Church & Dwight tumbles almost 6% as weak guidance overshadows Q2 earnings beat

EWING, N.J. - On Friday, Church & Dwight Co. (NYSE:CHD) issued disappointing third-quarter guidance despite reporting better-than-expected second quarter results.

The consumer products company’s shares fell 5.89% in pre-market trading after the announcement.

The company’s Q2 adjusted earnings per share of $0.94 beat analyst estimates of $0.86, while revenue of $1.51 billion topped expectations of $1.48 billion.

The company’s organic sales increased 0.1% in the second quarter, reaching the high end of its quarterly outlook. However, investors reacted negatively to Church & Dwight’s Q3 guidance, which projects adjusted EPS of $0.72, representing a 9% decrease compared to the same period last year. The company cited margin contraction of approximately 100 basis points due to inflation, tariff costs, and increased marketing investments as key factors affecting upcoming results.

"Our brands continue to perform well in this dynamic environment. We continue to drive both dollar and volume share gains across most of our brands," said Rick Dierker, Chief Executive Officer. "Importantly, we began to see category growth levels improve sequentially through the second quarter, which provides further confidence in our full year outlook."

For the full year 2025, Church & Dwight maintained its organic sales growth forecast of 0% to 2% and adjusted EPS growth of 0% to 2%. The company expects adjusted gross margin to contract by 60 basis points compared to 2024, as tariffs, elevated input costs, and unfavorable price and mix are projected to outweigh productivity improvements.

The Consumer Domestic division, Church & Dwight’s largest segment, saw organic sales decline 1.0% in Q2, though this represented an improvement from the first quarter. Five of the company’s seven power brands gained market share during the period. Meanwhile, the International Division delivered 4.8% organic growth, with all subsidiaries and global markets showing positive results.

The company also announced it had completed its acquisition of TOUCHLAND, the second-largest brand in the hand sanitizer category, which will become Church & Dwight’s eighth power brand.

Church & Dwight continues to expect cash flow from operations of approximately $1.05 billion for the full year and is maintaining its capital expenditure forecast of $130 million.

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