P&G Q1 FY2027: Organic Sales +4%, Core EPS $2.00; FY Guidance Maintained, Thorne Lifts Sales Outlook
PG sits 17% above its 52-week low of $137.62.
Summary
P&G's fiscal Q1 beat the prior year on sales (+4%) and core EPS ($2.00, +1%), and it kept FY2027 organic sales and EPS guidance intact while adding Thorne to the all-in sales range; the quarter's $23.3 bln in sales and $2 adjusted EPS both topped analyst consensus, and $3.9 bln went back to shareowners.
Updated with a Reuters report · What changed
Updates
· SEC 10-Q — P&G's Q1 FY2027 net earnings were $4.73 billion, operating cash flow $5.77 billion and capital expenditures $1.37 billion; cash rose to $15.37 billion.
· Dow Jones Newswires — P&G shares rose 3.2% to $161.88 in premarket trading after Q1 sales of $23.28 billion and adjusted EPS of $2.00 beat estimates.
· Reuters — P&G's Q1 net sales rose 4% and core EPS increased 1%, both beating analyst expectations, and the company returned $3.9 bln to shareholders through dividends and buybacks.
- Consensus Beats — Q1 sales of $23.3 bln beat the $22.80 bln consensus estimate of 15 analysts, and Q1 adjusted EPS of $2 beat the $1.88 consensus estimate of 19 analysts.
- Reported EPS — Q1 EPS was $1.97.
- Sales Drivers — Organic sales growth was driven by higher volume and favorable product mix, with minor positive impact from pricing.
- Margins — Gross margin declined on higher commodity, reinvestment and transportation costs, partially offset by productivity savings; the lower SG&A expense ratio came from productivity savings and sales growth leverage.
All 6 details
- Q1 sales were $23.3 bln, beating the $22.80 bln consensus estimate of 15 analysts
- Q1 adjusted EPS was $2, beating the $1.88 consensus estimate of 19 analysts
- Q1 EPS was $1.97
- Organic sales growth was driven by higher volume and favorable product mix, with minor positive impact from pricing
- Gross margin declined due to higher commodity, reinvestment and transportation costs, partially offset by productivity savings
- Lower SG&A expense ratio was attributed to productivity savings and sales growth leverage
Key Events · Earnings and Guidance · PG
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Updated · · Reuters
Q1 FY2027 Sales Up 4%, Beating Consensus
Net sales of $23.3B rose 4.0% and organic sales also rose 4.0%, driven by 2% volume growth and 1% favorable mix, with a minor positive impact from pricing; Q1 sales were $23.3 bln, beating the $22.80 bln consensus estimate of 15 analysts.
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Updated · · Reuters
Core EPS $2.00, Up 1%, Beating Consensus
Diluted EPS was $1.97 (+1%) and core EPS $2.00 (+1%), beating the $1.88 consensus estimate of 19 analysts; Q1 adjusted EPS was $2 and Q1 EPS was $1.97. Gross margin fell 160 bps on higher commodity, reinvestment and transportation costs, partially offset by productivity savings, and the lower SG&A expense ratio reflected productivity savings and sales growth leverage.
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FY2027 Guidance Maintained
Organic sales growth held at +1% to +3% and core EPS at $6.89-$7.11; all-in sales growth updated to +2% to +4% to reflect Thorne from October 1, 2026.
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$0.79/Share Cost Headwind
Commodity costs are now a ~$1.4B after-tax headwind, plus $300M higher net interest, $150M lower non-operating income and $50M FX — an 11% drag on core EPS growth.
Analysis · PG · Industrial Applications And Services
P&G delivered a clean first quarter: $23.3B net sales (+4%) and $2.00 core EPS (+1%), with operating cash flow of $5.8B funding $3.9B of dividends and buybacks. Both lines beat the street — sales of $23.3 bln against a $22.80 bln consensus estimate of 15 analysts and adjusted EPS of $2 against a $1.88 consensus estimate of 19 analysts, with reported EPS of $1.97. Growth came from higher volume and favorable product mix with only a minor positive impact from pricing, while gross margin fell on higher commodity, reinvestment and transportation costs, partly offset by productivity savings; the lower SG&A expense ratio reflected productivity savings and sales growth leverage. The bigger story is the cost line — commodity headwinds are now ~$1.4B after tax, and combined with interest, non-operating income and FX the drag is $0.79 per share, or 11% of core EPS growth. Management still expects $6.89-$7.11 core EPS, so the offsets have to come from productivity and pricing. All-in sales guidance was raised to +2% to +4% purely to fold in Thorne from October 1, while organic growth stays at +1% to +3%.
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At the time of this filing, PG was trading at $160.90 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $364.3B. The 52-week trading range was $137.62 to $167.25. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.