NYSE: PG PROCTER & GAMBLE Co 8-K

P&G reports flat Q4 organic sales, margin pressure; guides FY2027 core EPS flat to +3%

Filed July 29, 2026 · Period ending July 29, 2026 · ~2 min read

Key Changes

high

Q4 net sales $21.2B (+2% y/y) driven entirely by FX; organic sales flat as volume/pricing/mix neutral. Core EPS $1.43 (-3% y/y, -5% currency-neutral) on 60 bps gross margin decline and 130 bps SG&A deleverage from marketing reinvestment and mix headwinds.

Exhibit 99.1 view on EDGAR →
high

FY2027 guidance: 1-3% organic sales growth (30-50 bps headwind from brand/product discontinuations), core EPS $6.89-$7.11 (flat to +3%, midpoint $7.00). Faces $0.56/share drag (8% on core EPS) from commodity/energy/transport costs, higher interest, and FX.

Exhibit 99.1 view on EDGAR →
high

FY2026 full-year net sales $87.0B (+3% y/y), organic sales +1% from pricing only, volume/mix flat. Core EPS $6.89 (+1% y/y). Generated $19.6B operating cash flow, returned $15.2B to shareholders ($10.2B dividends, $5.0B buybacks).

Exhibit 99.1 view on EDGAR →
medium

Q4 core gross margin flat y/y as 160 bps productivity savings and 40 bps net tariff benefit offset by 120 bps unfavorable mix, 70 bps product/package reinvestment, 40 bps commodity costs. Core SG&A +130 bps on 410 bps marketing reinvestment, partially offset by 300 bps productivity.

Exhibit 99.1 view on EDGAR →
medium

Aims to streamline portfolio/organization and improve cost structure.

Exhibit 99.1 view on EDGAR →

Summary

Procter & Gamble reported fiscal fourth-quarter and full-year 2026 results that underscore the company's struggle to drive volume growth amid heavy reinvestment and margin pressure. Fourth-quarter net sales of $21.2 billion rose 2% year-over-year, but the gain came entirely from foreign exchange; organic sales were flat as volume, pricing, and mix had no net impact.

Core earnings per share fell 3% to $1.43 (down 5% currency-neutral) as gross margin declined 60 basis points and SG&A as a percentage of sales rose 130 basis points, driven by 410 basis points of marketing reinvestment that only partially offset by productivity savings. For the full fiscal year, net sales reached $87.0 billion (+3%), but organic sales grew just 1% from pricing alone, with volume and mix unchanged.

Core EPS of $6.89 was up only 1%, reflecting the same margin compression and cost pressures seen in the quarter. Looking ahead, P&G's fiscal 2027 guidance signals continued headwinds. The company projects 1-3% organic sales growth (including a 30-50 basis point drag from brand and product discontinuations) and core EPS of $6.89 to $7.11 (flat to up 3%, midpoint $7.00). Management disclosed an estimated $0.56 per share headwind—equivalent to 8% on core EPS growth—from higher raw materials, energy, and transportation costs ($1 billion after-tax), plus $150 million each from higher net interest expense and lower non-operating income, and $50 million from unfavorable foreign exchange. Retail investors should watch whether P&G's heavy marketing reinvestment and productivity initiatives can reignite volume growth and margin expansion in a challenging cost environment, or whether the company faces a prolonged period of low single-digit growth and margin pressure.

Section-by-Section Diff

Event · Item 2.02 — Results of Operations and Financial Condition

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P&G disclosed Q4 FY2026 earnings results for the quarter ended June 30, 2026.

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Added Q4 FY2026 earnings disclosure high

Added in current filing · verify on EDGAR →

On July 29, 2026, The Procter & Gamble Company (the "Company") issued a news release with respect to earnings for the quarter ended June 30, 2026.

P&G announced earnings results for its fiscal fourth quarter ended June 30, 2026. The 8-K itself does not contain the financial figures; it references a news release issued the same day. Investors should review the attached Exhibit 99.1 press release for revenue, earnings per share, segment performance, and forward guidance.

Event · Exhibit 99.1

~7,800 words View exhibit on EDGAR ↗

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Added FY2026 full-year results high

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The Company reported fiscal year 2026 net sales of $87.0 billion, an increase of three percent versus the prior year, comprised of a two percent increase due to favorable foreign exchange impacts and a one percent increase from higher pricing. Volume and mix were unchanged versus prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased one percent from higher pricing.

