◆ Inside the Latest Quarter (Q4 FY2026)

Procter & Gamble (PG) — the variant view

In its latest quarter P&G grew sales 2%, grew nothing organically, and earned less in every segment while spending heavily on marketing.

📈 PG valuation, revenue & earnings — P/E, P/S, revenue, EPS →

P&G's June 2026 quarter was the weakest of its fiscal year. Net sales rose 2% to $21,203 million, but organic sales were unchanged, with volume, price and mix all flat1. Operating income fell 9% to $3,949 million and the operating margin fell 220 basis points to 18.6%2. Net earnings attributable to P&G fell 16% to $3,044 million; diluted EPS fell 15% to $1.26 and core EPS 3% to $1.433.

Segment net earnings change, June 2026 quarter (%)Beauty-19%Grooming-15%Baby, Feminine and Family Care-13%Health Care-10%Fabric and Home Care-10%P&G Q4 FY2026 earnings release
Every segment down double digits.

Every segment's net earnings fell: Beauty 19%, Grooming 15%, Baby, Feminine & Family Care 13%, Health Care 10% and Fabric & Home Care 10%4. Beauty was the only segment with meaningful organic growth, 4%; Baby, Feminine & Family Care fell 2%5.

The margin detail shows where the money went. Gross margin was 48.5%, down 60 basis points, and core gross margin was flat at 49.1%, helped by 40 basis points of net tariff benefit from recognised recoveries6. Core SG&A rose 130 basis points as a share of sales, because P&G reinvested 410 basis points, primarily in marketing, against 300 basis points of productivity7.

Cash was strong. Operating cash flow was $5,131 million and adjusted free cash flow $4,108 million, a free cash flow productivity of 133%8. P&G bought back 5,933,639 shares in May and June at an average of $147.469, and declared a quarterly dividend of $1.088510.

Shares were mixed: personal health care gained 0.6 points and baby care 0.2, while skin care lost 0.5, family care 0.4 and oral care 0.311.

The June quarter compares poorly with the rest of the year. In the December quarter net sales were $22.2 billion, up 1%, with organic sales flat and diluted EPS down 5% to $1.7812. In the March quarter net sales were $21,235 million against $19,776 million, and diluted EPS $1.63 against $1.5413. Quarterly core EPS growth for the year ran 3%, 0%, 3% and minus 3%14.

The quarter says P&G chose share over margin and got neither clearly. The September 2026 quarter, which P&G has guided to earnings per share down 5% or more15, will show whether the marketing spend begins to buy growth.

References
  1. ReportedNet sales rose 2% to $21,203 million, but organic sales were unchanged, with volume, price and mix all flat.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  2. ReportedOperating income fell 9% to $3,949 million and the operating margin fell 220 basis points to 18.6%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  3. ReportedNet earnings attributable to P&G fell 16% to $3,044 million; diluted EPS fell 15% to $1.26 and core EPS 3% to $1.43.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  4. ReportedEvery segment's net earnings fell: Beauty 19%, Grooming 15%, Baby, Feminine & Family Care 13%, Health Care 10% and Fabric & Home Care 10%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - segment results for the quarter and fiscal year. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  5. ReportedBeauty was the only segment with meaningful organic growth, 4%; Baby, Feminine & Family Care fell 2%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - segment results for the quarter and fiscal year. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  6. ReportedGross margin was 48.5%, down 60 basis points, and core gross margin was flat at 49.1%, helped by 40 basis points of net tariff benefit from recognised recoveries.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  7. ReportedCore SG&A rose 130 basis points as a share of sales, because P&G reinvested 410 basis points, primarily in marketing, against 300 basis points of productivity.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  8. ReportedOperating cash flow was $5,131 million and adjusted free cash flow $4,108 million, a free cash flow productivity of 133%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  9. ReportedP&G bought back 5,933,639 shares in May and June at an average of $147.46, and declared a quarterly dividend of $1.0885.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1A risk factors, Item 5 market information and performance graph, and critical accounting estimates (Gillette brand). — FY2026 · publ. 4 August 2026 · source ↗
  10. ReportedP&G bought back 5,933,639 shares in May and June at an average of $147.46, and declared a quarterly dividend of $1.0885.
    Procter & Gamble dividend declaration of $1.0885 per share, payable 17 August 2026. — July 2026 · publ. 14 July 2026 · source ↗
  11. ReportedShares were mixed: personal health care gained 0.6 points and baby care 0.2, while skin care lost 0.5, family care 0.4 and oral care 0.3.
    Procter & Gamble fourth-quarter fiscal 2026 earnings slides, Form 8-K exhibit 99.1 - organic sales and core EPS history, share results and fiscal 2027 guidance assumptions. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  12. ReportedIn the December quarter net sales were $22.2 billion, up 1%, with organic sales flat and diluted EPS down 5% to $1.78.
    Procter & Gamble second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1, with the revised tariff estimate. — Q2 FY2026 · publ. 22 January 2026 · source ↗
  13. ReportedIn the March quarter net sales were $21,235 million against $19,776 million, and diluted EPS $1.63 against $1.54.
    Procter & Gamble Form 10-Q for the quarter ended 31 March 2026. — Q3 FY2026 · publ. 24 April 2026 · source ↗
  14. ReportedQuarterly core EPS growth for the year ran 3%, 0%, 3% and minus 3%.
    Procter & Gamble fourth-quarter fiscal 2026 earnings slides, Form 8-K exhibit 99.1 - organic sales and core EPS history, share results and fiscal 2027 guidance assumptions. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  15. ReportedThe September 2026 quarter, which P&G has guided to earnings per share down 5% or more, will show whether the marketing spend begins to buy growth.
    Procter & Gamble fourth-quarter fiscal 2026 earnings slides, Form 8-K exhibit 99.1 - organic sales and core EPS history, share results and fiscal 2027 guidance assumptions. — Q4 FY2026 · publ. 29 July 2026 · source ↗
Sources
Generated September 26, 2026