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

Key Points

• P&G beat earnings expectations: Fiscal fourth-quarter EPS was $1.43, ahead of the $1.41 consensus, while revenue rose 1.5% year over year to $21.20 billion but missed the $21.38 billion estimate.
• Fiscal 2027 guidance was cautious: The company expects core EPS of $6.89-$7.11 and organic sales growth of 1%-3%, citing inflation, foreign exchange, input costs and other headwinds.
• Shareholders will receive a quarterly dividend of $1.0885 per share, equivalent to an annualized $4.35 and a 3.0% yield; shares declined during Wednesday’s trading session.

Procter & Gamble (NYSE:PG - Get Free Report) posted its earnings results on Wednesday. The company reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.41 by $0.02, FiscalAI reports. Procter & Gamble had a net margin of 19.16% and a return on equity of 32.00%. The business had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $21.38 billion. During the same quarter last year, the firm posted $1.48 EPS. The company's revenue for the quarter was up 1.5% on a year-over-year basis. 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

Shares of PG traded down $4.08 during trading hours on Wednesday, reaching $144.80. 7,025,215 shares of the company traded hands, compared to its average volume of 9,998,339. The business has a fifty day moving average price of $147.63 and a 200-day moving average price of $148.90. Procter & Gamble has a 12-month low of $137.62 and a 12-month high of $167.25. 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 stock has a market capitalization of $337.17 billion, a P/E ratio of 21.19, a P/E/G ratio of 7.39 and a beta of 0.39.

Procter & Gamble Announces Dividend

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

Procter & Gamble News Summary

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

Institutional Trading of Procter & Gamble

Institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp raised its position in Procter & Gamble by 1.0% during the fourth quarter. State Street Corp now owns 101,618,926 shares of the company's stock valued at $14,563,008,000 after acquiring an additional 984,102 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Procter & Gamble by 3.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,612,826 shares of the company's stock valued at $4,243,815,000 after purchasing an additional 1,091,091 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Procter & Gamble by 6.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 18,779,055 shares of the company's stock valued at $2,691,228,000 after acquiring an additional 1,120,313 shares during the period. Dimensional Fund Advisors LP raised its holdings in Procter & Gamble by 5.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,497,636 shares of the company's stock worth $1,647,809,000 after purchasing an additional 619,934 shares during the period. Finally, Amundi boosted its position in Procter & Gamble by 26.3% during the third quarter. Amundi now owns 10,682,455 shares of the company's stock worth $1,606,748,000 after purchasing an additional 2,222,560 shares in the last quarter. 65.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

PG has been the topic of a number of recent research reports. Piper Sandler increased their price objective on shares of Procter & Gamble from $142.00 to $145.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Barclays increased their target price on Procter & Gamble from $146.00 to $152.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 21st. BNP Paribas Exane reduced their price target on Procter & Gamble from $172.00 to $165.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. JPMorgan Chase & Co. cut their target price on Procter & Gamble from $164.00 to $162.00 and set an "overweight" rating on the stock in a research note on Thursday, July 16th. Finally, The Goldman Sachs Group reduced their target price on shares of Procter & Gamble from $159.00 to $155.00 and set a "neutral" rating for the company in a report on Wednesday, April 8th. 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.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $161.74.

About Procter & Gamble

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.

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