PG

The Procter & Gamble Company PG, also referred to as P&G, enters fiscal 2027 with a sizable earnings hurdle. Management expects 1% to 3% organic sales growth, but higher costs, financing expense, lower non-operating income and currency are set to weigh on profit growth.Those pressures total about $1.4 billion after tax, or 56 cents per share, equal to an 8% drag on fiscal 2026 core EPS. Productivity and brand investment will determine how much of that burden P&G can absorb. The largest headwind is an estimated $1 billion after tax from higher raw-material, energy, transportation and related costs. Much of the pressure is expected in the first half of fiscal 2027.Management expects this cost dynamic to contribute to a decline of at least 5% in first-quarter fiscal 2027 EPS. The outlook assumes an effective Brent crude oil price of about $90 per barrel and reflects higher freight, supplier inflation and other supply-chain premiums. Procter & Gamble Company (The) price-consensus-eps-surprise-chart | Procter & Gamble Company (The) Quote P&G expects higher net interest expense to reduce fiscal 2027 earnings by about $150 million after tax. Lower non-operating income is expected to create another $150 million drag.Unfavorable foreign exchange is projected to reduce earnings by roughly $50 million after tax. Together with input costs, these items produce the estimated $1.4 billion after-tax headwind. P&G generated about $2.8 billion of before-tax productivity improvement across cost of goods sold and selling, general and administrative expenses in fiscal 2026. Those savings equaled roughly 340 basis points and helped fund investment.The company is also scaling Supply Chain 3.0, AI-enabled brand-building tools and automated workflows. Colgate-Palmolive Company CL is using productivity while maintaining elevated advertising investment, while Kimberly-Clark Corporation KMB has cited productivity gains as an offset to pricing, cost inflation and supply-chain investment. Efficiency remains a key lever across consumer staples. P&G expects fiscal 2027 all-in and organic sales to rise 1% to 3%. The organic sales outlook includes a 30-50-basis-point drag from brand, product-form and go-to-market discontinuations. Image Source: Zacks Investment Research Zacks estimates call for sales growth of 1.8% in fiscal 2027. Management is targeting organic growth modestly ahead of the markets in which it competes, though slower conditions in North America and Europe limit the cushion for execution shortfalls. P&G plans to maintain spending behind product superiority, packaging and brand communication even as costs rise. That approach supports its growth model but can restrain near-term margin expansion.The fiscal fourth quarter showed that trade-off. Core operating margin declined 130 basis points as 410 basis points of reinvestment, primarily in marketing, more than offset 300 basis points of selling, general and administrative productivity savings. Total productivity savings reached 460 basis points. P&G's fiscal 2027 outlook leaves productivity, pricing and execution carrying much of the burden against a meaningful earnings headwind. Core EPS is still expected to range from unchanged to up 3% from fiscal 2026, implying $6.89 to $7.11 per share.PG currently carries a Zacks Rank #4 (Sell), alongside a Growth Score of C, Value Score of D, Momentum Score of D and VGM Score of D. The Zacks Rank points to weaker near-term earnings-estimate trends, while the Style Scores indicate limited support from growth, value and momentum characteristics. Together, they favor a cautious near-term view without determining the stock's longer-term outcome.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report Colgate-Palmolive Company (CL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Colgate-Palmolive Company CL strengthened its 2026 profit outlook after a second-quarter earnings beat and 140-basis-point gross-margin expansion. Base Business EPS rose 8%, while organic sales growth reflected contributions from both volume and pricing. The update shifts attention to durability. Management is raising the earnings and margin view while keeping advertising elevated, but higher second-half raw-material and tariff costs and continued North American weakness could absorb part of the operating gains. Base Business earnings were 99 cents per share, up 8% year over year and 4.2% above the Zacks Consensus Estimate of 95 cents. Net sales increased 4.9% to $5.36 billion, edging above the consensus mark of $5.35 billion. Colgate-Palmolive Company price-consensus-eps-surprise-chart | Colgate-Palmolive Company Quote Organic sales advanced 2.4%, with organic volume up 0.8% and pricing contributing 1.6%. Worldwide organic volume improved sequentially for a third consecutive quarter, broadening the growth profile beyond pricing alone. GAAP and Base Business gross profit margin expanded 140 basis points to 61.5%. Revenue growth management, productivity, pricing and mix supported the improvement, giving Colgate more room to absorb inflation and fund growth initiatives. Base Business operating profit increased 5% to $1.1 billion, while operating margin edged up 10 basis points to 21.4%. Those gains came despite higher selling, general and administrative expenses and continued brand investment. Management now expects mid-single-digit Base Business EPS growth in 2026, up from its prior low- to mid-single-digit view. It also improved both GAAP and Base Business gross profit margin outlooks to roughly flat year over year from down previously. Image Source: Zacks Investment Research The top-line framework did not change. Colgate still expects net sales growth of 2-6% and organic sales growth of 1-4%, with the latter including the private-label pet food exit. Execution, rather than a higher sales target, is carrying the profit upgrade. Advertising spending increased 15% to $777 million from $678 million a year ago. Management expects investment to remain elevated in the second half, with premium, science-led innovation and omnichannel demand generation central to the strategy. The company is funding growth rather than protecting the new earnings target by cutting brand support. That trade-off matters because raw-material and tariff costs are expected to be higher in the second half than in the second quarter. Latin America delivered 5.3% organic sales growth, Asia Pacific posted 5.2% and Europe, Middle East and Africa rose 2%. North America moved the other way, with organic sales down 3% and organic volume declining 3.9%. The Procter & Gamble Company PG is a useful comparison because its portfolio includes Crest and Oral-B in oral care and major fabric and home-care brands. The Clorox Company CLX provides another household-staples reference point through its cleaning, household and natural personal-care businesses. The second-quarter event improved Colgate's profit setup, but it did not remove the main risks. Margin execution and earnings growth have strengthened, while North America, promotional pressure and higher second-half costs keep the outlook balanced. CL currently carries a Zacks Rank #3 (Hold). It also has a VGM Score of B, Growth Score of B, Momentum Score of B and Value Score of D. The rank is consistent with a hold posture rather than a top-ranked buy signal, while the Style Scores show favorable growth and momentum characteristics but weaker value. The Style Scores complement the Zacks Rank rather than override it. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Colgate-Palmolive Company (CL) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Clorox Company CLX enters fiscal 2027 with GOJO Industries as a major new growth contributor. The acquisition, completed in April 2026 and now operating as Clorox Purell, expands the company's health and hygiene platform and is expected to add materially to reported sales.That growth comes with a near-term trade-off. GOJO should support earnings, but acquisition-related costs and a different business mix arrive as Clorox already faces elevated inflation, negative mix and pressure on gross margin. Clorox expects fiscal 2027 net sales to increase 13-14%, with GOJO contributing about 9.5 percentage points. The combined global health and hygiene portfolio now represents more than half of net sales, giving the acquisition a meaningful role in the company's growth profile. Image Source: Zacks Investment Research The first quarter will make GOJO's impact especially visible. Clorox expects net sales to rise 31-32%, including about 15 points from the acquisition. Organic sales are projected to increase 16-17%, but the comparison with last year's enterprise resource planning inventory drawdown adds about 18 points. Excluding that effect, underlying organic sales are expected to decline. GOJO is expected to be accretive to adjusted earnings in fiscal 2027. Management said integration progress has been encouraging, the groundwork for synergies is underway and financial benefits are expected to begin materializing in the fiscal fourth quarter.For the full year, adjusted earnings are projected at $5.70-$6.00 per share, up 3-8%. Reported earnings are expected at $5.41-$5.71 per share, including about 29 cents of GOJO transaction-related costs. The setup means GOJO can help earnings, even while integration expenses remain part of the near-term picture. The Clorox Company price-consensus-chart | The Clorox Company Quote Clorox expects fiscal 2027 gross margin of about 42%, including roughly 20 basis points of pressure mainly from GOJO inventory step-up costs. The first-quarter margin is expected near 40%, with about 50 basis points of acquisition-related inventory step-up pressure. Higher-than-normal inflation and negative mix are expected to more than offset cost savings.Selling and administrative expenses are projected at about 16% of sales, including around 40 basis points of GOJO transaction-related costs. Clorox also expects inflation to exceed $200 million in fiscal 2027, more than double its historical $75-$100 million range.The broader staples backdrop shows why margin execution matters. The Procter & Gamble Company PG expects fiscal 2027 organic sales growth of 1-3% while absorbing about $1 billion after tax from higher raw material, energy and transportation costs. Church & Dwight Co., Inc. CHD, by contrast, raised its 2026 organic sales outlook to 4-5% and expects adjusted gross margin expansion of 100-120 basis points. GOJO gives Clorox a clear reported-sales catalyst and a path to longer-term revenue synergies. Yet the quality of fiscal 2027 growth will depend on how much improvement comes from the underlying business once acquisition and enterprise resource planning comparison benefits are separated out.Near-term Zacks signals remain cautious. The Zacks Consensus Estimate for fiscal 2027 earnings is $5.82 per share and has declined 3.8% in the past four weeks. CLX currently carries a Zacks Rank #4 (Sell), with a Value Score of C, Growth Score of D, Momentum Score of F and VGM Score of D. The rank reflects unfavorable earnings estimate revision trends, while the weaker Growth, Momentum and VGM Scores suggest limited support from those investment styles despite a middle-of-the-range Value Score. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Clorox Company (CLX) : Free Stock Analysis Report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Five Dividend Kings with 50+ consecutive years of dividend increases beat Q2 earnings, making them defensive picks in a frothy, overbought market. Warren Buffett's KO beat Q2 EPS and upgraded full-year guidance, while FRT posted 96% occupancy and its 59th straight annual dividend increase. AWR raised its quarterly dividend 8% after Q2 EPS jumped to $1.09, extending its remarkable 70-year streak of consecutive dividend increases. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Kings, and for good reason. The 58 companies that made the cut for the 2026 Dividend Kings list have increased their dividends (not just maintained them) for 50 consecutive years. Companies that have raised dividends for 50 or more consecutive years are exactly the kinds of investments passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. With the second-quarter earnings season winding down, we wanted to see which companies in the legendary group posted the best results, and we were not disappointed. Some of the top companies, including a Warren Buffett favorite, posted stellar results and some outstanding forward-looking guidance. These are companies that make sense for growth and income investors seeking timely ideas in an overbought, frothy stock market. Companies that have paid and raised dividends for 50 years or more are the kinds of stocks growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) When you have products that everyone depends on and pays a very reliable 2.35% dividend that has been raised for 70 years, your investors will likely do well. American States Water (NYSE: AWR) is a holding company with segments in water, electric, and contracted services. The company reported strong Q2 EPS of $1.09 (up from $0.87 year over year) and raised its quarterly dividend by 8.2% following strong execution in utility and contracted services. Within the segments, the company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service (BVES), respectively, and contracted services conducted through American States Utility Services (ASUS) and its subsidiaries. GSWC is a public water utility that purchases, produces, distributes, and sells water in 11 counties in the state of California. It provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains, and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases. This company has raised its dividend for an impressive 77 years, yielding 2.57%. California Water Service (NYSE: CWT) is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii, and Texas. The company reported that net income rose to $56.5 million ($0.93 per share), up from $42 million in the prior year, backed by new rate case recognitions and infrastructure investments. Its business is conducted through its operating subsidiaries and provides utility services. The business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as domestic and municipal fire protection services. The company provides wastewater collection and treatment services, including treatment that allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services, and promotion of other non-regulated services. Coca-Cola (NYSE: KO) is an American multinational corporation founded in 1892. This company remains a long-time top holding of Warren Buffett, who owns a massive 400 million shares, or 9.3% of the float and 9.3% of the portfolio. The stock comes with a dependable 2.39% dividend, which was raised to $0.53 per share in May 2026, marking the 64th straight year of dividend increases. The company reported second-quarter revenue of $13.37 billion and comparable EPS of $0.97, beating expectations, and raised its full-year earnings growth forecast. Coca-Cola is the world's largest beverage company, offering consumers more than 500 sparkling and still brands. Led by Coca-Cola, one of the world's most valuable and recognizable brands, the company's portfolio features 20 billion-dollar brands, including: Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world's most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. Plus, the company owns 19.5% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results. Founded in 1962, Federal Realty Investment Trust (NYSE: FRT) continues to deliver long-term, sustainable growth by investing in densely populated, affluent communities and pays a strong 3.83% dividend. Real estate demand is still growing, and hard assets are generally considered prudent investments during periods of inflation. Federal Realty is a recognized leader in the ownership, operation, and redevelopment of high-quality retail-based properties in major coastal markets from the District of Columbia and Boston to San Francisco and Los Angeles. The company posted Q2 funds from operations of $1.88 per share (beating mid-guidance expectations), alongside strong 96% occupancy and its 59th consecutive annual dividend increase. Federal Realty's mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like: Santana Row in San Jose, California Pike & Rose in North Bethesda, Maryland Assembly Row in Somerville, Massachusetts Federal Realty's portfolio comprises approximately 3,500 tenants across 27 million square feet of space and 3,100 residential units. Federal Realty has increased its quarterly dividend for 57 consecutive years, the longest streak in the REIT industry. Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and it currently pays a 2.92% dividend. The company is focused on providing branded consumer packaged goods to consumers worldwide. The consumer staples giant posted earnings per share of $1.43, beating estimates of $1.41, on steady revenue, and it continued its 70-year streak of dividend increases, raising it 3% in April. The company’s segments include: Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries. Procter & Gamble offers products under such brands as: Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Shailesh Jejurikar Chief Financial Officer - Andre Schulten Senior Vice President of Investor Relations - Jon Chevalier Senior Vice President of Investor Relations - Keri Cohen Operator: Morning, and welcome to Procter & Gamble's Quarter End Conference Call. Today's event is being recorded for replay. This discussion will include a number of forward-looking statements. If you will refer to P&G's most recent 10-K, 10-Q, and 8-K reports, you will see a discussion of facts that could cause the company's actual results to differ materially from these projections. As required by Regulation G, Procter & Gamble needs to make you aware that during the discussion, the company will make a number of references to non-GAAP and other financial measures. Procter & Gamble believes these measures provide investors with a useful perspective on underlying business trends and has posted on its investor relations website www.pginvestor.com, a full reconciliation of non-GAAP financial measures. Now I will turn the call over to P&G's president and chief executive officer. Shailesh Jejurikar. Shailesh Jejurikar: Good morning. Joining me on the call today are Andre Schulten, Chief Financial Officer and Jon Chevalier and Keri Cohen, Senior Vice Presidents of Investor Relations. Before I hand over the call to Andre to begin the earnings portion of this call, I want to make a few comments on the second press release we issued this morning announcing Jon Moeller's upcoming retirement from the board of directors and the Procter & Gamble Company. I want to thank Jon for his many years of tireless and steady leadership at P&G, having served in key roles including executive chairman, chief executive officer, chief operating officer, and chief financial officer. In fact, some of you first interacted with Jon when he became P&G's treasurer in 2007. Jon's strategic vision has been instrumental in shaping the company P&G is today including his leading role in focusing P&G's portfolio and in designing our current operating structure. We have benefited from his unwavering courage and his profound care for this institution and its people. Again, I want to thank Jon for his 38 years of dedicated service to the company, and congratulate him from all of us on a very successful career. Now I will hand the call over to Andre to lead the earnings discussion. Andre Schulten: Thank you, Shailesh, and good morning, everyone. I will start with an overview of results for fiscal 2026 and the fourth quarter. Shailesh will add perspective on our strategic focus areas and capabilities. And we will close with guidance for fiscal 2027 and then take your questions. For fiscal 2026, we met our core objectives despite unexpected headwinds. We managed through a very volatile environment and delivered organic sales, core EPS and cash return to shareowners within our initial guidance ranges. We built plans to return the business to consistent growth across all categories and regions, we stabilized global market share, and we identified and are deploying the capabilities needed to create the CPG company of the future, to generate long-term growth and value creation. Progress in light of many challenges. Looking closer at fiscal 2026 on a semester basis, we delivered an acceleration in top-line results, up about 1 point in the first half and 2 points in the second half. We also saw improvement in market share in the second half despite some softening in underlying market growth as inflation increased. Positive trends we will build on in the new year. Moving to the details. Organic sales grew more than 1%. Volume was up modestly. Pricing added 1 point and mix was neutral. This includes around 40 basis points of headwinds from product form and go-to-market portfolio choices. Growth was broad-based across regions and categories. 