P&G CFO Trades Gross Margin for Growth, Targets $205 by 2031

Procter & Gamble (PG) CFO Andre Schulten said he would trade three points of gross margin for three points of growth from innovation. In a recent conference, he described this as 'a trade-off we would make any given day.'

Schulten emphasized that P&G will stay price-competitive and called gross margin 'just an outcome.' He pointed out that the company has become competitive in Oral Care and regained share in Diaper prices.

The mid-case target for P&G stock is around $205 by June 30, 2031. This assumes revenue growth of about 2.5% a year and net income margins near 19%, roughly fiscal 2026's normalized level.