Procter & Gamble (NYSE:PG) Issues Earnings Results

Key Points

• Procter & Gamble beat quarterly expectations: EPS was $2.00 versus the $1.89 consensus, while revenue rose 4% year over year to $23.28 billion, exceeding estimates.
• Organic sales growth broadened: Q1 organic sales increased 4%, with volume up 2.4 points and growth across all 10 product categories and six regions; Greater China sales rose 8%.
• Cost pressures remain a key risk: Inflation, freight, energy and raw-material costs are expected to create an approximately $1.4 billion fiscal-year headwind. P&G maintained guidance for 1%-3% organic sales growth and core EPS growth of 0%-3%.

Procter & Gamble (NYSE:PG - Get Free Report) issued its earnings results on Thursday. The company reported $2.00 earnings per share for the quarter, topping analysts' consensus estimates of $1.89 by $0.11, FiscalAI reports. The firm had revenue of $23.28 billion during the quarter, compared to analyst estimates of $22.80 billion. Procter & Gamble had a net margin of 18.44% and a return on equity of 31.36%. The company's quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the business earned $1.99 earnings per share.

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 Price Performance

NYSE:PG traded up $8.86 during trading hours on Thursday, hitting $165.70. The stock had a trading volume of 8,310,801 shares, compared to its average volume of 9,688,824. Procter & Gamble has a one year low of $137.62 and a one year high of $167.25. The company has a 50 day simple moving average of $147.65 and a two-hundred day simple moving average of $146.83. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.68 and a quick ratio of 0.47. The firm has a market capitalization of $384.88 billion, a price-to-earnings ratio of 25.03, a P/E/G ratio of 3.96 and a beta of 0.39.

Procter & Gamble Dividend Announcement

The company also recently declared 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. This represents a $4.35 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Friday, October 23rd. Procter & Gamble's dividend payout ratio (DPR) is presently 65.71%.

Analysts Set New Price Targets

A number of analysts recently commented on PG shares. BMO Capital Markets upped their price target on shares of Procter & Gamble from $169.00 to $170.00 and gave the company an "outperform" rating in a research note on Monday, June 29th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $166.00 price target on shares of Procter & Gamble in a report on Tuesday. Bank of America reduced their price target on Procter & Gamble from $170.00 to $166.00 and set a "buy" rating for the company in a research report on Friday, July 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Procter & Gamble in a research report on Monday, September 21st. Finally, Argus lowered Procter & Gamble from a "buy" rating to a "hold" rating in a research note on Friday, August 7th. Fourteen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $162.20.

Insider Activity

In other Procter & Gamble news, CAO Matthew W. Janzaruk sold 359 shares of Procter & Gamble stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $145.24, for a total transaction of $52,141.16. Following the completion of the sale, the chief accounting officer directly owned 1,271 shares in the company, valued at $184,600.04. The trade was a 22.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Marc S. Pritchard sold 4,030 shares of Procter & Gamble stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $143.79, for a total transaction of $579,473.70. Following the sale, the insider owned 187,001 shares of the company's stock, valued at approximately $26,888,873.79. The trade was a 2.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 15,135 shares of company stock worth $2,189,970. Company insiders own 0.23% of the company's stock.

More Procter & Gamble News

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

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.

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