Prime Highlights
- P&G’s CEO said the company remains on track to meet its guidance.
- Fabric and home care volume rose 4.3%, led by Tide and Febreze.
Key Facts
- P&G is a US consumer goods company behind brands such as Tide, Gillette and Crest.
- P&G raised its fiscal 2027 sales growth outlook to 2% to 4%.
Background
P&G beat Wall Street expectations in the first quarter of its fiscal year as consumers bought more laundry detergents and household products. Shares rose more than 2% in premarket trading after the results were announced in the fourth week of October.
Adjusted earnings reached $2.00 per share, above the $1.88 analysts expected. Revenue came in at $23.3 billion, ahead of the $22.8 billion forecast.
Net income was $4.73 billion, or $1.97 per share, compared with $4.75 billion, or $1.95 per share, a year earlier. Excluding restructuring costs and other items, earnings stood at $2 per share.
Volume grew 2.4%, a strong start to the new fiscal year. Demand for many consumer goods has weakened as shoppers focus on value. Executives have said customers now use every last drop of shampoo or detergent, and value packs have grown more popular. In just one quarter of the 2026 fiscal year, P&G reported volume growth.
Fabric and home care, home to Tide and Febreze, led the portfolio with volume up 4.3%. Baby, feminine and family care, and beauty each saw volume rise more than 2%. Grooming volume fell 0.4%. Health care lagged, with volume down 2.9% as sales of Crest toothpaste and Pepto-Bismol weakened.
CEO Shailesh Jejurikar said the company expects continued geopolitical and economic challenges but remains on track to meet its guidance.
For fiscal 2027, P&G kept its core earnings forecast at $6.89 to $7.11 per share. It raised its sales growth outlook to 2% to 4% from 1% to 3%, reflecting the acquisition of vitamin maker Thorne, which closed in the first week of October.