- Organic Revenue Growth Outlook for 2026: Procter & Gamble expects organic revenue growth to be between 0% and +4%, with estimates averaging around +2.55%.
- Core EPS Growth Forecast: The company projects core EPS growth in the range of 0% to +4%, with core EPS anticipated between $6.83 to $7.09; the estimate is $6.99.
- Fourth Quarter Performance:
- Core EPS was reported at $1.48, an increase from last year’s $1.40, and higher than the estimated $1.42.
- Net sales reached $20.89 billion, marking a 1.7% increase year-over-year and surpassing the estimate of $20.82 billion.
- Segment Revenues:
- Beauty revenue was $3.73 billion, slightly below the estimate of $3.78 billion.
- Grooming revenue was $1.68 billion, close to the estimate of $1.69 billion.
- Healthcare revenue was $2.72 billion, not meeting the estimate of $2.76 billion.
- Fabric & Home Care revenue matched the estimate at $7.39 billion.
- Baby, Feminine & Family Care revenue surpassed the estimate, generating $5.09 billion compared to the $5.04 billion estimate.
- Foreign Currency & Pricing Impacts: There was no significant impact from foreign currency, whereas the increase in prices contributed a +1% impact, above the estimate of 0.88%.
- Organic Growth by Segment:
- Overall organic revenue grew by +2%, surpassing the estimate of +1.75%.
- All segments saw organic sales growth, with noted increases in Beauty (+1%) and Baby, Feminine & Family Care (+1%).
- Fiscal Year 2025 Overview:
- Net sales for the fiscal year 2025 stood at $84.3 billion, maintaining the previous year’s level.
- Tariffs are expected to increase costs by around $1 billion before tax, or approximately $800 million after tax.
- Capital expenditure planned for fiscal 2026 is projected between four to five percent of net sales.
- The company anticipates a full-year adjusted free cash flow productivity of 85% to 90%.
- Fiscal 2026 plans include paying $10 billion in dividends and repurchasing approximately $5 billion in common shares.
Procter & Gamble Co on Smartkarma
On Smartkarma, independent analysts from Baptista Research have been closely covering Procter & Gamble Co (P&G). In their report titled “Procter & Gamble (P&G)’s 7,” the analysts highlighted P&G’s significant organizational shake-up. The company plans to reduce 7,000 nonmanufacturing jobs globally, representing about 15% of its non-factory workforce. This restructuring program, estimated to cost between $1 billion and $1.6 billion before tax, aims to streamline operations and drive efficiency within the company.
Furthermore, Baptista Research‘s analysis in the report “Procter & Gamble (P&G) Looking To Turbocharge Retail Reach Through Channel Diversification But Will It Work?” discusses P&G’s recent earnings results. Despite facing both achievements and challenges, the company managed to achieve modest growth with a 1% increase in organic sales for the third quarter. The report notes that pricing strategies played a crucial role in driving this growth, emphasizing P&G’s efforts to enhance its retail reach through diversification strategies.
A look at Procter & Gamble Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Procter & Gamble Co, a global consumer products manufacturer, has received a mixed bag of Smart Scores indicating its long-term outlook. With a Value score of 2, the company may be considered moderately priced compared to its peers. On the other hand, Procter & Gamble Co scored a 3 for both Dividend and Growth, suggesting a stable dividend payout and moderate growth potential. The company’s Resilience score of 4 highlights its ability to weather economic challenges effectively. In terms of Momentum, Procter & Gamble Co scored a 3, indicating a steady performance trend.
The Procter & Gamble Company’s diverse product offerings across multiple segments, including laundry, cleaning, beauty care, food, and healthcare, position it as a key player in the consumer goods industry. While the Smart Scores paint a mixed picture for the company’s long-term prospects, Procter & Gamble Co‘s solid Resilience score implies a robust foundation to navigate future uncertainties in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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