P&G earnings top estimates as revenue falls short
Procter & Gamble beat profit estimates for the quarter, but sales missed Wall Street forecasts as product volume stayed flat.
By Sofia Marchetti · World Affairs Correspondent
2 min read
P&G earnings came in slightly ahead of Wall Street’s profit expectations for the fiscal fourth quarter, but the consumer goods company’s revenue missed forecasts as demand stayed soft. CNBC reported that shares of Procter & Gamble fell more than 3% in premarket trading Wednesday after the results.
The maker of Tide, Pampers and other household staples reported adjusted earnings of $1.43 per share, according to figures released by the company. Analysts surveyed by LSEG had expected $1.41 per share.
Revenue was $21.2 billion, below the $21.38 billion analysts expected, according to LSEG estimates cited by CNBC. Net sales were up 2% from the year-earlier period, while organic revenue was unchanged.
Why did Procter & Gamble revenue miss estimates?
Procter & Gamble said volume across its portfolio was flat in the quarter, holding back organic sales growth. Organic revenue excludes the effects of acquisitions, divestitures and currency swings, so it is closely watched as a gauge of demand for the company’s products.
CNBC reported that P&G has posted volume growth in only one quarter during fiscal 2026. The company, like other consumer businesses, has faced shoppers who are paying closer attention to prices, switching to cheaper private-label products or using items such as shampoo and laundry detergent for longer.
Net income attributable to Procter & Gamble was $3.04 billion, or $1.26 per share, for the quarter. That compared with $3.62 billion, or $1.48 per share, a year earlier.
After excluding restructuring costs, transaction gains and other items, P&G said it earned $1.43 per share. That adjusted figure was the basis for the earnings comparison with Wall Street expectations.
What is P&G forecasting for fiscal 2027?
For fiscal 2027, Procter & Gamble projected core earnings per share of $6.89 to $7.11. The company also forecast all-in sales growth of 1% to 3% from the prior year.
Wall Street had been looking for earnings of $7.04 per share and revenue growth of 2.7% for fiscal 2027, according to CNBC, citing analyst expectations. P&G’s outlook therefore put its profit target around the consensus estimate while setting a sales-growth range that includes the forecast.
Who will chair Procter & Gamble’s board?
Procter & Gamble also said CEO Shailesh Jejurikar will become chair of the board on Aug. 1. He will hold that post in addition to serving as chief executive.
Jejurikar will replace Jon Moeller as chair, according to the company announcement cited by CNBC. Moeller is a former Procter & Gamble chief executive.
This story draws on original reporting from CNBC.