Clorox: Partner, Then BuyerNarrow moat

Procter & Gamble (PG) — moat facet

Clorox bought P&G out of their Glad joint venture for $476 million and remains a rival in home care, where P&G gained share in fiscal 2026.

Clorox was, until January 2026, both a rival and a partner. P&G held a minority interest in the Glad joint venture with Clorox, and in January 2026 Clorox bought that interest for $476 million, giving P&G an after-tax gain of $261 million, $343 million before tax1. The gain sits in Corporate in fiscal 20262.

Glad joint venture exit, January 2026 ($M)476Price Clorox paid343Gain before tax261Gain after taxP&G Form 10-K FY2026
A partnership turned into cash.

The two companies meet in home care, where P&G says it holds more than 30% share3 with brands such as Mr. Clean, Swiffer and Febreze4. In fiscal 2026 P&G's home care share rose 0.3 points5. Clorox is by far the smaller company: worth $10.13 billion against P&G's $339.64 billion67, about a thirty-fourth of the size8.

The joint venture was an unusual arrangement for P&G, which prefers to own its brands outright, and exiting it is consistent with a portfolio that has spent a decade becoming simpler. The gain helped P&G's reported earnings in a year when every segment's net earnings fell9, which is one reason diluted EPS rose 2% to $6.62 while core EPS rose 1%1011.

What the relationship shows is that a rival can be a counterparty. P&G sold to a competitor, took the cash, and kept competing with it in cleaning.

Home care is the smaller half of P&G's largest segment. It was 12% of net sales in fiscal 2026, against 13% in fiscal 2025 and 12% in fiscal 202412. The share gain came while the category's weight in P&G stayed roughly steady.

This is a small rival that became a buyer. What would matter is home care share; P&G gained 0.3 points in fiscal 202613, and a reversal would suggest the exit from Glad removed a working relationship with a company that competes in the next aisle.

Moat trajectory: Holding steady

Glad exit January 2026; home care share +0.3pt.

The number that tests this moat
Reported
Home care share change, FY2026
+0.3 points

P&G against cleaning rivals including its former partner; a reversal would mean the aisle is being contested.

