PG

Procter & Gamble (NYSE:PG) gave investors something to celebrate with its latest earnings report. Shares of the consumer household products giant jumped more than 5% after it delivered stronger-than-expected sales growth. However, while demand for its products is improving, earnings growth remains sluggish. That raises an important question for investors: Is P&G's recovery gaining enough momentum to justify buying the stock after its recent earnings-driven rally? Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » Image source: The Motley Fool. P&G's organic sales grew 4% in its fiscal 2027 first quarter. That's a notable improvement from the fourth quarter of its 2026 fiscal year when organic sales only grew 1%. The primary growth drivers were volume (2.4%) and mix (1.1%), not price increases (0.4%). That's an important distinction because it shows that demand for its products is largely improving. Fabric and home care delivered the strongest volume growth at 4.3%, followed by baby, feminine, and family care at 2.3% and beauty at 2.2%, offsetting declines in healthcare (-2.9%) and grooming (-0.4%). The company noted that innovation-based pricing in certain markets helped drive volume growth. It also benefited from a more favorable premium product mix. Despite the strong start to its fiscal year, P&G didn't change its full-year organic sales guidance, which it still expects will be between 1% and 3%. That suggests the company isn't yet fully confident that it's seeing a sustained recovery. While its organic sales growth rate accelerated, its margins remain under pressure. P&G's core adjusted earnings per share (EPS) only increased 1% to $2.00. While that is better than the 3% decline in core EPS it reported in the fourth quarter, it's far below its long-term target of delivering mid-to-high single-digit core EPS growth. The company is battling cost pressures, including higher commodity costs and the impact of tariffs. P&G expects these headwinds will continue to impact its results this year. That's driving its rather tepid outlook of 0% to 3% adjusted EPS growth ($6.89-$7.11). The company noted that higher commodity costs, interest expenses, and other headwinds will impact EPS by $0.79 this year, or an 11% drag. So, while the company's growth strategy is starting to drive volume improvement, continued margin pressures will weigh on EPS. All that brings us back to the central question: is P&G a buy after its mixed earnings report? With the recent spike in the share price, P&G currently trades at around $165 a share. With the company reaffirming its full-year adjusted EPS outlook at $7.00 (at the midpoint), it trades at about 23.5 times forward earnings. That's not as cheap as it was earlier this year when it traded at less than 21 times forward earnings. However, its valuation is still well off its peak of more than 26x in late 2024. The recent move higher has also lowered P&G's dividend yield from around 3% to 2.7%. Investors are paying a premium because P&G owns a laundry list of durable consumer brands like Tide, Mr. Clean, and Pampers. It also generates very resilient cash flows. During the first fiscal quarter, the company generated $5.8 billion in operating cash flow and $4.4 billion in free cash flow. That supported continued strong shareholder cash returns ($2.6 billion of dividend payments and $1.3 billion of share repurchases). The company expects to return over $15 billion to shareholders this year (more than $10 billion in dividends and $5 billion in share repurchases). The issue is that P&G now requires its earnings growth to accelerate and its valuation multiple to expand further to deliver a compelling total return from here. For example, it would need to grow its earnings per share at a 5% to 6% compound annual rate, and its valuation multiple would need to expand to 25x-26x to generate a 10% annualized total return over the next five years, including its dividend. That's certainly possible, as P&G has traded at a premium valuation in the past and aims to deliver that growth rate again. However, the margin of safety is razor-thin after its post-earnings pop. P&G remains a high-quality defensive dividend stock. However, it's not as attractive an investment as it was before its post-earnings pop. It could still deliver a solid total return over the next five years if it can execute its turnaround. The risk is that it can't return to mid-single-digit EPS growth. That would cause the company to lose some of its valuation premium, resulting in lackluster returns. I think it's better to wait for a more favorable entry point than to buy P&G after earnings. 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 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 $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,303,935!* Now, it's worth noting Stock Advisor's total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 23, 2026. Matt DiLallo has positions in Procter & Gamble. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Procter & Gamble a Buy After Its Latest Earnings Report? was originally published by The Motley Fool

Procter & Gamble (NYSE: PG) just had its best day in more than six years, with the stock jumping 5.6% on Thursday after the company delivered a surprisingly strong fiscal first quarter in a challenging environment. During a time when many of its customers are struggling with inflation and a high cost of living, the household products giant reported 4% organic sales growth. That performance also represents a significant bounce from flat organic sales growth in the previous quarter, which helps explain why the stock had its best day since the market started soaring in the recovery from the pandemic crash in March 2020. Missed AI's "Act 1"? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » Organic volume was up 2.4%, and the company delivered strong results in beauty, fabric, and home care. Overall revenue rose 4% to $23.3 billion, which topped estimates at $22.8 billion. Despite strong organic sales growth, core gross margin fell by 150 basis points, primarily due to higher commodity costs, reflecting higher oil prices than a year ago. Nonetheless, its productivity savings program helped improve selling, general, and administrative margins, and operating margin fell 70 basis points to 25.5%. On the bottom line, the company reported core earnings per share of $2.00, up from $1.99 in the quarter a year ago, and ahead of the consensus at $1.89. P&G maintained its full-year core EPS guidance of $6.89-$7.11, and the company expects headwinds from higher commodity costs and oil prices to increase over the rest of the year. Nonetheless, the company seemed to reverse earlier concerns about slumping growth, doing so at a time when many consumer brands are struggling. Four percent organic growth is outstanding for any mature consumer staples business, and that's the figure investors should focus on. The news also came on a day when tech stocks plunged, and the sell-off may have beckoned more investors to rotate into P&G, which is seen as one of the most rock-solid, defensive stocks on the market. The parent of Tide, Crest, and Pampers is a Dividend King, having increased its dividend for 70 years in a row. It now offers a dividend yield of 2.6%. Still, P&G stock has been mostly flat over the last five years, and its commentary about increasing headwinds shows that investors should temper their expectations for the rest of the year. For an investor looking for defensive, dividend-paying stocks or a safe place to ride out the volatility in the AI sector, P&G is a good choice. However, in the current environment, the upside potential for the stock seems moderate at best. There's a reason the stock's 6% gain yesterday was its best rally in several years. 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 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 $361,596!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,303,935!* Now, it's worth noting Stock Advisor's total average return is 910% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 23, 2026. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Procter & Gamble's Earnings Show a Resilient Consumer Despite Price Hikes. Is the Dividend King Stock a Buy? was originally published by The Motley Fool

