Procter & Gamble earnings beat, but revenue misses as volume stays flat
Procter & Gamble beat adjusted EPS estimates but missed revenue forecasts as organic sales were flat and volume failed to grow.
By Maya Okafor · Markets Writer
· 3 min read
Procter & Gamble earnings came in mixed for the fiscal fourth quarter: profit topped Wall Street’s forecast, but sales missed expectations as shoppers bought no more product overall than they did a year earlier. For retail investors, the report shows the pressure even big consumer-staples companies face when households look harder for value.
The company reported adjusted earnings per share of $1.43, above the $1.41 expected by analysts surveyed by LSEG, according to Procter & Gamble and CNBC. Revenue was $21.2 billion, below the $21.38 billion analysts expected.
CNBC reported that P&G shares fell more than 3% in premarket trading after the results. A consumer-staples stock like P&G is often watched for signs of household demand because the company sells everyday products used in categories such as laundry and personal care.
Why did Procter & Gamble revenue miss estimates?
P&G said net sales rose 2% from a year earlier to $21.2 billion, but its organic revenue was flat for the quarter. Organic revenue strips out acquisitions, divestitures and currency moves, so investors use it to see how the underlying business is performing.
The key issue was volume, which means the actual amount of product sold. P&G’s volume was unchanged across its portfolio, according to the company. That matters because a company can grow sales by raising prices, selling more units, or both. Flat volume signals that demand did not expand during the quarter.
For the full fiscal year 2026, P&G recorded volume growth in only one quarter, CNBC reported. The company has been dealing with the same problem facing many consumer-products businesses: shoppers have become more focused on price, including by choosing cheaper private-label alternatives or making products such as shampoo and laundry detergent last longer.
Net income attributable to Procter & Gamble was $3.04 billion, or $1.26 per share, for the fiscal fourth quarter. That was down from $3.62 billion, or $1.48 per share, in the same period a year earlier.
On an adjusted basis, which excludes restructuring costs, transaction gains and other items, P&G earned $1.43 per share, according to the company. Adjusted earnings are a company’s attempt to show profit excluding items it says do not reflect normal operations, though investors still compare them with standard net income.
What did P&G say about fiscal 2027?
For fiscal 2027, Procter & Gamble said it expects core earnings per share of $6.89 to $7.11. The company also forecast all-in sales growth of 1% to 3% from the prior year.
Analysts had expected fiscal 2027 earnings per share of $7.04 and revenue growth of 2.7%, according to Wall Street estimates cited by CNBC. That puts P&G’s profit outlook range around consensus, while its sales-growth range spans both below and above the analyst expectation.
P&G also announced a board leadership change. The company said CEO Shailesh Jejurikar will become chair of the board on Aug. 1 while continuing as chief executive. He succeeds Jon Moeller, the former CEO, in the chair role.
This story draws on original reporting from CNBC.
