PROCTER & GAMBLE (PG) Company Report

Q2 FY 2026 organic sales growth was 0%, comprised of +1% pricing offset by –1% volume, with 7 of 10 categories holding or growing share.
Core EPS of $1.88 was flat year-over-year; currency-neutral core EPS was $1.85, down 2%.
Adjusted free cash flow productivity for the quarter was 88%.
FY 2026 guidance maintained: organic sales growth 0%–4%, net sales growth 1%–5%, core EPS growth 0%–4%, all-in EPS growth 1%–6%.

Jan 22, 2026, 4:53 PM

8-K

Procter & Gamble reports Q2 fiscal 2026 results

Earnings

Guidance Update

Organic sales up nearly 3% (volume down 1 pt, pricing up 1 pt, mix flat); core EPS of $1.88, in line with prior year ($1.85 currency-neutral)
Regional performance: U.S. organic sales down 2% (base effects), Europe +1%, Greater China +3%, Latin America +8%; global market share down 20 bps
Category trends: Hair care +mid-single digits; skin/personal, personal health, home and oral care +low-single digits; baby care and family care down low-single digits (family care −10% due to prior year dynamics)
Margins & productivity: Core gross margin −50 bps, operating margin −70 bps; productivity improvements of 270 bps partially reinvested in innovation and demand creation
Fiscal 2026 guidance maintained: organic sales in line to +4%, core EPS growth inline to +4% ($6.83–$7.09), adjusted free cash flow productivity of 85–90%, and ~$15 B planned return of cash to shareholders

Jan 22, 2026, 1:30 PM

Transcript

P&G reports Q2 2026 results and maintains full-year guidance

Earnings

Guidance Update

Share Buyback

Organic sales grew nearly 3%, with volume down 1 point, pricing up 1 point and mix flat; core EPS was $1.88, in line with prior year, and core gross margin declined 50 bps vs. prior year.
Outside the U.S., organic sales accelerated: Latin America +8%, Europe +3% and Greater China +3%; U.S. organic sales declined 2% due to base-period inventory impacts.
Returned $4.8 B to shareholders this quarter—$2.5 B in dividends and $2.3 B in share repurchases—and delivered 88% adjusted free cash flow productivity.
Maintained fiscal 2026 guidance: organic sales in line to +4%, core EPS of $6.83–$7.09 (0–4% growth) and free cash flow productivity of 85%–90%.

Jan 22, 2026, 1:30 PM

Transcript

P&G reports Q2 FY 2026 results

Earnings

Guidance Update

Q2 FY 2026 organic sales were flat year-over-year (+0% organic growth), with pricing up 1% offset by a 1% volume decline; global value share declined 20 bps.
Core EPS $1.88, in-line with the prior year; currency-neutral core EPS was $1.85, down 2%.
Beauty segment organic sales rose 4%, Health Care +3%, while Baby, Feminine & Family Care saw a 4% decline; other segments were broadly flat.
FY 2026 guidance maintained: organic sales growth 0%–4%, core EPS growth 0%–4%, all-in EPS growth 1%–6%.

Jan 22, 2026, 1:30 PM

Presentation

Procter & Gamble reports Q2 2026 results

Earnings

Guidance Update

Share Buyback

Organic sales grew 3%, with volume down 1 pt, pricing up 1 pt, and mix flat. Seven of ten product categories and all regions outside the U.S. held or grew share.
Core EPS was $1.88 (currency-neutral $1.85), in line with prior year. Gross margin declined 50 bps and operating margin down 70 bps, partially offset by 270 bps of productivity improvement.
Fiscal 2026 guidance unchanged: organic sales in line to +4%, core EPS growth in line to +4% (range $683–$709 per share), and adjusted free cash flow productivity of 85–90%.
Capital allocation includes $10 billion in dividends and $5 billion in share repurchases (total $15 billion). Guidance assumes a $200 million FX tailwind and $500 million pretax tariff headwind.

