Procter & Gamble Furnishes Q1 FY 2027 Earnings Presentation and Updated Guidance

Procter & Gamble (NYSE: PG) Q1 FY 2027 Earnings Presentation Summary

Filing Overview

On October 22, 2026, The Procter & Gamble Company filed a Form 8-K under Item 7.01 (Regulation FD Disclosure), furnishing an informational slide deck (Exhibit 99.1) accompanying its Q1 FY 2027 earnings release and conference call.

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Key Financial Highlights (Q1 FY 2027)

• Topline Performance:
  • Organic Sales Growth: +4.0% year-over-year, driven by +2.4% volume, +1.1% mix, and +0.4% pricing.
  • Organic sales grew across all 10 product categories and all 6 geographic regions.
• Profitability & Margins:
  • Core Gross Margin: 50.0%, down 150 basis points year-over-year (both reported and currency-neutral).
  • Core Operating Margin: 25.9%, down 80 basis points (-90 bps currency-neutral).
  • Total productivity savings contributed +250 basis points.
• Earnings Per Share:
  • Diluted EPS (GAAP): $1.97 vs. $1.95 in Q1 FY 2026.
  • Core EPS: $2.00 (+1% YoY).
  • Currency-Neutral Core EPS: $1.99 (in line with prior year).
• Cash Flow Generation:
  • Operating Cash Flow: $5.77 billion.
  • Capital Expenditures: $1.37 billion.
  • Free Cash Flow: $4.40 billion, delivering a Free Cash Flow Productivity of 93%.

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Segment Performance (Organic Sales & Earnings)

1. Beauty:
   • Organic Sales: +5.4% (Volume +2.2%, Pricing +0.7%, Mix +2.5%).
   • Net Earnings: -1% (productivity gains offset by marketing investments, commodity costs, and mix).
2. Grooming:
   • Organic Sales: +4.5% (Pricing +3.5%, Mix +1.5%, Volume -0.4%).
   • Net Earnings: +3%.
3. Health Care:
   • Organic Sales: +2.7% (Pricing +2.8%, Mix +2.8%, Volume -2.9%).
   • Net Earnings: +9%.
4. Fabric & Home Care:
   • Organic Sales: +4.8% (Volume +4.3%, Mix +0.8%, Pricing -0.3%).
   • Net Earnings: +3%.
5. Baby, Feminine & Family Care:
   • Organic Sales: +3.0% (Volume +2.3%, Mix +1.8%, Pricing -1.2%).
   • Net Earnings: -4%.

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Full-Year FY 2027 Guidance

• Net Sales Growth: Updated to +2% to +4%.
• Organic Sales Growth: Maintained at +1% to +3% (includes a 30–50 bps headwind from product/GTM discontinuations).
• Core EPS Growth: Maintained at 0% to +3% (base period FY 2026 Core EPS was $6.89).
• All-In EPS Growth: Maintained at +1% to +5% (base period FY 2026 Diluted EPS was $6.62).
• Anticipated Headwinds:
  • $1.4B after-tax impact from higher energy, transportation, and raw material costs.
  • $300M after-tax headwind from higher net interest expense.
  • $150M after-tax lower non-operating income.
  • $50M after-tax FX drag.
• Capital Allocation:
  • Dividends: >$10 billion.
  • Direct Share Repurchases: ~$5 billion.
  • Capital Spending: 4.5% to 5.5% of sales.
  • Free Cash Flow Productivity: 85% to 90%.