9 of 10 product categories held or grew organic sales for the year. Hair Care and Skin and Personal Care each grew mid-single digits. Personal Health Care, baby care, home care, fabric care, feminine care, grooming, and oral care each were in line to up low-singles. Family care was down for the year. All 7 regions held or grew organic sales. Focus market organic sales were up 1% for the year. North America and Europe focus markets each grew modestly. Greater China organic sales were up 4% for the year. Enterprise markets were up 4%, led by Latin America, with 6% organic sales growth. E-commerce sales increased 6%, now representing 20% of total company sales. 26 of our top 50 category-country combinations held or grew share for the fiscal year. 5 of 10 product categories held or grew share globally. In aggregate, global value and volume share trends improved in the back half, exiting the year flat. Core earnings per share were $6.89 up 1% in fiscal 2026. Core gross margin declined 40 basis points and core operating margin decreased 70 basis points. $2.8 billion before tax of productivity improvement across cost of goods sold and SG&A enabled an increase in investment in superior products, packages and brand communication to drive market growth. On a currency neutral basis, core EPS was in line with prior year, and core operating margin decreased 60 basis points. Adjusted free cash flow productivity was 100%. We increased our dividend by 3% and returned over $15 billion of value to shareholders. Over $10 billion in dividends and $5 billion in share repurchases, consistent with our guidance at the start of the year. For the fourth quarter, we saw improving global share trends versus prior period, but headline results were impacted by trade dynamics in the U.S. and the spike in input costs. Organic sales increased modestly, rounding down to in line versus prior year. Adjusting for brand, product and go-to-market restructuring impacts, organic sales for the ongoing business were around 1% for the quarter. 2% when adjusting for 1 point of pull-forward into Q3, consistent structural growth of 2% across the second half of the year As we mentioned before, the growth trajectory has not been and will not be a straight line quarter to quarter. Volume rounded down to flat for the quarter. Pricing and mix were also neutral for the quarter. 6 of 10 product categories held up organic sales. Personal Health Care, hair care, skin and personal care each grew mid-singles. Baby care, fabric care and grooming each were in line to up low-singles. Home care, Feminine Care, family care and oral care were down for the quarter. 5 of 7 regions held or grew organic sales. Focus markets were down 1% for the quarter. Organic sales in North America were down 1% versus prior year, while consumption and market share of P&G brands improved, through the quarter, there was a notable disconnect between sell-out and sell-in, with sell-out or consumption at +2% and sell-in at -1%. The shift of Amazon Prime Day to late June versus early July drove an increase in merchandising spending recognized in the quarter, retailer inventory reductions, including the pull-forward into last quarter, also contributed to the 3-point gap between sell-out and sell-in. European focus markets organic sales were down 1%. Like the U.S., P&G sales trade consumption due to inventory dynamics and value interventions. Greater China organic sales grew 4%, another quarter of positive momentum heading into fiscal 2027. Enterprise markets grew 4% for the quarter. Europe enterprise markets grew 5%, Latin America organic sales were up 4% and the Asia Pacific Middle East Africa enterprise region grew 3%. Global aggregate market share was in line with prior year, 23 of our top 50 category-country combinations held or grew share for the quarter. On the bottom line, core earnings per share were $1.43 down 3% versus prior year. On a currency neutral basis, core EPS decreased 5%. These results include approximately $0.06 of higher costs, driven by spike in energy, transportation and material costs, which were mostly offset by tariff refund receipts. Core gross margin was in line versus prior year, and core operating margin decreased 130 basis points. Very strong productivity improvement of 460 basis points with healthy reinvestment in innovation, and demand creation. Currency neutral core operating margin decreased 130 basis points. Adjusted free cash flow productivity was 133%. We returned $3.5 billion of cash to shareholders in this quarter, $2.6 billion in dividends and roughly $900 million in share repurchases. In summary, a year of progress, and foundational work to enable accelerated future growth. Momentum with consumers is improving, results within guidance in a challenging macroeconomic and geopolitical environment, progress, but more work to do. Now I will pass it over to Shailesh. Shailesh Jejurikar: Thanks, Andre. I will start with a few thoughts on results before moving to our strategic focus areas. As mentioned, we delivered the fiscal year within our going-in guidance ranges across all key financial metrics despite a very challenging operating environment. It is encouraging that growth was broad-based with all 7 regions and 9 of 10 categories growing or holding organic sales. We exited the year holding global share with trends improving in the second half. This was visible in our largest market, the U.S., as we measured the percentage of top customers growing or holding share. We had less than 10% holding or growing share in the first half of the fiscal year and improved in the second half to around 50%. We will build on the improvement to further accelerate growth in the U.S., our largest and most profitable market. I am pleased with the progress we are making and confident the plans in place will continue to drive the momentum. The organization is focused on the right strategic choices and executional plans to deliver sequential progress we expect going forward. We remain committed to the integrated growth strategy as the roadmap for growth and value creation. Strategy starts with a portfolio of categories where performance matters, performance-driven categories, we must deliver irresistible superiority across product package, brand communication, retail execution, and value. Continue to drive productivity with multi-year visibility to fund innovation, and demand creation and to mitigate cost headwinds. Constructive disruption is key to stay ahead of and to create emerging trends and opportunities in our fast-changing industry. Finally, an organization that is fully engaged, enabled and excited to serve consumers and to win in the marketplace. P&G's point of difference our competitive advantage comes from outstanding integrated execution of these strategies across all activity systems in the company and from anticipating what capabilities are needed next to delight our consumers. We continue to believe the strategy is right, but we must continue to adapt to the world that is changing around us. As I shared in CAGNY, there are 3 notable landscape changes defining the path ahead. These include media fragmentation, the changing retailer landscape, and inflation. We are making multiple interventions to address these changes. The first is to have a deeper more complete connection with consumers. Nothing matters more than putting the consumer first in everything we do. The second is transforming brand building. Adapting how we build awareness of our brands and benefits drive consumer engagement, and reduce time and steps from awareness to purchase. The next is building holistic partnerships with retailers across the entire value chain. Not just in their traditional role as merchants, This is critical as we see the convergence of retail and media including digital commerce, and how shopping agents and AI-based search will affect how consumers shop. And finally, we need a stronger core and a bigger 'more.' one of P&G's biggest strengths is our portfolio of leading brands. The core of our business, we need to make sure this core is healthy and growing through impactful innovations that elevate the superiority of the brand and represent a good holistic value for consumers. These interventions are aimed at improving the vectors of superiority to win, the consumer value equation. We know we are winning the consumer value equation when we are growing users of our brands. The simplicity of linking superiority to user growth in this way increases the urgency to adjust the vectors as needed versus assessing each element individually. When we get the equation right, we accelerate growth, growing users, leading market growth, and growing market share sales and profit. Here are a few examples. Greater China Baby Care continues to lead the growth of the premium and super premium segments behind consumer insight-driven innovation. Chinese parents want only the best for their baby, softness, comfort, and dryness. The China team translated that insight into a diaper using silk materials to deliver skin comfort and protection wrapped in a unique soft feel package that conveys superiority at first touch. The result is double-digit organic sales growth in each of the past 6 quarters and nearly 5 points of value share over this period. Latin America Cough and Cold is winning deeper consumer connection. The team identified the insight that consumers perceive products as more effective when they deliver a sensorial experience. Consumers need to feel the immediate sensation of relief, to believe the product is working. The Vicks team brought this insight to life through upgraded packaging, brand communication, and retail execution that made fast relief more visible at every touchpoint. Result, Vicks became the number one cough and cold brand in Latin America, with mid-teen organic sales growth over 1 point of share growth while growing the category this year. Germany Pantene is a great example of a brand team responding to media landscape shifts to transform brand building and accelerated growth. The team increased investments in social media and influencer partnerships, including top German beauty opinion leaders and hair experts, and culturally relevant brand events including Oktoberfest, and Berlin Fashion Week, to meaningfully improve brand superiority awareness. The result was a 4x increase in influencer content and tripling total reach. Pantene grew new users, resulting in value sales growth of 14% with value share up 50 basis points versus year ago. To win on social media and e-commerce platforms that combine live content with online shopping. SK-II shifted the focus from a functional message to a lifestyle approach. The team connected SK-II to the moments, routines, consumers care most about. Encouraging them to live lighter, freer, and more authentically backed by product performance that delivers on its promise. As more consumers brought SK-II on their life journey, brand buzz ROI, and business growth naturally followed. Over the past year, SK-II's facial essence treatment led discussion volume on a top social commerce platform improving the brand discussion ranking, by 5 spots to third place. SK-II has grown organic sales double-digits over the past 6 quarters with value share growth. P&G Mexico elevated its strategic partnerships with retailers by transitioning from short-term tactical planning to longer-term joint business planning. They focused on having winning consumer propositions and aligning objectives and priorities across P&G and each of the retailers creating shared accountability for winning with the consumer. As a result, P&G strengthens its position as a preferred supplier to these customers achieving record levels of in-store visibility and support behind our joint priority growth initiatives. These efforts enable P&G to capture 60% of category growth approximately 2x fair share. P&G Mexico grew organic sales high-single-digits and gained over 1 point of value share in fiscal 2026. Mr. Clean continues to innovate on its core proposition and solve more cleaning jobs across the home. The brand has launched new innovations on the Magic Eraser platform that improve the longevity with a denser form and a wider micro scrubbing structure that now lasts 2x longer. The packaging was updated to reflect room and mess specific users. At the same time, we launched Mr. Clean shower and tub scrubber to address consumers' number one most disliked cleaning chore. Mr. Clean shower and tub scrubber delivers a quicker, easier, and deeper clean with the power of the Magic Eraser. A sturdy grip handle, built-in squeegee, and a pivoting head for hard-to-reach areas. The result: Mr. Clean is winning consumers and driving category growth, delivering 18x its fair share of the bath cleaning category growth since launch. Tide is a great example of both Core and More. Tide did their biggest upgrade in over two decades on their original Tide liquid detergent, which represents more than one-fourth of all Tide detergent users. Significantly improving the product for the same price. Since launch, Tide Original Liquid has gone from declining to high-single-digit growth. On this size of the business, to get that inflection is simply amazing and gives me tremendous confidence of what can happen if we activate the core much better. Tide's biggest strength is Tide, so this is a very powerful example of strengthening the core. A great example of a bigger 'more' is Tide Evo. Tide Evo represents the biggest innovation in laundry crafted by concentrating active surfactant ingredients into a mixture that is spun into individual fibers. This sophisticated process ensures each functional fiber delivers the powerful cleaning performance of Tide while also enabling the creation of the convenient Tide Evo unit dose form. With no plastic packaging and no extra water. This new-to-the-world formulation and assembly process is proprietary to P&G and protected by over 50 granted patents making it a truly unique technology. National expansion of Tide Evo is on track. With full-scale launch support planned this fiscal year. To further accelerate scale and fund innovations, campaign ideas and executions, like the ones we just shared, we are creating our vision of the CPG company of the future. P&G teams are now scaling advanced capabilities in four areas built on our unique strengths. Platforms developed over many years now being fully activated across the company. First, brand building transformation. Our teams are rapidly evolving how we connect with consumers, in a more fragmented media landscape and translate those connections to real-time retail actions. We are scaling AI-enabled tools and integrating workflows from creative development to media activation to continuously improve content effectiveness and always-on consumer engagement. By bringing together the voice of our brands, trusted experts, and consumers themselves, we can more effectively reach the right consumers in the right context at the right moment and optimize what works to drive trial, awareness, loyalty, and ultimately, growth. Second, transforming internal work processes leveraging data capabilities, to free up the organization to focus on winning externally. We are using integrated data platforms, AI capabilities, and programmatic shelf tools built on top of our fully stocked data lake. To work faster and deliver better outcomes. Processes that once required multiple touchpoints and handoffs are now being automated improving both speed and quality. In many cases, time for discovery to execution is moving from weeks to hours, freeing up more time for higher-value work focused on winning with consumers. Third, taking our existing R&D advantages to a new level by leveraging our unique set of innovation capabilities. Substrate technologies, formulaic chemistry, devices, and biology to deliver breakthrough solutions in every part of the business. New technologies like AI-enabled molecular discovery will drive acceleration and more powerful integration of innovation capabilities leading to faster growth. And finally, supply chain capability. Supply Chain 3.0 is driving a more complete system connection from purchase signal to production planning and material ordering to ensure consumers find the product they want each time they shop. We know how to digitize and automate our operations and more importantly, we have qualified a financial framework to generate strong returns on these investments. Full activation of these advanced capabilities will enable speed and execution, smaller teams and a stronger connection to the consumer to enable the next S-curve of growth and value creation for P&G. We are confident in the short-term progress we are making and excited about the mid to long-term as we leverage our strengths and unique capabilities to set us apart from the industry. Now I will pass it back to Andre to cover guidance. Andre Schulten: Thanks. As we enter fiscal 2027, we continue to expect the environment around us to remain volatile and challenging, from costs to currencies to consumer, competitor retailer and geopolitical dynamics, we believe our going-in guidance for fiscal 