Procter & Gamble 8-K
New guidanceEarnings
Higher energy, transportation and raw material costs bring a $1B after-tax FY2027 earnings headwind; Q1 EPS is expected to decline.
Filed 2026-07-29 10:38 ET
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
FY2026 and Q4 results with FY2027 guidance. FY organic sales grew 1% and core EPS rose 1%, while Q4 organic sales were flat and core EPS fell 3%. P&G said results were within its prior guidance despite a more challenging macro environment; FY volume was flat, with pricing contributing 1 percentage point to organic sales growth.
Key Figures
| Metric | Q4 FY2026 | Q4 FY2025 | Y/Y |
|---|---|---|---|
| Net sales growth | 2% | 2% | 0 bp |
| Organic sales growth | 0% | 2% | -200 bp |
| Diluted EPS | $1.26 | $1.48 | -15% |
| Core EPS, non-GAAP | $1.43 | $1.48 | -3% |
| Currency-neutral core EPS, non-GAAP | $1.41 | $1.47 | -5% |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Net sales growth | 3% | 0% | n/m |
| Organic sales growth | 1% | 2% | -100 bp |
| Diluted net earnings per common share attributable to P&G | $6.62 | $6.51 | +2% |
| Core EPS, non-GAAP | $6.89 | $6.83 | +1% |
| Currency-neutral core EPS, non-GAAP | $6.80 | $6.85 | 0% |
- Q4 operating cash flow was $5.13B, adjusted free cash flow was $4.11B and adjusted free cash flow productivity was 133%. FY operating cash flow was $19.6B, adjusted free cash flow was $15.8B and productivity was 100%.
- FY organic sales held or grew in 9 of 10 product categories and all 7 regions; 26 of the top 50 category/country combinations held or grew share. Global aggregate value share was slightly down.
- Q4 segment net earnings declined in every segment: Beauty -19%, Grooming -15%, Health Care -10%, Fabric & Home Care -10%, and Baby, Feminine and Family Care -13%. The release cited marketing investment and product mix among the pressures, partly offset by productivity savings and, in some segments, pricing or tariff recovery.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic sales growth | FY2027 | +1% to +3% | — | — |
| Net sales growth | FY2027 | +1% to +3% | — | — |
| Core EPS growth, non-GAAP | FY2027 | +0% to +3% | — | — |
| All-in EPS growth | FY2027 | +1% to +5% | — | — |
| Currency-neutral core EPS growth, non-GAAP | FY2027 | +0% to +3% | — | — |
| Core effective tax rate | FY2027 | ≈20% | — | — |
| Adjusted free cash flow productivity, non-GAAP | FY2027 | 85% to 90% | — | — |
| Capital spending as a percent of sales | FY2027 | 4.5% to 5.5% | — | — |
| Dividends | FY2027 | >$10B | — | — |
| Direct share repurchases | FY2027 | ≈$5B | — | — |
FY2027 EPS guidance includes after-tax headwinds of $1B from higher energy, transportation and raw material costs; $50M from foreign exchange; $150M from higher net interest expense; and $150M from lower non-operating income. Q1 EPS is expected to be down 5% or more. Organic sales guidance includes a 30–50 bp headwind from brand, product form and go-to-market discontinuations.
Investor Takeaways
- FY2027 sales and EPS performance versus guidance will show whether P&G can sustain growth amid the specified cost pressures.
- Q1 EPS is expected to decline 5% or more; performance against that outlook is an early indicator for the fiscal-year earnings trajectory.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3