⚠ Promotions That Did Not Buy ShareModerate threat

Procter & Gamble (PG) — threat to the moat

P&G spent on paper towel promotions in fiscal 2026 and still lost 0.7 points of share.

The fiscal 2026 family care result is a warning about price. P&G's 10-K says North American family care share fell 0.7 points and that pricing was lower because of merchandising investments1. The segment's price contribution for the year was zero and its volume fell 1%2.

Baby, Feminine and Family Care net earnings ($M)3,545FY20234,020FY20244,013FY20253,930FY2026P&G Forms 10-K FY2025 and FY2026, segment note
Two years of small declines after the peak.

Merchandising investment means paying retailers for displays, promotions and temporary price cuts. It is the tool a leader uses when a rival or a store brand is gaining; its cost falls straight on the margin. Baby, Feminine & Family Care net earnings fell to $3,930 million from $4,013 million3, and its net margin fell 50 basis points to 19.3%4.

The June 2026 quarter did not reverse it: family care share fell a further 0.4 points5 and the segment's organic sales fell 2%6.

The plants keep taking capital regardless. Baby, Feminine & Family Care raised its capital spending to $1,520 million in fiscal 2026 from $1,080 million7. Spending more on the factories and more on promotions, while pricing falls and share slips, is the combination that lowers the return on a paper business.

What would make this a real breach is the combination of a negative price contribution and continued share loss for another year. Segment pricing is the number: zero in fiscal 20268, and below zero would mean P&G is now subsidising the fortress.

References
  1. ReportedP&G's 10-K says North American family care share fell 0.7 points and that pricing was lower because of merchandising investments.
    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. ReportedThe segment's price contribution for the year was zero and its volume fell 1%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  3. ReportedBaby, Feminine & Family Care net earnings fell to $3,930 million from $4,013 million, and its net margin fell 50 basis points to 19.3%.
    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 ↗
  4. ReportedBaby, Feminine & Family Care net earnings fell to $3,930 million from $4,013 million, and its net margin fell 50 basis points to 19.3%.
    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. ReportedThe June 2026 quarter did not reverse it: family care share fell a further 0.4 points and the segment's organic sales fell 2%.
    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 ↗
  6. ReportedThe June 2026 quarter did not reverse it: family care share fell a further 0.4 points and the segment's organic sales 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 ↗
  7. ReportedBaby, Feminine & Family Care raised its capital spending to $1,520 million in fiscal 2026 from $1,080 million.
    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 ↗
  8. ReportedSegment pricing is the number: zero in fiscal 2026, and below zero would mean P&G is now subsidising the fortress.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
Sources
Generated September 26, 2026