P&G Forecasts Slower Growth Amid Rising Costs

Procter & Gamble (P&G) has forecast slower annual sales growth as costs weigh on the consumer goods company. The Dow component reported quarterly sales that fell short of estimates, with net sales of $21.20 billion missing expectations.

The company's core earnings per share fell 3% to $1.43 in the April-June period from a year ago, but edged past estimates of $1.41. Higher commodity costs and increased marketing spend dragged operating margins lower for the third straight quarter.

P&G CFO Andre Schulten said trade dynamics in the U.S. and a spike in input costs impacted results in the fourth quarter. The company expects fiscal 2027 total net sales to grow in the range of 1% to 3%, compared with 3.3% growth in 2026.

P&G's forecast assumes the war in Iran continues and oil prices remain elevated, with a roughly $1 billion profit impact expected from higher costs. The company is ramping up spending on marketing and product innovation to reach more customers, but faces challenges in offering products at varied price points due to the widening divide between high and low-income shoppers.