P&G Takes $1 Billion Hit from Iran Conflict

Procter & Gamble (P&G) has disclosed that it expects to incur an additional $1 billion in costs due to the conflict in Iran. This figure is a concrete benchmark for procurement teams across the consumer-goods sector, which are facing similar pressures from fuel and commodity pricing.

P&G's CFO Andre Schulten told analysts that the environment entering fiscal 2027 will remain volatile and challenging, with the company projecting adjusted earnings per share (EPS) growth ranging from flat to 3%. This guidance suggests EPS of approximately $7 at the midpoint.

The $1 billion cost hit is attributed to higher fuel and supply costs, which have combined with sluggish consumer demand to squeeze P&G's margins. The company's fourth-quarter net profit fell to $3.04 billion, leading to a 4% drop in shares to $143.20.