P&G's fiscal 2026 net sales reached $87.0 billion, up 3% year-over-year, driven by favorable foreign exchange (2%) and pricing (1%), while volume and mix were flat. Organic sales grew 1% from pricing alone. Diluted EPS increased 2% to $6.62, and core EPS rose 1% to $6.89, as sales growth and share buybacks were partially offset by margin compression and higher SG&A costs. The company generated $19.6 billion in operating cash flow and returned over $15 billion to shareholders through dividends ($10.2 billion) and buybacks ($5.0 billion).

Added Q4 FY2026 results high

Added in current filing · view on EDGAR →

The Company reported fiscal year 2026 fourth quarter net sales of $21.2 billion, an increase of two percent versus the prior year. Foreign exchange and rounding each contributed one percent. Volume, pricing and mix had a neutral impact on sales growth for the quarter. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, were unchanged versus the prior year.

Fourth-quarter net sales of $21.2 billion rose 2% year-over-year, entirely from foreign exchange and rounding, with organic sales flat. Diluted EPS fell 15% to $1.26, and core EPS declined 3% to $1.43, as gross margin dropped 60 basis points and SG&A expense as a percentage of sales increased 160 basis points. Currency-neutral core EPS decreased 5%. The quarter reflected margin pressure from unfavorable product mix, reinvestments, and higher commodity costs, partially offset by productivity savings.

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P&G expects fiscal year 2027 all-in sales growth in the range of one to three percent versus the prior year. The Company also expects organic sales growth in the range of one to three percent versus prior year. Included in this organic sales growth guidance is a headwind of 30 to 50 basis points from brand, product form and go-to-market discontinuations.

P&G expects fiscal year 2027 diluted net earnings per share growth in the range of one to five percent versus fiscal 2026 GAAP EPS of $6.62. GAAP EPS includes expected non-core restructuring charges of $0.13 to $0.17 per share. P&G expects its fiscal 2027 core earnings per share growth in the range of in-line to three percent versus fiscal 2026 core EPS of $6.89. This outlook equates to a range of $6.89 to $7.11 per share, with a mid-point estimate of $7.00, or an increase of one and a half percent.

For fiscal 2027, P&G guides to 1-3% net sales growth and 1-3% organic sales growth, with a 30-50 basis point headwind from brand and product discontinuations. Diluted EPS is expected to grow 1-5%, and core EPS is projected to be flat to up 3% (range $6.89-$7.11, midpoint $7.00). The company faces an estimated $1 billion after-tax headwind from higher raw materials, energy, and transportation costs, plus $150 million from higher net interest expense, $150 million from lower non-operating income, and $50 million from unfavorable foreign exchange — totaling a $0.56 per share drag (8% on core EPS growth). P&G expects to return approximately $15 billion to shareholders ($10 billion dividends, $5 billion buybacks) and targets adjusted free cash flow productivity of 85-90%.

Added Margin and cost structure high

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Reported gross margin for the quarter decreased 60 basis points versus year ago. Core gross margin for the quarter and currency-neutral Core gross margin were unchanged versus year ago. Core gross margin was unchanged as 160 basis points of productivity savings, 40 basis points of net tariff benefit from recognized recoveries and higher costs, 20 basis points of other miscellaneous items and rounding and 10 basis points of pricing benefit were offset by 120 basis points of unfavorable product mix, 70 basis points of product/package reinvestments and 40 basis points of higher commodity costs.

Reported selling, general and administrative expense (SG&A) as a percentage of sales increased 160 basis points versus the prior year. Core and currency-neutral SG&A as a percentage of sales each increased 130 basis points versus year ago. Core SG&A increased by 410 basis points of reinvestments, primarily in marketing, and 20 basis points of other miscellaneous items and rounding, partially offset by 300 basis points of productivity savings, which includes reductions across marketing and overhead costs.

In Q4, reported gross margin fell 60 basis points, though core gross margin was flat year-over-year. Productivity savings (160 bps), net tariff benefits (40 bps), and pricing (10 bps) were offset by unfavorable product mix (120 bps), product/package reinvestments (70 bps), and higher commodity costs (40 bps). Core SG&A as a percentage of sales rose 130 basis points, driven by 410 basis points of reinvestments (primarily marketing) and 20 basis points of other items, partially offset by 300 basis points of productivity savings. The company is investing heavily in marketing and product innovation while managing cost pressures through productivity programs.