- RBC Capital analyst Nik Modi maintained an 'Outperform' rating on P&G, citing organic sales growth across every category, strong underlying results excluding one-time factors, and encouraging top-line fundamentals, according to The Fly. - Wells Fargo raised its price target on P&G to $180 from $164, maintaining an 'Overweight' rating, and cited strong organic sales growth and potential upside to sales guidance. - According to Koyfin data, 13 of 25 analysts covering P&G rate the stock 'Buy' or 'Strong Buy,' while 12 rate it 'Hold.' Procter & Gamble's (PG) shares drew investor attention on Friday after multiple analysts raised their price targets following the company's better-than-expected fiscal first-quarter results. According to The Fly, Deutsche Bank said the quarter provided the "clearest evidence yet" that P&G's category and customer interventions, innovation, and efforts to restore superiority were translating into better underlying performance. The firm raised its price target on P&G to $176 from $162 and maintained a 'Buy' rating on the shares. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox PG shares traded 1.6% lower at the time of writing. According to Koyfin data, 12 out of 25 analysts covering the stock rate it 'Hold', whereas 13 rate the stock 'Buy' or 'Strong Buy'. RBC Capital analyst Nik Modi raised his price target to $169 from $166 and maintained an 'Outperform' rating. According to The Fly, Modi said P&G reported a strong quarter, with organic sales growth across every category and underlying results remaining strong after excluding one-time factors. He added that topline fundamentals were encouraging, share recovery continued to build, and P&G had levers to manage the elevated cost environment. Meanwhile, Morgan Stanley raised its price target to $185 from $166 and maintained an 'Overweight' rating. The analyst said brand interventions and recent reinvestment had "begun to bear fruit," pointing to strong organic sales growth in Q1. The firm also viewed P&G as well positioned on a relative earnings-per-share (EPS) basis in a "tough HPC environment." Wells Fargo raised its price target to $180 from $164 and maintained an 'Overweight' rating on P&G, according to The Fly. The firm noted that the company recorded its strongest organic sales growth in nearly three years and that comparisons would become easier in the second and fourth quarters. Wells Fargo added that this put upside to reiterated topline guidance "well in scope," alongside prospects for improving confidence in fiscal 2027 EPS despite higher inflation. Analyst | Old PT | New PT Deutsche Bank | $162 | $176 JPMorgan | $162 | $180 RBC Capital | $166 | $169 Citi | $180 | $187 Morgan Stanley | $166 | $185 Wells Fargo | $164 | $180 Goldman Sachs | $150 | $161 Procter & Gamble maintained its fiscal 2027 organic sales growth outlook of 1%–3% and core EPS growth outlook of in-line to 3%, equivalent to $6.89–$7.11 per share. The company raised its fiscal 2027 all-in sales growth outlook to 2%–4%, reflecting its acquisition of Thorne, effective October 1, 2026. P&G reported adjusted earnings of $2.00 per share, beating analyst estimates of $1.89 per share, while revenue of approximately $23.28 billion topped estimates of $22.82 billion, according to estimates compiled by Fiscal AI. The company also raised its estimated fiscal 2027 after-tax commodity cost headwind to approximately $1.4 billion, citing higher raw-material, energy and transportation costs. On Stocktwits, retail sentiment remained in the 'bullish' territory amid 'high' message volumes. PG shares have gained 13% year-to-date. Also read: Dan Ives Calls AI Sell-Off 'SaaS Apocalypse 2.0,' Says Oracle Is 'In The Toughest Spot' For updates and corrections, email newsroom[at]stocktwits[dot]com. Heera Hari has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - Stocktwits Weekly Spread: What Shaped Treasury Yields And The Dollar This Week - SpaceX's 80,000 Cell Site Push A Win For AST SpaceMobile, Ericsson, Nokia, NextNav, Among Others, Says Roth Capital - Stocktwits Zero To Sixty: Tesla And SpaceX Form Merger Committees As Profits Drop, While Rivian Buys AI Startup And GM, Ford Advance EV Plans

This article first appeared on GuruFocus. - Organic Sales: Increased 4.0% versus prior year. - Volume: Up 2.4 points. - Pricing: Up 0.4 points. - Mix: Up over 1 point. - Core EPS: $2.00, up 1 point versus prior year; currency-neutral core EPS in line with prior year. - Core Gross Margin: Down 150 basis points versus prior year. - Core Operating Margin: Down 80 basis points versus prior year; currency-neutral down 90 basis points. - Productivity Improvement: 250 basis points. - Free Cash Flow Productivity: 93% for the quarter. - Cash Returned to Shareowners: $3.9 billion ($2.6 billion dividends; $1.3 billion share repurchase). - Category Growth: All 10 product categories grew organic sales; Fabric Care, Home Care, Baby Care, Hair Care, Skin and Personal Care and Grooming grew mid-singles; Family Care, Feminine Care, Oral Care and Personal Health Care grew low single digits. - Regional Growth: All six regions grew organic sales; Focus markets up 4%; North America up 3%; US up 3%; Europe up 4%; Greater China up 8%; Enterprise markets up 5%; Latin America up 4%; IMETA up 8%; APAC Enterprise up 2%. - Market Share: Global aggregate share flat versus prior year; 29 of top 50 category-country combinations held or grew share fiscal year-to-date. - FY27 Sales Growth Guidance: 1% to 3%, including roughly 30 to 50 basis points of headwinds from product and market exits. - FY27 Core EPS Guidance: Growth of 0% to 3%, a range of $6.89 to $7.11 per share. - FY27 Cost Headwind: Approximately $1.4 billion after tax from higher raw material, energy and transportation costs; assumes Brent crude at $100 a barrel. - FY27 FX Headwind: Approximately $50 million after tax. - FY27 Net Interest Expense: Approximately $300 million higher after tax, including ~$150 million from debt issuance related to recent M&A. - FY27 Nonoperating Income: Forecast $150 million after tax lower. - FY27 Core Effective Tax Rate: Expected 20% to 21%. - FY27 Combined Headwinds: Roughly $1.9 billion after tax ($0.79 per share, 11% of FY26 core EPS). - FY27 Capital Spending: 4.5% to 5.5% of sales. - FY27 Free Cash Flow Productivity: Forecast 85% to 90%. - FY27 Cash Returns: Over $10 billion in dividends and approximately $5 billion in share repurchase, totaling $15 billion planned. - Warning! GuruFocus has detected 7 Warning Signs with DUK. - Is PG fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Organic sales grew 4.0% with broad-based growth across all 10 product categories and all six regions. - Volume increased 2.4 points, with the majority of growth driven by volume, indicating healthy consumer demand. - Over 70% of top US customers are holding or growing share, up from less than 10% in the first half of fiscal '26. - Strong productivity improvement of 250 basis points helped offset commodity and freight costs. - Innovations like Pantene Abundant & Strong and Pampers Prestige are driving growth and share gains. - Core gross margin declined 150 basis points and core operating margin fell 80 basis points due to higher costs. - Commodity and freight cost headwinds are expected to increase, with a $1.4 billion after-tax impact for fiscal '27. - Foreign exchange and higher interest expenses are expected to create additional earnings headwinds. - Global market share is flat, with only 29 of top 50 category-country combinations holding or growing share. - Guidance implies a deceleration in organic sales growth to 3% in the first half, with volatility expected quarter-to-quarter. Q: Lauren Lieberman