2027 prudently reflects these current market realities. On the top-line, we currently expect the markets in which we compete to deliver local currency value growth in the range of 1% to 3% for the year. With the current run rate roughly in the middle of this range. Our objective is to grow organic sales modestly ahead of the growth in these markets, However, recall, our guidance includes a 30- to 50-basis-point headwind from brand, product form and go-to-market restructuring. Taken together, our guidance range is for organic sales growth of 1% to 3% versus prior year, The low end of the range protects for additional softness in underlying market growth rates. The high end would require acceleration in underlying market growth rates. And market shares. Our bottom line outlook is broadly consistent with top-line, with core EPS growth of 0% to 3% versus 2026 core EPS of $6.89 this guidance equates to a range of $6.89 to $7.11 per share, $7 at the center of the range. This outlook includes a cost headwind of approximately $1 billion after tax, driven by higher raw materials, energy, transportation costs, and other premiums resulting from the conflict in The Middle East. This estimate assumes an effective Brent crude oil price of $90 a barrel, This is a combination of actual prices since March 2026 at future contracts through February 2027, which approximates the average price that will flow through our P and L in fiscal 2027 it is also in the ballpark of current spot prices. You likely note that our current estimated cost impact is the same as we projected last quarter, but at a somewhat lower oil price. This is due to a larger impact from the non commodity elements of the supply chain, like ocean freight and trucking surcharges, supplier inflation and force majeure premiums. Most of this impact will be felt in the first half of fiscal 2027, as those materials were produced when the underlying oil price was above $100 a barrel. While we do not typically provide quarterly guidance, we estimate the cost dynamic will cause Q1 EPS to be down 5% or more versus prior year. We expect the foreign exchange headwind of approximately $50 million after tax and approximately $150 million of higher net interest expense after tax. We are also forecasting $150 million after tax of lower nonoperating income We estimate that our core effective tax rate will be approximately 20%, in line with prior year. Combined, input costs, foreign exchange rate items, and items below the operating line, will be roughly a $1.4 billion after tax of earnings headwind in fiscal 2027, or $0.56 per share, 8% of fiscal 2026 core EPS. We expect capital spending will be 4.5% to 5.5% of sales. And we are forecasting adjusted free cash flow productivity at 85% to 90% for the year, We expect to pay over $10 billion in dividends, and to repurchase approximately $5 billion in common stock combined, a plan to return $15 billion of cash to shareowners in fiscal 2027. The guidance range reflects the continued acceleration our long-term algorithm, It is a balanced outlook between top-line and bottom line despite significant cost pressure, early in the year, reflecting current market realities for consumer demand. We will maintain strong investment in the business, balance by a strong productivity program with an intent to improve results semester by semester and year by year. This outlook is based on current market growth rate estimates, commodity prices at foreign exchange rates, significant additional currency weakness, commodity cost increases, geopolitical disruption disruptions, tariffs, major supply chain disruptions, or store closures, are not anticipated within the guidance ranges. I hand it back to Shailesh for closing thoughts. Shailesh Jejurikar: Thanks, Andre. Fiscal year 26 was a year of foundation building. The operating environment was even more challenging than expected. But we delivered another year of organic sales and core EPS growth and we continued a long-term record of returning high levels of cash to shareowners. In fiscal 2027, we will solidify progress and continue to build the technical, organizational, and operational capabilities have P&G lead as the CPG company of the future. We continue to believe the best path to sustainable balanced growth is to double down on the strategy. Stronger integrated execution to delight consumers with superior products, at a superior value. We are driving interventions to improve near term results, and we are building the technical and operational capabilities to create the CPG company of the future. Our investments for growth will be balanced and funded with a strong productivity program. We are pleased with the progress we are making It will not be a straight line as the past few quarters have shown, we are building momentum with consumers and we are excited about the long-term opportunities ahead. With that, we will be happy to take your questions. Operator: If you have a question, please press *1 on your phone. If your question has been answered or you would like to withdraw your question, press *2. Your first question comes from the line of Dara Mohsenian of Morgan Stanley. Please go ahead. Dara Mohsenian: Hey, good morning. So it is been a little more than a year since you guys announced your restructuring you put the plans in place to reinvigorate organic sales growth and get P&G back to outperformance versus the category, You obviously gave some examples of progress today with your interventions. Although we are not at outperformance yet with flat share in the quarter. So, just looking forward to fiscal 2027, what are the biggest areas or initiatives left to put in place versus what is already been implemented organizationally in your restructuring? And just as you think about fiscal 2027, you think you can consistently return to sales outperformance versus your categories at some point? Any thoughts on timing there? And just the line of sight there as we move through the fiscal year? From an org sales standpoint. Thanks. Shailesh Jejurikar: Thanks, Dara. Let me start with how we are feeling about the progress we have made so far. And it is consistent with the way we have felt over the last few months. We are happy with the recovery on the consumer front. Particularly our performance relative to getting new users in. I think it is best reflected in the fact that our global share has now stabilized and has been flat for 3-month periods. I think that is a big step forward. More recently, and 1 month does not tell you much, but the last volume share month inflected, and volume share is sometimes a good predictor of the status on user growth. So from that point of view, we feel very pleased that we are getting on track to winning with consumers, which is the most important. Now when I then break it down and we see when we started interventions and whether that progress has happened we feel that is what gives us confidence. So if I start with China where you know, coming out of COVID, it was a depressed market. It was a tough competitive environment. And the results were not great. We are now growing share in China for the first time in 15 quarters, driven by fundamental changes we made similar to what we are doing in the company. We changed our go-to-market. We changed our brand building systems and processes and capabilities We changed the kind of innovation we were doing because we knew we were in a lower growth market that needed us to drive market growth. We have seen that begin to inflect in China. China closed AMG, as you know, at 4%. Ex-exits that happened in China,, even better. Similarly, if you look at Latin America where after our decision to change the go-to-market in Argentina and other choices, We have been really happy with the way our business has performed across every single metric. But probably most exciting, 3 years back, less than 10% of that business was growing users. Today, over 55% of that business is growing users. Then even if I go to some of the markets in the Asia, Middle East, Africa region, which was pretty massively hit in the earlier Middle East crisis, Those have come back well. Last quarter, we closed at 3%. Ex exits closer to 6%. Even a market like Gulf, which has had a very tough 4-, 5-month period with disruptions, we are growing share across all time periods. That market had less than 5% of the business growing users last year, They are now at 60% of the business growing users. So pretty quick bounce back on some of these markets. Turkey is another good example of that. Europe focused, the market has been depressed, but we have been growing share even in very difficult situation there. US is the market where we probably started the interventions closer in timeline. We are beginning to see progress there as Andre covered in some of the results, and we saw it very clearly in consumers. Even inthe U.S., we show saw a blip in the volume share in the recent time period. So we feel good about the progress we are making inthe U.S. as well. And as I have shared, Dara, with you and others at CAGNY, inthe U.S., we are doing our interventions in a way that will be category growth driven. So they depend on innovation and retail partnerships. So some of the timelines on that will be many of those interventions happen in the front half of the next fiscal or in the July, December 2026. So we expect that momentum inthe U.S. to pick up during the semester behind some of these interventions. So overall, long winded answer, but I feel good about the progress we are making I feel confident based on the intervention we made and the timelines we have that we are on track. And which is why even though our sell-in, sell-out was mismatched, I good, because as long as the consumption is strong, I am very confident that we will have strong sales. Operator: Your next question will come from the line Lauren Lieberman of Barclays. Please go ahead. Lauren Lieberman: Great. Thanks so much. So the you have called out the 23 out of 50 country category combinations held or grew share. I think that was a step back sequentially. I know that you guys have talked about the, you know, progress will not be linear. But I was curious within that number, what percentage actually grew share within that. And then the global roll up of flat understand there is mathematical dynamic on that. You know, it has to some of the bigger categories versus the smaller ones within that you know, that 50 grid. So I guess notwithstanding the comments on being pleased with progress, what are maybe some of the bigger category-country combinations that still need more attention, more change, and sort of timeline on the next you know, 6 to 8 months of getting some of those interventions in market? Thanks. Andre Schulten: Good morning, Lauren. Let me start and then Shailesh can jump in. I think the most important turn that we see is enterprise markets continuing to progress. If you look at enterprise markets growth, consistently, mid single digits. AMAG, so Asia, Middle East, Africa, 3% growth. If you ex exclude the market restructuring. Asia, Middle East, Africa growing 6%. Latin America continuously growing share across categories over time periods. Europe enterprise market is growing 5%. So enterprise market strength, I think, is sustained, visible and broad-based. From a market dynamic, the most important share growth component we needed was China to return to share growth. Because it is our number-2 market. And we have done that very decisively. We are back to leading share on baby care, We are leading we are growing share on Feminine Care. We are growing share on Fabric Care. So it is broad-based. And, honestly, the recipe that the team is executing will result in the same dynamic across categories. But already, the majority of the categories in China is on share growth. The rest will follow. Europe continues to grow modest value share in a very difficult environment, up 20 basis points of value share. And the more the more impacted categories from a headwind standpoint, if you want to go there, Fabric Care, for example, is 1 where competition has increased. And we are reestablishing competitiveness in Europe, so that is a big priority for the European focus market team. Inthe U.S., I would really point to the progress we are making at the customer category level We quoted in the script that we had 10% of the top customer brand combinations growing in the front half. We are now up to 50%. And we expect that to continue to accelerate over the next 6 months. Which will solidify the share growth that we are seeing early signs of inthe U.S. as well. The more longer-term recovery trajectory, baby care, But, for example, on diapers, on tape diapers, where we adjusted competitiveness from a value perspective, We saw the immediate adjustment in share, so we are back to volume and value share growth on taped diapers. But we have an opportunity to drive that strength through the entire portfolio. that is where the innovation plan is focused, and you see the next wave of innovation coming. Here over the next couple of months. The other big 1 inthe U.S. is family care. that is more of a category dynamic. I feel very good about where family care is going. Again, we will not be talking about the future innovation and launches. But it gives me confidence that we have a very clear view of where we lost users, and, most importantly, very clear data on how to regain those users over the next 6 months. that is kind of the runabout. But as what Shailesh is saying, I think, the essence is core. We are building out that matrix of category-country, customer share growth, and we are increasing the number of greens. Will it be linear? No. But do we have confidence that we exit next year with strong, solidified share growth? Yes. Shailesh Jejurikar: I would just say, Lauren, to that question in addition to what Andre said is we have made big inflections on some of them. I think Fabric Care US being one of those. And we are building further momentum there. And where we have gaps, we have very clearly identified the category customer combinations that need to inflect. And have very clear time bound plans on those being executed over the next 6 months. Operator: Your next question will come from the line of Steve Powers of Deutsche Bank. Please go ahead. Steve Powers: Great. Thank you very much, and good morning. As I as I look through the last several quarters, you know, it strikes me that much of the volatility and surprise that we have seen has come, you know, either fromthe U.S. or from focused markets in Europe. And so I guess my question is, you know, how would you assess the underlying fundamentals of those markets as you think through the puts and takes? And as you have assessed the outlook for fiscal 2027? And is there anything that you have experienced, you know, amidst all that volatility and surprise that has altered the way you approach go-to-market plans, interfacing with retailers. Plans with the consumer. Just anything that, you take away from recent experiences that informs any kind of different tactic, as we think about fiscal 2027? Thank you. Shailesh Jejurikar: Steve, let me start, and then maybe Andre has a few points to add. But I would start and say, fundamentally, these 2 markets both North America and Focus Europe, market growth has slowed by 1 to 2 points. Over the past 12 to 18 months. I think at the core where we have large shares and the category growth slows down, the impact is greater. At the same time, we actually think there is much bigger opportunity in the next 5 years for growth in these 2 markets. If I just take the U.S. and we look at where is the maximum value we can add on top and bottom line, it is still the U.S. Whether it is something like Peter Oral-B where, you know, even if you get to somewhat reasonable penetration levels compared to our Europe benchmarks, it is like the equivalent of creating a new India business for us. So we see a good $5 billion to $10 billion growth opportunities over the next 3 to 5 years in both the U.S. and Europe just fundamentally by addressing some of these huge growth opportunities that still exist. A lot of this will require a higher level of innovation, and that is what I was referring to when I was talking about China. When China slowed down, it was not about riding in the train anymore. We needed to drive the train. And I think in US and Europe, we are modifying and adjusting our innovation plans to ensure that the capable of lifting the category growth rates. Tide Evo is an obvious example, but I would take the combination of Tide Evo and Tide Liquids work because Tide Evo is going to get some of the new growth and get some of that new performance and innovation driven growth, improving significantly the performance of our existing propositions has a lot of market growth and share growth opportunity for us. So when something like Tide Liquids grows it is still a 50-plus percent premium to the market average. So when Tide Liquid starts growing, the market gets lifted. Tide Liquids will grow if we can really strengthen the value proposition, which is what we have done. So I think our biggest growth opportunities moving forward are still in the U.S., and some of the Europe focused markets. It does require a higher bar on innovation. And that is what we are preparing ourselves for. Andre, anything? Operator: Your next question today will come from Andrea Teixeira of JPMorgan. Please go ahead. Andrea Teixeira: Good morning, everyone. Thank you for taking the question. I wanted to just go back and you have said many times the value proposition that you are applying, particularly inthe U.S., And we have seen the increase in marketing spend, in particular, to reinvestments and price reinvestments as you called out. I was curious to see there is I understand a timing and I wanted to see if you can parse out that timing impact. And then most importantly, how have you learned in terms of those reinvestments and then the volume that you could get from those initiatives. I mean, I think you called out Tide. You called out some of the baby care. But if you can explain to us and then perhaps, you know, think about how you embedding those recoveries and market share recoveries into your guide. Thank you. Andre Schulten: Good morning, Andrea. Look. I will level up a second here, but we are very diligent in telling the categories to remain fully invested in the business. And I think that is what is allowing with the right interventions, the turn of business that you see in many parts of the of the world, and what is driving and fueling the share the volume share growth we see now in the U.S. and the increasing number of customer brand combinations that are winning How that investment is structured really depends on the specifics of the business. In baby care, we needed a short-term intervention on key price points because we were being outpromoted and outpriced. Making that intervention, while painful, is absolutely necessary so that the innovation that is launching and the brand communication can be effective and you see the