P&G posts mixed financial results for fourth quarter

CINCINNATI – Procter & Gamble Co. (PG) today reported financial results for its fiscal 2026 fourth quarter and full year.

Fourth-quarter earnings came in at $3.04 billion, or $1.26 per share, down from $3.62 billion, or $1.48 per share, a year earlier. The average estimate for quarterly earnings from 10 analysts surveyed by Zacks Investment Research was $1.41 per share.

Net sales increased 2% to $21.2 billion in the quarter through June. Organic revenue, which excludes acquisitions, divestitures and currency fluctuations, was unchanged due to flat volume across the consumer goods giant’s portfolio of household, beauty, and family care products.

For the full year, net sales rose 3% to $87 billion.

Shailesh Jejurikar, P&G’s president and chief executive officer, said the company experienced a “challenging geopolitical and economic environment” in fiscal 2026 and there will be “continued volatility” in fiscal 2027.

“Fiscal 2026 was a year of foundation building while continuing to grow sales and profit and return high levels of cash to shareowners despite a very challenging geopolitical and economic environment,” Jejurikar said. “In fiscal 2027, we expect to deliver progress on each of these key measures despite continued volatility. We believe the best path to sustainable, balanced growth is to double down on our strategy and put the consumer first in everything we do.”

The company also announced today that  Jejurikar will become board chairman on August 1.

P&G cited improving global share trends in the fourth quarter, but said financial results were negatively impacted by trade dynamics in the U.S. and rising costs of energy and other inputs.

The company’s beauty division was the top performer in the quarter, posting 3% volume growth. Its fabric and home care segment also saw volume growth, reporting a 1% sales gain.

Sales in P&G’s baby, feminine and family care division posted a 1% decline in volume. P&G’s worst performer for the quarter was its health care division, where volume declined 3%, mainly on weakness in its oral care products.

"P&G’s revenue miss underscores consumers’ value-seeking tendencies, as shoppers of all income levels look for ways to save money on household products and other necessities,” said Rachel Wolff, senior analyst at Emarketer. “P&G’s strategy thus far has been to lean on product innovation and quality to justify its pricing and keep shoppers loyal. But that strategy is being severely tested, with volumes declining in three of its five product segments, suggesting that the company may need to lean harder into value messaging to convince consumers to buy its products."

The company warned that it will face an estimated headwind of about $1 billion due to higher raw materials, energy, and transportation costs in fiscal 2027.

P&G expects fiscal 2027 sales growth in the range of 1% to 3% compared to the just-completed year. P&G is also projecting organic sales growth in the range of 1% to 3%, factoring in a 30- to 50-basis-point headwind from brand, product form and go-to-market discontinuations.