COLGATE-PALMOLIVE COMPANY (CL)

Materials · Perfumes, Cosmetics & Other Toilet Preparations · Price $90.96
Updated: Aug 28, 2026
Net Income (TTM)
$3.5B
Trailing 12 Months
Growth Rate
38.44%
Log-Linear Regression (16Q)
Price/Earnings
21.2x
Valuation Multiple
EPS (Diluted)
$4.29
Net Income / Shares
Net Margin
16.49%
Profitability

📈 Net Income History (16 Quarters)

🧮 CL Net Income Breakdown

Net Income = Revenue - All Expenses - Taxes - Interest
Revenue (Top Line) $21.0B
Less: Cost of Revenue → Gross Profit $12.7B
Less: Operating Expenses → Operating Income $3.1B
Less: Interest Expense $254.0M
Less: Income Tax Expense $779.0M
Equals: Net Income (Bottom Line) $3.5B

Understanding Net Income

Net income, also called the "bottom line" or net profit, is the money a company keeps after paying all expenses including cost of goods, operating costs, interest, and taxes. For CL, the trailing twelve month net income is $3.5B.

Why Net Income Matters

Net income is the ultimate measure of accounting profitability. It determines earnings per share (EPS), affects stock valuations through the P/E ratio, and represents the theoretical amount available to shareholders. However, net income can be influenced by accounting choices, which is why value investors often look at cash flow metrics alongside it.

CL's net income growth rate of 38.44% (based on log-linear regression of 16 quarters) indicates exceptional profit growth, often valued at premium multiples.

Net Income vs Cash Flow Metrics

Free Cash Flow: $3.8B →

Actual cash generated after capital expenditures. FCF often differs from net income due to depreciation, working capital changes, and capex timing.

Owner Earnings: $3.8B →

Buffett's preferred metric that adds back depreciation but subtracts maintenance capex. Often considered more accurate than net income.

EPS (Diluted): $4.29 →

Net income divided by diluted shares outstanding. The primary driver of the P/E ratio used in valuations.

Revenue: $21.0B →

The top line that net income is derived from. Net margin shows what percentage of revenue becomes profit.

P/E Ratio Analysis

CL's P/E ratio of 21.2x means investors pay $21.20 for every $1 of annual earnings. A P/E between 15-25 is average for the market, reflecting moderate growth expectations.

Net Margin: Profitability Efficiency

Net margin of 16.49% shows what percentage of CL's revenue converts to profit after all costs. Net margins between 10-20% are solid and typical of well-managed businesses.

Summary: CL Net Income Trend

COLGATE-PALMOLIVE COMPANY (CL) has a net margin of 16.49%, which Zyberno classifies as excellent for a Materials company — above the 10% threshold Zyberno applies to materials businesses where cyclical pricing and capital costs moderate net margins. Net income grew at 38.44% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. For complete financial analysis, view the full CL stock report on Zyberno.

Frequently Asked Questions

What is CL's current net income?

COLGATE-PALMOLIVE COMPANY's TTM net income is $3.5B, growing at 38.44% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

Is CL's net income growing?

COLGATE-PALMOLIVE COMPANY (CL) has a net margin of 16.49%, which Zyberno classifies as excellent for a Materials company — above the 10% threshold Zyberno applies to materials businesses where cyclical pricing and capital costs moderate net margins. Net income grew at 38.44% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is CL's net profit margin?

COLGATE-PALMOLIVE COMPANY (CL) has a net margin of 16.49%, which Zyberno classifies as excellent for a Materials company — above the 10% threshold Zyberno applies to materials businesses where cyclical pricing and capital costs moderate net margins. Net income grew at 38.44% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is CL's P/E ratio?

CL's P/E ratio is 21.2x, meaning the market values the company at 21.2 times its annual earnings.

How does net income differ from free cash flow?

Net income is an accounting measure that includes non-cash items like depreciation, while free cash flow shows actual cash generated. CL's net income is $3.5B versus free cash flow of $3.8B. Large differences often indicate significant capital expenditures or working capital changes.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
$110.96
🛡️
Margin of Safety
Valuation Gap
18.0%
🎯
Expected Return
Projected Annual
18.5%
Click any metric for full methodology and detailed analysis

📊 Full CL Stock Report

See CL's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 CL Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 CL Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 CL Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 CL Earnings Surprise (SUE)

See whether CL is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 CL Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 CL Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 CL Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 CL Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

View Full CL Report Find More Quality Stocks
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