A maker of household and professional cleaning products, Clorox is best known for its namesake bleach but also owns brands like Kingsford charcoal, Hidden Valley dressings, and Purell hand sanitizer. It was founded in 1913 in Oakland, California, when five entrepreneurs pooled their savings to build the first commercial liquid-bleach factory in the U.S. The company's name comes from the blend of "chlorine" and "sodium" in its original formula, and its bleach was first sold to breweries and laundries before Annie Murray suggested marketing a gentler version for home use.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
Clorox FY26 revenue fell 5.7% to $6.7B as ERP disruption and cost inflation compressed margins, while the GOJO acquisition reshapes the portfolio.
Clorox's multi-year digital overhaul disrupted its own sales. fell 5.7% to $6.7 billion and contracted 2.0 points to 43.2% as an ERP transition pulled orders forward and higher manufacturing costs took hold. The year closed with the $1.25 billion GOJO acquisition, adding Purell and a new growth vector but layering debt onto a balance sheet where equity had dwindled to $92 million.
Key takeaways
fell 5.7% to $6.7 billion, driven by an 18% volume decline in the first quarter as incremental ERP transition orders were pulled forward into the prior year, an effect that unwound over the remainder of the fiscal year.
contracted 2.0 points to 43.2%, as higher manufacturing and logistics costs and unfavorable mix more than offset cost savings from the streamlined operating model.
fell 26% to $4.97, primarily because the prior year included a $118 million loss on the Better Health VMS divestiture and a $171 million non-cash pension settlement charge that did not repeat, while the current year absorbed the decline.
Section summaries
Business
Clorox is a multinational consumer and professional products manufacturer with $6.7B in FY26 sales, operating in four segments and holding No. 1 or No. 2 market share in over 80% of its brands.
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The company operates through four reportable segments: Health and Wellness, Household, Lifestyle, and International, with cleaning products representing 44% of consolidated .
In April 2026, Clorox acquired GOJO, adding the Purell brand and expanding its presence in B2B health and hygiene channels, including healthcare and institutional markets.
The company completed its multi-year ERP implementation in the third quarter, with total incremental investment of approximately $580 million, and selling and administrative expenses fell 14% in Q3 as digital transformation costs declined.
Clorox paid the $476 million Glad joint venture in January 2026, funded through operations and capital markets, removing a liquidity overhang that had been flagged since mid-2025.
The acquisition of GOJO closed on April 1, 2026, financed with a $1.25 billion delayed-draw term loan, adding the Purell brand and expanding the company's presence in B2B health and hygiene channels.
What changed
The ERP pull-forward flagged in Q1 FY2026 did fully absorb by Q2, with flat in Q3, but the 18% volume decline in Q1 was enough to drive the full-year sales drop of 5.7%.
did not recover toward the mid-40s as hoped; after contracting to 41.7% in Q1, it stabilized at 43.2% in Q2 and Q3, leaving the full-year margin at 43.2%, down 2.0 points from FY2025's 45.2%.
The Glad venture was paid in January 2026 at $476 million, funded through operations and capital markets, resolving the near-term liquidity risk that had been a watch item since Q3 FY2025.
The ERP implementation was completed in Q3 FY2026, and the associated digital transformation investment costs declined, with selling and administrative expenses falling 14% in the quarter, addressing the concern about persistent incremental costs.
The Household returned to growth in Q3 with a 3% sales increase, after a 6% decline in Q2, though the full-year segment performance was weighed down by the Q1 ERP disruption.
What to watch
Whether can recover from 43.2% now that the ERP implementation is complete and cost savings from the streamlined operating model are fully annualized, with Q1 FY2027 as the first clean comparison.
The terms and interest cost of the $1.25 billion delayed-draw term loan used to finance the GOJO acquisition, and how the added affects the balance sheet given already stands at $2.49 billion and is $92 million.
Whether the GOJO acquisition delivers the expected B2B growth and margin contribution, and how quickly the Purell brand integrates into Clorox's existing Health and Wellness .
The trajectory of organic growth now that the ERP disruption and portfolio divestitures are fully lapped, testing whether the remaining business can return to volume growth in FY2027.
The company's IGNITE strategy focuses on accelerating innovation, reimagining work, evolving the portfolio, and integrating sustainability to drive long-term growth.
Walmart and its affiliates accounted for 26% of consolidated in FY26, and the five largest customers represented about half of total sales.
FY26 saw a 26% decrease in diluted per share, driven by lower , higher manufacturing and logistics costs, and the prior-year comparison against a divestiture loss.
The company completed the multi-year implementation of a new ERP system in the third quarter of FY26, a foundational part of its digital transformation, with total incremental investment of approximately $580 million.
The Company owns or leases various manufacturing, distribution, office and research and development facilities, including a leased facility in Pleasanton, CA, which houses the Company’s primary research and development group, as well as other administrative and operational suppo…
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The Company owns or leases various manufacturing, distribution, office and research and development facilities, including a leased facility in Pleasanton, CA, which houses the Company’s primary research and development group, as well as other administrative and operational support personnel, and a leased office space in Oakland, CA for its corporate headquarters. Management believes the Company’s facilities are adequate to support the business efficiently.
The Company is subject to routine litigation incidental to its business in the United States and in international locations, including various lawsuits and claims relating to issues such as contract disputes, product liability, patents and trademarks, advertising, commercial, ad…
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The Company is subject to routine litigation incidental to its business in the United States and in international locations, including various lawsuits and claims relating to issues such as contract disputes, product liability, patents and trademarks, advertising, commercial, administrative, employment, antitrust, securities, consumer class actions and other matters. Although the results of claims and litigation cannot be predicted with certainty, based on management’s analysis, it is the opinion of management that the ultimate disposition of these matters, to the extent not previously provided for or disclosed in the Company’s consolidated financial statements in Exhibit 99.1, will not have a material adverse effect, individually or in the aggregate, on the Company’s consolidated financial statements taken as a whole.
This information appears under “Quantitative and Qualitative Disclosures about Market Risk” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Exhibit 99.1, which is incorporated herein by reference.
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This information appears under “Quantitative and Qualitative Disclosures about Market Risk” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Exhibit 99.1, which is incorporated herein by reference.
These statements and data appear in Exhibit 99.1, which is incorporated herein by reference. 26 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
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These statements and data appear in Exhibit 99.1, which is incorporated herein by reference.
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Table of Contents
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.