Procter & Gamble Company
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.24%.
Did PG Beat Earnings? Q2 2026 Results
Procter & Gamble delivered a mixed fiscal second-quarter 2026 report, managing a narrow earnings beat against a backdrop of sluggish volume and mounting tariff pressure. Core EPS of $1.88 edged past the $1.8569 consensus by 1.24%, while net sales of $22.21 billion — up 1.5% year-over-year — fell just short of the $22.29 billion analysts had anticipated, a miss of 0.37%. The headline story was margin compression: core gross margin contracted 50 basis points as roughly $400 million in after-tax tariff costs weighed heavily, overwhelming productivity savings and a modest pricing benefit that itself was negated by a 1% unit volume decline. Beauty and Health Care stood out as bright spots, while Baby, Feminine & Family Care slid 4% organically. <a href="https://247wallst.com/investing/2026/02/12/pg-rallies-under-new-ceo-but-lags-rivals-faces-tariff-challenges/">navigating tariff headwinds under new leadership</a> remains a central challenge, though management held its fiscal 2026 organic sales and core EPS growth guidance steady at flat to up 4%, projecting core EPS of $6.83–$7.09 for the full year.
- Organic sales flat as 1% pricing increase offset by 1% unit volume decline
- Beauty segment organic sales up 4% driven by Hair Care and Personal Care innovation
- Health Care organic sales up 3% from favorable premium product mix in Oral Care
- Baby, Feminine & Family Care organic sales down 4% with Family Care declining double digits against strong prior-year comparisons
- Core gross margin declined 50 basis points due to 120 bps unfavorable mix, 60 bps product reinvestments, and 60 bps tariff costs, partially offset by 160 bps productivity savings and 50 bps pricing
- Gross productivity savings of 270 basis points at the core operating margin level
- Incremental restructuring charges drove 5% decline in GAAP diluted EPS
“Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, core EPS growth and adjusted free cash flow productivity in a challenging consumer and geopolitical environment.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
P&G maintained fiscal 2026 guidance for all-in sales growth of 1%–5%, organic sales growth of flat to up 4%, and core EPS growth of flat to up 4% versus fiscal 2025 core EPS of $6.83 (equating to $6.83–$7.09 per share, mid-point $6.96). GAAP diluted EPS growth outlook was lowered to 1%–6% (from 3%–9%) due to higher non-core restructuring charges. Commodity costs are now expected to be neutral. Foreign exchange is forecasted as an approximately $200 million after-tax tailwind, while tariff costs are estimated at approximately $400 million after-tax. The company expects a net headwind of roughly $250 million after-tax from higher net interest expense and a higher core effective tax rate. Adjusted free cash flow productivity is expected at 85%–90%. P&G plans to pay around $10 billion in dividends and repurchase approximately $5 billion of common shares in fiscal 2026. Capital spending is estimated at 4%–5% of net sales. Core effective tax rate is expected at 20%–21%.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.