Procter & Gamble Company
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.33%.
Did PG Beat Earnings? Q1 2026 Results
Procter & Gamble opened its fiscal year on solid footing, posting fiscal Q1 2026 results that cleared Wall Street's bar on both revenue and earnings. Core EPS of $1.99 came in 4.91% above the $1.90 consensus estimate, while net sales of $22.39 billion edged past expectations by 0.98% and rose 3% year-over-year, with organic sales advancing 2% on a blend of 1% pricing gains and 1% favorable mix. The Beauty segment was the clearest engine of upside, delivering 6% organic growth led by Personal Care innovation and premium Skin Care mix — a reminder that P&G's bet on product quality over discounting continues to generate returns even as rivals lean on aggressive promotions. Gross margin faced modest pressure from tariff and commodity costs, though SG&A discipline helped keep core operating margin steady. Management held its full fiscal 2026 guidance intact, targeting core EPS of $6.83–$7.09 per share and organic sales growth of up to 4%, even as the company absorbs roughly $400 million in after-tax <a href="https://247wallst.com/investing/2026/02/12/pg-rallies-under-new-ceo-but-lags-rivals-faces-tariff-challenges/">tariff headwinds this year</a>.
- Organic sales growth of 2% driven by 1% higher pricing and 1% favorable mix
- Beauty segment organic sales grew 6%, led by high-single-digit Personal Care growth
- Grooming organic sales grew 3% behind innovation-driven pricing
- Gross productivity savings of 230 basis points at core operating margin level
- SG&A productivity savings of 90 basis points
- GAAP EPS increase of 21% driven by lower restructuring charges versus prior year Argentina liquidation
“Our organic sales growth, earnings and cash results in the first quarter reflect strong execution of our integrated strategy. These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment. We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We are increasing investment in innovation and demand creation to improve value for consumers and drive category growth.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
P&G maintained its full fiscal year 2026 guidance: all-in sales growth of 1% to 5%, with organic sales growth of in-line to up 4%. Diluted EPS growth is expected at 3% to 9% versus fiscal 2025 diluted EPS of $6.51. Core EPS growth is expected in-line to up 4% versus fiscal 2025 core EPS of $6.83, equating to a range of $6.83 to $7.09 per share with a mid-point of $6.96. The company now expects commodity cost headwinds of approximately $100 million after tax and tariff-related costs of approximately $400 million after tax. Foreign exchange is expected to provide a tailwind of approximately $300 million after tax, while higher net interest expense and core effective tax rate are expected to create a headwind of roughly $250 million after tax. Capital spending is estimated at 4% to 5% of net sales. Adjusted free cash flow productivity is expected at 85% to 90%. The company expects to pay around $10 billion in dividends and repurchase approximately $5 billion of common shares in fiscal 2026. Core effective tax rate is expected at 20% to 21%.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.