The Procter & Gamble Company (PG) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 delivered organic sales, core EPS, and cash return to shareholders within guidance despite volatility and macroeconomic headwinds.

• Net sales rose 3% to $87.0 billion, with organic sales up 1% driven by higher pricing and favorable FX; volume and mix were flat.

• Strategic interventions and innovation drove user growth, especially in China, Latin America, and select U.S. categories.

• 9 of 10 product categories and all 7 regions held or grew organic sales; 26 of top 50 category/country combinations held or grew share.

• Significant leadership transition with Jon Moeller's retirement after 38 years.

Financial highlights

• Core EPS for fiscal 2026 was $6.89, up 1% year-over-year; diluted EPS increased 2% to $6.62.

• Adjusted free cash flow productivity was 100% for the year and 133% for Q4.

• Over $15 billion returned to shareholders in fiscal 2026 ($10.2B dividends, $5B share repurchase).

• Core gross margin declined 40 bps, core operating margin down 70 bps for the year; Q4 core operating margin down 130 bps.

• Q4 net sales grew 2% to $21.2 billion; organic sales were flat year-over-year.

Outlook and guidance

• Fiscal 2027 guidance: organic and net sales growth of 1%-3%, core EPS growth of 0%-3% ($6.89-$7.11), diluted EPS growth of 1%-5%.

• $1B-$1.4B after-tax earnings headwind expected from input costs, FX, and lower non-operating income.

• Q1 EPS expected to be down 5% or more versus prior year due to cost pressures.

• Capital spending forecasted at 4.5%-5.5% of sales; adjusted free cash flow productivity at 85%-90%.

• Plan to return $15B to shareholders in fiscal 2027 ($10B dividends, $5B buybacks).