# Procter & Gamble (PG) Q4 FY2026 earnings

Results filed 2026-07-29 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/pg/2026-q4/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/80424/000008042426000093/0000080424-26-000093-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

P&G reported fourth quarter fiscal 2026 net sales of $21.2 billion, up 2%, with organic sales unchanged (0%), diluted EPS of $1.26 down 15% and core EPS of $1.43 down 3%.

Procter & Gamble's April-June quarter was flat on an underlying basis. Net sales rose two percent to $21.2 billion, but only because of currency and rounding; organic sales were unchanged. Beauty grew organic sales four percent, while Health Care and Baby, Feminine & Family Care declined. Heavy reinvestment, mainly in marketing, squeezed margins. Diluted EPS fell 15% to $1.26 and core EPS fell 3% to $1.43. For the full year, net sales rose 3% to $87.0 billion.
For fiscal 2027, management expects organic sales growth of one to three percent and core EPS growth from in-line to three percent, or $6.89 to $7.11 per share. It also expects about $0.56 per share of headwinds from higher raw materials, energy, transportation, interest and currency costs. The main tension is whether sales growth can speed up enough to fund marketing reinvestment and absorb those costs. Productivity savings are meant to cover the gap.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net sales | $21.2 billion | up two percent versus the prior year | GAAP |
| Net earnings | $3.1 billion | down 15% from a year ago | GAAP |
| Diluted EPS | $1.26 | down fifteen percent versus the prior year | GAAP |
| Core EPS | $1.43 | down three percent | non-GAAP |
| Gross margin | 48.5% | down 60 basis points from a year ago | GAAP |
| Operating income | 3,949 | down 9% from a year ago | GAAP |
| Operating margin | 18.6% | down 220 basis points from a year ago | GAAP |
| Operating cash flow | $5.1 billion |  | GAAP |
| Adjusted free cash flow | $4,108 |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Beauty net sales | $3,975 | 6% |
| Grooming net sales | 1,699 | 1% |
| Health Care net sales | 2,757 | 1% |
| Fabric & Home Care net sales | 7,432 | 1% |
| Baby, Feminine & Family Care net sales | 5,049 | (1)% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Core EPS range | fiscal year 2027 | $6.89 to $7.11 per share |
| Core effective tax rate | fiscal 2027 | approximately 20% |
| Adjusted free cash flow productivity | fiscal year 2027 | 85% to 90% |
| Non-core restructuring charges per share | fiscal 2027 | $0.13 to $0.17 per share |

## Key takeaways

1. **Organic sales were flat in the quarter** Fourth quarter net sales rose 2% to $21.2 billion, but organic sales were unchanged because foreign exchange and rounding each contributed one percent. Volume, pricing and mix were all neutral.
2. **Marketing reinvestment pressured core margins** Core SG&A rose 410 basis points from reinvestments, primarily in marketing, partly offset by 300 basis points of productivity savings. Core operating margin fell 130 basis points.
3. **Beauty grew while Health Care and Baby lagged** Beauty organic sales increased four percent, while Health Care decreased one percent and Baby, Feminine & Family Care decreased two percent. Oral Care and Family Care were weak.
4. **Fiscal 2027 outlook implies modest growth** P&G expects organic sales growth of one to three percent and core EPS of $6.89 to $7.11 per share. It also cited a $0.56 per share headwind from costs, interest, non-operating income and currency.
5. **Cash returns stayed high despite weaker earnings** P&G generated $19.6 billion of operating cash flow and returned over $15 billion to shareholders in fiscal 2026. It plans around $10 billion of dividends and approximately $5 billion of repurchases in fiscal 2027.

## Questions

**What were P&G's fourth quarter fiscal 2026 results?** Net sales were $21.2 billion, up 2%, with organic sales unchanged. Diluted EPS was $1.26, down 15%, and core EPS was $1.43, down 3%.
**Why did P&G's earnings fall in the quarter?** Core SG&A as a percentage of sales rose 130 basis points, with 410 basis points of reinvestments, primarily in marketing, partly offset by 300 basis points of productivity savings. Reported gross margin also fell 60 basis points.
**What is P&G's fiscal 2027 outlook?** P&G expects organic sales growth of one to three percent and core EPS growth from in-line to three percent, equal to $6.89 to $7.11 per share. It expects diluted EPS growth of one to five percent.
**Which P&G segments grew or shrank organically in the quarter?** Beauty organic sales grew four percent, while Grooming and Fabric & Home Care were unchanged. Health Care fell one percent and Baby, Feminine & Family Care fell two percent.
**How much cash did P&G generate and return to shareholders?** For fiscal 2026, P&G generated operating cash flow of $19.6 billion and returned over $15 billion, made up of $10.2 billion of dividends and $5.0 billion of share repurchases. It expects adjusted free cash flow productivity of 85% to 90% in fiscal 2027.