Procter & Gamble earnings prompt Cramer trust to exit PG stake

Procter & Gamble earnings pushed Jim Cramer’s Charitable Trust to exit its remaining stake in PG after a quarter that showed weak sales momentum and a cautious profit outlook. CNBC Investing Club said the trust planned to sell 200 shares shortly after the opening bell at about $144 each, leaving it with no position in the household-products company.

P&G shares were down about 3%, or roughly $4.50, in premarket trading after the company reported mixed quarterly results, according to CNBC Investing Club. For everyday investors, the split was clear: profit topped expectations by a little, but sales growth and guidance did not give the market much to cheer.

Why is Procter & Gamble stock falling?

CNBC Investing Club pointed to flat organic sales growth and soft fiscal 2027 guidance as the key issues. Organic sales growth strips out effects such as currency moves, acquisitions and divestitures, so investors use it to judge how much demand is growing inside the existing business.

P&G’s organic sales were unchanged in the quarter, below analyst expectations for roughly 2% growth, according to CNBC Investing Club. The Beauty division, which includes brands such as Head & Shoulders, Pantene and Old Spice, was the only segment to report positive organic sales growth.

On earnings, the company did a bit better than Wall Street expected. Earnings per share fell 3% from a year earlier to $1.43, but that was above the $1.41 analyst estimate, according to LSEG data cited by CNBC Investing Club. Earnings per share, or EPS, is a company’s profit divided by its share count, and it is one of the main numbers investors use to compare results with expectations.

What did P&G say about fiscal 2027?

CNBC Investing Club said P&G’s new fiscal 2027 outlook was soft. The company expects organic sales growth of 1% to 3%, which matches the analyst forecast of about 2% at the midpoint.

The profit guide looked weaker relative to expectations. P&G forecast fiscal 2027 EPS of $6.89 to $7.11. At the midpoint, $7.00, that sits just below the $7.02 Wall Street consensus cited by CNBC Investing Club.

The company also estimated an after-tax headwind of about $1 billion in fiscal 2027 from higher costs for raw materials, energy and transportation, according to CNBC Investing Club. A headwind is a pressure that reduces results, and in this case those costs are weighing on the EPS outlook.

CNBC Investing Club said P&G has historically issued conservative forecasts, adding that the outlook could be raised later if the Iran war reaches a durable end and energy and input costs fall for a sustained period. That point was presented as a possible scenario, not a company forecast.

Why did the Cramer trust sell PG?

CNBC Investing Club said it has been looking for stronger growth from P&G under CEO Shailesh Jejurikar, who took over in January. The club said it is still early in Jejurikar’s tenure and did not rule out his effort to revive growth, but it preferred to watch the progress without holding the stock.

The club said the sale would lock in a small loss of less than 1% on shares bought between November 2025 and March 2026. It had started the position last fall as a defensive hedge, meaning a holding meant to help steady a portfolio during weaker or more uncertain markets.

CNBC Investing Club also said subscribers receive trade alerts before Jim Cramer makes trades for the Charitable Trust. Under the club’s stated process, Cramer waits 45 minutes after sending an alert before buying or selling a trust position, and waits 72 hours after an alert if he has discussed the stock on CNBC TV.

This story draws on original reporting from CNBC.