Procter & Gamble slightly misses Q2 sales expectations, maintains 2026 sales, core EPS growth guidance

Overview

• Consumer goods co's fiscal Q2 sales slightly missed analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company maintained fiscal year sales, core EPS growth, and cash return guidance

Outlook

• P&G maintains fiscal 2026 sales growth guidance at 1% to 5%

• Company expects fiscal 2026 core EPS growth of 0% to 4%

• P&G forecasts adjusted free cash flow productivity of 85% to 90%

Result Drivers

• PRICING IMPACT - Net sales rose 1% due to higher pricing, offset by a 1% decline in unit volume

• RESTRUCTURING CHARGES - Diluted EPS fell 5% due to higher restructuring charges

• SEGMENT PERFORMANCE - Beauty segment organic sales up 4% due to innovation-driven pricing and volume growth

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy"

• Wall Street's median 12-month price target for Procter & Gamble Co is $166.50, about 14% above its January 21 closing price of $146.06

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw67Pw99a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.