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Procter & Gamble Reports 1% Increase in Organic Sales

Procter & Gamble finished fiscal 2026 with organic sales up 1% from the prior year, after volume came in flat and pricing added 1 point. Core earnings per share rose 1% to $6.89, while currency-neutral core EPS was unchanged year over year at $6.80.

The company said 9 of its 10 product categories and all 7 regions either held or grew organic sales in the year. Of its top 50 category-country combinations, 26 held or grew share, down from 29 in fiscal 2025 and 31 in fiscal 2024. Global aggregate value share was slightly lower than a year earlier.

Cash generation remained strong: adjusted free cash flow productivity reached 100% in fiscal 2026. P&G returned $15.2 billion to shareholders, including $10.2 billion in share repurchases and $5.0 billion in dividends.

Fourth-quarter fiscal 2026 was softer. Organic sales were flat, with volume flat and pricing flat. Core EPS fell 3% from the year-ago quarter, and currency-neutral core EPS declined 5%.

By segment in the fourth quarter, beauty posted the strongest top-line growth, with organic sales up 4% and volume up 3%, though net earnings fell 19%. Grooming had flat organic sales and a 15% drop in net earnings. Health care reported organic sales down 1% and net earnings down 10%. Fabric and home care had flat organic sales and a 10% decline in net earnings. Baby, feminine and family care saw organic sales fall 2% and net earnings drop 13%.

For fiscal 2027, P&G is guiding to organic sales growth of 1% to 3% and net sales growth of 1% to 3%. Core EPS is expected to rise 0% to 3%, with all-in EPS projected to increase 1% to 5%. The company also expects adjusted free cash flow productivity of 85% to 90% and capital spending at 4.5% to 5.5% of sales. Following these announcements, the company's shares moved -2.85%, and are now trading at a price of $144.64. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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