How GOJO Could Shape Clorox's Fiscal 2027 Growth and Margin Outlook

The Clorox Company CLX enters fiscal 2027 with GOJO Industries as a major new growth contributor. The acquisition, completed in April 2026 and now operating as Clorox Purell, expands the company's health and hygiene platform and is expected to add materially to reported sales.

That growth comes with a near-term trade-off. GOJO should support earnings, but acquisition-related costs and a different business mix arrive as Clorox already faces elevated inflation, negative mix and pressure on gross margin.

GOJO Drives Most of the Reported Sales Growth

Clorox expects fiscal 2027 net sales to increase 13-14%, with GOJO contributing about 9.5 percentage points. The combined global health and hygiene portfolio now represents more than half of net sales, giving the acquisition a meaningful role in the company's growth profile.

Image Source: Zacks Investment Research

The first quarter will make GOJO's impact especially visible. Clorox expects net sales to rise 31-32%, including about 15 points from the acquisition. Organic sales are projected to increase 16-17%, but the comparison with last year's enterprise resource planning inventory drawdown adds about 18 points. Excluding that effect, underlying organic sales are expected to decline.

Integration Could Add Earnings Support Later

GOJO is expected to be accretive to adjusted earnings in fiscal 2027. Management said integration progress has been encouraging, the groundwork for synergies is underway and financial benefits are expected to begin materializing in the fiscal fourth quarter.

For the full year, adjusted earnings are projected at $5.70-$6.00 per share, up 3-8%. Reported earnings are expected at $5.41-$5.71 per share, including about 29 cents of GOJO transaction-related costs. The setup means GOJO can help earnings, even while integration expenses remain part of the near-term picture.

Margins Remain the Key Constraint

Clorox expects fiscal 2027 gross margin of about 42%, including roughly 20 basis points of pressure mainly from GOJO inventory step-up costs. The first-quarter margin is expected near 40%, with about 50 basis points of acquisition-related inventory step-up pressure. Higher-than-normal inflation and negative mix are expected to more than offset cost savings.

Selling and administrative expenses are projected at about 16% of sales, including around 40 basis points of GOJO transaction-related costs. Clorox also expects inflation to exceed $200 million in fiscal 2027, more than double its historical $75-$100 million range.

The broader staples backdrop shows why margin execution matters. The Procter & Gamble Company PG expects fiscal 2027 organic sales growth of 1-3% while absorbing about $1 billion after tax from higher raw material, energy and transportation costs. Church & Dwight Co., Inc. CHD, by contrast, raised its 2026 organic sales outlook to 4-5% and expects adjusted gross margin expansion of 100-120 basis points.

What GOJO Means for CLX in Fiscal 2027

GOJO gives Clorox a clear reported-sales catalyst and a path to longer-term revenue synergies. Yet the quality of fiscal 2027 growth will depend on how much improvement comes from the underlying business once acquisition and enterprise resource planning comparison benefits are separated out.

Near-term Zacks signals remain cautious. The Zacks Consensus Estimate for fiscal 2027 earnings is $5.82 per share and has declined 3.8% in the past four weeks. CLX currently carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D. The rank reflects unfavorable earnings estimate revision trends, while the weaker Growth, Momentum and VGM Scores suggest limited support from those investment styles despite a middle-of-the-range Value Score.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research