results on taped diapers. In other categories, it is a channel price point conversation, for example, where we might have expanded our absolute cash outlay premium in club certain categories too far. That requires correction and is being invested in. In other categories like in type, the example Shailesh mentioned, it is about product performance, but not changing the price point, but improving the value that way. All these interventions are very targeted and very carefully constructed. And embedded in the guidance range that we have given you. We also will continue to invest in media. I firmly believe we have a big opportunity to increase the effectiveness of our media spend. Because of what Shailesh has continued to describe the fragmentation of the media landscape. I do not think we are at 100% effectiveness potential, and that is the investment we are making in media capabilities. So maybe a bit broader answer, but it is the combination of these interventions that are required to get to sustainable share growth and therefore back to algorithm are embedded in the guidance ranges that we have given you And if oil and the Middle East situation holds at the assumption we feel comfortable with the midpoint of the guidance range. Because we are very certain that the interventions and the execution that we control will deliver. The uncertainty in the guidance range in our mind entirely results from Middle Eastern oil and underlying consumer strength. Operator: Your next question will come from the line of Christopher Carey of Wells Fargo Securities. Please go ahead. Chris Carey: Hi. Good morning, everybody. I wanted to pick up on this line of thinking actually around investment levels. Andre, I am getting to a bit of gross margin compression for the full year, which let's just say, if I put it all together, would imply SG&A does not grow a whole lot this year. If anything, maybe it can be a bit lower year on year. So, you know, implied to have good operating leverage this year. And I guess I am mindful that last year was kind of significant investment year ended at you know, historically high levels for investment. Coming into this year, you have a restructuring and overhead initiative, which is going to drive a lot of savings Number 1 is the is my premise, you know, somewhat logical around a bit of gross margin compression and thereby SG and A? Does not grow a whole lot? And if so, can you just give us a sense of, yeah, how you would view the full investment suite over the last several years, say, fiscal 2026 and into 2027, and kind of the underlying levels that you would, you know, foresee once you normalize for some of these overhead savings and some of the automation initiatives. That you have just to give us a sense of that you will indeed be going into fiscal 2027 with full and robust investment levels behind your brands. I know you had kind of expanded on it to the question, but I would like to dig just a bit deeper if I could. Thanks so much. Andre Schulten: Yeah. No, it is good to dig a little deeper here, Christopher. I think the setup for the year we just started is good. We have the productivity savings now flowing through. Obviously, the half of the headcount reduction has been executed. The major market restructuring has been executed. So the benefits of that from a cost perspective will start to flow through into fiscal 2027. We have remained fully invested in the business. And if you look at our media spend and advertising spend over the last 3 to 5 years, the only way we have gone is up. And as I said, I think neither I nor Shailesh believe that 100% of that spending has been effective. And we will work to increase the effectiveness And I think you will see a combination of effectiveness flowing through to the P&L and effectiveness increasing the efficiency of the spend and, therefore, we maintain full support to the brands. But we can be more selective on the tools, the platforms, and therefore, the spend levels that we will we will apply. The third component that is part of the playbook is very strong productivity on the cost of goods side. We have delivered record cost of goods productivity in the fiscal we just closed. And we will do that again if not more. And that is our path to get to a reasonable EPS outcome with the cost headwinds we talked about while maintaining investment in the business and providing the value balance that consumers need to give us the share growth that we want. Shailesh Jejurikar: Just add 1 point to that, Christopher, which is that when we are looking at investment depending on the brand, the country, and the category. A few different buckets. So there is investment in brand building, which shows up as advertising cost. there is investment in product, very often like we did on Tide. To significantly improve value. So we are very choiceful and disciplined of where we are investing for that brand in that country to get the maximum lift. We have gotten much better in our learnings over the past 12 months, on what is the right mix of spending across these different investment buckets. To get the biggest lift on the business. In some businesses, it may be just fundamentally increasing media because of their brand building plans. In some, it may be strengthening the product investment. And so we have built a much better understanding over the past 12 months of where that balance and mix needs to be. Operator: Your next question will come from the line of Peter Grom with UBS. Please go ahead. Peter Grom: Great. Thank you. Good morning, everybody. So I guess I wanted to ask just on the 1% to 3% organic sales outlook. And Andre, you mentioned what drives the low end versus the high end. But on the high end, you mentioned, you know, assume acceleration in category growth and market share performance. But I think, historically, you know, category growth alone would already put you towards the higher end of that range. So could you maybe just unpack what is embedded from a category growth standpoint in the outlook? And then I guess just related, there is a big disconnect between consumption and shipments this quarter. Is this dynamic now in the rearview? Or said another way, should organic growth and consumption be more aligned going forward? Thank you. Andre Schulten: Thanks, Peter. Good morning. So if I dissect the guidance on the top-line range, the base assumption is category growth at the current levels we are seeing in the market, which is 2%. that is a global number. So 2% value growth is the center line. To deliver 2% organic sales growth within that would require us to grow about 2.5 points. Because we have about a 40, 50 basis points headwind from the market restructuring on the top-line that is still carrying into this year. So this would mean if the categories grow at 2, and we have underlying growth of 2.5, that would require share growth. But would leave us at the midpoint of the range from a organic sales growth standpoint. Our objective as you can tell from the commentary both Shailesh and I are making, is to remain fully invested in the business and to drive share growth and drive market growth. So we are we are building business plans that shift us obviously, more significantly above market. But the construct assumes 2 points, which means in the middle, 2.5 points of growth for us. Net of 50 basis points of headwind from restructuring would mean share growth at a minimum. Okay. On the shipment versus consumption, listen, it is a dynamic that happens in Europe, the dynamic happens inthe U.S.. The simple answer is we need to get to stronger growth in both regions so those dynamics do not impact us as much. that is the macro answer that we would give our teams. We have to deliver stronger growth, and that is what they are working on. The dynamics are slightly different inthe U.S.. It is truly pull-forward of inventory. Quarter to quarter, which sometimes happens very late in the like in quarter 3, and then shift of big events like Prime Day, which changes the way we have to recognize the trade investment. that is what happened in Q4. I think the combination of the 2 was unusual. Therefore, the effect was bigger than we would typically see. But I fully expect there is going to be always has been some level of trade inventory volatility quarter over quarter. Just need to get back to 3 plus percent growth, so it is less visible. Europe, the effect is more linked to trade dynamics and negotiations. There are different negotiation windows with retailers, And if you are a retailer, you apply some pressure in the negotiation period which then shifts inventories. We generally catch up Also, that dynamic will sustain. So how do we make that go away? We have to accelerate growth in Europe. Operator: Your next question will come from the line of Felipe Fulorny of Citi. Please go ahead. Filippo Falorni: Hi, good morning, everyone. I wanted to ask about the price and promotional environment in your categories. It seems like you have 2 opposite forces. On 1 end, you talked about the price intervention and the trade to improve market share. On the other side, you have cost inflation, which typically will result in higher pricing. So can you help us understand how you balance the 2? And one of your European competitor talked about second half of calendar year being a little bit more price driven. So maybe can you help us understand within your organic guidance contribution from volume, price, and mix in 2027? Thank you. Andre Schulten: Good morning. I do not see a fundamental change in our growth algorithm. But you are right. We see promotion increasing back to pre COVID levels. Europe volume on promotion has increased by about 5 points in the most recent read. there is a little bit of seasonal dynamic in there. there is a little bit of FIFA-related promo activation in there, which you would have heard So we would expect boththe U.S. and Europe to over time, return to pre COVID promotion levels. We are almost there, so I do not think that is a dramatic shift. But promotion will continue to drive some level of growth. Our plan assumes that we continue to price with innovation. We mainly use promotion to drive trial We use innovation to drive regimen from high penetration categories into low penetration categories by co promoting. When we talk about the customer level plans, inthe U.S., there is a very careful construction of the business plan. That includes promotion, as it comes to those objectives. But we do not believe that promotion in any way, shape, or form is a way to build the business, or to acquire users on a sustainable basis. So we will use it where it makes sense, it is not part of our desired business building strategies. We expect to return to pre COVID level. We are cognizant of that, and we have built that into our assumptions. But we will continue to drive pricemix in this in this year, like we have done in 20 out of 21 years. Shailesh Jejurikar: I think just to add to what Andre said, specifically, we think with innovation, there will be a that we believe we will be able to have the consistent price mix and a more balanced volume price and mix growth composition of sales. If costs remain elevated, we typically do see promotion levels go up or down. So if costs tend to be high, we will see promotion fees off a bit. But as Andre said, it is generally trending towards the pre COVID levels. But at a fundamental level, we have an innovation plan that will allow us to price but still deliver great value to the consumer. Operator: Your next question will come from the line of Bonnie Herzog with Goldman Sachs. Please go ahead. Bonnie Herzog: Thank you. Good morning, everyone. I just had a high-level question on China. I was hoping for a little more color on your business. In the market and then your expectations for category growth in the region and maybe expected improvements to your share this year. And then I guess, finally, are there any changes you are making to, you know, your innovation and or strategy in light of the consumer and macro? Thank you. Shailesh Jejurikar: Yeah. Yeah, I would say given where the consumer is, we are definitely raising the bar on innovation. We are making sure that the performance is very that is important not just from where the consumer is today and becoming much more discerning, but also as we see the future of brand building, and we see the environment there, real difference in product performance shows up in authenticity. And plays positively when you look at path to purchase through social media or e-comm or other such tools. So continue to raise the bar on what is expected out of innovation because not only is the consumer more discerning on value, and that is been a critical piece of it, But moving forward, we also think it is a multiplier to the brand building effort. Operator: Your next question today will come from Peter Galbo of Bank of America. Please go ahead. Peter Galbo: Hi, good morning. Thanks for taking the question. Maybe if I could actually follow-up on Greater China. Andre, I think 4% organic sales for the quarter, 4% for the year. So really a nice improvement, a rebound. In that business. And that is even with maybe some headwinds in some of the categories that were called out in the press release. So maybe just if you could help us unpack a little bit more on the China side, like baby care seems to be driving the bus, but presumably, the interventions that you can make in some of the other categories would help that total China number tick up from where it is, and just what is being done in those categories, you know, outside of maybe baby care to help improve. Going forward? Thanks very much. Andre Schulten: Sure. China market continues to be challenged. So it is not a tailwind that we are getting. The market in aggregate is still down about 2% in the most recent reading that we have. The share breakthrough the most encouraging part of the share for me is the work the team has done to win across channels. We historically, as you know, were more centered around offline, more centered around brick-and-mortar. And the team has been able to win in both. So we are winning in the physical store, and we are winning on online, both on pure plays as well as social platforms. So it is really broad-based from a channel perspective, which I think is the first encouraging sign because that means no matter where the consumer goes, we have a better position, and we are winning with that consumer. From a category lens, SK-II continues to shine. 8% growth excluding travel retail in China. We continue to lead from a share perspective, and the activation of the team is driving across the core but also the super premium LXP proposition drives continued share growth continued growth in the SK-II business. Making progress in hair care on the core propositions, Head & Shoulders, and Pantene. There is a lower tier, Rejoice, that we are still working through. But the core of the proposition is growing. Great progress on Fabric Care. Progress on FemCare from a share perspective, and Baby Care, the shining star with the growth rates you see and now back to number 1 position in the market. So we are the number 1 baby care brand in China which is an amazing accomplishment by the team. So broad-based, opportunities still in a couple of areas. I mentioned the low tier of hair care. Work to be done. There is still work to be done on oral care. On the Crest side, we are actively deciding what we want to do in that space. And the third component where we still have work to do is mass skin. Mass skin is a market dynamic more than a brand dynamic. The Olay brand is a very strong brand in China. But we have to find a way to grow that category and grow within that the Olay mass brand. That will be the more detailed view of China. Operator: Your next question will come from the line of Robert of Evercore ISI. Please go ahead. Robert Ottenstein: Great. Thank you very much. Just a couple of follow-ups. I just want to go back to start with, go back to the gap between the shipments and consumption And I was just wondering, this has been going on for a while now. Right? And I am just wondering if there is anything that is more distinct with Procter's business compared to other of your competitors? Because it does seem to be a little bit more of an issue for you guys. I am wondering if that is a function of, you know, where either your strategy, your brands, or just you know, your retailer concentration. So we would love to understand that a little better. And then second, you know, going back taking a look at the U.S. Consumer, did you, you know, are you did you see a distinct impact from higher gasoline prices when it went up, when it went down, how much of a driver is that? And then, you know, any comments on July would be helpful. Thank you. Andre Schulten: Robert, let me take the first part. Shailesh can jump in on the consumer side. I believe the very simple answer to your question is there is something specific about P&G and P&G strategy that creates more volatility on the inventory side? I do not believe so. I think it is a very simple answer. We are bigger than everybody else. And we have higher velocity than everybody else. So if you need to reduce your inventory, quickly, you focus on the biggest brand on the shelf that has the highest velocity, because that is how you can get your inventory dollars down. So I think that is the very simple logic of unstocking P&G and restocking P&G, is easier. You can do it with a few decisions. Plus, we have the supply chain capability that we can deal with those swings. So I think that is the answer. I do not think there is anything that I can think of that would make P&G a specific element of that conversation. Operator: And I would just add that, Andre, Robert, to your question that we see that even within P&G categories, there is a variation. Shailesh Jejurikar: So it is not like every category would have had a sell-in, sell-out. On our grooming category, we had a reverse dynamic where actually the sell-out was less than the sell-in. So that goes to Andre's point that depending on velocity, depending on other dynamics, even within our categories, we see a mixed difference. And what the other point I would make is that fundamentally over a large number of years, we are pretty sure that the consumption data in any of these is good over any rolling period of time. So when we take a rolling 6 months basis or a rolling 3 months basis, the disconnect kind of goes away. What we are focused on and when we work the team says get focused on growing consumption is what Andre was saying earlier. Get it high enough that these variations do not make a difference, firstly. And grow it high enough because whatever you grow at eventually for the fiscal, it will balance out. So we know that on a fiscal basis or even on 6 monthly basis, we get it fairly evened out. The consumer I cannot point or we cannot point to gas as a specific impact. I think it is a general impact where you see you know, the consumers that are well off continue to behave as they have behaved before, larger pack sizes, to find value The more pressured consumer that will be more impacted by gas prices or incremental $100 of gas cost per week They continue to look for smaller pack sizes. They continue to be very affected by promotion patterns. So none of that none of that has changed. What I will tell you, Robert, our consideration also in the guide is longer-term, if the Middle East conflict sustains and oil goes up, and gas prices stay high and inflation increases, so that impacts consumer sentiment, we believe, the longer-- I do not think we are there yet. So there is kind of a multiplier effect here. If the Middle East sustains, oil prices keep high, we expect somewhat of an impact on the top-line, as well as the cost impact that you see. that is why we have the range as wide as we have it, because of that you know, connection between both elements. I will just add 1 point maybe to this that our portfolio-- 2 points on the portfolio within that. 1 is that we do have a good vertical portfolio. So when we look at grooming, which is beginning to, for example, show very strong results, I think a lot of those results are driven by activating vertically and horizontally the portfolio. And we are seeing some of the best results we have seen in grooming in a long time, they have activated that portfolio. So having a portfolio that is vertically strong like ours and also horizontally to the you know, one of our best performing grooming items is the laser hair removal at home device. Which is one of the hottest selling items and one of the big growth drivers I believe that is at $300 in most places. So you see kind of the leverage of the full vertical portfolio from IPL down to the disposable blades. The second part is our portfolio is a little more skewed to the $100 thousand-plus Than it is to the less than $50 thousand. So our user base is a little skewed that way. So what we see is a little more of discernment by consumers not an inability to buy. Operator: Your next question will come from the line of Kevin Grundy of BNP Paribas. Please go ahead. Kevin Grundy: Great. Good morning, everyone. I actually wanted to pick up, Shailesh, on the comment you just made a moment ago, but really with respect to longer-term outlook, and the portfolio. So, specifically, I really have 2 questions. 