The Procter & Gamble Company (PG) Q1 2027 earnings summary

Executive summary

• Organic sales rose 4.0% YoY, driven by volume growth of 2.4%; all 10 product categories and all six regions grew.

• Core EPS increased 1% to $2.00; currency-neutral Core EPS was flat. FY27 guidance was maintained, with net sales guidance updated for Thorne.

Financial highlights

• Net sales rose 4.0% to $23.276B; operating income increased 1% to $5.937B, while net earnings declined 1% to $4.757B.

• Organic sales growth comprised volume +2.4%, mix +1.1% and pricing +0.4%.

• Diluted EPS was $1.97, up 1% YoY; Core EPS was $2.00, up 1%, including a $0.03-per-share restructuring adjustment.

• Reported gross margin declined 160 bps to 49.8% and operating margin fell 70 bps to 25.5%; Core gross and operating margins declined 150 bps and 80 bps, respectively.

• Operating cash flow was $5.767B, free cash flow was $4.401B and free cash flow productivity was 93%.

Outlook and guidance

• FY27 organic sales growth guidance remains 1%–3%, including a 30–50 bps headwind from brand, product-form and go-to-market discontinuations; net sales growth guidance is 2%–4%, updated for Thorne.

• FY27 Core EPS growth guidance remains 0%–3%, or $6.89–$7.11 per share; diluted EPS growth guidance is 1%–5%.

• Core EPS outlook includes an estimated $0.79-per-share after-tax headwind from commodities, FX, net interest expense and lower non-operating income.

• FY27 free cash flow productivity is forecast at 85%–90%, the Core effective tax rate at 20%–21%, and capital spending at 4.5%–5.5% of net sales.

• Management expects H1 organic sales growth of ~3%, with slight acceleration in H2; higher oil and petrochemical costs are expected to intensify in coming quarters.