Procter & Gamble (NYSE:PG) Posts Earnings Results, Beats Expectations By $0.02 EPS

Procter & Gamble (NYSE:PG) posted its earnings results on Wednesday. The company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.02, FiscalAI reports. The business had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $21.38 billion. Procter & Gamble had a return on equity of 32.00% and a net margin of 19.16%.The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.48 EPS. Procter & Gamble updated its FY 2027 guidance to 6.890-7.110 EPS.

Here are the key takeaways from Procter & Gamble’s conference call:

• Fiscal 2026 met guidance: Organic sales grew more than 1%, core EPS rose 1% to $6.89, and P&G returned over $15 billion to shareholders despite a volatile environment.
• Share trends stabilized: Global value and volume share exited the year flat with improvement in the second half, while Greater China delivered 4% organic sales growth and returned to share growth after 15 quarters.
• Management is emphasizing stronger core products, targeted innovation, retailer partnerships, AI-enabled brand building, and supply-chain automation to improve consumer engagement and support longer-term growth.
• Fourth-quarter core EPS fell 3% year over year, while operating margin declined 130 basis points, reflecting higher energy, transportation, and material costs and retailer inventory reductions that created a gap between consumption and shipments.
• Fiscal 2027 guidance remains cautious: Organic sales are expected to grow 1%-3% and core EPS 0%-3%, with approximately $1.4 billion of after-tax headwinds from input costs, foreign exchange, interest expense, and lower non-operating income; Q1 EPS is expected to decline at least 5%.

Procter & Gamble Stock Performance

NYSE PG traded down $3.62 during trading hours on Wednesday, hitting $145.26. 8,157,853 shares of the stock were exchanged, compared to its average volume of 10,005,460. The company has a quick ratio of 0.53, a current ratio of 0.73 and a debt-to-equity ratio of 0.44. The company has a market cap of $338.26 billion, a price-to-earnings ratio of 21.24, a price-to-earnings-growth ratio of 7.39 and a beta of 0.39. Procter & Gamble has a 12-month low of $137.62 and a 12-month high of $167.25. The stock has a 50-day moving average of $147.63 and a 200 day moving average of $148.90.

Procter & Gamble Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Friday, July 24th will be issued a dividend of $1.0885 per share. This represents a $4.35 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Friday, July 24th. Procter & Gamble’s dividend payout ratio is currently 63.60%.

More Procter & Gamble News

Here are the key news stories impacting Procter & Gamble this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. P&G reported fiscal fourth-quarter EPS of $1.43, topping the $1.41 consensus estimate. Profitability remained strong, with a reported net margin of 19.16% and return on equity of 32%. Procter & Gamble Surpasses Q4 Earnings Estimates
• Positive Sentiment: Leadership succession was clarified. CEO Shailesh Jejurikar will become chairman of the board on Aug. 1, while Executive Chairman Jon Moeller will retire from P&G in August. The move provides continuity because Jejurikar will retain his CEO role. Shailesh Jejurikar Appointed Chairman
• Neutral Sentiment: Sales growth was modest. Fourth-quarter revenue rose approximately 1.5% year over year to $21.2 billion, but volume was essentially unchanged, indicating limited underlying demand momentum. Weakness was particularly evident in grooming and oral-care categories. Procter & Gamble Revenue Misses Estimates
• Negative Sentiment: Revenue missed Wall Street expectations. Quarterly sales of $21.2 billion fell short of the $21.38 billion consensus, overshadowing the EPS beat. Investors viewed the miss as evidence that demand remains pressured by cautious consumers and a difficult economic and geopolitical environment. P&G Forecasts Muted 2027
• Negative Sentiment: Fiscal 2027 guidance was below expectations. P&G forecast revenue of $85.1 billion to $86.8 billion, versus analysts’ $89.5 billion estimate, and EPS of $6.89 to $7.11, compared with a $7.07 consensus. Inflation, tariffs, higher operating costs and selling expenses are expected to weigh on growth. P&G Reports Flat Organic Sales Amid Rising Costs

Wall Street Analyst Weigh In

PG has been the topic of several research analyst reports. Jefferies Financial Group lifted their price target on Procter & Gamble from $177.00 to $179.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Barclays raised their target price on shares of Procter & Gamble from $146.00 to $152.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Rothschild & Co Redburn cut their target price on shares of Procter & Gamble from $157.00 to $155.00 and set a “neutral” rating on the stock in a report on Monday, April 27th. Bank of America reduced their price target on shares of Procter & Gamble from $170.00 to $166.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $163.00 price target on shares of Procter & Gamble in a research note on Monday, April 27th. Twelve analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $161.74.

Hedge Funds Weigh In On Procter & Gamble

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Carson Advisory Inc. lifted its holdings in shares of Procter & Gamble by 0.5% in the 4th quarter. Carson Advisory Inc. now owns 12,124 shares of the company’s stock valued at $1,738,000 after buying an additional 65 shares during the period. Binnacle Investments Inc grew its holdings in Procter & Gamble by 7.0% during the second quarter. Binnacle Investments Inc now owns 1,097 shares of the company’s stock worth $175,000 after acquiring an additional 72 shares during the period. Aviso Wealth Management raised its position in Procter & Gamble by 1.3% in the fourth quarter. Aviso Wealth Management now owns 5,913 shares of the company’s stock worth $847,000 after acquiring an additional 73 shares in the last quarter. Delta Global Management LP increased its holdings in shares of Procter & Gamble by 0.8% in the 4th quarter. Delta Global Management LP now owns 8,970 shares of the company’s stock valued at $1,285,000 after purchasing an additional 74 shares in the last quarter. Finally, Blue Chip Partners LLC increased its holdings in Procter & Gamble by 0.4% in the second quarter. Blue Chip Partners LLC now owns 20,285 shares of the company’s stock valued at $3,232,000 after buying an additional 74 shares in the last quarter. Institutional investors and hedge funds own 65.77% of the company’s stock.

Procter & Gamble Company Profile

Procter & Gamble (NYSE: PG) is a multinational consumer goods company headquartered in Cincinnati, Ohio. Founded in 1837 by William Procter and James Gamble, P&G has grown into one of the world’s largest producers of branded consumer packaged goods. The company focuses on developing, manufacturing and marketing a broad portfolio of household and personal care products sold to consumers and retailers worldwide.

P&G’s product offering spans several core business categories, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.