Procter & Gamble shares dropped on Wednesday after the company reported mixed quarterly results and gave a profit outlook that disappointed investors.
P&G reported core earnings of $1.43 per share for its fiscal fourth quarter, which was down from $1.48 a year ago but a bit higher than Wall Street’s estimate of $1.41. Net sales increased 2% to $21.2 billion, but this was below the consensus estimate of $21.38 billion, according to FactSet.
Performance differed across product categories. The beauty segment saw 4% organic sales growth from April to June, while most other divisions were flat or slightly down compared to last year.
For fiscal 2027, P&G expects core earnings between $6.89 and $7.11 per share and sales growth of 1% to 3%. Wall Street had expected $7.02 per share and 2.7% sales growth, so the company’s forecast is a bit lower than analysts hoped. P&G also warned that higher costs for raw materials, energy, and transportation could reduce earnings by about $1 billion, or 56 cents per share, which is roughly an 8% hit to core earnings growth.
P&G shares dropped 2.9% on Wednesday, falling more than the overall market. The stock has mostly traded within a narrow range this year and was up about 4% as of Tuesday’s close.
CEO Shailesh Jejurikar said the company managed a tough geopolitical and economic environment in fiscal 2026 and expects more ups and downs in 2027. He said P&G is confident in its plans to speed up growth over time, thanks to a strong productivity program, and is gaining momentum with consumers while staying positive about long-term prospects.
William Blair called the quarter’s organic sales growth underwhelming and said the first 2027 profit forecast was mostly in line with Wall Street’s expectations. The firm pointed out that gross margin was a bit better than expected, helped by productivity savings and tariff benefits, which balanced out higher commodity costs and ongoing investments. Despite the mixed results, William Blair remains positive about the stock in the long run, noting P&G’s focus on everyday consumer products, product differentiation, and productivity should support steady growth even in a tough environment.
