Procter & Gamble's revenue falls short of expectations, sales remain flat
The company reported mixed quarterly results on Wednesday, with sales missing expectations due to weak demand for its products. The company's shares fell more than 3% in premarket trading. Here's how P&G's financial results compare to Wall Street expectations (based on LSEG's survey of analysts): Earnings per share: Adjusted $1.43, vs. $1.41 expected Revenue: $21.2 billion, $21.38 billion expected Procter & Gamble's net profit attributable to the company in the fourth fiscal quarter was US$3.04 billion, or US$1.26 per share, down from US$3.62 billion, or US$1.48 per share, in the same period last year. Excluding restructuring costs, transaction gains and other items, the company earned $1.43 per share. Net sales increased 2% to $21.2 billion. Organic revenue, which excludes the impact of acquisitions, divestitures and currency fluctuations, was flat in the quarter compared with the same period last year as sales were flat across P&G's product portfolio. In the entire fiscal year 2026, P&G only achieved sales growth in one quarter. Like many consumer goods companies, demand for P&G's products has waned as consumers become increasingly value-conscious, turning to cheaper private-label alternatives or further frugal use of shampoo and laundry detergent. In the fourth fiscal quarter, P&G's beauty business unit performed best, with sales increasing by 3%. This segment includes Pantene shampoo and Olay and SK-II skin care products. Fabric & Home Care was the only other reporting segment to post volume growth. The unit, which includes Tide detergent and Swiffer, saw sales rise 1% in the quarter. Sales in P&G's Baby, Feminine and Family Care and Grooming divisions each fell 1%. Healthcare was P&G's worst-performing segment this quarter. The unit, which owns Oral-B and Vicks, saw sales shrink 3% due to declining sales of oral care products. Looking ahead to the next fiscal year, the company does not expect a significant pickup in demand for its products. For fiscal 2027, P&G expects core earnings per share to be in a range of $6.89 to $7.11. The company also expects total sales to increase 1% to 3% from the previous year. Wall Street's forecast for fiscal 2027 is for earnings of $7.04 per share and revenue growth of 2.7%. P&G currently estimates that rising raw material, energy and transportation costs will create about $1 billion in after-tax headwinds. Coupled with higher net interest expense expectations, lower non-operating income and unfavorable currency factors, P&G expects fiscal 2027 earnings per share to be dragged down by 8% (about 56 cents). Procter & Gamble also announced on Wednesday that CEO Shailesh Jejurikar will also serve as chairman of the board of directors effective August 1, succeeding former CEO Jon Mohler.