P&G stock dips on soft outlook despite ‘stable’ consumer
Brian Sozzi· Executive Editor
Wed, July 29, 2026 at 5:24 PM GMT+5:30
2 min read
- PG
+0.17%
Procter & Gamble (PG) stock is being put through a mild wash cycle after a mixed earnings day
Shares fell 2.5% in early trading as the company reported a muted quarter and outlook amid still high inflation and cautious consumers
“The consumer is OK and stable,” Procter & Gamble CFO Andre Schulten told Yahoo Finance
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148.88+0.25(+0.17%)
At close: July 28 at 4:03:45 PM EDT
Schulten explained that P&G is seeing divergent trends among consumers, however. Higher-income consumers are continuing to spend on P&G’s latest innovations. But lower-income shoppers living paycheck to paycheck remain cautious in how they replenish items and what they take off the shelves.
Those spending trends and an expected $1 billion after-tax hit from raw materials inflation led P&G to issue soft guidance for its new fiscal year
“Management has warned investors at recent conferences that the U.S. consumer in particular has been more cautious than anticipated,” JPMorgan analyst Andrea Teixeira wrote in a note ahead of the results
Earnings insight: Pressured sales
Net sales: $21.2 billion, +2% from the prior year vs. $21.34 billion estimate
Organic sales growth: +0% vs. +1.85% estimate
Beauty segment organic revenue growth: +4% vs. +4.2% estimate
Grooming segment organic revenue growth: +0% vs. +1.45% estimate
Healthcare segment organic revenue growth: -1% vs. +1.78% estimate
Fabric and home care segment organic revenue growth: +0% vs. +1.81% estimate
Baby, feminine, and family care segment organic revenue growth: -2% vs. +0.77% estimate
Gross margin: 48.5% vs. 48.3% estimate
Adjusted earnings per share: $1.43, -3% from the prior year vs. $1.41 estimate
What else caught our attention: A muted outlook
P&G outlined organic sales growth of 1% to 3% for its new fiscal year. For the year, earnings are expected to range from $6.89 to $7.11. Analysts were looking for fiscal year 2027 organic revenue growth of 2.44% and core earnings per share of $7.02
Brian Sozziis Yahoo Finance’s Executive Editor, host of the ‘Power Players With Brian Sozzi’podcast and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X@BrianSozzi,Instagram, andLinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com
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