Procter & Gamble 8-K

EarningsNew guidanceRestructuring

Higher SG&A and lower gross margin outweighed Q4 sales growth; remaining costs from the two-year restructuring plan are expected in FY2027.

Filed 2026-07-29 07:03 ET

Summary

Q4 and FY2026 results with FY2027 guidance. FY sales rose 3%, while Q4 diluted EPS fell 15% as higher selling, general and administrative costs and lower gross margin outweighed sales growth. FY2027 guidance calls for 1%–3% sales growth and 1%–5% diluted EPS growth.

Key Figures

Metric Q4 2026 Q4 2025 Y/Y
Net sales $21.2B $20.9B +2%
Operating income $3.95B $4.36B -9%
Net earnings $3.08B $3.63B -15%
Diluted EPS $1.26 $1.48 -15%
Core EPS (non-GAAP) $1.43 $1.48 -3%
Metric FY2026 FY2025 Y/Y
Net sales $87.0B $84.3B +3%
Operating income $19.7B $20.5B -3%
Net earnings $16.1B $16.1B 0%
Diluted EPS $6.62 $6.51 +2%
Core EPS (non-GAAP) $6.89 $6.83 +1%
Operating cash flow $19.6B $17.8B +9.8%
  • Sales growth reflected favorable foreign exchange and higher pricing for FY2026; volume and mix were unchanged. Q4 organic sales were flat.
  • Q4 reported gross margin fell 60 bp and selling, general and administrative expense as a share of sales rose 160 bp. FY2027 EPS guidance includes expected non-core restructuring charges of $0.13–$0.17 per share; the company expects the remaining costs under its two-year plan in FY2027.
  • FY2026 adjusted free cash flow was $15.8B, with 100% adjusted free cash flow productivity; Q4 productivity was 133%. Shareholder returns exceeded $15B: $10.2B in dividends and $5.0B in repurchases. Repurchases fell 22.6% Y/Y, while diluted weighted-average shares declined 1.3% to 2.42B.

Guidance

Metric Period Guidance Prior Direction
All-in sales growth FY2027 +1% to +3% Y/Y — —
Organic sales growth FY2027 +1% to +3% Y/Y — —
Diluted EPS (GAAP) growth FY2027 +1% to +5% Y/Y vs FY2026 GAAP EPS of $6.62 — —
Core EPS (non-GAAP) FY2027 $6.89–$7.11; 0%–3% growth Y/Y; midpoint $7.00 — —
Core effective tax rate FY2027 ≈20% — —
Capital spending FY2027 4.5%–5.5% of net sales — —
Adjusted free cash flow productivity FY2027 85%–90% — —
Dividends FY2027 ≈$10B — —
Common-share repurchases FY2027 ≈$5B — —

Investor Takeaways

  • FY2027 sales and EPS delivery against guidance will show whether growth progresses despite continued cost and market volatility.
  • The remaining restructuring costs are expected in FY2027; their size and effect on reported EPS are worth monitoring.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

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