Procter & Gamble Company
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.12%.
Did PG Beat Earnings? Q3 2026 Results
Procter & Gamble delivered a solid fiscal third-quarter 2026 performance, beating Wall Street expectations on both the top and bottom lines for the fourth consecutive quarter. The consumer goods giant posted core EPS of $1.59, ahead of the $1.56 consensus estimate by 2.24%, while net sales of $21.23 billion topped forecasts by 3.50% and rose 7.4% year-over-year, powered by broad-based organic growth across all five business segments and a 4-percentage-point foreign exchange tailwind. The Beauty segment led the way with 7% organic growth, while Fabric & Home Care and Baby, Feminine & Family Care each contributed 3% gains. The strong top-line result came despite a 100-basis-point compression in core gross margin, pressured by tariff-related costs and unfavorable mix. Looking ahead, P&G maintained its fiscal 2026 guidance for core EPS of $6.83 to $7.09, though management signaled results are now expected toward the lower end of those ranges, citing roughly $400 million in after-tax tariff costs and $150 million in commodity headwinds as key pressures heading into the final quarter.
- Organic sales growth of 3% driven by 2% volume increase and 1% pricing
- Beauty segment led organic growth at 7%, driven by Hair Care, Personal Care, and Skin Care
- Foreign exchange provided 4-percentage-point tailwind to reported net sales
- Gross productivity savings of 210 basis points partially offset margin pressures
- Gain from dissolution of Glad joint venture contributed $261 million after-tax, boosting GAAP EPS
- Broad-based growth across all five product categories and all regions
“We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
P&G maintained its fiscal 2026 guidance: all-in sales growth of 1–5%, organic sales growth of flat to +4%, diluted EPS growth of 1–6% (versus FY2025 diluted EPS of $6.51), and core EPS growth of flat to +4% (versus FY2025 core EPS of $6.83), equating to core EPS of $6.83–$7.09. However, the company now expects results toward the lower end of these ranges. Commodity costs are expected to be a ~$150 million after-tax headwind, tariff-related costs approximately $400 million after-tax, net interest expense and higher core tax rate a ~$250 million headwind, partially offset by a ~$200 million FX tailwind — collectively a $0.25/share headwind. The company is increasing investments in innovation and demand creation. P&G expects adjusted free cash flow productivity of 85–90%, approximately $10 billion in dividends, ~$5 billion in share repurchases, capital spending of 4–5% of net sales, and a core effective tax rate of 20–21%.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.