Procter & Gamble (NYSE:PG) Issues Earnings Results

Procter & Gamble (NYSE:PG) issued its quarterly earnings results on Thursday. The company reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate 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 return on equity of 31.36% and a net margin of 18.44%. The company’s revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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 Stock Up 5.7%

Shares of PG traded up $8.86 on Thursday, reaching $165.70. The stock had a trading volume of 8,310,801 shares, compared to its average volume of 9,688,824. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.47 and a current ratio of 0.68. Procter & Gamble has a 12-month low of $137.62 and a 12-month high of $167.25. The firm has a market capitalization of $384.88 billion, a price-to-earnings ratio of 25.03, a price-to-earnings-growth ratio of 3.96 and a beta of 0.39. The company has a 50-day simple moving average of $147.65 and a 200-day simple moving average of $146.83.

Procter & Gamble Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Friday, October 23rd will be paid a $1.0885 dividend. This represents a $4.35 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, October 23rd. Procter & Gamble’s dividend payout ratio (DPR) is presently 65.71%.

Analysts Set New Price Targets

PG has been the topic of several analyst reports. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $166.00 target price on shares of Procter & Gamble in a research note on Tuesday. JPMorgan Chase & Co. decreased their price objective on shares of Procter & Gamble from $164.00 to $162.00 and set an “overweight” rating on the stock in a research report on Thursday, July 16th. Jefferies Financial Group upped their price objective on shares of Procter & Gamble from $177.00 to $179.00 and gave the company a “buy” rating in a research note on Friday, June 26th. UBS Group reiterated a “buy” rating on shares of Procter & Gamble in a report on Friday, October 16th. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $149.00 target price on shares of Procter & Gamble in a report on Monday, August 24th. Fourteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $162.20.

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

Insider Buying and Selling

In related news, CFO Andre Schulten sold 3,914 shares of the company’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $145.34, for a total value of $568,860.76. Following the sale, the chief financial officer directly owned 65,618 shares of the company’s stock, valued at $9,536,920.12. This represents a 5.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Marc Pritchard sold 4,030 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $143.79, for a total value of $579,473.70. Following the completion of the transaction, the insider owned 187,001 shares of the company’s stock, valued at approximately $26,888,873.79. This trade represents a 2.11% decrease in their position. 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. Insiders sold 15,135 shares of company stock valued at $2,189,970 over the last 90 days. 0.23% of the stock is currently owned by company insiders.

About Procter & Gamble

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.