Procter & Gamble 8-K
Guidance reaffirmedEarnings
Volume-led growth spans all 10 categories, but commodity and transportation costs squeeze margins; FY2027 core EPS growth outlook held at 0%–3%.
Filed 2026-10-22 10:29 ET
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 results with FY2027 guidance update. Organic sales grew 4.0% and core EPS rose 1%; the company updated its net sales growth outlook and maintained its organic sales and EPS growth outlooks. P&G expects cost headwinds to increase over the next few quarters.
Key Figures
| Metric | Q1 FY2027 |
|---|---|
| Net sales growth | 4.0%, vs 3.0% Y/Y |
| Organic sales growth (non-GAAP) | 4.0%, vs 1.6% Y/Y |
| Gross margin | 49.8%, vs 51.4% |
| Core gross margin (non-GAAP) | 50.0%, vs 51.5% |
| Net earnings | $4.76B |
| Diluted EPS | $1.97, vs $1.95 |
| Core EPS (non-GAAP) | $2.00, vs $1.99 |
| Operating cash flow | $5.77B |
| Free cash flow (non-GAAP) | $4.40B |
- Organic sales growth comprised volume +2.4%, mix +1.1% and pricing +0.4%; all 10 product categories and six regions grew organically.
- Core operating margin was 25.9%, down 80 bp Y/Y; sales growth and productivity savings were partly offset across segments by higher commodity and transportation costs, marketing investment and product mix.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Organic sales growth (non-GAAP) | FY2027 | +1% to +3% | — | Reaffirmed |
| Net sales growth | FY2027 | +2% to +4% | — | Updated |
| Core EPS growth (non-GAAP) | FY2027 | +0% to +3% | — | Reaffirmed |
| All-in EPS growth | FY2027 | +1% to +5% | — | Reaffirmed |
| Currency-neutral Core EPS growth (non-GAAP) | FY2027 | +0% to +3% | — | — |
| Core effective tax rate (non-GAAP) | FY2027 | 20% to 21% | — | — |
| Free cash flow productivity (non-GAAP) | FY2027 | 85% to 90% | — | — |
| Capital spending as a percentage of sales | FY2027 | 4.5% to 5.5% | — | — |
| Dividends | FY2027 | >$10B | — | — |
| Direct share repurchases | FY2027 | ≈$5B | — | — |
Investor Takeaways
- Watch whether sales growth remains within the FY2027 outlook as cost headwinds rise, and whether core EPS growth stays within its guided range.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-22 14:35:15Z