Jan 22, 2026, 1:30 PM

Transcript

Procter & Gamble reports fiscal Q2 2026 results

Earnings

Guidance Update

Dividends

P&G reported Q2 2026 net sales of $22.2 billion (+1% vs prior year) with organic sales flat year-over-year.
Diluted EPS of $1.78 declined 5% due to restructuring charges; core EPS of $1.88 was unchanged vs prior year.
Generated $5.0 billion in operating cash flow and $4.3 billion in net earnings, achieving 88% adjusted free cash flow productivity.
Returned $4.8 billion to shareholders via $2.5 billion of dividends and $2.3 billion of share repurchases.
Maintained fiscal 2026 guidance for all-in sales growth of 1–5%, organic sales growth of 0–4%, and core EPS growth of 0–4%.

Jan 22, 2026, 12:02 PM

8-K

Procter & Gamble announces fiscal Q2 2026 results

Earnings

Guidance Update

Share Buyback

In Q2 FY2026, net sales were $22.2 billion, up 1% year-over-year, while organic sales were flat.
Diluted EPS declined 5% to $1.78 and core EPS held steady at $1.88.
Operating cash flow was $5.0 billion, net earnings were $4.3 billion, and adjusted free cash flow productivity was 88%; returned $4.8 billion to shareholders via $2.5 billion in dividends and $2.3 billion in share repurchases.
The company maintained its full-year guidance for organic sales growth, core EPS growth, and adjusted free cash flow productivity.

Jan 22, 2026, 12:00 PM

Press Release

P&G shares hit two-year low amid CFO demand warning

Profit Warning

Demand Weakening

CFO Andre Schulten warned of a sharp deterioration in U.S. consumer demand—particularly in October and likely November—pressuring both sales volume and value amid a volatile economic environment.
Shares fell to $142.51, the lowest intraday level since December 15, 2023, and were down 3.34% at their intraday low, the biggest single-day percentage drop since April 24, 2025.
The stock has suffered its worst year-to-date performance since 2008, with a decline exceeding 14%.
Management maintains these challenges are within full-year guidance, and many analysts still see double-digit upside over the next 12 months.

Dec 2, 2025, 4:57 PM

Morningstar

Procter & Gamble presents at Morgan Stanley Global Consumer & Retail Conference 2025

Demand Weakening

Product Launch

New Projects/Investments

US demand remains volatile with categories down significantly in October; guidance assumes consumption run-rates hold through H2, yielding low-single-digit organic sales growth supported by innovation.
Ongoing innovation ramp, initiated 2½ years ago to restore volume growth, emphasizes deeper consumer insights and high-quality launches (e.g., Tide Liquid’s largest formula upgrade in 20 years, Tide Boost).
China momentum: Q1 organic growth of +5% following a complete go-to-market overhaul; 60% of net sales now deemed “superior,” with further acceleration as remaining brands are elevated.
Productivity & simplification: annual gross savings of $2.0–2.2 billion, streamlined org structures, divestitures of smaller markets and SKU rationalizations to reallocate resources to high-value growth areas.
Deployment of AI/technology (“Supply Chain 3.0”) across manufacturing, logistics and marketing—including unattended plants, dark warehouses, AI-driven quality control and demand forecasting—to drive next-generation productivity and agility.

Dec 2, 2025, 1:45 PM

Transcript

Procter & Gamble outlines strategic priorities at Morgan Stanley conference

Demand Weakening

Layoffs

New Projects/Investments

P&G expects U.S. organic sales to hold current run rates and deliver low single-digit growth in H2, offsetting Q2 category declines amid consumer volatility, all within its full-year guidance range.
A two-year innovation ramp-up, anchored in deep consumer insights, is driving premium launches—highlighted by the Tide Boost formula upgrade—to restore volume and share across key portfolios.
The global restructuring program will simplify the organization, reduce headcount and SKU complexity, and redeploy savings into growth investments, supporting a two- to three-year EPS algorithm.
“Supply Chain 3.0” and AI deployments—including automated manufacturing, AI-driven quality control, demand forecasting and media optimization—are underway, backed by heavy data-infrastructure investment.
In China, a go-to-market overhaul and e-commerce focus fueled 5% growth in the latest fiscal quarter, with further acceleration expected as innovation and retail partnerships expand.

Dec 2, 2025, 1:45 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for PROCTER & GAMBLE.

Q2 2026

Jan 22, 2026

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Q4 2025

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