Church & Dwight Company, Inc. (NYSE:CHD) stock climbed to a new 52-week high Friday after the ARM & HAMMER maker unveiled a $1 billion share buyback program, beat Wall Street's third-quarter earnings and revenue estimates and raised its full-year organic sales growth forecast.

The company posted adjusted earnings of 92 cents per share, beating the consensus estimate of 90 cents.

Revenue rose 1% year over year to $1.602 billion, exceeding the Street estimate of $1.579 billion.

Organic sales grew 5.1%, above the company's prior outlook of 3%, supported by volume growth of 4.6% and positive price and mix of 0.5%.

Margin and Profitability Expand

Adjusted gross margin expanded 170 basis points to 46.8%, driven by higher volumes, productivity gains, tariff refunds and favorable product mix, partially offset by inflation and transportation cost increases.

Reported earnings per share were 89 cents, up from 75 cents a year earlier, while adjusted EPS increased 13.6% year over year.

Operating income totaled $291 million, with adjusted operating income of $298 million, up by 10.1% from the prior year.

The company's stronger-than-expected sales supported incremental selling, general, and administrative investments and incentive compensation.

Organic Sales Growth Across Three Divisions

Consumer Domestic net sales rose 0.4% to $1.23 billion, while organic sales increased 4.4%. Higher volume contributed 3.6 percentage points, and favorable price and product mix added 0.8 percentage points.

THERABREATH mouthwash and toothpaste, ARM & HAMMER Liquid Laundry Detergent and cat litter and WATERPIK water flossers drove organic growth. Acquisition of MISS MOUTH'S also supported reported sales, partly offset by the impact of last year's strategic portfolio actions.

Consumer International net sales increased 2.5% to $297 million, with organic sales up 7.8%. Volume growth added 9.1 percentage points, while unfavorable price and product mix impacted 1.3 percentage points. THERABREATH, BATISTE, TOUCHLAND and OXICLEAN led the segment's growth.

Specialty Products net sales rose 5% to $80 million. Organic sales also increased 5%, supported by 2.9 percentage points of volume growth and 2.1 percentage points from higher price and product mix.

Management highlighted innovation, distribution wins and targeted marketing investments as key drivers of organic sales growth in 2026.

Global e-commerce revenues grew 20% during the quarter, with online sales representing 25.9% of total consumer sales, reflecting the continued strength of the company's digital capabilities and brands.

Cash Flow and Capital Return

Cash from operations totaled $380 million during the quarter.

The board approved a new share repurchase program of up to $1 billion of its common stock.

As of September 30, the company held $446.9 million in cash and cash equivalents and reported total debt of $2.2 billion.

The company expects full-year capital expenditures to be approximately $125 million or 2% of sales.

Outlook Improves Despite Cost Pressures

Church & Dwight improved its 2026 sales outlook as volume growth, market-share gains and gross margin expansion strengthen its operating performance despite a challenging environment.

CEO Rick Dierker said the company is focused on offering consumers high-quality, solution-oriented products at the right value. He said inflationary pressure from the Middle East and higher transportation rates remain a headwind, but the company expects to mitigate them.

Full-Year Sales and Earnings Guidance

Church & Dwight tightened its full-year 2026 adjusted EPS guidance from the prior range of $3.74-$3.81 to the midpoint $3.78, in line with the $3.78 analyst estimate.

It also raised net sales outlook to $6.234 billion, from the previous range of $6.203 billion-$6.265 billion, compared with analyst estimates of $6.240 billion.

The company raised its full-year organic sales growth to 5%, the high end of its prior expectation of 4% to 5%. It expects reported sales growth of 0.5% compared to the previous range of flat to 1%.

Church & Dwight expects full-year adjusted gross margin to expand by 100 basis points, despite higher transportation, inflationary and tariff-related costs.

Management anticipates that volume growth, productivity improvements, tariff refunds and a favorable mix from acquisitions and portfolio optimization initiatives will more than offset these cost pressures.

The company expects cash flow from operations at $1.175 billion.

Fourth-Quarter Outlook and Growth Strategy

Management will continue to pursue selective acquisitions focused on fast-moving consumable products, similar to the successful THERABREATH, HERO, TOUCHLAND and MISS MOUTH'S acquisitions.

Church & Dwight expects fourth-quarter adjusted EPS of $1.01 to $1.02 compared to the $1.03 analyst estimate and sales of $1.636 billion against the $1.662 billion analyst estimate.

The company's fourth quarter investments will focus on driving future growth and targeted AI capabilities.

Long-Term Growth Priorities Through 2030

Management remains optimistic about the company's performance in 2027, supported by its long-term growth strategy following the completion of portfolio restructuring initiatives in 2025.

The company is advancing its 2030 growth priorities, focusing on expanding ARM & HAMMER, strengthening THERABREATH's presence in Oral Care, and scaling its international business.

CHD Price Action: Church & Dwight shares were up 0.76% at $110.57 at the time of publication on Friday. The stock is trading at a new 52-week high, according to market data.