The Procter & Gamble Company (PG) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY2026 were $22.2 billion, up 1% year-over-year; organic sales were flat as pricing gains offset volume declines, with international regions accelerating and the U.S. facing inventory headwinds.

• Core EPS was $1.88, unchanged year-over-year; diluted EPS was $1.78, down 5% due to higher restructuring charges.

• Seven of ten product categories held or grew organic sales; 25 of the top 50 category-country combinations held or grew value share.

• Strong innovation and productivity plans are in place for the second half, with confidence in improved performance.

• Operating cash flow reached $5.0 billion; $4.8 billion was returned to shareholders via dividends and share repurchases.

Financial highlights

• Organic sales growth was flat for the quarter; net sales grew 1% year-over-year.

• Core gross margin declined 50 basis points; operating margin fell 70 basis points; gross margin for the six months was 51.3%, down 90 bps.

• Adjusted free cash flow productivity was 88%; dividend per share was $1.0568, up from $1.0065 a year ago.

• Global market share decreased by 20 bps; 25 of top 50 category-country combinations held or grew share.

Outlook and guidance

• FY2026 guidance maintained: organic sales growth flat to +4%, core EPS growth flat to +4% ($6.83–$7.09/share); all-in EPS growth forecast at 1–6%.

• Adjusted free cash flow productivity expected at 85–90%; $10B in dividends and $5B in share repurchases planned for FY2026.

• Guidance includes 30–50 bps headwind from restructuring-related product and market exits.

• U.S. category growth expected at 2% in the back half; no significant inventory build anticipated.