Leading the Categories People Use Every DayWide moat

Procter & Gamble (PG) — moat facet

P&G leads most of the everyday categories it has chosen, and in fiscal 2026 it held or grew share in just over half of its fifty biggest markets.

P&G's moat starts with a list of market shares that reads like a map of the supermarket. On the company's own numbers it holds more than 60% of global blades and razors, over 35% of fabric care in the markets where it competes, more than 30% of baby care and home care, nearly 35% of menstrual care, nearly 30% of oral care and feminine care, and about 20% of hair care, where it is the global leader1. In North America Bounty has nearly 40% of paper towels2.

P&G global market share by category, FY2026 (%)Blades and razorsmore than 60%Fabric careover 35%Baby caremore than 30%Oral carenearly 30%Hair careabout 20%Skin care (Olay)about 5%P&G Form 10-K FY2026; company-stated approximate shares
Leadership in the daily-use categories, less in skin care.

The categories share one trait, and P&G chose them for it. Its stated strategy is a portfolio of daily-use products where performance drives brand choice3. A razor, a detergent, a nappy: each is bought often, used daily and judged by whether it works. That is where a trusted brand is worth a premium, and where a leader's advertising, research and shelf space compound.

The payoff is in the segment accounts. Every one of P&G's five segments earned a net margin between 16.7% and 22.1% in fiscal 20264, and together they earned $16,167 million on $86,112 million of sales5. Return on invested capital was 19.9% in fiscal 20266.

The leadership is holding, not growing. In fiscal 2026, 26 of P&G's top 50 category and country combinations held or grew share, and global aggregate value share was slightly down7. Segment shares fell in Beauty, Grooming and fabric care and rose in Health Care and home care8.

The reach behind those shares is wide as well as deep. P&G's products are sold in about 180 countries and territories, and it has operations on the ground in about 659. A leading share in a category means something different when it is held in most of the world's retail markets at once: a rival can win a country, but it has to win many to change P&G's totals.

The facet is wide and stable. The falsifier is breadth: if fewer than half of the top 50 combinations hold or grow share for two more years, the leadership positions that make P&G what it is will be eroding in more places than they are holding. The count was 26 of 50 in fiscal 202610.

Moat trajectory: Holding steady

26 of top 50 category/country combinations held or grew share; aggregate share slightly down.

The number that tests this moat
Reported
Top 50 category and country combinations holding or growing share
26 of 50 (FY2026)

The breadth of leadership; below 25 for two years would mean more positions eroding than holding.