of Barclays asked whether the stronger operating leverage at 4% organic sales and 2%+ volume growth is structural or quarter-specific, given margins are up much more than in 2022.A: CFO Andre Schulten attributed it to both. Structurally, productivity is rising through automation and digitization (Supply Chain 3.0), the restructuring program including a 15% manufacturing headcount reduction is now flowing through SG&A, and brand-building spend is working harder at flat levels. Quarter-specific factors included only partial commodity flow-through (5% headwind in Q1 versus 8% for the year) and a roughly $90 million IEEPA tariff refund. Q: Dara Mohsenian of Morgan Stanley asked how P&G plans to offset a $1.4 billion commodity headwind, up $400 million versus last quarter, through pricing amid a weak consumer and promotional environment.A: Schulten said P&G will rely on three levers: record productivity with a complete project list, pricing with innovation that does not jeopardize top-line momentum, and time to recover the dollar impact. He noted that at this level of commodity pressure, the industry generally prices up because there is no way to recover such costs without pricing. Q: Steve Powers of Deutsche Bank asked about the sustainability of momentum, including any shipment timing that flattered Q1, and where momentum is best established across the 10 categories.A: Schulten guided to about 3% organic sales growth in the first half with slight acceleration in the second half, noting some shipment timing effects, notably in Europe. He said P&G is roughly 60% down the path of fixing category-country combinations, with 29 of the top 50 holding or growing share. Family Care has not yet returned to share growth, Health Care was hurt by weak cold and cough seasons, and Beauty has more opportunity despite 5% growth. Q: Bonnie Herzog of Goldman Sachs asked about the Baby Care strategy and sustainability of improvements in the US and China amid promo intensity and a key competitor's disruption in China.A: Schulten said global Baby Care sales grew 5% with share up 80 basis points; US sales rose 3% and volume 7%, with both volume and value share up. P&G has fixed value versus competition but has not yet upgraded wipes or launched Swaddlers innovation. In China, Baby Care grew almost 50%, about 3 points of which came from the competitor disruption; excluding that, China still grew about 5%. He called the premium, trade-up model sustainable, citing AMORE's path to a $100 million brand in year one. Q: Nik Modi of RBC asked for color on China, where the business is performing well despite a poor macro backdrop.A: Schulten said China has grown for six consecutive quarters after the team reinvented its distributor network and built social-first marketing and execution capabilities. Q1 organic sales rose 8% with 5% volume growth; SK-II grew 13%, Fabric Care 5% and Feminine Care 9%. Olay remains in reinvention and is not growing. He noted market growth is still below 100% in P&G's channels and categories and consumer sentiment is not improving. Q: Filippo Falorni of Citi asked where the improvement in US customer share trends is coming from, what more is assumed in guidance, and how to think about the shipment-versus-consumption gap.A: Schulten said over 70% of top US customers are holding or growing share, up from under 10% in the first half of fiscal 2026, with a target of north of 80% by the end of the calendar year. The approach is to diagnose user growth gaps quickly and tailor superiority adjustments to each retailer's shopper rather than buy share. He flagged base-period inventory dynamics, including a significant US inventory shift in Q3, as a source of quarter-to-quarter volatility. Q: Chris Carey of Wells Fargo asked about the expected Q2 deceleration despite an easier compare and about Fabric Care growth and share dynamics in the US and Europe.A: Schulten cited rising gas prices, Middle East volatility, base-period dynamics and inventory shifts as reasons to stay conservative at 3% for the first half. Fabric Care is growing 4% in the US and 5% in Europe, with value share up 70 basis points in North America and 60 basis points in Europe over the last three months, driven by innovations including Tide Liquid Boosted, Gain and evo. Q: Peter Grom of UBS asked how the commodity headwind phases from 5% in Q1 to 8% for the year and whether any quarters would see a wider gap between inflation and offsets.A: Schulten said Q1 COGS reflected lower input costs from inventory holding effects. Q2 production reflects $100 per barrel oil, so that impact flows through in Q2 with little time to react. Oil at $113 means more cost is coming in Q3 and Q4, but P&G has more time to respond with productivity and pricing in those quarters. Q: Andrea Teixeira of JPMorgan asked whether pricing negotiations with retailers are assumed in guidance and how productivity should phase through the year.A: Schulten declined to discuss future pricing but reiterated that P&G prices with innovation, which is generally timed with modular resets. On productivity, P&G delivered about $500 million to $550 million before tax in Q1 after EUR 2.8 billion last year, and he expects a similar run rate with heavier productivity in the back half. Q: Kevin Grundy of BNP Paribas asked for an update on industry growth across key geographies versus fiscal Q4.A: Schulten said the consumer remains resilient, with 2.5% to 3% value growth across P&G's categories globally, unchanged to slightly better than last quarter. US category value growth has improved to about 3% from 2%, enterprise markets are growing 4% to 6% and possibly accelerating to 6% to 7%, and Europe remains stable but muted at about 1%. Q: Kaumil Gajrawala of Jefferies pressed on why guidance implies a Q2 deceleration when interventions are working and comparisons ease in most divisions.A: Schulten said the consumer is the key variable, with fuel and For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The Procter & Gamble Company PG emphasized improving sales momentum, stronger consumer demand and disciplined execution during its first-quarter fiscal 2027 earnings call. Management highlighted broad-based organic growth while cautioning that rising commodity costs could pressure profitability. Chief financial officer Andre Schulten said targeted interventions across products, pricing and retail execution were gaining traction. However, management maintained its full-year outlook, citing economic volatility and uncertainty surrounding consumer spending. PG reported first-quarter core earnings of $2.00 per share, up 1% year over year, surpassing the Zacks Consensus Estimate of $1.89. Revenues increased 4% to $23.28 billion, exceeding the Zacks Consensus Estimate of $22.71 billion. Procter & Gamble Company (The) Price, Consensus and EPS Surprise Procter & Gamble Company (The) price-consensus-eps-surprise-chart | Procter & Gamble Company (The) Quote P&G reaffirmed its fiscal 2027 organic sales growth guidance of 1% to 3%, while updating reported sales growth expectations to 2-4% following the Thorne acquisition. Schulten maintained core earnings growth guidance of 0% to 3%, representing $6.89-$7.11 per share. However, management raised its projected combined earnings headwind from commodities, currency and nonoperating items to $1.9 billion after tax, equivalent to $0.79 per share. Higher commodity, energy and transportation expenses remain central concerns. Schulten projected a $1.4 billion after-tax commodity headwind, assuming Brent crude prices of $100 per barrel. Core gross margin contracted 150 basis points, while core operating margin declined 80 basis points. Productivity improvements partially offset inflationary pressures. During questioning from UBS, Schulten clarified that commodity inflation would intensify in the second quarter, with additional pressure potentially emerging later in fiscal 2027. Organic sales increased 4%, supported by 2.4% volume growth, 0.4% pricing