Source: P&G Form 10-K, FY2026 ↗
References
  1. ReportedP&G held a minority interest in the Glad joint venture with Clorox, and in January 2026 Clorox bought that interest for $476 million, giving P&G an after-tax gain of $261 million, $343 million before tax.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - notes: restructuring, goodwill and intangibles, acquisitions and divestitures, subsequent events and commitments. — FY2026 · publ. 4 August 2026 · source ↗
  2. ReportedThe gain sits in Corporate in fiscal 2026.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  3. ReportedThe two companies meet in home care, where P&G says it holds more than 30% share with brands such as Mr.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: market shares and competitive activity by category. — FY2026 · publ. 4 August 2026 · source ↗
  4. ReportedClean, Swiffer and Febreze.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  5. ReportedIn fiscal 2026 P&G's home care share rose 0.3 points.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: market shares and competitive activity by category. — FY2026 · publ. 4 August 2026 · source ↗
  6. ReportedClorox is by far the smaller company: worth $10.13 billion against P&G's $339.64 billion, about a thirty-fourth of the size.
    Procter & Gamble market capitalisation history and peer market values (year-end 2015-2025; Unilever, Colgate-Palmolive, Kenvue, Estee Lauder, Kimberly-Clark, Church & Dwight, Clorox on 25 September 2026). — 2015-2026 · publ. September 2026 · source ↗
  7. ReportedClorox is by far the smaller company: worth $10.13 billion against P&G's $339.64 billion, about a thirty-fourth of the size.
    Procter & Gamble (PG) market data - $146.23 at the close on 25 September 2026, market cap $339.64B, 52-week range 137.62-167.25, analyst target $160.61. — September 2026 · publ. 25 September 2026 · source ↗
  8. Moat Explorer calcClorox is by far the smaller company: worth $10.13 billion against P&G's $339.64 billion, about a thirty-fourth of the size.
    Moat Explorer calculation from Procter & Gamble's reported figures ($ millions unless stated; fiscal years end 30 June). Net debt: FY2026 11,296 + 22,842 - 9,942 = 24,196; 24,196 / 54,311 = 0.45 times equity; 24,196 / 19,556 = 1.24 years of operating cash flow; debt due within one year 11,296 / (11,296 + 22,842) = 33% of debt; FY2025 9,513 + 24,995 - 9,556 = 24,952; FY2024 7,191 + 25,269 - 9,482 = 22,978. Capital spending 4,409 / 87,032 = 5.1% of net sales. Adjusted free cash flow over dividends 15,835 / 10,232 = 1.55 times. Dividends paid over net earnings attributable: 10,232 / 16,046 = 63.8% (FY2026); 9,872 / 15,974 = 61.8% (FY2025); 9,312 / 14,879 = 62.6% (FY2024). Buybacks 5,028 / 11,009 = 45.7% of the FY2021 peak. Peer market values on 25 September 2026 ($bn): 132.99 + 68.60 + 34.19 + 34.18 + 32.74 + 22.86 + 10.13 = 335.69, against P&G 339.64; P&G / Clorox 339.64 / 10.13 = 33.5 times. P/E: 339.64 / 16.046 = 21.2 (now); 394.82 / 14.879 = 26.5 (December 2024 over FY2024). Free cash flow yield 15,835 / 339,640 = 4.7%. Goodwill plus Gillette brand 41,276 + 12,800 = 54,076; 54,076 / 126,521 = 42.7% of total assets. Segments (five reportable, excluding Corporate): FY2026 sales 16,023 + 6,918 + 12,456 + 30,314 + 20,401 = 86,112; net earnings 2,672 + 1,529 + 2,404 + 5,632 + 3,930 = 16,167; FY2025 net earnings 2,715 + 1,577 + 2,440 + 5,848 + 4,013 = 16,593; 16,167 / 16,593 - 1 = -2.6%. Segment net earnings changes FY2026: Beauty 2,672 / 2,715 - 1 = -1.6%; Grooming 1,529 / 1,577 - 1 = -3.0%; Health Care 2,404 / 2,440 - 1 = -1.5%; Fabric & Home Care 5,632 / 5,848 - 1 = -3.7%; Baby, Feminine & Family Care 3,930 / 4,013 - 1 = -2.1%. Fabric & Home Care share of segment net earnings 5,632 / 16,167 = 34.8%. Pre-tax margins FY2026: Beauty 3,473 / 16,023 = 21.7%; Grooming 1,966 / 6,918 = 28.4%; Health Care 3,163 / 12,456 = 25.4%; Fabric & Home Care 7,290 / 30,314 = 24.0%; Baby, Feminine & Family Care 5,145 / 20,401 = 25.2%. Net margins FY2023: Beauty 3,178 / 15,008 = 21.2%; Health Care 2,125 / 11,226 = 18.9%; Fabric & Home Care 4,828 / 28,371 = 17.0%; Baby, Feminine & Family Care 3,545 / 20,217 = 17.5%. Three-year growth FY2023-FY2026: Health Care sales 12,456 / 11,226 - 1 = 11.0%; Health Care net earnings 2,404 / 2,125 - 1 = 13.1%; Grooming sales 6,918 / 6,419 - 1 = 7.8%; Baby, Feminine & Family Care sales 20,401 / 20,217 - 1 = 0.9%. Segment capital spending over sales FY2026: Grooming 540 / 6,918 = 7.8%; Baby, Feminine & Family Care 1,520 / 20,401 = 7.5%; Health Care 592 / 12,456 = 4.8%; Fabric & Home Care 1,250 / 30,314 = 4.1%; Beauty 415 / 16,023 = 2.6%. Geography FY2026 ($bn): international 45.3 / 87.0 = 52.1%; United States 41.7 / 87.0 = 47.9%. Walmart about 16% x 87,032 = 13,925, about $13.9 billion. Top ten customers less Walmart (rounded percentages): FY2017 35 - 16 = 19; FY2020 38 - 15 = 23; FY2023 40 - 15 = 25; FY2026 43 - 16 = 27. Dividend per share 4.2589 / 4.0763 - 1 = 4.5% (FY2026); 4.0763 / 3.8286 - 1 = 6.5% (FY2025). Market exit charges after tax 1,200 + 131 = 1,331. P&G / Unilever market value 339.64 / 132.99 = 2.6 times. Restructuring charges FY2024-FY2026 659 + 1,114 + 1,230 = 3,003. Gillette write-downs 8.3 + 1.3 = 9.6 billion. Operating margin 19,748 / 87,032 = 22.7% (FY2026); 20,451 / 84,284 = 24.3% (FY2025) - balance sheet, cash returns and valuation. — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Procter & Gamble's Forms 10-K, results releases, earnings slides and market data; operands shown in the source line.
  9. ReportedThe gain helped P&G's reported earnings in a year when every segment's net earnings fell, which is one reason diluted EPS rose 2% to $6.62 while core EPS rose 1%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  10. ReportedThe gain helped P&G's reported earnings in a year when every segment's net earnings fell, which is one reason diluted EPS rose 2% to $6.62 while core EPS rose 1%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  11. ReportedThe gain helped P&G's reported earnings in a year when every segment's net earnings fell, which is one reason diluted EPS rose 2% to $6.62 while core EPS rose 1%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - segment results for the quarter and fiscal year. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  12. ReportedIt was 12% of net sales in fiscal 2026, against 13% in fiscal 2025 and 12% in fiscal 2024.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A and segment note: segment contents, operating segments and shares of net sales and net earnings. — FY2026 · publ. 4 August 2026 · source ↗
  13. ReportedWhat would matter is home care share; P&G gained 0.3 points in fiscal 2026, and a reversal would suggest the exit from Glad removed a working relationship with a company that competes in the next aisle.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
Sources
Generated September 26, 2026