P&G Sees Lower Growth Ahead Due to Cost Pressures

Procter & Gamble (PG) reported a steady quarter with organic sales growth of 1% and core earnings per share reaching $6.89, up 1% year over year.

The bigger story is what comes next as P&G guided fiscal 2027 organic sales growth to a range of 1% to 3%, and core EPS growth guidance sits at 0% to 3%. The company flagged a roughly $1 billion after-tax cost headwind due to higher raw materials, energy, and transportation costs.

To offset some of that pressure, P&G acquired premium supplements brand Thorne in early August, giving the company a foothold in the faster-growing wellness category. However, it remains to be seen whether Thorne's growth can offset near-term margin pressure.