1, is there anything that you see structurally so longer-term and much more lasting in nature, particularly around the areas of consumer behavior, competition, value orientation, which you touched on, is it possible this is more lasting than something that is more transitory? Or even pricing power. As we look at the commodity cost inflation embedded in your guidance. Is there anything there that kind of leads you to believe that the company cannot return sustainably to 3% to 4% organic sales growth kind of coming off couple of years of kind of more disappointing low-single-digit, 1% kind of growth. And then 2, related to that, if you would indulge me, sort of as part of the strategy, is there anything that gives you pause now about the current portfolio or the sort of relative attractiveness of these categories that should potentially be reconsidered by you and by the Board. So thank you for all that. Shailesh Jejurikar: That is a great question. I will try and break it into a couple of different pieces. So we do see some demographic shifts and behavior shifts, which will create certain higher growth segments than not. And we have always said we do expect probably higher growth rates in segments like beauty and health, and we are we expect to be accelerating that part of the portfolio even more. So we definitely do see some trends that are driving some parts of our portfolio at much higher category growth rates than others. We see much higher growth rates on e-comm growth, for example. We expect to leverage that much more in some cases where you know, we have a share gap. We catch up on the e-comm there. So I think we are seeing certain segments that will grow faster, and we are adjusting and making the required choices on portfolio to address this. There is a second piece which I think has been the key for growth for all of us no matter what the situation is. So let me just give it as what I would call growth in adjacencies where we have expandable consumption. Probably one of the best examples we have on that is FabricAir, where you can see growth rates over 5% over a decade. And when you look at that and break it down, you will find probably laundry having a decent growth rate, but double-digit growth rate on fabric enhancers. That is true almost in every single category we operate. I mentioned earlier the power oral care example. These should have a decent growth, in the years to come driven by innovation, but there is no question in my mind in a market like US, the power brush, for example, will be a much higher growth rate part of the business. And so on what we are doing on each of the categories is we are getting very disciplined on what is the adjacency with the expandable consumption. It is not something new, but we know when we do it well, we are able to get well past market growth rates that are current. And in fact, they drive much more future growth from a category standpoint because it just lifts the total number. The final point I would make on this one is that our base propositions we have, which are already at premium to the market, when we get those activated like we are doing with Tide Liquid, and have those growing mid to high-single-digits, that too lifts the category growth rate. And which is why if I pull it all together, Kevin, I think with a deliberate strategy that we have, we do see sequential improvement, and we are not expecting it to be incremental, to be clear. There are a bunch of innovations and initiatives we are working on, which completely step-change the out-year growth rates because of the interventions we make. I will give you another example on that one is Zevo, which we launched. I mean, Zevo has been driving a really stagnant category by addressing a totally new need. So we feel there is plenty of growth opportunity. We are not constrained by the current consumer environment. We know when we innovate well against the right growth opportunity areas, we can get back to high growth rates. Andre, do you want to add? No. I just said it. Operator: Your next question will come from Kaumil Gajrawala of Jefferies. Please go ahead. Kaumil Gajrawala: Hi, everybody. Good morning. I want to build on some of the earlier questions with so much focus on market share. It can be implied, maybe wrongly so, that, you know, you are a victim of whatever happens to categories. But I think you mentioned in, you know, some of your answers to questions that market share growth will drive category growth. And I want to make sure just sort of mathematically that is correct. And what will it take to get to that stage? Are we are we in sort of a first stage where it is share growth without category growth and category growth comes later? Or in the past, we have heard, you know, so many of the initiatives that Procter & Gamble has have made or things that grow the category. But it feels a little bit like with growth rates you are providing or some of the messages that you are sending related to whether it is macro or consumer whatever it is, is that the category is going to do what it has to do. And then you are taking the appropriate intervention. So just trying to understand what we are seeing in these categories and the category growth. Are those real run rates or do you feel like you can pick them up? And what would be the path of what we would observe if that was going to be the case? Andre Schulten: Let me start, Kaumil. I think the base assumption here is a relatively stable environment, which is what we have been seeing for the last 3, 6, 9 months. And pending any change to that, which we do not see a driver of at the moment, other than, you know, major inflation shock to the consumer base. But our job, we view, is that we need to drive innovation in our category. We need to drive interest in our categories. We need to drive traffic to the category. And I think the point we made earlier, when we do that, successfully, that generally grows the category because we are somewhat premium versus the category average. And it drives new users into the category. And with doing that, we drive share. Now is that going to happen every time in that sequence? No. So, for example, on baby care, when we react to a value component in the market that we need to address, we grow share because we need to return to value competitiveness. But from there, we will continue to innovate. We will continue to do exactly what I just said. So the playbook has not changed. Our intention to grow and get back to algorithm, and that is why we take longer. Because we want to take it that way. Not via heavy promotion and volume and value share gains that are not sustainable or require continued fueling of promotion. We want to do it with innovation. We want to do it by driving traffic into the category. If we do that well, we grow share. Shailesh Jejurikar: I would just add building off your point, Andre, that where we are clear what is the short-term intervention and we are very clear on what the innovation interventions are. And we know that when some of those innovations go in, they will lift the category. So the sequence of some of these could be different, like on baby care, if you have a value gap and you fix it immediately, may not immediately see the market impact. But in parallel, we are working innovations that will lift the category. And we do that across every single category from hair care to skin care, we look at doing it. So it will not always happen in tandem, but generally, if we are growing, the category should be growing because of our portfolio. And second is we do focus on innovations that can step-change category growth. I think if you take Evo and Beads, both are excellent examples of that. I mean, Evo is completely incremental to the category. And the message to our organization is very consistent with that. So grow the market that will allow you to grow share sustainably, that will allow you to get to a balanced top-line and bottom-line construct. It is all four components at the same time. Operator: Your next question today will come from the line of Robert Moskow of TD Cowen. Please go ahead. Robert Moskow: Hey, thank you for the question. I kind of wanted to drill down on one category in the U.S., and that is like, you know, home care, paper towels, paper tissues, it does not get a lot of talk on these calls, but it is a big percentage of your sales. It strikes me that it is kind of like the best example of a category where you really do need that premiumization to justify a price gap to private label. And private label has been the problem in this category. So is it possible to delve a little bit into in light of your talk about premiumizing to justify pricing, is this a category where you can do this successfully, and is it a priority even for fiscal 2027? Shailesh Jejurikar: Yeah. Yeah, let me start on that one, Robert. I presume you are asking fundamentally family care. On Family Care. Sorry. We yeah. No. I would rate it as the category where we have probably the biggest technological advantage of all the categories we play in. So we have true ability to deliver superiority on that category. We have innovations, like when we did soft rolls, the category, that lifts us. We have a program for this fiscal focused on doing the same. The one area through COVID that we probably did not have as strong on family care or because of the high demand had to deprioritize a bit was the vertical portfolio. And I think that was the reason we had a vertical portfolio. Family Care was to be able to leverage the full-scale and also defend against private label. one of the things that we are doing is reactivating the vertical portfolio on which Charmin and Bounty while we continue to innovate on the base Charmin and Bounty. So what you will see is a better activation of the vertical portfolio there and strong innovation on both Bounty and Charmin to continue to have that pricing premium. Andre Schulten: And the only thing I would add is this is a category where price points matter a lot versus private label. And with the commodity-based pricing, we have gotten too far away from a price point perspective in some channels. So that correction is happening. And one encouraging sign to leave you with is we have grown users for the first time in Family Care in the most recent period. That is before some of the interventions that Shailesh was talking about have even been activated. So I look at that category and say, we probably have a very clear path forward. But as you rightfully point out, that needs to be done the right way because this category only grows if Charmin and Bounty grow. Operator: Your next question will come from the line of Olivia Tong of Raymond James. Please go ahead. Olivia Tong: Great. Thanks. Good morning. So, Shailesh and Andre, we have talked a lot on call and in the past about how important it is for P&G to control its own destiny and create our own tailwinds as and as the line between retail and demand generation continue to blur, can you talk about some of the actions you are taking and investments you are making to specifically improve that Because your size likely still benefits you, but perhaps not to the same extent as it does in other areas like promotion and category growth. So can you talk about what has been done? And looking back at this year, where do you need to enact further change going forward and what you expect to achieve in fiscal 2027 by year-end? Thank you. Shailesh Jejurikar: Thanks. I think the biggest one we are trying to do is really change the way we work with our retail partners. Fundamentally driven by the fact that the landscape has changed both in terms of a sharper, differentiation in performance amongst the retail set. But secondly, amongst what it offers beyond the classical merchant partnership. We have tremendous synergies on media, and tremendous mutual gains to be made on demand creation and category growth by leveraging that. There is tremendous benefits on supply chain collaboration. And generally, where we have been focused on is getting a much better demand signal generation to marketing content to closing the loop and having a short path to purchase with each of these big retail partners. I feel very, very happy with the progress we are making and the partnerships we are building. So that is probably the biggest area, and It is one where actually size does help. Kind of helps to be the largest media spender in this environment. Because for a lot of them, their big market growth opportunity is becoming a media platform. And so, naturally, we become a good customer for that. So we see a lot of opportunity, and we see a lot of progress in partnership on brand building and demand creation with retail partners leveraging our joint assets and that will continue to be the case moving forward. So I actually think that is a trend that will continue to favor us longer-term. Operator: Your next question will come from the line of Edward Lewis of Rothschild and Co Redburn. Please go ahead. Edward Lewis: Yes, good afternoon. Thanks very much. Just wanted to return to Tide. Clearly, you know the brand you know, very well from your long association with it. A lot of interest in Evo, but clearly early days. And I just wanted to return to the Tide and the relaunch there. I think you referenced high-single-digit growth. Now is that in line or better than you would have expected? And how much is what I would think assume is the apparent success of that move much will that make you consider such an approach in other areas? So does that then-- would it be then logical to assume within the algorithm that we are going to get more volume than price going forward? And that would be a market success of the changes you are making? Shailesh Jejurikar: I would let me go back to the Tide as the basis and then build from there. So it beat our expectations is a simple answer. When you put such a massive investment in product performance on such a large part of the business. It is very difficult to estimate a number like high-single-digit growth. You know? What did we do? We set price the same. Give a much better performance. Intuitively, you know it is going to work, but you cannot really say is it going to grow 3%, 5%, 7%? And so I really commend the team there for having the courage of their conviction to say, no. If I really step-change the performance of Tide, the users will reward us. And what we have seen is a reward higher than what we had anticipated. It is absolutely the basis on which we will continue to drive more of this across the company. It is what we refer to it as stronger core, that is what we mean. You can take any of our brands, take Head & Shoulders. 