growth and 1.1% favorable mix. Schulten reported growth across all 10 product categories and six geographic regions. Greater China posted 8% organic growth, while North America advanced 3%. Management also noted that more than 70% of its leading U.S. retail customers maintained or increased market share, reflecting improving execution across distribution channels. Deutsche Bank and Jefferies analysts questioned why management anticipated slower second-quarter growth despite stronger business momentum. Schulten reiterated expectations for approximately 3% first-half organic growth, followed by modest acceleration during the second half. He attributed the conservative stance to consumer uncertainty, promotional shipment timing and rising fuel prices. Management emphasized that quarterly performance would remain uneven despite improving underlying trends. Responding to Morgan Stanley's questions about recovering higher commodity costs, Schulten emphasized productivity, innovation-backed pricing and gradual cost recovery. The company highlighted premium innovations, including Pampers AMORE and Pantene Abundant & Strong, alongside improvements in Tide and Gain offerings. Schulten indicated that pricing decisions would remain closely tied to product improvements and consumer value. Management aims to protect volume momentum rather than pursue aggressive price increases. Schulten highlighted manufacturing automation, digitization and restructuring initiatives as critical productivity drivers. The company generated approximately $500 million to $550 million in productivity benefits during the quarter. Management expects savings to become more pronounced during the fiscal second half. Regarding Thorne, Schulten emphasized preserving its existing capabilities while leveraging P&G's international distribution, supply-chain expertise and marketing resources to support expansion. Management's overarching message emphasized sustained consumer-led growth rather than extrapolating first-quarter strength across the year. Schulten expressed confidence in ongoing operational improvements but maintained that inflation, competitive dynamics and consumer volatility would require flexible execution. PG currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-revision outlook. Its Growth and Momentum Scores of B indicate relatively favorable characteristics, while its Value Score of D reflects weaker valuation appeal. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The stock's VGM Score of C signals a mixed combination of value, growth and momentum characteristics. Although the Growth and Momentum Scores provide some support, the overall configuration warrants a balanced assessment. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results. 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

Procter & Gamble (PG) came out with quarterly earnings of $2 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $1.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.82%. A quarter ago, it was expected that this world's largest consumer products maker would post earnings of $1.41 per share when it actually produced earnings of $1.43, delivering a surprise of +1.42%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. P&G, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $23.28 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.51%. This compares to year-ago revenues of $22.39 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. P&G shares have added about 9.4% since the beginning of the year versus the S&P 500's gain of 13.3%. While P&G has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for P&G was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.88 on $22.64 billion in revenues for the coming quarter and $6.98 on $88.68 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Church & Dwight (CHD), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 30. This maker of household and personal products is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +11.1%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Church & Dwight's revenues are expected to be $1.58 billion, down 0.2% from the year-ago quarter. 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 Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Procter & Gamble Company (The)? Here are five stocks we like better. - Organic sales rose 4.0% in fiscal Q1 2027, driven mainly by a 2.4-point volume increase, with growth across all 10 product categories and six geographic regions. - Core EPS increased 1% to $2, but gross and operating margins declined as productivity gains were outweighed by commodity, freight and demand-creation costs. P&G returned $3.9 billion to shareholders through dividends and buybacks. - P&G maintained its full-year outlook while warning of approximately $1.9 billion in after-tax earnings headwinds from raw materials, energy, transportation, foreign exchange, interest expense and lower non-operating income; it expects more than $15 billion in total shareholder returns for fiscal 2027. - Does Lemonade's Growth Signal Profits Ahead? Procter & Gamble (NYSE:PG) reported a 4.0% increase in organic sales for the first quarter of fiscal 2027, led primarily by volume growth, while maintaining its full-year outlook despite rising commodity, energy and transportation costs. Chief Financial Officer Andre Schulten said organic sales growth reflected a 2.4-point contribution from volume, a 0.4-point contribution from pricing and more than one point from favorable mix. All 10 of the company's product categories and all six geographic regions posted organic sales growth during the quarter. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - The September Scramble: Find Sanctuary in These 3 Defensive Dividend Stocks "We are pleased with the continued acceleration in top-line results," Schulten said, adding that productivity gains helped offset higher raw-material, energy and freight costs, particularly in North America. He cautioned that those cost headwinds are expected to increase over the next several quarters. Fabric Care, Home Care, Baby Care, Hair Care, Skin and Personal Care, and Grooming each recorded mid-single-digit organic sales growth. Family Care, Feminine Care, Oral Care and Personal Health Care grew at low-single-digit rates. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern In North America, organic sales increased 3%, including 3% growth in the U.S., where volume increased three points. Schulten said more than 70% of P&G's largest U.S. retail customers were holding or gaining share, compared with less than 10% in the first half of fiscal 2026. Europe organic sales rose 4%, led by high-single-digit growth in the United Kingdom. Greater China sales increased 8%, despite what Schulten described as a challenging consumer environment. Pampers and SK-II led China's growth, with SK-II sales up 12% and Pampers sales up nearly 50%, aided by near-term competitive dynamics. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Enterprise markets grew 5% in aggregate. Latin America rose 4%, driven by double-digit growth in Mexico and low-single-digit growth in Brazil. The company's India, Middle East, Turkey and Africa, or IMETA, region grew 8%, while APAC Enterprise increased 2% amid portfolio-restructuring effects. Global aggregate market share was flat from a year earlier. However, 29 of P&G's top 50 category-country combinations held or grew share during the fiscal year to date, up from 25 in the second half of fiscal 2026. Core earnings per share were $2, up 1% from the prior year. On a currency-neutral basis, core EPS was unchanged. Core gross margin declined 150 basis points and core operating margin fell 80 basis points, as 250 basis points of productivity improvement was offset by commodity and freight costs as well as demand-creation investments. Schulten said the company is seeing increased structural operating leverage from supply-chain automation and digitization, restructuring actions and more efficient brand-building spending. He said the quarter also benefited from only partial flow-through of higher commodity costs and from about $90 million related to the second part of an IEEPA tariff refund. Free cash flow productivity was 93% in the quarter. P&G returned $3.9 billion to shareholders, including $2.6 billion in dividends and $1.3 billion in share repurchases. The company highlighted several product initiatives, including Pantene Abundant & Strong in the U.S., Pampers Amore premium diapers and innovations in Tide, Gain and fabric enhancers. Schulten said Pampers Amore is expected to exceed $100 million in first-year sales. P&G maintained its fiscal 2027 guidance for organic sales growth of 1% to 3%, core EPS growth of 0% to 3%, and free cash flow productivity of 85% to 90%. Its core EPS outlook remains $6.89 to $7.11 per share. The company now expects approximately $1.4 billion in after-tax cost pressure from raw materials, energy, transportation and other premiums, primarily related to the conflict in the Middle East. The outlook assumes Brent crude oil at $100 per barrel. Schulten noted oil prices had recently risen above that level and said elevated costs are expected to weigh more heavily on the second quarter and the second half of the fiscal year. P&G also expects an approximately $50 million after-tax foreign-exchange headwind, roughly $300 million in higher after-tax net interest expense, including about $150 million tied to debt issued for recent mergers and acquisitions, and $150 million in lower non-operating income. Combined, those items represent an estimated $1.9 billion after-tax earnings headwind, or $0.79 per share. Schulten said the company plans to address inflation through productivity, pricing accompanied by innovation, and time. He declined to provide details on future pricing actions but said innovation is generally timed with retail modular resets. While P&G started the year above its full-year organic sales growth range, Schulten said it expects approximately 3% organic sales growth in the first half and modest acceleration in the second half. He cited fuel costs, consumer pressure, geopolitical volatility, shipment timing and promotional-event timing as potential sources of quarterly variability. "The strength is real, but it will not be a straight line," Schulten said. Globally, P&G sees category value growth of roughly 2.5% to 3%. The company said U.S. category growth has improved toward 3%, enterprise markets are growing in the mid-single digits or better, and Europe remains stable but muted at about 1% growth. P&G expects to pay more than $10 billion in dividends and repurchase about $5 billion in stock during fiscal 2027, for planned total cash returns of about $15 billion. Procter & Gamble Company (NYSE: PG) is a global consumer products company that develops, manufactures and markets branded products used in households and personal care. Its portfolio includes personal health and grooming products, beauty and skin care items, baby, feminine and family care products, fabric and home care products, and oral care products. The company's well-known brands include Pampers, Tide, Gillette, Crest, Oral-B, Head & Shoulders, Pantene, Olay, Old Spice, Dawn, Febreze and Mr. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Procter & Gamble Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- Procter & Gamble shares jumped 6% after fiscal first-quarter core EPS of $2.00 and revenue of $23.3 billion beat Wall Street's estimates. - The quarter's growth came mostly from higher volume, which shows demand for P&G's products is holding up. - P&G now expects commodity costs to take about $1.4 billion out of fiscal 2027 profit, up from about $1 billion, yet it kept its core EPS guidance of $6.89 to $7.11. - Management expects cost pressure to build over the next few quarters, so margins are the number to watch. Procter & Gamble (PG:NYSE) shares are up 6% today, on a day the broader market is falling, after its fiscal first-quarter results beat Wall Street's estimates this morning. Even better: most of the growth came from shoppers buying more. For the quarter ended Sept. 30, P&G reported: - Core EPS of $2.00, up 1% from a year ago and ahead of the $1.89 consensus - Revenue of $23.3 billion, up 4%, against the $22.82 billion analysts expected - Organic sales up 4%, with 2 points from volume, 1 from mix, and only a small lift from pricing CEO Shailesh Jejurikar said "this strong start keeps us on track to deliver within our guidance ranges" for the fiscal year, which ends in June 2027. Organic volume rose 2.4%, led by Fabric & Home Care at 4.3% on laundry and home care gains in North America and Europe. Price added just 0.4%. That's the healthiest kind of growth a staples giant can post, and shoppers traded up too (mix added 1.1%). TIKR tracks 25 analysts on Procter & Gamble. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on Procter & Gamble, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Procter & Gamble's Analyst Ratings Margins are the catch. Core gross margin fell 150 basis points. Commodities and product reinvestment each cost 140 basis points, and 120 basis points of productivity savings made up only part of that. And the bill is getting bigger. P&G now expects commodities to cost it about $1.4 billion after tax this fiscal year, up from about $1 billion when it first gave guidance this summer. Management said on P&G's first-quarter call that oil above $100 a barrel would be an "increasing headwind" for the year. Yet P&G kept its core EPS guidance of $6.89 to $7.11, a range that takes in analysts' $6.98 consensus… (P&G took on a cost bill $400 million bigger without moving its range, which gives analysts little reason to cut that number.) P&G traded at 23x forward earnings at yesterday's close, around its five-year average… After today's jump, it's closer to 24x. That's above the average but well below its 27x peak in early 2022. My take: volume-led growth is exactly what you want from a defensive stock in a shaky market, and P&G just showed it can absorb a bigger cost bill and still hold its range. I'd want to see margins steady before expecting much more upside. The next test is fiscal second-quarter results in January, when we'll see whether higher oil starts eating into that guidance. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what Procter & Gamble could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Procter & Gamble for free

Net Sales +4.0%; Organic Sales +4.0% Diluted EPS $1.97, +1%; Core EPS $2.00, +1% UPDATES NET SALES GUIDANCE FOR THORNE ACQUISITION MAINTAINS FISCAL YEAR ORGANIC SALES, EPS GROWTH AND CASH RETURN GUIDANCE CINCINNATI, October 22, 2026--(BUSINESS WIRE)--The Procter & Gamble Company (NYSE:PG) reported first quarter fiscal year 2027 net sales of $23.3 billion, an increase of four percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, also increased four percent versus the prior year. Diluted net earnings per share were $1.97, an increase of one percent versus prior year as the increase in net sales was partially offset by an increase in operating costs. Core earnings per share were $2.00, an increase of one percent versus the prior year. Operating cash flow was $5.8 billion, and net earnings were $4.8 billion for the quarter. Free cash flow productivity was 93%. Free cash flow productivity is calculated as operating cash flow less capital spending, as a percentage of net earnings. The Company returned $3.9 billion of cash to shareowners via $2.6 billion of dividend payments and $1.3 billion of share repurchases. First Quarter ($ billions, except EPS) GAAP | 2027 | 2026 | % Change | | Non-GAAP* | 2027 | 2026 | % Change Net Sales | 23.3 | 22.4 | 4.0% | | Organic Sales | n/a | n/a | 4.0% Diluted EPS | 1.97 | 1.95 | 1% | | Core EPS | 2.00 | 1.99 | 1% *Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures. "Our solid sales, earnings and cash results in the first quarter reflect sharpened execution of our integrated strategy," said Shailesh Jejurikar, Chairman of the Board, President and Chief Executive Officer. "While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth and free cash flow productivity for the fiscal year. We remain committed to our strategy to delight consumers with superior products at a superior value by putting the consumer first in everything we do. We are confident in the near term and excited about the future." July - September Quarter Discussion Net sales in the first quarter of fiscal year 2027 were $23.3 billion, a four percent increase versus the prior year. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, also increased four percent driven by a two percent increase from volume and a one percent increase from favorable mix. Pricing had a minor positive impact on sales for the quarter. July - September 2026 | Volume | ForeignExchange | Price | Mix | A&D (2) | Net Sales | OrganicVolume | OrganicSales Net Sales Drivers (1) Beauty | 2.2% | 1.1% | 0.7% | 2.5% | —% | 6.4% | 2.2% | 5.4% Grooming | (0.4)% | (0.4)% | 3.5% | 1.5% | (0.1)% | 4.0% | (0.4)% | 4.5% Health Care | (2.9)% | 0.4% | 2.8% | 2.8% | (0.1)% | 3.1% | (2.9)% | 2.7% Fabric & Home Care | 4.3% | (0.6)% | (0.3)% | 0.8% | —% | 4.2% | 4.3% | 4.8% Baby, Feminine & Family Care | 2.3% | (0.1)% | (1.2)% | 1.8% | —% | 2.9% | 2.3% | 3.0% Total P&G | 2.4% | —% | 0.4% | 1.1% | —% | 4.0% | 2.4% | 4.0% (1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. (2) Acquisitions and Divestitures excluding volume impact. - Beauty segment organic sales increased five percent versus year ago. Hair Care organic sales increased mid-single digits driven by innovation-based pricing in North America and Latin America, favorable product mix and an increase in unit volume. Personal Care organic sales increased mid-single digits driven by volume growth in Greater China and Europe and favorable product mix, partially offset by trade investments. Skin Care organic sales increased mid-single digits due to favorable premium product mix and a unit volume increase in North America. - Grooming segment organic sales increased five percent versus year ago driven by innovation-based pricing, primarily in North America and IMETA, and favorable product mix. - Health Care segment organic sales increased three percent versus year ago. Oral Care organic sales increased low single digits driven by premium product mix and innovation-based pricing, partially offset by a unit volume decline. Personal Health Care organic sales increased low single digits due to higher pricing, primarily in North America and Latin America, and favorable product mix, partially offset by a unit volume decline. - Fabric and Home Care segment organic sales increased five percent versus year ago. Fabric Care organic sales increased mid-single digits driven by volume increases in North America and Europe and favorable geographic mix. Home Care organic sales also increased mid-single digits driven by volume increases in North America and Europe and favorable product mix. - Baby, Feminine and Family Care segment organic sales increased three percent versus year ago. Baby Care organic sales increased mid-single digits driven by a unit volume increase, primarily in Greater China and North America, and favorable premium product mix, partially offset by lower pricing, primarily in North America. Feminine Care organic sales increased low single digits driven by favorable product mix and innovation-based pricing, primarily in North America, partially offset by a unit volume decline in Europe. Family Care organic sales increased low single digits driven by a unit volume increase, partially offset by merchandising investments. Diluted net earnings per share increased by one percent to $1.97. Core earnings per share increased one percent to $2.00 and Currency-neutral Core EPS was unchanged versus the prior year. Reported gross margin for the quarter decreased 160 basis points versus the prior year. Core gross margin and currency-neutral Core gross margin for the quarter decreased 150 basis points versus the prior year and excluded the impact from incremental restructuring charges. The decrease was driven by 140 basis points of higher costs from commodities, 140 basis points of product reinvestments, 50 basis points of unfavorable mix and 10 basis points of rounding and other items, partially offset by 120 basis points of gross productivity savings, 50 basis points of tariff impact from lower costs and recognized recoveries and 20 basis points of increased pricing. Reported selling, general and administrative expense (SG&A) as a percentage of sales declined 90 basis points versus year ago. Core SG&A as a percentage of sales decreased 80 basis points versus year ago and decreased 70 basis points on a currency-neutral basis. Core SG&A excluded the impact from incremental restructuring charges. The decline was driven by 130 basis points of productivity savings and 100 basis points of net sales growth leverage, partially offset by 120 basis points of reinvestments and 40 basis points of rounding and other items. Reported operating margin for the quarter decreased 70 basis points versus the prior year. Excluding the impact of non-core restructuring charges, core operating margin decreased 80 basis points versus the prior year and decreased 90 basis points on a currency-neutral basis. Core operating margin included gross productivity savings of 250 basis points. Fiscal Year 2027 Guidance P&G updated its guidance range for fiscal 2027 all-in sales growth to be in the range of two to four percent versus the prior year, reflecting the acquisition of Thorne as of October 1, 2026. The Company maintained its outlook for organic sales growth in the range of one to three percent versus the prior year. Included in the organic sales growth guidance is a headwind of 30 to 50 basis points from brand, product form and go-to-market discontinuations. P&G maintained its fiscal 2027 diluted net earnings per share growth to be in the range of one to five percent versus fiscal 2026 diluted net EPS of $6.62. P&G also maintained its fiscal 2027 core earnings per share growth to be in the range of in-line to three percent versus fiscal 2026 core EPS of $6.89. This outlook equates to a range of $6.89 to $7.11 per share, with a mid-point estimate of $7.00, or an increase of approximately one and a half percent. P&G now expects a commodity cost headwind of approximately $1.4 billion after tax driven by higher raw materials, energy and transportation costs, $300 million after-tax from higher net interest expense, $150 million after-tax from lower non-operating income and $50 million after-tax from unfavorable foreign exchange rates. Combined, these impacts equate to a headwind of $0.79 per share for fiscal 2027, or an eleven percent drag on core EPS growth. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results. P&G now expects a core effective tax rate to be in the range of 20% to 21% in fiscal 2027. Capital spending is estimated to be in the range of four and a half to five and a half percent of fiscal 2027 net sales. P&G continues to expect free cash flow productivity of 85% to 90% and expects to pay over $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal 2027. Forward-Looking Statements Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law. Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange or pricing controls and tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war, terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pensions and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, cyber incidents, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage demand, supply and operational challenges; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving and more fragmented digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company's overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions. For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports. About Procter & Gamble P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Consolidated Earnings Information | | Three Months Ended September 30 Amounts in millions except per share amounts | | 2026 | | | | 2025 | | | % Chg NET SALES | $ | 23,276 | | | $ | 22,386 | | | 4% Cost of products sold | | 11,678 | | | | 10,887 | | | 7% GROSS PROFIT | | 11,598 | | | | 11,499 | | | 1% Selling, general and administrative expense | | 5,661 | | | | 5,643 | | | —% OPERATING INCOME | | 5,937 | | | | 5,856 | | | 1% Interest expense | | (223 | ) | | | (197 | ) | | 13% Interest income | | 102 | | | | 108 | | | (6)% Other operating income/(expense), net | | 207 | | | | 268 | | | (23)% EARNINGS BEFORE INCOME TAXES | | 6,023 | | | | 6,034 | | | —% Income taxes | | 1,267 | | | | 1,253 | | | 1% NET EARNINGS | | 4,757 | | | | 4,781 | | | (1)% Less: Net earnings attributable to noncontrolling interests | | 26 | | | | 31 | | | (16)% NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 4,731 | | | $ | 4,750 | | | —% | | | | | EFFECTIVE TAX RATE | | 21.0 | % | | | 20.8 | % | | | | | | | NET EARNINGS PER COMMON SHARE (1) | | | | | Basic | $ | 2.00 | | | $ | 2.00 | | | —% Diluted | $ | 1.97 | | | $ | 1.95 | | | 1% | | | | | DIVIDENDS PER COMMON SHARE | $ | 1.0885 | | | $ | 1.0568 | | | DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | 2,407.2 | | | | 2,436.8 | | | | | | | | COMPARISONS AS A % OF NET SALES | | | | | Basis Pt Chg Gross profit | | 49.8 | % | | | 51.4 | % | | (160) Selling, general and administrative expense | | 24.3 | % | | | 25.2 | % | | (90) Operating income | | 25.5 | % | | | 26.2 | % | | (70) Earnings before income taxes | | 25.9 | % | | | 27.0 | % | | (110) Net earnings | | 20.4 | % | | | 21.4 | % | | (100) Net earnings attributable to Procter & Gamble | | 20.3 | % | | | 21.2 | % | | (90) (1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Consolidated Earnings Information | | Three Months Ended September 30, 2026 Amounts in millions | Net Sales | | % ChangeVersus YearAgo | | Earnings/(Loss) BeforeIncome Taxes | | % ChangeVersus YearAgo | | Net Earnings/(Loss) | | % ChangeVersus YearAgo Beauty | $ | 4,410 | | 6% | | $ | 1,139 | | | 1% | | $ | 868 | | | (1)% Grooming | | 1,889 | | 4% | | | 619 | | | 6% | | | 477 | | | 3% Health Care | | 3,318 | | 3% | | | 1,029 | | | 10% | | | 783 | | | 9% Fabric & Home Care | | 8,205 | | 4% | | | 2,080 | | | 4% | | | 1,601 | | | 3% Baby, Feminine & Family Care | | 5,322 | | 3% | | | 1,390 | | | (4)% | | | 1,060 | | | (4)% Corporate | | 132 | | N/A | | | (234 | ) | | N/A | | | (32 | ) | | N/A Total Company | $ | 23,276 | | 4% | | $ | 6,023 | | | —% | | $ | 4,757 | | | (1)% | Three Months Ended September 30, 2026 Net Sales Drivers (1) | Volume | | OrganicVolume | | ForeignExchange | | Price | | Mix | | A&D (2) | | Net Sales Beauty | 2.2% | | 2.2% | | 1.1% | | 0.7% | | 2.5% | | —% | | 6.4% Grooming | (0.4)% | | (0.4)% | | (0.4)% | | 3.5% | | 1.5% | | (0.1)% | | 4.0% Health Care | (2.9)% | | (2.9)% | | 0.4% | | 2.8% | | 2.8% | | (0.1)% | | 3.1% Fabric & Home Care | 4.3% | | 4.3% | | (0.6)% | | (0.3)% | | 0.8% | | —% | | 4.2% Baby, Feminine & Family Care | 2.3% | | 2.3% | | (0.1)% | | (1.2)% | | 1.8% | | —% | | 2.9% Total Company | 2.4% | | 2.4% | | —% | | 0.4% | | 1.1% | | —% | | 4.0% (1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. (2) Acquisitions and Divestitures excluding volume impact. Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Consolidated Statements of Cash Flows | | Three Months Ended September 30 Amounts in millions | | 2026 | | | | 2025 | CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 9,942 | | | $ | 9,556 | OPERATING ACTIVITIES | | | Net earnings | | 4,757 | | | | 4,781 | Depreciation and amortization | | 810 | | | | 761 | Share-based compensation expense | | 98 | | | | 121 | Deferred income taxes | | 115 | | | | 53 | (Gain)/loss on sale of assets | | (20 | ) | | | (3 | ) Change in accounts receivable | | (589 | ) | | | (305 | ) Change in inventories | | (349 | ) | | | (303 | ) Change in accounts payable | | 1,149 | | | | 648 | Other | | (204 | ) | | | (344 | ) TOTAL OPERATING ACTIVITIES | | 5,767 | | | | 5,408 | INVESTING ACTIVITIES | | | Capital expenditures | | (1,366 | ) | | | (1,200 | ) Proceeds from asset sales | | 27 | | | | 8 | Acquisitions, net of cash acquired | | — | | | | (5 | ) Other investing activity | | (121 | ) | | | (338 | ) TOTAL INVESTING ACTIVITIES | | (1,460 | ) | | | (1,535 | ) FINANCING ACTIVITIES | | | Dividends to shareholders | | (2,603 | ) | | | (2,549 | ) Additions to short-term debt with original maturities of more than three months | | — | | | | 1,123 | Reductions in short-term debt with original maturities of more than three months | | (157 | ) | | | (1,800 | ) Net additions/(reductions) to other short-term debt | | 5,758 | | | | 2,108 | Reductions in long-term debt | | (747 | ) | | | (3 | ) Treasury stock purchases | | (1,250 | ) | | | (1,250 | ) Impact of stock options and other | | 143 | | | | 134 | TOTAL FINANCING ACTIVITIES | | 1,144 | | | | (2,239 | ) EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | | (29 | ) | | | (20 | ) CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | | 5,423 | | | | 1,615 | CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 15,365 | | | $ | 11,171 | Certain columns and rows may not add due to rounding. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets | | | Amounts in millions | September 30, 2026 | | June 30, 2026 Cash and cash equivalents | $ | 15,365 | | $ | 9,942 Accounts receivable | | 6,620 | | | 6,056 Inventories | | 8,485 | | | 8,170 Prepaid expenses and other current assets | | 2,038 | | | 2,040 TOTAL CURRENT ASSETS | | 32,508 | | | 26,208 Property, plant and equipment, net | | 25,519 | | | 25,360 Goodwill | | 41,197 | | | 41,276 Trademarks and other intangible assets, net | | 21,359 | | | 21,444 Other noncurrent assets | | 12,549 | | | 12,231 TOTAL ASSETS | $ | 133,132 | | $ | 126,521 | | | Accounts payable | $ | 17,056 | | $ | 16,306 Accrued and other liabilities | | 10,911 | | | 11,091 Debt due within one year | | 17,028 | | | 11,296 TOTAL CURRENT LIABILITIES | | 44,996 | | | 38,694 Long-term debt | | 21,897 | | | 22,842 Deferred income taxes | | 5,949 | | | 5,760 Other noncurrent liabilities | | 4,954 | | | 4,914 TOTAL LIABILITIES | | 77,795 | | | 72,210 TOTAL SHAREHOLDERS' EQUITY | | 55,337 | | | 54,311 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 133,132 | | $ | 126,521 Certain columns and rows may not add due to rounding. The Procter & Gamble Company Exhibit 1: Non-GAAP Measures The following provides definitions of the non-GAAP measures used in Procter & Gamble's October 22, 2026 earnings release and the reconciliation to the most closely related GAAP measures. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. Certain of these measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results. Note that certain columns and rows may not add due to rounding. The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following item: - Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax annually. In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $2 billion in before-tax restructuring costs over two years and has incurred over half of the costs under this plan in fiscal 2026, with the remainder expected to be incurred in fiscal 2027. The adjustments to Core earnings include the restructuring charges that exceed the normal, recurring level of restructuring charges. We do not view the above item to be part of our sustainable results, and their exclusion from Core earnings measures provides a more comparable measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at-risk compensation. Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing the achievement of management goals for at-risk compensation. Core EPS and Currency-neutral Core EPS: Core earnings per share, or Core EPS, is a measure of diluted net earnings per common share (diluted EPS) adjusted for items as indicated. Currency-neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. Management views these non-GAAP measures as useful supplemental measures of Company performance over time. Core gross margin and Currency-neutral Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Currency-neutral Core gross margin is a measure of the Company's Core gross margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time. Core selling, general and administrative (SG&A) expense as a percentage of sales and Currency-neutral Core SG&A expense as a percentage of sales: Core SG&A expense as a percentage of sales is a measure of the Company's selling, general and administrative expense as a percentage of net sales adjusted for items as indicated. Currency-neutral Core SG&A expense as a percentage of sales is a measure of the Company's Core selling, general and administrative expense as a percentage of net sales excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time. Core operating margin and Currency-neutral Core operating margin: Core operating margin is a measure of the Company's operating margin adjusted for items as indicated. Currency-neutral Core operating margin is a measure of the Company's Core operating margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time. Free cash flow: Free cash flow is defined as operating cash flow less capital spending. Free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. We view free cash flow as an important measure because it is one factor used in determining the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments. Free cash flow productivity: Free cash flow productivity is defined as the ratio of free cash flow to net earnings. We view free cash flow productivity as a useful measure to help investors understand P&G's ability to generate cash. Free cash flow productivity is used by management in making operating decisions, in allocating financial resources and for budget planning purposes. This measure is also used in assessing the achievement of management goals for at-risk compensation. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIESReconciliation of Non-GAAP Measures | | Three Months Ended September 30, 2026 Amounts in millions except per share amounts | As Reported(GAAP) | | IncrementalRestructuring | | Core(Non-GAAP) Cost of products sold | $ | 11,678 | | | $ | (44 | ) | | $ | 11,634 | Gross profit | | 11,598 | | | | 44 | | | | 11,642 | Gross margin | | 49.8 | % | | | 0.2 | % | | | 50.0 | % Currency impact to Core gross margin | | | | | | — | % Currency-neutral Core gross margin | | | | | | 50.0 | % Selling, general and administrative expense | | 5,661 | | | | (54 | ) | | | 5,607 | Selling, general and administrative expense as a % of net sales | | 24.3 | % | | | (0.2 | )% | | | 24.1 | % Currency impact to Core selling, general and administrative expense as a % of net sales | | | | | | 0.1 | % Currency-neutral Core selling, general and administrative expense as a % of net sales | | | | | | 24.2 | % Operating income | | 5,937 | | | | 98 | | | | 6,035 | Operating margin | | 25.5 | % | | | 0.4 | % | | | 25.9 | % Currency impact to Core operating margin | | | | | | (0.1 | )% Currency-neutral Core operating margin | | | | | | 25.8 | % Other non-operating income/(expense), net | | 207 | | | | 2 | | | | 209 | Income taxes | | 1,267 | | | | 20 | | | | 1,287 | Net earnings | | 4,757 | | | | 80 | | | | 4,837 | Less: Net earnings attributable to noncontrolling interests | | 26 | | | | 2 | | | | 28 | Net earnings attributable to P&G | | 4,731 | | | | 77 | | | | 4,808 | | | | | | Core EPS Diluted net earnings per common share (1) | $ | 1.97 | | | $ | 0.03 | | | $ | 2.00 | Currency impact to Core EPS | | | | | $ | (0.01 | ) Currency-neutral Core EPS | | | | | $ | 1.99 | Diluted weighted average common shares outstanding | | 2,407.2 | | | | | (1) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIESReconciliation of Non-GAAP Measures | | Three Months Ended September 30, 2025 Amounts in millions except per share amounts | As Reported(GAAP) | | IncrementalRestructuring | | Core(Non-GAAP) Cost of products sold | $ | 10,887 | | | $ | (39 | ) | | $ | 10,848 | Gross profit | | 11,499 | | | | 39 | | | | 11,537 | Gross margin | | 51.4 | % | | | 0.1 | % | | | 51.5 | % Currency impact to Core gross margin | | | | | | 0.2 | % Currency-neutral Core gross margin | | | | | | 51.7 | % Selling, general and administrative expense | | 5,643 | | | | (77 | ) | | | 5,566 | Selling, general and administrative expense as a % of net sales | | 25.2 | % | | | (0.3 | )% | | | 24.9 | % Currency impact to Core selling, general and administrative expense as a % of net sales | | | | | | 0.3 | % Currency-neutral Core selling, general and administrative expense as a % of net sales | | | | | | 24.6 | % Operating income | | 5,856 | | | | 116 | | | | 5,972 | Operating margin | | 26.2 | % | | | 0.5 | % | | | 26.7 | % Currency impact to Core operating margin | | | | | | 0.4 | % Currency-neutral Core operating margin | | | | | | 27.1 | % Other non-operating income/(expense), net | | 268 | | | | 7 | | | | 275 | Income taxes | | 1,253 | | | | 23 | | | | 1,276 | Net earnings attributable to P&G | | 4,750 | | | | 100 | | | | 4,850 | | | | | | Core EPS Diluted net earnings per common share (1) | $ | 1.95 | | | $ | 0.04 | | | $ | 1.99 | Currency impact to earnings | | | | | $ | — | Currency-neutral EPS | | | | | $ | 1.99 | Diluted weighted average common shares outstanding | | 2,436.8 | | | | | (1) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. | | | | | | | | CHANGE VERSUS YEAR AGO | | | | Gross margin | (160 | ) | | BPS | Core gross margin | (150 | ) | | BPS | Currency-neutral Core gross margin | (150 | ) | | BPS | Selling, general and administrative expense as a % of net sales | (90 | ) | | BPS | Core selling, general and administrative expense as a % of net sales | (80 | ) | | BPS | Currency-neutral Core selling, general and administrative as a % of net sales | (70 | ) | | BPS | Operating margin | (70 | ) | | BPS | Core operating margin | (80 | ) | | BPS | Currency-neutral Core operating margin | (90 | ) | | BPS | Diluted EPS | 1 | % | | | Core EPS | 1 | % | | | Currency-neutral Core EPS | — | % | | | | | | | | Certain columns and rows may not add due to rounding. Organic sales growth: | | | | | | | July - September 2026 | Net Sales Growth | | Foreign ExchangeImpact | | Acquisition &Divestiture Impact | | Organic SalesGrowth Beauty | 6.4% | | (1.1)% | | —% | | 5.4% Grooming | 4.0% | | 0.4% | | 0.2% | | 4.5% Health Care | 3.1% | | (0.4)% | | —% | | 2.7% Fabric & Home Care | 4.2% | | 0.6% | | —% | | 4.8% Baby, Feminine & Family Care | 2.9% | | 0.1% | | —% | | 3.0% Total Company | 4.0% | | —% | | —% | | 4.0% | | | | | | Total Company | | Net Sales Growth | | Combined Foreign Exchange &Acquisition/Divestiture Impact/Other (1) | | Organic Sales Growth FY 2027 (Estimate) | | +2% to +4% | | -1% | | +1% to +3% (1) Combined Foreign Exchange & Acquisition/Divestiture Impact/Other includes foreign exchange impacts, the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales. Core EPS growth: | | | | | | Total Company | | Diluted EPS Growth | | Impact of Incremental Non-Core Items (1) | | Core EPS Growth FY 2027 (Estimate) | | +1% to +5% | | -1% to -2% | | -% to +3% (1) Includes the impact of incremental non-core restructuring charges including the portfolio and productivity plan. Free cash flow (dollar amounts in millions): Three Months Ended September 30, 2026 Operating Cash Flow | | Capital Spending | | Free Cash Flow $5,767 | | $(1,366) | | $4,401 Free cash flow productivity (dollar amounts in millions): Three Months Ended September 30, 2026 Free Cash Flow | | Net Earnings | | Free Cash Flow Productivity $4,401 | | $4,757 | | 93% Certain columns and rows may not add due to rounding. Category: PG-IR View source version on businesswire.com: https://www.businesswire.com/news/home/20261022817063/en/ Contacts P&G Media Contacts: Wendy Kennedy, 513.780.7212 Holly Stutz Smith, 513.659.9949 P&G Investor Relations Contact: Keri Cowan, 513.983.2414