Procter & Gamble earnings beat estimates as revenue misses

Procter Gamble earnings for the fiscal fourth quarter came in ahead of analysts’ profit expectations, but revenue missed estimates as demand failed to grow across the company’s portfolio. Shares fell more than 3% in premarket trading Wednesday after P&G reported flat organic sales and unchanged volume.

The consumer products group said net sales rose 2% to $21.2 billion for the quarter. Analysts surveyed by LSEG had expected revenue of $21.38 billion.

Adjusted earnings were $1.43 a share, above the $1.41 a share expected by analysts in the LSEG survey. Net income attributable to Procter & Gamble was $3.04 billion, or $1.26 a share, compared with $3.62 billion, or $1.48 a share, a year earlier.

Excluding restructuring costs, transaction gains and other items, P&G reported the adjusted earnings figure of $1.43 a share.

Why did Procter & Gamble revenue miss estimates?

P&G’s revenue shortfall reflected limited demand growth for its household and personal-care products. The company said organic revenue was unchanged in the quarter, with volume flat across its portfolio.

Organic revenue strips out the effects of acquisitions, divestitures and currency moves, making it a closely watched measure of underlying sales performance. Volume measures how much product a company sells, so flat volume indicates that sales growth did not come from higher unit demand.

P&G has reported volume growth in only one quarter during fiscal 2026. CNBC reported that, like other consumer companies, P&G has faced more cautious shoppers who are seeking value, trading down to cheaper private-label alternatives or using products such as shampoo and laundry detergent for longer.

The company’s brands include Tide detergent and a range of other consumer staples sold through retailers around the world. For large branded-goods companies, volume trends can signal whether consumers are accepting price levels or shifting spending toward lower-cost substitutes.

What did P&G guide for fiscal 2027?

For fiscal 2027, Procter & Gamble said it expects core earnings per share of $6.89 to $7.11. The company also projected all-in sales growth of 1% to 3% from the prior year.

Those projections compare with analyst expectations cited by LSEG for earnings per share of $7.04 and revenue growth of 2.7% for fiscal 2027. P&G did not describe those projections as guarantees, and the figures remain subject to changes in consumer demand, pricing, currency and costs.

• Adjusted earnings per share: $1.43, versus $1.41 expected by analysts surveyed by LSEG.
• Revenue: $21.2 billion, versus $21.38 billion expected.
• Net income attributable to P&G: $3.04 billion, down from $3.62 billion a year earlier.
• Organic revenue: unchanged, with flat volume across the portfolio.

Who is chair of Procter & Gamble’s board?

Procter & Gamble also said Chief Executive Shailesh Jejurikar will become chair of the board on Aug. 1, adding the role to his current position. He will replace former chief executive Jon Moeller as chair, according to the company’s announcement.

The leadership change was announced alongside the quarterly and full-year results, tying a board transition to a period in which the company is working through softer volume trends and more price-sensitive consumer behavior.

This story draws on original reporting from CNBC.