Procter & Gamble (NYSE:PG) Announces Earnings Results

Procter & Gamble (NYSE:PG) announced its quarterly earnings results on Thursday. The company reported $2.00 EPS for the quarter, topping analysts’ consensus estimates of $1.89 by $0.11, FiscalAI reports. Procter & Gamble had a return on equity of 31.36% and a net margin of 18.44%. The business had revenue of $23.28 billion for the quarter, compared to analysts’ expectations of $22.80 billion. During the same period in the previous year, the firm earned $1.99 EPS. The business’s quarterly revenue was up 4.0% on a year-over-year basis.

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

• Q1 organic sales rose 4.0%, with volume up 2.4 points and all 10 product categories and six regions posting growth. North American volume improved 3 points, while Greater China organic sales increased 8%.
• Market-share trends improved, with more than 70% of P&G’s top U.S. customers holding or growing share, up from less than 10% in the first half of fiscal 2026. Global aggregate share was flat, and 29 of the top 50 category-country combinations held or gained share.
• Profitability remains pressured by inflation, freight, energy, and raw-material costs. Core gross margin declined 150 basis points and operating margin fell 80 basis points, while the company raised its expected fiscal-year after-tax cost headwind to approximately $1.4 billion.
• P&G maintained fiscal 2027 guidance for organic sales growth of 1%-3%, core EPS growth of 0%-3% ($6.89-$7.11), and free-cash-flow productivity of 85%-90%. Management expects roughly 3% organic growth in the first half, followed by potential acceleration in the second half, but cautioned that consumer demand, oil prices, currencies, and geopolitical conditions could create quarter-to-quarter volatility.
• Productivity initiatives are beginning to provide structural leverage through supply-chain automation, digitization, restructuring, and more efficient brand investment. The company plans to return approximately $15 billion to shareholders in fiscal 2027 through dividends and share repurchases.

Procter & Gamble Trading Up 5.8%

NYSE PG traded up $9.09 during trading on Thursday, hitting $165.93. The company had a trading volume of 8,788,855 shares, compared to its average volume of 9,691,813. The company’s fifty day moving average is $147.65 and its 200-day moving average is $146.83. Procter & Gamble has a one year low of $137.62 and a one year high of $167.25. The company has a current ratio of 0.68, a quick ratio of 0.47 and a debt-to-equity ratio of 0.43. The company has a market cap of $385.39 billion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 3.96 and a beta of 0.39.

Procter & Gamble Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Friday, October 23rd will be issued a $1.0885 dividend. The ex-dividend date is Friday, October 23rd. This represents a $4.35 annualized dividend and a yield of 2.6%. Procter & Gamble’s dividend payout ratio is 65.71%.

Trending Headlines about Procter & Gamble

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

• Positive Sentiment: PG reported quarterly earnings of $2.00 per share, exceeding the $1.89 consensus estimate and rising from $1.99 a year earlier. Revenue increased 4% year over year to $23.28 billion, above expectations of approximately $22.80 billion. Procter & Gamble Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Sales growth was supported by laundry and home-care products, suggesting demand for essential brands such as Tide and Pampers is holding up despite pressure on consumer budgets. Procter & Gamble Earnings Beat as Sales Rise 4%
• Positive Sentiment: The company raised its full-year sales outlook, with the acquisition of Thorne contributing to the improved forecast. Organic growth guidance remains approximately 1% to 3%. Organic Growth and Thorne Acquisition Drive Procter & Gamble Earnings
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating and maintained a $166 price target, implying additional upside from the referenced share price. Royal Bank of Canada Reaffirms Outperform Rating
• Neutral Sentiment: PG’s defensive profile remains attractive to income investors: the company recently announced its 70th consecutive annual dividend increase. However, modest organic-growth expectations may limit the stock’s valuation upside.
• Negative Sentiment: Management warned that higher commodity and fuel costs could create an approximately $1.4 billion cost squeeze and result in a larger hit to annual profit. Investors will therefore focus on pricing, cost controls and whether sales growth can offset inflationary pressures. P&G Flags Bigger Hit to Annual Profit from Higher Commodity Costs

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $149.00 target price on shares of Procter & Gamble in a research note on Monday, August 24th. Bank of America decreased their price objective on shares of Procter & Gamble from $170.00 to $166.00 and set a “buy” rating on the stock in a research report on Friday, July 10th. JPMorgan Chase & Co. lowered their price objective on shares of Procter & Gamble from $164.00 to $162.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Barclays raised their target price on Procter & Gamble from $146.00 to $152.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 21st. Finally, Citigroup upped their price target on Procter & Gamble from $170.00 to $180.00 and gave the company a “buy” rating in a research report on Friday, October 9th. Fourteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Procter & Gamble presently has a consensus rating of “Moderate Buy” and an average price target of $162.20.

Insider Activity at Procter & Gamble

In related news, insider Marc Pritchard sold 4,030 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $143.79, for a total transaction of $579,473.70. Following the transaction, the insider owned 187,001 shares in the company, valued at $26,888,873.79. The trade was a 2.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andre Schulten sold 3,914 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $145.34, for a total transaction of $568,860.76. Following the completion of the transaction, the chief financial officer directly owned 65,618 shares of the company’s stock, valued at approximately $9,536,920.12. The trade was a 5.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 15,135 shares of company stock valued at $2,189,970 over the last three months. Corporate insiders own 0.23% of the company’s stock.

Procter & Gamble Company Profile

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.