- Operating Margin: 8.3%, down from 16.6% in the same quarter last year
- Organic Revenue fell 17% year on year vs analyst estimates of 18.2% declines (116.4 basis point beat)
- Market Capitalization: $13.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Clorox’s Q3 Earnings Call
- Peter Grom (UBS) asked about the assumptions behind category growth and the return to positive organic sales. CFO Luc Bellet explained that back-half improvement is driven by planned innovation and lapping negative trends from last year.
- Andrea Teixeira (JPMorgan) inquired about promotional intensity and price pack strategies. CEO Linda Rendle detailed how Clorox is using targeted price packs to address consumer value needs and support new innovations.
- Kaumil Gajrawala (Jefferies) questioned market share trends amid ERP disruptions. Rendle acknowledged short-term share losses but expressed confidence in recovery plans anchored by innovation and demand creation.
- Christopher Carey (Wells Fargo) sought clarity on spending plans and portfolio strategy. Rendle explained the use of advanced targeting tools for advertising and discussed recent divestitures as part of a disciplined, long-term approach.
- Robert Moskow (TD Cowen) asked about fill rates post-ERP and the outlook for price/mix. Rendle and Bellet confirmed that fill rates are back to normal and that negative price/mix headwinds are moderating but still expected to persist.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will monitor (1) the pace of market share recovery as new product innovations roll out, (2) signs of gross margin expansion from ERP-enabled efficiencies and disciplined marketing spend, and (3) stabilization in core categories such as trash bags and cat litter, where promotional pressures remain elevated. Execution on brand reinvestment and private label defense will also be key indicators of strategic progress.
Clorox currently trades at $107.58, down from $109.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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