85% of our user base is on the base Head & Shoulders. So on each of these areas, when we are looking to see, are we delighting the consumers on our base while, of course, innovating and doing new things. So it gives us clear proof of concept that improving our base proposition while having the right value by balancing price and product performance is what we need to do. So when we say we are really focused on user growth, user growth is about value, and value is about do we have the right product for the price and the marketing inputs we give it. So I think Tide was a great example for us. And It is always good when you get a success on the largest part of your business. They become more believers in that. Andre Schulten: And in a broader sense, we have had the post-COVID period 100% of growth driven by price. We will return, and you see that in the construct, to a more balanced model where we see both price and volume being drivers of our top-line growth. And that needs to be the model to return to algorithm. As Shailesh said, innovation on the core, if we are catching up on value, might not come with pricing. But innovation in a broader sense will come with pricing to continue to drive trade up and price mix as part of the growth model. Operator: Your final question will come from the line of Michael Lavery of Piper Sandler. Please go ahead. Michael Lavery: Thank you. Good morning. Just, obviously, a lot's been covered already. Wanted to come back just to some timing considerations and I think you were really clear about the cost pressure skewing to the first half and on some of the interventions, at least ones you have already identified, those should seem like they are in place by the end of the first half. But for some things like the scaling the four key capability areas and some of the other kind of transformation elements. Is it right to think that the fiscal second half starts to be when at least where you sit now, you would be hitting your stride, or is some of that a longer process? I guess maybe how do we think about how different the first and second halves could look and just in one sense, kind of what inning we are in for some of the plans that you have identified already. Shailesh Jejurikar: Yeah. Let me answer part of it, and then, Andre, feel free to add. But I would say, for sure, you will see greater momentum in the back half on these capabilities being scaled up. And we will be much more in the implementation and application stage of many of these capabilities. Now there is no big-bang date on this, so some of it is already beginning to play out, and that actually continues to give us confidence to move faster on many of these. Some still need some capabilities in place, but it is for sure, when we are looking at this as something that progressively gets applied. And by the back half, we will definitely be in a much further along the journey of the application of that. So that is one part of it. And second, a lot of our interventions go on the business itself along some of the points we have talked about. Going in the front half. And so we do expect to have the cost anniversaried as we go into the back half as well as have continued sequential improvements in our top-line as we move forward. Andre Schulten: Okay. With that, I would just close it out by saying, listen. We are pleased with the fact that we are growing consumption. We are stabilizing our value share, which puts us on a good foundation to get back to better growth. We continue to drive a robust productivity plan so that we can continue to invest in the business. And continue to make sequential improvement as we have said. And as Michael, to your last question as well, we believe that we will continue to see improvements semester to semester. That is something that Andre mentioned in his comments. Shailesh Jejurikar: But we generally feel good about the state of where we are and how it puts us for achieving our future growth and getting back to the long-term Just one last piece before we sign off. I want to remind you that our Investor Day will be on Thursday, November 19 here in Cincinnati. We will be sending out invitations tomorrow morning. We are excited to have you all here. Thank you for joining the call today, and have a wonderful day. Operator: That concludes today's conference. Thank you for your participation. You may now disconnect. And have a great day. Before you buy stock in Procter & Gamble, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Procter & Gamble (PG) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren discuss: SoFi’s results. Is SoFi just a bank? Visa’s strong growth. P&G Iis fine? Bloom Energy growth. The AI trade. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » A full transcript is below. Before you buy stock in SoFi Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoFi Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This podcast was recorded on July 29, 2026. Travis Hoium: Earning season is in full swing, and Motley Fool Hidden Gems Investing starts now. Welcome to Motley Fool Hidden Gems Investing. I'm Travis Hoium, joined today by Lou Whiteman and Rachel Warren, and guys, we've got earnings on the mind today. We're going to get four different earnings reports, at least touch on them. Lou, the first one that I wanted to get your thoughts on is one that I'm sure a lot of Fools have in their portfolio, or at least their watch list. That is SoFi, the numbers looked pretty impressive. Total revenue was up 43%. Net income was up 61%, and yet, the stock is down almost 10% today. I think the stock is acting rationally. Again, I know I get a lot of hate for this, but you just don't like growth, Lou. Let's be honest. Lou Whiteman: I like growth. It's just the question of what you're paying for growth. One thing we learned from that short report, and I think it's important. The short report was mostly just nonsense, but one thing that I think it did highlight is SoFi loves to use mark-to-market and other adjustments to create non-GAAP earnings. That's fine. They disclose it. Again, the short report was overstated. But it makes apples-to-apples comparisons to other banks very deceptive, and I think it flatters SoFi in a lot of ways. On a GAAP basis, SoFi is trading at 40 times earnings. The average bank trades at 10-15 times earnings. I can find you really good ones right now where the dividend yield is at 4% or so, and they're on the lower end of that 10%-15%. The question is, yes, SoFi is growing faster than these banks, and I think they can justify a premium valuation based on that growth. But I don't think the market is wrong in saying, I ain't 40 times earnings, which, you know, and we can go deeper into it if you want. But I think for all SoFi tries to say it is, SoFi is a bank, and it should be judged as a bank. It's a fast-growing bank. Give it a premium, but I do think the valuation is still, I catch. Travis Hoium: Is that the criticism of the quarter and the stock right now still? Maybe this is a more attractive bank than other banks because it is growing more quickly. I still don't want to pay this price. And at what price do you think it becomes more intriguing? Lou Whiteman: My criticism is, why now, guys? We've known this for a while. I don't know why, maybe that there was hope that we were going to see different in the new quarter, but I mean, they are what they are. The fintech business, it's not nothing, but there are dozens of software vendors that'll give you banking as a service. Inevitably, these faux banks come and go left and right. There isn't really any differentiators. That software business always seemed a little suspect to me. If you want a great fintech bank story, buy Live Oak. Don't buy SoFi. SoFi is a retail bank, and at some point, we should value it like one. Travis Hoium: Rachel, do you see this quarter similarly, or do you look at these? Not only did they grow members, but they actually grew products faster than members, which tells you that their uptake on those products is a little bit higher. Getting more people in the ecosystem and getting them to use SoFi more. Rachel Warren: Yeah, I have a few thoughts on this. And I don't necessarily think you can value SoFi the same way you would legacy banks. But I do think there's a few very practical reasons why we've seen some of the pressure on the stock. I mean, going back to the quarter, they added over 1 million new members in the quarter alone. Their base is just shy of 16 million people on that banking side. Management raised SoFi is full-year revenue outlook, so that core machine seems to be resilient. Now, it was interesting. I think one of the things investors didn't like was, of course, the tech platform segment that dropped 23% in terms of revenue. That was largely because we saw a major enterprise client that had left the platform at the end of last year, so we've been seeing the impact since then. Full-year profit and earnings per share guidance remained the same. I think we're in a market where a lot of investors are hoping for not only a beat but a raise. The risk that I would be watching here is SoFi is leaning heavily into capital-intensive lending to fuel its growth story. We saw total loan originations hit a record $14.8 billion that included about $10.7 billion in personal loans. Their CEO is insisting that the borrowers are remaining resilient. Personal loan charge-offs and credit delinquency trends are creeping upward across the industry, however. The reason this matters is SoFi keeps these high-yield loans on its own balance sheet rather than instantly offloading them. If we see a macro downturn, which I'm not saying we will, but it's something to watch for, or even a spike in consumer defaults, that will hit the balance sheet. And we also saw that, you know, tech platform-enabled accounts actually dropped about 16% year over year. They have seen a bit of an impact from the loss of that major enterprise client. Fundamentally, I think this is a good business. I think it's a solid one, and I don't think there's anything wrong that is leading to the pressure on the stock. I think a lot of this is just the machinations of the market. I do think that these are elements to watch, though, if you own SoFi or even are thinking about buying shares. Travis Hoium: Lou, we have a name for companies that make loans and keep them on their balance sheet. You know what that is? I know where you're going at this, Lou. Lou Whiteman: It's a bank. Travis Hoium: Yeah. Let's talk about the products, because maybe I'm showing my ignorance here, but I was really surprised by one stat in there that they said the products per member reached 1.54, which is an all-time high. Now, I've been involved with banks for 30 years, and most banks don't break down the numbers. But if you hire a bank consultant to what they come in, the first thing they're trying to do is to get that number to two or three per member, or customer. Lou Whiteman: That's why they get you to open a checking account and a savings account. Travis Hoium: Right,1.54, maybe it just spread. I think it speaks to how much a SoFi is just paper-thin marketing, because that implies that a ton of their customers, relative to a community bank, only have one product. I don't know if that's the flex things is one stat we can use. JPMorgan says that 30% of their retail customers have two or more products. Again, that's not an apples-to-apples. Like I said, most banks don't list that, and it's kind of a weird thing to list, but I'm surprised they're flexing that number because I think there's community banks that I can walk to from my house that would really laugh at that number. It's funny you mentioned that because that is one of the metrics that I do watch with SoFi. But I have also opened accounts at all of these things. If you open, for example, we have a Wells Fargo account. They will charge you a credit, have a checking account unless you also have a savings account ,and you deposit, I think, it's $25 a month into that savings account automatically from the checking account that you also created. Lou Whiteman: Yeah, I don't want to be too hard on them. They are a good bank, but I do think as investors, and maybe a lot of investors don't look at banks, and so far it has kind of attracted the eye of growth investors just because of the story and where they're based and who runs them. I think there is a lesson here that maybe I am being too hard, but maybe also the market is being too generous. It is really, really hard for a bank to be anything other than a bank, and at some point, there is regression to the mean. I think investors, they both things can be true. It can be a very well-run company with growth that exceeds national averages and still overvalued based relative to the opportunity. Travis Hoium: Well, we will be keeping an eye on SoFi, and I'm sure Lou and I will keep arguing about the future of the company. We'll see who's right over the next 5 or 10 years. Listen on to this show. When we come back, we're going to check in on the health of the consumer. You're listening to a Motley Fool Hidden Gems Investing. ADVERTISEMENT: Abercrombie knows Denim better than anyone. Their Relax Jean was made for everyday plans, while their baggy jean comes through for the days. You need something different. Plus, they've got their original classic fits and athletic fits for guys who want a little more room in the fight and seat. Shop Abercrombie Denim and more in the app, online, and in stores. Travis Hoium: Welcome back to Motley Fool Hidden Gems Investing. Let's turn our attention to direct consumer spending. There's a number of different companies who are giving us an indication of how healthy the consumer is. Rachel, one that caught your eye was Procter & Gamble. Maybe not the most exciting company, but it's at least people telling us how much people are buying diapers and things, the necessities of life. Rachel Warren: Right. This is the company that's known for those household name products like Tide, Pampers, the list goes on. It does provide an interesting insight into how consumers are behaving. This is, I will note, not a company that is typically high growth even in the best of macroeconomic times. The margins are slim, a normal year of growth or a quarter, you might see 2% year-over-year gains. But Procter & Gamble actually missed Wall Street's revenue expectations by about 180 million for the quarter. They pulled in about 21 billion in this recent quarter. Volume was flat year over year. Operating margins were actually down. They actually saw profits decline by about 15%. Why does this matter? Their operating margins were compressed because you're seeing companies like this have to spend significantly on marketing to try to protect their share, and consumer staples operate on very thin incremental margins. Any drop in volume hits profits quickly. But I think what this tells us about the broader consumer is that a lot of average households are really reaching their financial limits. We're not seeing a dramatic economic crash where people stop shopping, but we are seeing very tactical retreats and approaches to how consumers are putting their money to work. They're looking at these legacy companies that put these household name brands forward, and they're not willing to absorb the higher costs. Companies like Procter & Gamble have implemented over the last few years. They're stretching out their existing household supplies. They're maybe switching to cheaper store brands. They're buying smaller packages. When you're a company like Procter & Gamble, they've certainly, you know, lasted through their fair share of market ups and downs, but it can really come in hard on the margins. I think, if anything, this yields continued ground to the likes of Walmart and Costco, who not only control the physical store shelves, but also have their own private label brands and really robust e-commerce presence as well. Lou Whiteman: I think Rachel's right. It is the store brands, and I don't know if this says anything about the consumer right now. That's a trend that was going well before this current. This is a denies a 15%-20% a year. I think it just speaks to, and we've seen this with Kraft Heinz. We've seen this with so many. I don't think P&G it's just a terrible place to be right now. Consumers have realized the store. I remember in the ‘80s one joked about it. Well, it's the same product. It's just a different label. That was kind of novel back then. Now it's table stakes. That vast middle, that big consumer brand with a logo has really suffered. Again, I am reluctant to read anything into the health of the consumer. I think what the consumer right now has showed us is they will pay up for select things, like maybe on shoes or something like that. But for most everyday purchases, the fact that it's tied and not Costco brand just doesn't matter. I think that's what we're seeing. We can talk about Visa, too [OVERLAPPING]. Travis Hoium: Well, I wanted to point out the store brand thing, I think is really interesting because that was one of the things when I started at 3M's biggest manufacturing plant in 2005. The interesting thing there was you would have Scotch tape rolling off the line, and then 5 minutes later, there would be Walmart tape rolling off the line. It was literally the exact same equipment. They make it a little bit worse, so it is not quite the same product. You want to have that other product be a little bit higher quality. There is a little bit of a premium there. But it's not like it doesn't hold a piece of paper on the wall. It's not like the diapers are going to be complete garbage. That is something that we've seen for a very long time is that those big companies, the Walmarts, the Costcos, the Targets of the world, have the power to say, Hey, you know what, if you want to be in our store, we want to have our label on. What do you think about Visa though, Lou? Lou Whiteman: This is another way to look at the consumer, and it's a much healthier look, which is maybe why I'm not sure how to read P&G, but Visa reported 10% U.S. volume growth in payments. That's the fastest growth rate since fiscal 2019. Transaction counts were up to about, say, 10%. This isn't just an inflation story or something like that. There is actual transactions happening. Visa also and Travis, is something we've talked about a lot, but the K-shaped economy. Visa said spending is not isolated to high earners. This is strength across the board. Just last week, the economists over at Bank of America said they believe the K-shaped trade may be reversing in a good way, more spending power across the board with kind of the lower end of that K kind of picking up. I mean, I don't think we know that yet, but Visa's results sort of back up that idea. Now, look, there was more I mean, I think the World Cup factored in here. There's international experiences, which it's kind of the upper end of [inaudible]. I'm not saying that it is all just perfect and fine. But the quarter was fine. They're forecasting basically status quo for the rest of the year. I continue to think both Visa and Mastercard are undervalued right now because of the disruption potential. I like Mastercard better, but I think that, look, status quo is really good here, and this was at worst a status quo quarter. Travis Hoium: Things seem to be OK for the consumer right now, and maybe that's OK for the market right now. When we come back, we're going to talk about an energy company that just grew revenue of 166%. You're listening to Motley Fool Hidden Gems Investing. ADVERTISEMENT: This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result, less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at accenture.com/Spotify-UK. ADVERTISEMENT: The Meal Deal plus at McDonald's, bag yourself a mayo chicken or cheese burger with medium fries and select a drink on one of five bonus sides like four McNuggets or a mini McFlurry, all for 559. Now that saves a satisfaction. From 11:00 A.M. Not on delivery. Includes a selected saving menu bega, medium fries, selected drink, and a selected bonus side. Price and participation may vary. Travis Hoium: Welcome back to Motley Fool Hidden Gems Investing. Bloom Energy reported earnings last night. Rachel, this is one of the more interesting stocks out there right now. This stock has been absolutely on fire over the past year or two, because this is one of the few companies that can put energy into a data center at a relatively rapid clip. Revenue was up 166%. What do we need to know about the quarter? Rachel Warren: It was a great quarter for Bloom Energy. Their adjusted earnings per share also were double what Wall Street was guiding for. They raised the revenue outlook as well, looking ahead to the rest of the year. Obviously, as you noted, the stocks down from its recent peak. I think that this is one of those businesses that is very vulnerable to having volatility based on unrealistic hype cycles. This is a company that's executing well. Worth noting, just about every major AI hyperscaler has now approved their fuel cells to bypass utility grid bottlenecks. But I do think there is a question of when