Analysts See Upside in Procter & Gamble Despite Underwhelming Earnings

The Procter & Gamble Company (PG) is one of the world's leading consumer goods companies, operating in around 180 countries. Its portfolio includes a wide range of household and personal care products such as fabric, home, baby, feminine, grooming, hair, skin, oral, and personal healthcare brands.

The company has underperformed the broader market over the past year, with its shares declining by 3.8% compared to the S&P 500 Index's ($SPX) nearly 21.8% gain. On a year-to-date basis, PG has also lagged behind the State Street Consumer Staples Select Sector SPDR ETF (XLP), which has gained 5.9% over the past year.

In its latest earnings report for Q4 FY2026 on July 29, Procter & Gamble's shares fell by 1.9% after sales and margins came in below expectations. The company reported a 1.5% increase in net sales to $21.2 billion, with organic sales remaining flat.

Analysts expect PG's earnings per share (EPS) to rise 1.5% to $6.99 on a diluted basis for the current fiscal year ending June 2027. The company has an impressive track record of beating consensus estimates, having done so in each of the last four quarters.