P&G Posts Record Sales Amidst Global Headwinds

Procter & Gamble (PG) reported its Q4 2026 earnings, revealing a 3% net sales increase to $87 billion. This growth was driven by favorable foreign exchange and pricing, with organic sales rising 1%. Core EPS stood at $6.89, up 1%, despite a 40 basis points decline in core gross margin and 70 basis points decrease in operating margin.

For the upcoming fiscal year 2027, P&G expects 1-3% organic sales growth, with a headwind of 30-50 basis points from brand and product form discontinuations. Core EPS is projected to be between $6.89 and $7.11 per share, reflecting flat to 3% growth.

The company also announced a $1 billion after-tax cost headwind in fiscal 2027 due to higher raw materials, energy, and transportation costs related to the Middle East conflict. However, management emphasized its strategic focus on integrated growth, prioritizing consumer superiority across product performance and value.