P&G Reports Q4 EPS Decline, Flat Organic Sales; Issues Modest FY27 Guidance with Cost Headwinds

summarizeSummary

P&G reported a 15% diluted EPS decline and flat organic sales for Q4 FY2026, with full-year core EPS up only 1%. The company issued modest FY2027 guidance for sales and EPS growth, citing significant cost headwinds.

check_boxKey Events · Earnings and Guidance · PG

• Q4 FY2026 Results Miss Expectations

  For the fourth quarter, net sales increased 2% to $21.2 billion, but organic sales were flat. Diluted EPS decreased 15% to $1.26, and Core EPS decreased 3% to $1.43.

• FY2026 Full Year Modest Growth

  Fiscal year 2026 net sales increased 3% to $87.0 billion, with organic sales up 1%. Diluted EPS increased 2% to $6.62, and Core EPS increased 1% to $6.89.

• FY2027 Guidance Reflects Headwinds

  P&G expects FY2027 all-in and organic sales growth of 1-3%. Diluted EPS growth is projected at 1-5%, and Core EPS growth is expected to be in-line to 3%, with an 8% drag from approximately $0.56 per share in cost headwinds.

• Continued Shareholder Returns

  The company returned over $15 billion to shareholders in FY2026 through $10.2 billion in dividends and $5.0 billion in share repurchases, and plans similar returns for FY2027.

auto_awesomeAnalysis · PG · Industrial Applications And Services

Procter & Gamble reported a significant 15% decline in diluted EPS and a 3% drop in core EPS for the fourth quarter, alongside flat organic sales. While full-year 2026 results showed modest growth, the outlook for fiscal year 2027 projects only 1-3% sales growth and in-line to 3% core EPS growth. This modest guidance is further dampened by an estimated 8% drag on core EPS from substantial cost headwinds, including higher raw materials, energy, transportation, and interest expenses. This indicates a challenging operating environment and a cautious outlook for a major consumer staples company.