Source: P&G Q4 FY2026 earnings slides ↗
Aspects of the moat
DIG DEEPER 01
Tide and Ariel: Over 35% of Fabric Care
Tide and its sister brands give P&G more than a third of the world's laundry, and that one habit earns more pre-tax profit than Beauty and Grooming…
DIG DEEPER 02
Pampers and Always: About a Third of Two Markets
P&G sells around a third of the world's nappies and menstrual products, bought by people who will not risk the cheaper one failing.
DIG DEEPER 03
Bounty and Charmin: An American Fortress
Bounty holds nearly 40% of American paper towels, and in fiscal 2026 P&G cut prices through promotions and lost share anyway.
DIG DEEPER 04
Crest and Oral-B: Nearly 30% of Oral Care
Crest and Oral-B hold nearly 30% of the world's oral care, but sales in Greater China fell by mid-teens in a year.
⚠ Threats to the moat
⚠ THREAT 01
Competitive Activity, Named Category by Category
P&G blamed competitive activity for volume losses in eight of its categories in fiscal 2026.
⚠ THREAT 02
Hair Care Losing Half a Point
P&G leads world hair care with about a fifth of the market and lost half a point of it in fiscal 2026.
References
  1. ReportedOn the company's own numbers it holds more than 60% of global blades and razors, over 35% of fabric care in the markets where it competes, more than 30% of baby care and home care, nearly 35% of menstrual care, nearly 30% of oral care and feminine care, and about 20% of hair care, where it is the global leader.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: market shares and competitive activity by category. — FY2026 · publ. 4 August 2026 · source ↗
  2. ReportedIn North America Bounty has nearly 40% of paper towels.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  3. ReportedIts stated strategy is a portfolio of daily-use products where performance drives brand choice.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1 business and Item 2 properties: employees, manufacturing sites, customers, channels, competition and strategy. — FY2026 · publ. 4 August 2026 · source ↗
  4. ReportedEvery one of P&G's five segments earned a net margin between 16.7% and 22.1% in fiscal 2026, and together they earned $16,167 million on $86,112 million of sales.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  5. Moat Explorer calcEvery one of P&G's five segments earned a net margin between 16.7% and 22.1% in fiscal 2026, and together they earned $16,167 million on $86,112 million of sales.
    Moat Explorer calculation from Procter & Gamble's reported figures ($ millions unless stated; fiscal years end 30 June). Net debt: FY2026 11,296 + 22,842 - 9,942 = 24,196; 24,196 / 54,311 = 0.45 times equity; 24,196 / 19,556 = 1.24 years of operating cash flow; debt due within one year 11,296 / (11,296 + 22,842) = 33% of debt; FY2025 9,513 + 24,995 - 9,556 = 24,952; FY2024 7,191 + 25,269 - 9,482 = 22,978. Capital spending 4,409 / 87,032 = 5.1% of net sales. Adjusted free cash flow over dividends 15,835 / 10,232 = 1.55 times. Dividends paid over net earnings attributable: 10,232 / 16,046 = 63.8% (FY2026); 9,872 / 15,974 = 61.8% (FY2025); 9,312 / 14,879 = 62.6% (FY2024). Buybacks 5,028 / 11,009 = 45.7% of the FY2021 peak. Peer market values on 25 September 2026 ($bn): 132.99 + 68.60 + 34.19 + 34.18 + 32.74 + 22.86 + 10.13 = 335.69, against P&G 339.64; P&G / Clorox 339.64 / 10.13 = 33.5 times. P/E: 339.64 / 16.046 = 21.2 (now); 394.82 / 14.879 = 26.5 (December 2024 over FY2024). Free cash flow yield 15,835 / 339,640 = 4.7%. Goodwill plus Gillette brand 41,276 + 12,800 = 54,076; 54,076 / 126,521 = 42.7% of total assets. Segments (five reportable, excluding Corporate): FY2026 sales 16,023 + 6,918 + 12,456 + 30,314 + 20,401 = 86,112; net earnings 2,672 + 1,529 + 2,404 + 5,632 + 3,930 = 16,167; FY2025 net earnings 2,715 + 1,577 + 2,440 + 5,848 + 4,013 = 16,593; 16,167 / 16,593 - 1 = -2.6%. Segment net earnings changes FY2026: Beauty 2,672 / 2,715 - 1 = -1.6%; Grooming 1,529 / 1,577 - 1 = -3.0%; Health Care 2,404 / 2,440 - 1 = -1.5%; Fabric & Home Care 5,632 / 5,848 - 1 = -3.7%; Baby, Feminine & Family Care 3,930 / 4,013 - 1 = -2.1%. Fabric & Home Care share of segment net earnings 5,632 / 16,167 = 34.8%. Pre-tax margins FY2026: Beauty 3,473 / 16,023 = 21.7%; Grooming 1,966 / 6,918 = 28.4%; Health Care 3,163 / 12,456 = 25.4%; Fabric & Home Care 7,290 / 30,314 = 24.0%; Baby, Feminine & Family Care 5,145 / 20,401 = 25.2%. Net margins FY2023: Beauty 3,178 / 15,008 = 21.2%; Health Care 2,125 / 11,226 = 18.9%; Fabric & Home Care 4,828 / 28,371 = 17.0%; Baby, Feminine & Family Care 3,545 / 20,217 = 17.5%. Three-year growth FY2023-FY2026: Health Care sales 12,456 / 11,226 - 1 = 11.0%; Health Care net earnings 2,404 / 2,125 - 1 = 13.1%; Grooming sales 6,918 / 6,419 - 1 = 7.8%; Baby, Feminine & Family Care sales 20,401 / 20,217 - 1 = 0.9%. Segment capital spending over sales FY2026: Grooming 540 / 6,918 = 7.8%; Baby, Feminine & Family Care 1,520 / 20,401 = 7.5%; Health Care 592 / 12,456 = 4.8%; Fabric & Home Care 1,250 / 30,314 = 4.1%; Beauty 415 / 16,023 = 2.6%. Geography FY2026 ($bn): international 45.3 / 87.0 = 52.1%; United States 41.7 / 87.0 = 47.9%. Walmart about 16% x 87,032 = 13,925, about $13.9 billion. Top ten customers less Walmart (rounded percentages): FY2017 35 - 16 = 19; FY2020 38 - 15 = 23; FY2023 40 - 15 = 25; FY2026 43 - 16 = 27. Dividend per share 4.2589 / 4.0763 - 1 = 4.5% (FY2026); 4.0763 / 3.8286 - 1 = 6.5% (FY2025). Market exit charges after tax 1,200 + 131 = 1,331. P&G / Unilever market value 339.64 / 132.99 = 2.6 times. Restructuring charges FY2024-FY2026 659 + 1,114 + 1,230 = 3,003. Gillette write-downs 8.3 + 1.3 = 9.6 billion. Operating margin 19,748 / 87,032 = 22.7% (FY2026); 20,451 / 84,284 = 24.3% (FY2025) - segment results, geography and customer concentration. — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Procter & Gamble's Forms 10-K, results releases, earnings slides and market data; operands shown in the source line.
  6. Moat Explorer calcReturn on invested capital was 19.9% in fiscal 2026.
    Moat Explorer calculation from SEC EDGAR XBRL for CIK 80424: return on invested capital 7.4% (FY2015), 9.6% (FY2016), 10.4% (FY2017), 12.3% (FY2018), 5.1% (FY2019, Gillette impairment), 16.3% (FY2020), 19.3% (FY2021), 19.2% (FY2022), 18.9% (FY2023), 19.0% (FY2024), 20.5% (FY2025), 19.9% (FY2026). — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Operating income x (1 - effective tax rate; 35% default before fiscal 2018 and 21% where pre-tax income is untagged) divided by average (total assets - current liabilities - cash), from SEC EDGAR XBRL using the tools_roic_edgar.py method; after fiscal 2019 the cash tag is CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents. A 7% hurdle is assumed.
  7. ReportedIn fiscal 2026, 26 of P&G's top 50 category and country combinations held or grew share, and global aggregate value share was slightly down.
    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 ↗
  8. ReportedSegment shares fell in Beauty, Grooming and fabric care and rose in Health Care and home care.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  9. ReportedP&G's products are sold in about 180 countries and territories, and it has operations on the ground in about 65.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1 business and Item 2 properties: employees, manufacturing sites, customers, channels, competition and strategy. — FY2026 · publ. 4 August 2026 · source ↗
  10. ReportedThe count was 26 of 50 in fiscal 2026.
    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