there might be periods where the AI power trade could run out of gas, where we could see the stock vulnerable to sector profit-taking. I think that might be something we're seeing right now. I mean, there's this question of when we're going to see this transition from buying a catchy AI narrative to really looking at the capital-heavy reality of physical infrastructure. Fuel cells are a physical manufacturing business. Generating energy requires real factories, massive upfront capital, very complex installation timelines. Now, Bloom's profit margins improved this quarter. Scaling up production to meet the demand that they're facing is a very expensive endeavor. It will limit their short-term cash flows. Now, I don't think that we need to worry that Bloom's business is broken just because they're down since their summer highs, but I do think that we might be coming towards a point where the market could force some of these AI infrastructure companies to justify their valuations with some real-world unit economics. That could be some of it. Travis Hoium: Lou, it does seem to be kind of a theme where a lot of these pick-and-shovel plays coming back a little bit, because investors are starting to go, Wait a second, how sustainable are these growth rates and margins that we see today? Lou Whiteman: Let's get that in a second because I think that's exactly right. But yeah, stocks down is 50% from its high, still up 400% over the past year. It's still a double in 2026, even if it is 50% since June, and it still trades at 75 times forward earnings for an industrial company is pretty amazing. Quarter is fine, Rachel's right. Given the AI power demand, anything short of fine would have been a real negative WOW factor, but they held SRV, and that's great. Remaining performance obligations, RPO, that was flat. Remember, Wall Street tends to pay for growth from here, not growth that has occurred. I think that is the easiest way to explain is coming back to Earth, kind of letting some of the air out of tires. It's great. If they can sustain at this level, and I think they probably can, given the demand, that's a fine company, but it doesn't make you a gross stock. Picks and shovels, I think it's really interesting because picks and shovels, it's so clever and everyone loves to look smart with picks and shovels trades, but they are imperfect trades. They are a trade you do because the underlying asset is overvalued. You know, why if you want to invest in hyperscalers but the hyperscalers are overvalued, how about investing in their suppliers? It is just a secondary way to play a trend. Right now, you can get the hyperscalers at much more attractive valuations than the vendors serving them. Why focus on the vendors? I think the market kind of looking away from somebody's picks and shovels. I think it's just over for now. Travis Hoium: It'll be interesting to see where that story goes because you're right, that has been a theme, but when a theme needs to become a fundamental reality, eventually for the market, fundamentals eventually drive stock market performance, and Bloom is doing extremely well, but the ROI that we see today may not be sustainable long term. As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows The Motley Fool's editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. For Lou Whiteman, Rachel Warren, and Dan Boyd behind the glass, I'm Travis Hoium. We'll see you here tomorrow. Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Lou Whiteman has positions in Live Oak Bancshares and Walmart. Rachel Warren has no position in any of the stocks mentioned. Travis Hoium has positions in SoFi Technologies. The Motley Fool has positions in and recommends Bloom Energy, Costco Wholesale, JPMorgan Chase, Live Oak Bancshares, Mastercard, Target, Visa, and Walmart. The Motley Fool recommends 3M and Kraft Heinz. The Motley Fool has a disclosure policy. SoFi and Visa Earnings Point to Consumer Confidence was originally published by The Motley Fool

First P&G commercial resin deliveries began, with select Downy detergent caps now in commercial production Revenue of $4.5 million, up approximately 173% year-over-year and a sixth consecutive quarter of sequential growth New Jersey Department of Environmental Protection approved PureFive® resin as post-consumer recycled content On-site compounding now operating, giving PureCycle the ability to deliver product meeting customers' unique specifications Initial Shipments of PureFive® resin made in third quarter to all three major converters for QSR cold cup trials ORLANDO, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- PureCycle Technologies, Inc. (Nasdaq: PCT) (“PureCycle” or the “Company”), a U.S.-based company revolutionizing plastic recycling, today announced results for the second quarter ending June 30, 2026. Second Quarter 2026 Highlights Commercial Seven new customer conversions during the quarter First P&G commercial resin deliveries began in the second quarter, with select Downy detergent caps added as a new approval; select Tide detergent caps scheduled for retail production in Q3 and Vicks ZzzQuil PURE Zzzs child-resistant lids targeted for Q4 2026 Six new commercial partnerships were announced during the quarter: Reliable Caps, Motherson, Innovia Films, RM Tochello, IPL Schoeller / Cleveland Kitchen, and Amcor, spanning closures, caps, automotive, film and food packaging State regulation is a powerful demand tailwind: the New Jersey approval is secured and the State’s food-contact exemption expires in January 2027, with the recycled-content requirement rising to 20%; California SB54 is now in effect; PureFive® qualifies as recycled content via APR certification. Demand is broader than any single regulation Q3 to date: shipped compounded product to major converters for quick-service restaurant (QSR) cold cups; the New Jersey approval accelerated qualification at two major QSRs Forward demand: the Company expects branded sales volumes to build through the second half as compounding scales and regulation-driven demand converts to customer adoption Operations Q2 PureFive® production of 4.5 million pounds, down as previously communicated for the planned turnaround Turnaround completed ahead of schedule and below budget, with more than 170 reliability and rate projects executed; the two largest reliability constraints of the past year, the CP2 system and mechanical seals, were both substantially improved during the outage Turnaround inspections were favorable; large equipment observed to be clean with no evidence of corrosion, a good indicator of future reliability Successfully commissioned on-site compounding in April with Ironton compounded volume of approximately 2.0 million pounds and approximately 28 sample lots produced; current operation is running 24/5 shifts, with plans to expand to 24/7 in Q4 PureCycle achieved ISO 9001:2015 certification in May, an independent validation of the quality management systems underpinning consistent product delivery Feedstock supply secured, with Denver running at levels needed for Ironton production Growth Thailand Facility expected to be operational in 2028; groundbreaking expected in 2H 2026; total project cost estimate remains in the $250 million range Thailand Board of Investment approval was received in the second quarter, including selection for the “Fast Pass” program Thailand project financing progressing, with binding terms currently being negotiated and financial close targeted by year-end. Anticipated project debt is sized to fund remaining construction Thailand feedstock and offtake: seven signed LOIs with Thai suppliers covering more than the plant's annual feedstock requirement (1.5-2.4x’s coverage), and 14 signed sales offtake LOIs (0.8-1.4x’s coverage) Belgium Facility permits expected by 1H 2027; Gen2 design work continues to progress Finance Total liquidity of $236.9 million at quarter-end, strengthened by the June concurrent offering of convertible senior notes and common stock Operations spending of $8.3 million per month, excluding feed and compounding material purchases; Ironton turnaround costs tracked separately from ongoing operations spending Management Commentary “Our customers are moving faster now, because compliance with new regulations is imminent,” said Dustin Olson, Chief Executive Officer of PureCycle Technologies. “Our solution has been recognized by New Jersey, Ironton is more reliable coming out of the turnaround, and in-house compounding lets us deliver the unique grades that US and global markets require.” Olson continued, “These improvements provide fundamental solutions that our customers are demanding and supports a growing and converting pipeline. Today’s demand is a validation of the technical achievements we demonstrated over the last two years. As customers continue to adopt, our branded sales should improve revenue per pound.” "The June capital raise positioned the balance sheet to fund our planned commercial ramp and near-term growth spending," said Donald Carpenter, Chief Financial Officer of PureCycle Technologies. "Ironton breakeven remains our second-half goal and Thailand project financing is targeted to close by year-end.” Financial Update Financial Results Net loss for Q2 2026 was $142.2 million compared to a net loss of $144.2 million in Q2 2025. Operating loss in Q2 2026 improved to $41.3 million from $45.6 million in the same quarter a year ago. Adjusted EBITDA for Q2 2026 was $(31.7) million compared to $(27.8) million in Q2 2025; the year-over-year comparison reflects $7.8 million of lower non-cash add-backs, principally equity-based compensation and prior-year equipment write-downs, rather than a deterioration in operating performance; operating loss improved by $4.3 million year over year. Adjusted EBITDA is EBITDA adjusted for items affecting comparability. See the reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA provided at the end of this press release. Operating performance continued to build during the period: PureFive® production grew approximately 32% year over year despite the planned turnaround, while core monthly operations spending declined approximately 8%, from $9.0 million to $8.3 million per month. Core operations spending has remained within a consistent band as production capacity has grown. Cash and Liquidity PureCycle ended Q2 2026 with total liquidity of $236.9 million, which includes $165.2 million in cash and cash equivalents, $59.6 million invested in marketable/debt securities, and $12.1 million in restricted cash, compared to total liquidity of $131 million at the end of Q1 2026. The increase was driven primarily by the June concurrent offerings of convertible senior notes and common stock. Operations spending was $8.3 million per month in Q2 2026, reflecting core operations and corporate cash spend, with all periods presented on a consistent basis. This measure excludes materials purchases, consisting of feedstock, virgin polypropylene and compounding additives, which totaled $2.1 million per month, up from $0.7 million per month in Q1 2026 as production restarted and the new compounding operation came online. On the same basis, monthly operations spending was $8.5 million in Q1 2026 and $9.0 million in Q2 2025. The Ironton Facility turnaround, completed below budget, was tracked separately from the operations spending rate. Second quarter cash outflows included a previously disclosed non-recurring legal settlement of $20.4 million. Project Spend Project spend in Q2 2026 totaled $20.9 million, bringing first-half 2026 project spend to approximately $35 million. Fiscal year 2026 project spend expectations are $45 to $50 million, up from the prior range of $39 to $45 million. Second-half 2026 spend of $10 to $12 million remains contingent on project gating decisions and the timing of project financing. Capital Structure In June 2026, the Company closed concurrent public offerings of $287.5 million aggregate principal amount of 4.75% convertible senior notes due 2032 (which have an initial conversion price of approximately $11.08 per share of common stock) and 19,854,000 shares of its common stock. The underwriters' over-allotment options were exercised in full, resulting in net proceeds of approximately $432.0 million after deducting underwriting discounts, commissions, and estimated offering expenses. The Company used a portion of the net proceeds from the offerings to repurchase $216.0 million in aggregate principal amount at maturity of its 7.25% green convertible notes due 2030 for $241.1 million plus $5.2 million of accrued interest, with the remainder available for working capital and other general corporate purposes. Equipment financing payments will step down during the second half of 2026 as existing lease agreements reach their scheduled maturities; Q3 2026 debt service is expected to be approximately $2.4 million, primarily the August coupon on the $34.0 million of remaining 7.25% notes and final equipment financing payments. The Company’s available capital resources include cash on hand following the June concurrent public offerings, approximately $273 million in potential warrant proceeds through March 2027, approximately $76 million in available revenue bonds and the undrawn $200 million revolving credit facility. Second Quarter 2026 Conference Call Details Date: August 6, 2026Time: 5:00 p.m. ET Participant Link: PureCycle Technologies Second Quarter 2026 Corporate Update For participants interested in a listen-only webcast, please access the conference call using the above link. For a calendar reminder, please click HERE. The conference call will have a live Q&A session. For analyst participants who would like to ask management a question after prepared remarks, please click HERE. You will receive a number and a unique access pin. Following prepared remarks, management will try to answer investor questions submitted in advance. To submit a question, please send an e-mail to [email protected]. The corporate update will be available for replay by clicking HERE or through the Company’s website at www.purecycle.com. A replay of the conference call will be available after 8:00 p.m. Eastern Time until October 6, 2026. PureCycle Contact Christian [email protected] Investor Relations ContactEric [email protected] About PureCycle TechnologiesPureCycle Technologies LLC., a subsidiary of PureCycle Technologies, Inc., holds a global license for the only patented dissolution recycling technology, developed by The Procter & Gamble Company (P&G), that is designed to transform polypropylene plastic waste (designated as #5 plastic) into a continuously renewable resource. The unique purification process removes color, odor, and other impurities from #5 plastic waste resulting in our PureFive® resin that can be recycled and reused multiple times, changing our relationship with plastic. www.purecycle.com Forward Looking StatementsThis press release contains forward-looking statements, including statements about the continued execution of PureCycle’s business plan, PureCycle expected financial expenditures, future cash needs and availability of liquidity and the expected timing of significant construction milestones for PureCycle’s planned future facilities. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements generally relate to future events or PureCycle’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of PureCycle’s management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in each of PureCycle’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and PureCycle’s Quarterly Reports on Form 10-Q for various quarterly periods, those discussed and identified in other public filings made with the Securities and Exchange Commission by PureCycle and the following: PCT’s ability to obtain funding for its operations, future capital requirements and future growth, and to continue as a going concern; PCT’s ability to meet, continue to meet, and comply on an ongoing basis with, the numerous regulatory requirements applicable to its PureFive® resin both generally and in food-grade applications and, more broadly, the operations and construction of PCT’s facilities (including in the United States, Europe, Asia and other future international locations); expectations and changes regarding PCT’s strategies and future financial performance, including future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and PCT’s ability to invest in growth initiatives, which could be impacted by significant changes to tariffs on foreign imports; the ability of PCT’s first commercial-scale recycling facility in Lawrence County, Ohio (the “Ironton Facility”) to be appropriately certified by Leidos Engineering, LLC, following certain performance and other tests, and commence full-scale commercial operations in a timely and cost-effective manner, or at all; PCT’s ability to meet, and to continue to meet, the requirements imposed upon us and our subsidiaries by the funding for its operations, including the funding for the Ironton Facility and the Planned Facilities (as defined below); PCT’s ability to minimize or eliminate the many hazards and operational risks at its manufacturing facilities that can result in potential injury to individuals, disrupt PCT’s business, including interruptions or disruptions in operations at PCT’s facilities, and subject PCT to liability and increased costs; PCT’s ability to complete the necessary funding with respect to, and complete the construction of, the new polypropylene recycling facility in Thailand (the "Thailand Facility"), PCT’s first commercial-scale European plant located in Antwerp, Belgium (the "Belgium Facility"), and the purification facility to be built in Augusta, Georgia (the "Augusta Facility" and, together with the Thailand Facility and the Belgium Facility, the “Planned Facilities”) in a timely and cost-effective manner; PCT’s ability to procure, sort and process polypropylene plastic waste at our planned plastic waste prep facilities; PCT’s ability to maintain exclusivity under The Procter & Gamble Company license; the implementation, market acceptance and success of PCT’s business model and growth strategy, which includes PCT’s ability to bring a total of one billion pounds of installed polypropylene recycling capability online by 2030, and PCT’s ability to meet related construction, regulatory, and financing requirements; the ability to negotiate multi-year offtake agreements at appropriate margins to fund ongoing operations; the possibility that PCT may be adversely affected or potentially impacted by economic, business, and/or competitive factors, including interest rates, availability of capital, economic cycles, and other macro-economic impacts (such as tariffs); changes in the prices and availability of materials (such as steel and other materials needed for the construction of future Feed PreP and purification facilities), including those changes caused by inflation, tariffs and supply chain conditions, such as increased transportation costs and global conflicts, and our ability to obtain such materials in a timely and cost-effective