The flat organic sales and 15% GAAP EPS drop reflect weakening underlying demand and cost pressure. FY2027 guidance for core EPS growth of just 0-3% and heavy headwinds suggests continued compression. Monitor consumer spending trends, tariff adjustments, and margin recovery; the stock is likely to trade defensively but lacks near-term catalysts.
Price Chart
Executive Summary
PG reported Q4 fiscal 2026 GAAP diluted EPS of $1.26, down 15% YoY, with core EPS of $1.43 down 3% (in-line with consensus of $1.41). Net sales rose 2% to $21.2B but organic sales were flat (0%), reflecting zero volume growth. FY2027 core EPS guidance of $6.89-$7.11 implies 0-3% growth, with a midpoint of $7.00, as $1B+ in raw material, tariff, and reinvestment headwinds offset modest productivity. The sequential deterioration from Q3 and guarded outlook highlight persistent margin compression and sluggish topline.
Key Financial Metrics
Key Facts
- Q4 GAAP diluted EPS $1.26 (-15% YoY); Core EPS $1.43 (-3% YoY)
- Q4 net sales $21.2B (+2%); organic sales 0% (volume neutral, pricing neutral)
- Q4 operating income $3.95B (-9%); reported operating margin -220 bps YoY; core -130 bps
- Q4 gross margin -60 bps reported; core gross margin unchanged (productivity offset reinvestment and mix)
- FY2026 full-year: net sales $87.0B (+3%), GAAP EPS $6.62 (+2%), Core EPS $6.89 (+1%)
- FY2027 guidance: all-in sales growth +1% to +3%; core EPS growth 0% to +3% ($6.89-$7.11 range)
- FY2027 headwinds: ~$1B raw material/energy, $150M net interest, $150M lower non-op income, $50M FX (~$0.56/share drag)
- PG expects $10B in dividends and ~$5B share repurchases in FY2027
Financial Impact
Q4 GAAP net income down 16% to $3.04B; core EPS down 3% vs prior year. FY2027 guidance implies 1-3% top-line growth but 0-3% core EPS growth, with cost headwinds of ~$1B after-tax.
Risk Factors
- Persistent raw material and supply chain cost inflation (~$1B FY2027 headwind)
- Tariff exposure and geopolitical uncertainty weighing on margins
- Volume decline in Health Care, Baby/Feminine/Family Care segments
- Elevated reinvestment spending (marketing, innovation) pressuring near-term margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000080424-26-000093 |
| Document: pg-20260729.htm | 0000080424-26-000093 |
| Document: 0000080424-26-000093-index-headers.html | 0000080424-26-000093 |
| Document: 0000080424-26-000093-index.html | 0000080424-26-000093 |
| Document: 0000080424-26-000093.txt | 0000080424-26-000093 |
| 8-K Data (Synthetic) | 0000080424-26-000093 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 5w ago | DEFA14A | $143.78 $149.03 | ▲ +3.65% | ▲ +3.14% | $144.60 (+0.57%) |
Aug 27, 2026 5w ago | Insider Cluster | $143.14 $145.78 | ▲ +1.84% | ▲ +1.95% | $144.60 (+1.02%) |
Aug 24, 2026 5w ago | Insider Cluster | $146.60 $148.22 | ▲ +1.10% | ▼ −0.21% | $144.60 (−1.37%) |
Aug 24, 2026 5w ago | Insider Cluster | $146.60 $148.22 | ▲ +1.10% | ▼ −0.21% | $144.60 (−1.37%) |
Aug 24, 2026 5w ago | Insider Cluster | $146.60 $148.22 | ▲ +1.10% | ▼ −0.21% | $144.60 (−1.37%) |
Aug 7, 2026 7w ago | ANALYST-DOWNGRADE | $145.64 $146.44 | ▼ −0.55% | ▼ −0.95% | $144.60 (+0.72%) |
Jul 30, 2026 9w ago | ANALYST-DOWNGRADE | $143.96 $143.11 | ▲ +0.59% | ▲ +4.56% | $144.60 (−0.44%) |
Jul 29, 2026 9w ago | 8-K | $146.10 $145.00 | ▼ −0.76% | ▼ −5.78% | $144.60 (−1.03%) |
Jul 29, 2026 9w ago | 8-K | $146.10 $145.00 | ▲ +0.76% | ▲ +5.78% | $144.60 (+1.03%) |
Jun 12, 2026 15w ago | ANALYST-UPGRADE | $149.61 $147.04 | ▼ −1.72% | ▼ −3.50% | $144.60 (−3.35%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access