The Procter & Gamble Company (PG) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 FY2026 reached $21.2 billion, up 7% year-over-year, with organic sales up 3% driven by 2% volume and 1% pricing gains; all 10 product categories and 7 regions posted organic sales growth.

• Core EPS rose 3% to $1.59, while diluted EPS increased 6% to $1.63, including a gain from the Glad joint venture dissolution.

• Operating cash flow was $4.0 billion, with $3.2 billion returned to shareholders via dividends and share repurchases.

• Global aggregate value share held steady, with 26 of the top 50 category/country combinations holding or growing share.

• Completed a limited market portfolio restructuring, including the liquidation of operations in Argentina, and dissolved the Glad joint venture, resulting in a $261 million after-tax gain.

Financial highlights

• Organic sales up 3% year-over-year; North America organic sales grew 4%.

• Gross margin declined 150 basis points to 49.5%; core gross margin fell 100 basis points to 50.0%.

• Operating margin decreased 150 basis points to 21.5%; core operating margin dropped 80 basis points to 22.2%.

• Adjusted free cash flow productivity was 82% for the quarter; adjusted free cash flow was $3.0 billion.

• $3.2 billion returned to shareholders in Q3 via $2.5 billion in dividends and over $600 million in share repurchases.

Outlook and guidance

• FY2026 all-in sales growth expected at 1–5% year-over-year; organic sales growth projected at 0–4%.

• Core EPS growth forecasted at 0–4% ($6.83–$7.09/share); diluted EPS growth at 1–6%.

• EPS expected toward the lower end of guidance due to $1B after-tax cost headwinds from commodity inflation and logistics disruptions.

• Adjusted free cash flow productivity targeted at 85–90%; capital spending estimated at 4–5% of sales.

• Plan to return ~$15B to shareholders in FY2026 ($10B dividends, $5B buybacks).