Procter & Gamble reported third-quarter fiscal 2026 net sales of $21.2 billion, up 7% from $19.8 billion a year earlier. Organic sales rose 3%, driven by 2% volume growth and 1% higher pricing.
Diluted earnings per share increased 6% to $1.63 from $1.54. Core earnings per share rose 3% to $1.59 from $1.54.
Operating cash flow came in at $4.0 billion, with net earnings also at $4.0 billion. Adjusted free cash flow productivity was 82%.
The company returned $3.2 billion to shareholders during the quarter, including $2.5 billion in dividends and more than $600 million in share repurchases.
By segment, organic sales increased 7% in Beauty, 1% in Grooming, 2% in Health Care, 3% in Fabric and Home Care, and 3% in Baby, Feminine and Family Care.
Within Beauty, hair care posted mid-single-digit organic growth, personal care grew high single digits, and skin care also rose high single digits. Grooming’s 1% organic growth reflected pricing that offset volume declines. Health Care’s 2% organic growth came from low-single-digit gains in oral care and personal health care. Fabric care grew low single digits, while home care rose mid-single digits. In Baby, Feminine and Family Care, baby care and feminine care each grew low single digits, while family care increased mid-single digits.
Gross margin fell 150 basis points from a year ago. Core gross margin declined 100 basis points. The company said the decline reflected 180 basis points of unfavorable mix, 100 basis points of reinvestments, 50 basis points of higher tariff costs, 10 basis points of unfavorable commodity costs and 20 basis points of rounding and other items, partly offset by 210 basis points of productivity savings and 50 basis points of higher pricing.
Selling, general and administrative expense as a percentage of sales rose 10 basis points on a reported basis, while core SG&A fell 10 basis points and 20 basis points on a currency-neutral basis.
Reported operating margin declined 150 basis points, while core operating margin fell 80 basis points, or 70 basis points on a currency-neutral basis.
For fiscal 2026, P&G kept its guidance for all-in sales growth at 1% to 5%, organic sales growth at in-line to up 4%, diluted EPS growth at 1% to 6%, and core EPS growth at in-line to up 4%. The company also kept its adjusted free cash flow productivity outlook at 85% to 90%, expects about $10 billion in dividends, and plans to repurchase roughly $5 billion of common shares. As a result of these announcements, the company's shares have moved -1.04% on the market, and are now trading at a price of $142.42. For the full picture, make sure to review PROCTER & GAMBLE Co's 8-K report.