manner; the ability to source feedstock with a high polypropylene content at a reasonable cost and the temporary spike in prices due to global conflicts such as the current conflict in the Middle East; the development of direct competitors in the recycled polypropylene segment that could impact the demand for PCT’s products; the outcome of any legal or regulatory proceedings to which PCT is, or may become, a party; geopolitical risk and changes in applicable laws or regulations; changes in the prices and availability of labor (including labor shortages), turnover in employees, and increases in employee-related costs; any business disruptions due to political or economic instability, pandemics, or armed hostilities (including the ongoing conflicts between Russia and Ukraine and active military conflicts in the Middle East); and operational risks associated with the ability to operate the Ironton Facility and the Planned Facilities, as and when operative, at nameplate capacity.PCT undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.Should one or more of these risks or uncertainties materialize or should any of the assumptions made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Information Regarding Non-GAAP Financial Measures The Company uses certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) to supplement its financial statements. These non-GAAP financial measures provide additional information to investors to facilitate comparisons of past and present operating results, identify trends in our underlying operating performance, and offer greater transparency on how the Company evaluates its business activities. These measures are integral to the Company’s process for budgeting, managing operations, making strategic decisions and evaluating its performance. The Company’s primary non-GAAP financial measures are EBITDA and Adjusted EBITDA. The Company defines EBITDA as net income before interest expense, interest income, taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items and other items that are not indicative of the Company’s core operating activities. These may include equity-based compensation expense and changes in the fair value of warrants and put options, and other financial items. The Company believes Adjusted EBITDA is valuable for investors and analysts as it provides additional insight into the Company’s operational performance, excluding the impacts of certain financing, investing, and other non-operational activities. This measure helps in comparing the Company’s current operating results with prior periods and with those of other companies in the Company’s industry. It is also used internally for allocating resources efficiently, assessing strategic decisions, and evaluating the performance of the Company’s management team. There are limitations to Adjusted EBITDA, including its exclusion of cash expenditures, future requirements for capital expenditures and contractual commitments, and changes in the Company’s cash requirements for working capital needs. Adjusted EBITDA also omits significant interest expense and related cash requirements for interest and payments. While depreciation and amortization are non-cash charges, the associated assets will often need to be replaced in the future, and Adjusted EBITDA does not reflect the cash required for such replacements. Additionally, Adjusted EBITDA does not account for income or other taxes or necessary cash tax payments. Investors should use caution when comparing the Company’s non-GAAP measure to similar metrics used by other companies, as definitions can vary. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for GAAP financial measures. In presenting EBITDA and Adjusted EBITDA, the Company aims to provide investors with an additional tool for assessing the operational performance of the Company’s business. It serves as a useful complement to the Company’s GAAP results, offering a more comprehensive understanding of the Company’s financial health and operational efficiencies. The table at the end of the press release provides a reconciliation from Net Income (Loss) to Adjusted EBITDA for the specified periods. The following table reconciles GAAP net loss to Adjusted EBITDA (in thousands): Key Performance Indicators Other Production includes Co-product 1, Co-product 2, and additional saleable volumes, net of material reprocessed back into the production stream. Represents recovered material intended for sale as commercial markets develop. *Monthly operations spending reflects core operations and corporate cash spend, presented on a consistent basis for all periods; it excludes materials purchases (feedstock, virgin polypropylene and compounding additives) of $2.1 million per month in Q2 2026, $0.7 million per month in Q1 2026 and $1.2 million per month in Q2 2025; Ironton turnaround costs are tracked in project spend. Q1 2026 includes $0.4 million per month of annual bonus payout and was previously reported as $8.8 million per month on a basis that included materials purchases and excluded the bonus.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Procter & Gamble stock has delivered a 14.9% total return over the past 5 years. Current checks suggest the market price may still sit below an intrinsic value estimate based on a Discounted Cash Flow (DCF) approach and supporting earnings multiples. Over 5 years Procter & Gamble has returned 14.9%, which points to a relatively modest payoff for long term holders compared with many large consumer stocks. Recent headlines around softer revenue trends and cost pressures can weigh on growth expectations. At the same time, ongoing efforts to streamline operations and adjust pricing and pack sizes may support future cash flow resilience. On the broader valuation checks, Procter & Gamble looks mixed rather than clearly cheap or clearly expensive, scoring 4 out of 6 on value tests. The issue now is whether the current share price of Procter & Gamble offers enough margin between market value and intrinsic value to appeal to new investors. Procter & Gamble delivered -1.5% returns over the last year. See how this stacks up to the rest of the Household Products industry. The Discounted Cash Flow (DCF) method here uses projected free cash flows to estimate what Procter & Gamble could be worth as a whole business. In this model, the latest twelve-month free cash flow is about $15.6b, with analysts and internal estimates assuming gradually growing cash flows rather than sharp swings. That stream of cash, discounted back to today, results in an intrinsic value estimate of around $198 per share. Compared with the current market price, this implies Procter & Gamble appears roughly 27.3% undervalued on a cash flow basis. The recent Q4 revenue miss and softer guidance help explain why the market is hesitant, even though the cash flow profile used in the model remains steady and positive. As always, investors may wish to weigh that discount against the risk that higher input costs or weaker consumer demand could pressure those future cash flows. On this DCF view, Procter & Gamble stock currently appears undervalued relative to the cash it is expected to generate. Our Discounted Cash Flow (DCF) analysis suggests Procter & Gamble is undervalued by 27.3%. Track this in your watchlist or portfolio, or discover 56 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Procter & Gamble. The P/E ratio is a useful lens for Procter & Gamble because earnings remain a core anchor for how investors value large consumer staples stocks. Procter & Gamble currently trades on a P/E of 20.9x. This sits above the Household Products industry average of about 16.5x, yet below a peer group average closer to 25.9x. On a more tailored view that blends factors such as company size, margins and risk, a fair P/E nearer 25.0x is implied. That is higher than where the stock trades today. The gap between the current 20.9x P/E and the 25.0x fair ratio suggests Procter & Gamble is priced at a discount relative to what its earnings profile might usually command in this sector. On the P/E multiple, Procter & Gamble stock appears inexpensive compared with both its customised fair ratio and many peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Procter & Gamble valuation checks leave off and explain what kind of future for growth, margins and earnings would need to occur for the stock to be worth materially more or less than today’s price. Each Narrative presents Procter & Gamble's fair value as a thesis about the business that you can revisit over time, and they are available on Simply Wall St's Community page. Community views on Procter & Gamble sit far apart, with some investors seeing a solid staple stock underpriced and others arguing it already carries a rich premium. Bull case: roughly fairly valued Read the full Bull Case to see why Procter & Gamble could be undervalued Bear case: 19% overvalued Read the full Bear Case to see why Procter & Gamble could be overvalued Do you think there's more to the story for Procter & Gamble? Head over to our Community to see what others are saying! For Procter & Gamble, both the Discounted Cash Flow (DCF) intrinsic value estimate and the P/E multiple view lean toward the stock looking undervalued, even though the broader valuation checks are only mixed. The key question is whether current cash flow strength and earnings quality can hold up against softer revenue trends and cost pressures. If cash flows and margins prove resilient, today’s discount may look appealing. If input costs or demand weaken more than expected, that gap could reflect a value trap rather than an opportunity. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Procter & Gamble Company PG entered its fourth-quarter earnings call focused on rebuilding consumer momentum through targeted investments, productivity actions and portfolio improvements. Management emphasized progress in market share stabilization while acknowledging continued pressure from costs, inflation and uneven consumer trends. The company outlined a cautious fiscal 2027 outlook, with executives highlighting innovation, stronger retailer partnerships and improved execution as key priorities. Analysts pressed management on category recovery, investments and the path toward renewed sales outperformance. CEO Shailesh Jejurikar said the company’s fiscal 2026 performance reflected foundational work despite a challenging operating environment. He highlighted improving consumer trends, with global market share stabilizing and several categories showing better momentum. PG reported fourth-quarter core EPS of $1.43, ahead of the Zacks Consensus Estimate of $1.41, while revenues of $21.20 billion missed the consensus estimate of $21.35 billion. The company recorded a 1.40% EPS surprise and a -0.70% revenue surprise based on the provided Zacks data. Procter & Gamble Company (The) price-consensus-eps-surprise-chart | Procter & Gamble Company (The) Quote Management noted that fourth-quarter results were affected by trade dynamics in the United States and higher input costs, while productivity efforts helped support investment behind brands and innovation. Jejurikar emphasized that the company is prioritizing superior products, stronger brand communication and improved retail execution. He said P&G is adapting to changes in media, retail and consumer purchasing behavior through new capabilities. The company highlighted examples including Tide improvements, Tide evo expansion, stronger Baby Care performance in China and digital brand-building efforts for brands such as Pantene and SK-II. Management described these initiatives as part of a broader effort to strengthen core brands while creating new growth opportunities. P&G also discussed technology investments, including Artificial Intelligence tools, data platforms and supply-chain modernization. Executives said these capabilities are intended to improve speed, efficiency and consumer engagement over time. CFO Andre Schulten said P&G expects fiscal 2027 to remain challenging due to commodity costs, transportation expenses, currency impacts and geopolitical uncertainty. The company expects organic sales growth of 1-3% and core EPS growth of 0-3%. Management projected fiscal 2027 core EPS of $6.89 to $7.11, with a midpoint of $7.00. The outlook includes approximately $1 billion in after-tax cost headwinds from higher raw materials, energy and transportation costs. The company plans to offset pressure through productivity programs while maintaining investments in brands. P&G expects adjusted free cash flow productivity of 85% to 90%, along with about $10 billion in dividends and approximately $5 billion in share repurchases. A Morgan Stanley analyst questioned whether P&G could return to consistent sales outperformance and asked about remaining restructuring initiatives. Jejurikar said management was encouraged by improving user growth trends and progress across several markets. A Barclays analyst asked about areas requiring additional attention after share performance remained mixed across category and country combinations. Schulten pointed to opportunities in areas including U.S. categories, European Fabric Care and Family Care recovery efforts. Analysts also questioned investment levels and whether increased spending could translate into stronger growth. Management said productivity savings and more targeted investments should allow P&G to support brands while improving efficiency. Management said China remains an important area of progress, with the company returning to share growth after previous challenges. Schulten highlighted improvements across Baby Care, Fabric Care, Feminine Care and other categories in the region. P&G also pointed to improving performance in enterprise markets, including Latin America and Asia, the Middle East and Africa. Executives said these markets continued to provide broad-based growth opportunities. The company acknowledged that recovery will not occur evenly across markets. Management said its focus remains on targeted interventions designed to improve consumer value, strengthen brands and regain share. Jejurikar said P&G’s strategy remains centered on consumer-focused innovation, stronger execution and productivity investments. Management expects progress to build gradually as new initiatives gain traction across categories and regions. The company ended fiscal 2026 with net sales of $87.0 billion, up 3%, and core EPS of $6.89, up 1%. P&G returned more than $15 billion to shareholders through dividends and share repurchases during the year. Management’s priorities remain centered on balancing near-term cost pressures with investments intended to support longer-term growth. PG currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Rank is primarily driven by earnings estimate revisions and is designed to help identify stocks with stronger or weaker near-term performance potential. The Rank can change as analysts update earnings expectations following quarterly results. The stock has a Value Score of D, Growth Score of C, Momentum Score of C and VGM Score of D. Zacks Style Scores use grades from A to F to evaluate value, growth, momentum and combined characteristics, with stronger scores indicating more favorable traits within each style category. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Chicago, IL – July 30, 2026 – Zacks Director of Research Sheraz Mian says, "For the 216 S&P 500 companies that have reported Q2 results, or 43.2% of the index’s total membership, total earnings are up +58.1% from the same period last year on +12.2% higher revenues." Q3 Estimates Increase for Tech and Finance, Fall for Consumer Staples Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: For the 216 S&P 500 companies that have reported Q2 results, or 43.2% of the index’s total membership, total earnings are up +58.1% from the same period last year on +12.2% higher revenues, with 86.6% beating EPS estimates and 77.3% beating revenue estimates. This is a notably better showing from these 216 index members relative to other recent periods, both in terms of the earnings and revenue growth rates as well in terms of the beats percentages. The EPS and revenue beats percentages for these 216 index members are notably tracking above the averages for this group of companies over the preceding 20 quarters. The Q2 earnings and revenue growth rates have been boosted by Micron’s MU blockbuster quarterly results and Alphabet’s GOOGL unrealized gain on its SpaceX SPCX stake. However, the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron and Alphabet from these results. Excluding Micron and Alphabet, Q2 earnings for the remaining 214 index members that have reported Q2 results would be up +17.8% (vs. +58.1% otherwise) on +9.8% higher revenues (vs. +12.2% otherwise). For the Finance sector, we now have Q2 results from 69.7% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +25.1% from the same period last year on +16.2% higher revenues, with 87.3% of companies beating EPS estimates and 78.2% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. Broad Q2 Outperformance Sustains Positive Revisions Trend Despite Consumer Discretionary & Staples Drag The Q2 earnings season continues to validate our bullish outlook on corporate earnings. An above-average percentage of companies are topping consensus top- and bottom-line estimates while offering constructive commentary for upcoming quarters. This solid execution is sustaining a positive revisions trend, with Q3 earnings estimates rising across 8 of the 16 Zacks sectors since early July—extending the favorable momentum observed in recent quarters. Positive revisions have been particularly notable in Energy, Basic Materials, Tech, and Finance. Conversely, 7 of the 16 Zacks sectors have seen their Q3 estimates revised lower this month, led by cuts in Consumer Staples, Consumer Discretionary, and Autos. The pressure on Consumer Staples directly reflects the exhaustion of sector pricing power. Procter & Gamble’s PG recent earnings miss and conservative outlook underscore escalating consumer pushback against price hikes, which had previously driven sales growth and margin expansion. While everyday essentials typically provide steady defensive cash flows, budget-strained shoppers are increasingly migrating to private-label store brands or paring back unit purchases. P&G is hardly an isolated case—recent updates from Conagra Brands CAG and PepsiCo PEP confirm a broader industry pattern of weakened pricing power and stagnant volume growth. The Earnings Big Picture Estimates for full-year 2026 have also been steadily going up, particularly since the start of March. Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March. History suggests that these favorable revisions will get a boost from the Q2 earnings season and updated management guidance. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Follow us on Twitter:  https://twitter.com/zacksresearch Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 [email protected] https://www.zacks.com Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research