PG delivered a solid beat on both revenue and EPS, but maintained rather than raised full-year guidance, and the commodity cost headwind increased by ~$400M. The stock is likely to trade modestly higher on the beat but the unchanged guidance range caps upside. Watch for currency-neutral core EPS trajectory in Q2 and whether the Thorne acquisition contributes to the top line as modeled.
Price Chart
Executive Summary
PG reported fiscal Q1 2027 results with net sales of $23.3B (+4% YoY) and diluted EPS of $1.97 (+1% YoY), both above consensus estimates of $22.72B and $1.88. Organic sales also grew 4%, driven by volume (+2.4%) and favorable mix (+1.1%). The company maintained its full-year guidance for organic sales growth (1-3%), core EPS growth (in-line to +3%), and cash return (~$5B in buybacks, >$10B in dividends), while updating all-in sales guidance to 2-4% to reflect the Thorne acquisition. The S-3ASR filings from 7 days ago are routine shelf registrations for employee stock purchase plans and do not indicate a capital raise driven by earnings.
Key Financial Metrics
Key Facts
- Q1 FY2027 net sales $23.3B, +4% YoY (consensus $22.72B)
- Diluted EPS $1.97, +1% YoY (consensus $1.88, +6.3% beat)
- Organic sales +4%, driven by volume +2.4% and mix +1.1%
- Core EPS $2.00, +1% YoY; currency-neutral core EPS unchanged YoY
- Gross margin contracted 160bps YoY to 49.8% on commodity cost headwinds and product reinvestments
- Operating cash flow $5.8B; free cash flow productivity 93%
- Returned $3.9B to shareholders via $2.6B dividends and $1.3B buybacks
- Maintained FY2027 guidance: organic sales +1-3%, core EPS $6.89-$7.11, FCF productivity 85-90%
- Updated all-in sales guidance to +2-4% reflecting Thorne acquisition (closed Oct 1, 2026)
- Commodity cost headwind increased to ~$1.4B after-tax (from ~$1B previously), now an $0.79/share drag on core EPS
Financial Impact
Q1 revenue beat consensus by ~$580M (2.6%); EPS beat by $0.12 (6.3%). Full-year guidance maintained with increased commodity headwind of ~$1.4B after-tax.
Risk Factors
- Commodity cost headwind increased to ~$1.4B after-tax, an $0.79/share drag on core EPS
- Gross margin contracted 160bps YoY; core gross margin down 150bps
- Currency-neutral core EPS unchanged YoY, indicating underlying earnings growth is flat
- Net earnings attributable to PG declined slightly (-0.4%) despite 4% revenue growth
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000080424-26-000250 |
| Document: pg-20261022.htm | 0000080424-26-000250 |
| Document: 0000080424-26-000250-index-headers.html | 0000080424-26-000250 |
| Document: 0000080424-26-000250-index.html | 0000080424-26-000250 |
| Document: 0000080424-26-000250.txt | 0000080424-26-000250 |
| 8-K Data (Synthetic) | 0000080424-26-000250 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 424B5 | $160.76 | awaiting T+20 | awaiting T+20 | $159.23 (−0.95%) |
Oct 26, 2026 1d ago | Insider Cluster | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (+0.43%) |
Oct 26, 2026 1d ago | 144 | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (−0.43%) |
Oct 26, 2026 1d ago | Insider Cluster | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (−0.43%) |
Oct 26, 2026 1d ago | 424B5 | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (−0.43%) |
Oct 26, 2026 1d ago | 424B5 | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (−0.43%) |
Oct 26, 2026 2d ago | Court Ruling | $159.25 | awaiting T+20 | awaiting T+20 | $159.23 (−0.01%) |
Oct 23, 2026 4d ago | ANALYST-UPGRADE | $159.92 | awaiting T+20 | awaiting T+20 | $159.23 (−0.43%) |
Oct 22, 2026 5d ago | Institutional Cluster | $161.02 | awaiting T+20 | awaiting T+20 | $159.23 (+1.11%) |
Oct 22, 2026 5d ago | 144 | $161.02 | awaiting T+20 | awaiting T+20 | $159.23 (−1.11%) |
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.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers