P&G Faces $1 Billion Earnings Headwind in Fiscal 2027

The Procter & Gamble Company (P&G) is facing significant earnings headwinds in fiscal 2027, with management expecting a core EPS drag of 8%.

This is largely due to higher costs, including $1 billion after tax from increased raw-material, energy, transportation and related costs. This pressure is expected to be particularly acute in the first half of fiscal 2027, with an effective Brent crude oil price of about $90 per barrel.

The outlook also assumes higher net interest expense, lower non-operating income, and unfavorable foreign exchange rates, which together add another $1 billion after tax to the headwind.

P&G's productivity efforts will be key in offsetting these costs. The company generated about $2.8 billion of before-tax productivity improvement in fiscal 2026, and is continuing to scale its Supply Chain 3.0 initiative, as well as investing in AI-enabled brand-building tools and automated workflows.