Procter & Gamble Company (The) (PG) Earnings & Analysis

Latest quarter

Procter & Gamble reported Q4 FY2026 revenue of $21.2 billion, up 1.50% from $20.9 billion a year earlier. The company’s revenue was below the consensus of $21.4 billion, with reported revenue standing −0.73% against that benchmark.

P&G reported adjusted EPS, as the consensus counts it, of $1.43 for the quarter to June 30, 2026, above the $1.41 consensus by 1.42%. Its reported diluted EPS was $1.26, compared with $1.48 in Q4 FY2025, a −14.9% change.

P&G reported a gross margin of 48.5%, compared with 49.1% a year earlier, and an operating margin of 18.6%, compared with 20.8%. The company generated $4.1 billion of free cash flow, versus $4.0 billion in Q4 FY2025. P&G did not provide Q4 FY2026 business-segment results or quarter-specific guidance in the available company information.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On P&G’s latest earnings call, Chief Financial Officer Andre Schulten said first-quarter FY2027 organic sales increased 4.0%, with volume up 2.4 points, pricing up 0.4 points and mix up more than one point. He said all 10 product categories and all six regions grew organic sales, while North America grew 3%, Greater China grew 8% and enterprise markets grew 5%.

Schulten said the company saw sequential progress from category- and country-level interventions, and he said global aggregate market share was flat from a year earlier. He said 29 of P&G’s top 50 category-country combinations held or grew share fiscal year to date, compared with 25 in the second half of FY2026.

On profitability, Schulten said core gross margin declined 150 basis points and core operating margin declined 80 basis points, while productivity improvement of 250 basis points was offset by commodity and freight costs and demand-creation investments. He said P&G would maintain investment in the business while using productivity, innovation-led pricing and time to address cost pressure.

In response to questions about the outlook for demand and costs, Schulten said P&G expected the first half to deliver about 3% organic sales growth and some acceleration in the second half, while noting that inventory and promotional timing could shift results between quarters. He said raw-material, energy and freight pressures were expected to increase in coming quarters, particularly as higher oil prices flowed through the income statement.

Schulten said competition remained intense and that P&G was adjusting price points, products, communications and retail execution where needed. He said the company’s approach was to grow categories through innovation and to maintain a balance between pricing and product, package, communication and in-store execution. He did not quantify where within the FY2027 guidance ranges P&G expected to finish, saying the company needed more time to assess top-line momentum, commodity effects, pricing plans and productivity.

Guidance

P&G raised its FY2027 all-in sales-growth outlook to 2.00%–4.00% following the inclusion of Thorne, which closed in early October. Schulten said the company’s FY2027 outlook now includes an approximately $1.4 billion after-tax cost headwind from raw materials, energy, transportation and other premiums, and combined input costs, foreign exchange and below-operating-line items are expected to be a roughly $1.9 billion after-tax earnings headwind.