P&G Reports 3% Sales Growth in Q1 FY2026; Maintains Full-Year Outlook

THE WHAT? Procter & Gamble reported first quarter fiscal 2026 net sales of US$22.4 billion, up 3% year-on-year, with organic sales rising 2%. Diluted earnings per share increased 21% to US$1.95, while core EPS rose 3% to US$1.99.

THE DETAILS Net earnings for the quarter reached US$4.8 billion, with operating cash flow of US$5.4 billion. P&G returned US$3.8 billion to shareholders through dividends and share repurchases. The beauty segment led growth with a 6% organic sales increase, driven by innovation and premium product mix, while grooming grew 3%. Other categories, including health care and fabric care, saw modest or flat performance.

Gross margins declined 70 basis points due to higher costs and product reinvestments, partly offset by productivity savings. The company maintained its full-year forecast, projecting 1–5% sales growth and 3–9% diluted EPS growth.

THE WHY? The results highlight steady performance amid cost pressures and global uncertainty, with beauty and grooming segments continuing to drive growth. P&G’s maintained outlook signals confidence in its pricing strategy and productivity measures for fiscal 2026.

Source:  P&G