Colgate-Palmolive (CL) is expected to consistently deliver against its long-term targets despite a "difficult" 2026 environment, RBC Capital Markets said Wednesday in a Q4 earnings preview.

"Over the longer term, we believe the organizational changes made over the last several years have enhanced capabilities that have driven strength in the international business, share momentum, and reinvestment benefits," RBC said.

"Global growth has slowed, as have Colgate-Palmolive's organic sales, and the last several quarters have been difficult," the report said. "We believe numbers have come down to a more reasonable level creating a more favorable risk/reward."

Foreign-exchange rates imply a 1% to 2% tailwind in 2026, which can support reinvestment and "increased bottom line flexibility," RBC said.

"While we are not expecting anything heroic, we believe this sets up well" for the company to deliver versus expectations this year, the report said.

RBC maintained its outperform rating on Colgate stock with an $88 price target.

Q4 results are due Friday.

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