Procter & Gamble Company
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.51%.
Did PG Beat Earnings? Q4 2026 Results
Procter & Gamble delivered a mixed but ultimately earnings-positive quarter in Q4 fiscal 2026, notching its fifth consecutive EPS beat even as revenue fell short of expectations. Core EPS of $1.43 edged past the $1.41 consensus by 1.63%, while net sales of $21.20 billion rose 1.5% year over year but came in $180 million below the $21.38 billion analysts had anticipated. The shortfall on the top line reflected flat organic sales growth, with volume, pricing, and mix each contributing nothing to the result, a sign that P&G's pricing power remains constrained in the current environment. The bottom line held up despite meaningful cost pressure, as a 160 basis point surge in SG&A, driven by heavy marketing reinvestment, weighed on margins alongside a 60 basis point gross margin contraction. Looking ahead, the company guided fiscal 2027 organic sales growth of 1-3% and core EPS of in-line to up 3% versus $6.89, with roughly $1.00 billion in commodity and cost headwinds representing an 8% drag on earnings growth.
- Beauty segment led organic growth at 4%, driven by Hair Care and Personal Care volume growth
- Gross productivity savings of 460 basis points in Q4
- Favorable foreign exchange contributed 1% to net sales growth
- Heavy marketing reinvestment of 410 basis points in SG&A
- Unfavorable product mix of 120 basis points weighed on core gross margin
- Family Care organic sales declined mid-single digits from volume decline and merchandising investments
- Net tariff benefit of 40 basis points from recognized recoveries offset by higher costs
“Fiscal 2026 was a year of foundation building while continuing to grow sales and profit and return high levels of cash to shareowners despite a very challenging geopolitical and economic environment.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2027, P&G expects all-in sales growth of 1-3% and organic sales growth of 1-3% (including a 30-50 basis point headwind from brand/product form/go-to-market discontinuations). Diluted EPS growth is expected in the range of 1-5% versus fiscal 2026 GAAP EPS of $6.62. Core EPS growth is expected in the range of in-line to 3% versus fiscal 2026 core EPS of $6.89, with a midpoint estimate of $7.00 per share. The company estimates after-tax headwinds of approximately $1 billion from higher raw materials, energy, and transportation costs, $150 million from higher net interest expense, $150 million from lower non-operating income, and $50 million from unfavorable foreign exchange, totaling $0.56 per share or an 8% drag on core EPS growth. Core effective tax rate is expected at approximately 20%. Capital spending is estimated at 4.5-5.5% of net sales. Adjusted free cash flow productivity is expected at 85-90%. The company plans approximately $10 billion in dividends and $5 billion in share repurchases.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.