Clorox's GOJO-Driven Growth
Clorox Exceeds Q4 Estimates, Boosts Fiscal 2027 Outlook Driven by GOJO Acquisition
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Key Points
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Clorox reported GAAP fourth-quarter earnings of $163 million and GAAP EPS of $1.34, down from $332 million and $2.68 in the prior-year quarter, despite the company posting adjusted EPS of $1.66 for the quarter.
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The GOJO acquisition was completed in April 2026 and contributed roughly 10 percentage points to quarterly sales, underscoring the deal's immediate impact on revenue mix.
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Clorox indicated it completed its U.S. ERP implementation as part of a broader modernization and digital-capability push, following the GOJO deal and ongoing portfolio expansion.
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For fiscal 2027, Clorox guided adjusted EPS of $5.70 to $6.00 (midpoint $5.85), with net sales expected to grow 13% to 14%, including about 9.5 percentage points from GOJO and 3.5% to 4.5% organic growth, with the midpoint above consensus of $5.52.
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The market reaction included after-hours strength, with Clorox shares rising about 1% following the earnings release in the reported session.
Clorox posted a solid fiscal fourth quarter, with adjusted earnings per share of $1.66 on revenue of $1.95 billion, beating Wall Street estimates. The results were powered largely by GOJO Industries, which Clorox acquired in April 2026 and which added roughly 10 percentage points to quarterly sales, according to BigGo Finance.
For fiscal 2027, Clorox guided adjusted EPS of $5.70 to $6.00 — a midpoint of $5.85 that tops the analyst consensus of $5.52. Net sales are expected to grow 13% to 14%, with GOJO accounting for about 9.5 of those percentage points, per Yahoo Finance.
GOJO Deal Drives Revenue But GAAP Profit Falls
The GOJO acquisition closed in April 2026 and immediately reshaped Clorox's revenue mix. The deal pushed quarterly sales higher, but it also added costs. GAAP earnings for the quarter came in at $163 million, or $1.34 per share — down sharply from $332 million and $2.68 per share in the same quarter a year ago, according to BigGo Finance.
Organic sales — growth excluding acquisitions — fell about 13%. That drop was tied largely to lapping the effects of a major ERP system rollout from the prior year. An ERP, or enterprise resource planning system, is software that manages core business processes. The sharp organic decline weighed on full-year 2026 results, which showed net sales of $6.72 billion and earnings of $587 million, or $4.81 per share.
FY2027 Guidance Tops Consensus on GOJO Boost and Organic Recovery
Clorox's fiscal 2027 outlook is built on two pillars. First, GOJO is expected to add about 9.5 percentage points of net sales growth on its own. Second, the company expects organic growth of 3.5% to 4.5% as ERP headwinds fade. Together, that puts total net sales growth at 13% to 14%, per Yahoo Finance.
The adjusted EPS midpoint of $5.85 topped the analyst consensus of $5.52 by a meaningful margin. Clorox also set a free cash flow target of 11% to 13% of net sales and flagged more than $200 million in expected supply-chain inflation it plans to offset through productivity efforts, according to Seeking Alpha.
ERP Rollout Wraps Up as Clorox Pushes Digital Modernization
Clorox said it completed its U.S. ERP implementation during the fiscal year. The rollout had been a drag on results for more than a year, disrupting operations and distorting year-over-year comparisons. Its completion is a key reason management expects organic growth to recover in fiscal 2027, per GuruFocus.
Beyond the ERP, the company highlighted expanded digital capabilities and portfolio growth through GOJO as part of a broader modernization push. Clorox entered fiscal 2027 with what it described as improving market-share trends, according to Yahoo Finance.
Stock Rises After Hours as Analysts Weigh Organic Recovery Pace
Clorox shares rose about 1% following the earnings release. The after-hours move reflected cautious optimism. Investors welcomed the above-consensus 2027 guidance but are still watching how quickly organic sales can recover without the artificial boost from GOJO, per BigGo Finance.
The bigger question for analysts is sustainability. GOJO adds real revenue, but it also masks underlying weakness. If organic growth comes in at the low end of the 3.5% to 4.5% range, pressure on the earnings trajectory could return. The stock's next move will likely hinge on early fiscal 2027 data, according to Investing.com.
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