Procter & Gamble posts lower quarterly profit, sales miss and soft fiscal 2027 outlook

Procter & Gamble reported lower fiscal fourth-quarter profit and $21.2 billion in net sales, missing Wall Street expectations of $21.38 billion, as higher costs and uneven demand weighed on results. Sales rose 2% from a year earlier, but organic sales were flat and overall volume was unchanged, reinforcing concerns that the company’s long-running pricing-led growth model is losing momentum. Net income attributable to shareholders fell about 16% to $3.04 billion, while full-year fiscal 2026 net sales rose 3% to $87.03 billion and organic sales increased just 1%, with pricing contributing 1 percentage point, favorable foreign exchange 2 points, and volume and mix contributing nothing. Shares fell about 3% after the release. Beauty remained the standout business, with fiscal-year sales up 7% to $16.02 billion and fourth-quarter organic sales up 4% on 3% volume growth, while SK-II posted a sixth straight quarter of double-digit organic sales growth. Other segments were weaker, and North American organic sales fell 1% in the quarter as retailer inventory reductions and timing effects weighed on shipments. P&G also issued a cautious fiscal 2027 outlook, forecasting 1% to 3% sales growth and core EPS of $6.89 to $7.11. The company said after-tax earnings headwinds could total about $1.4 billion, or $0.56 per share, including roughly $1 billion from raw material, energy, transportation and supply-chain costs, plus foreign exchange, interest expense and lower non-operating income.