P&G (NYSE: PG) Q3 2026 sales up 7% as EPS climbs 6%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Procter & Gamble reported fiscal 2026 third-quarter net sales of $21.2 billion, up 7%, with organic sales up 3% on 2% higher volume and 1% pricing. Diluted EPS rose 6% to $1.63, aided by a gain from dissolving the Glad joint venture, while core EPS increased 3% to $1.59.
Operating cash flow was $4.0 billion and adjusted free cash flow $3.0 billion, for 82% adjusted free cash flow productivity. The company returned $3.2 billion to shareholders through $2.5 billion in dividends and over $600 million of buybacks, and recently extended its dividend growth streak to 70 consecutive years.
P&G maintained fiscal 2026 guidance for all-in sales growth of 1%–5% and organic sales growth of in-line to up 4%, and kept diluted EPS growth guidance at 1%–6% and core EPS growth at in-line to up 4%, but now expects EPS near the lower end of the ranges due to about $0.25 per-share headwinds from commodities, tariffs, interest and taxes. The company still plans around $10 billion in dividends and about $5 billion of share repurchases in fiscal 2026.
Positive
- None.
Negative
- None.
Insights
P&G delivers steady Q3 growth, holds guidance but flags EPS pressure toward low end.
P&G posted Q3 net sales of $21.2 billion, up 7%, with organic sales up 3% on modest volume and pricing gains. Diluted EPS grew 6% to $1.63, helped by a one-time gain from dissolving the Glad joint venture, while core EPS rose 3% to $1.59.
Margins softened as gross margin fell 150 basis points and core operating margin declined 80 basis points, reflecting unfavorable mix and higher reinvestment, partially offset by strong productivity savings. Cash generation remained solid with operating cash flow of $4.0 billion and adjusted free cash flow of $3.0 billion, supporting 82% adjusted free cash flow productivity and $3.2 billion of shareholder returns in the quarter.
For fiscal 2026, management maintained all-in sales growth guidance of 1%–5% and organic sales growth of in-line to up 4%, and kept diluted EPS growth at 1%–6% and core EPS growth at in-line to up 4%. However, it now expects EPS toward the lower end of these ranges, citing about $150 million in commodity headwinds, $400 million from tariffs, roughly $250 million net from interest and tax effects, and a net $200 million FX tailwind for a combined $0.25 per-share headwind.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net Sales: $21.2 billion
Organic Sales Growth: 3%
Diluted EPS: $1.63
+5 more
8 metrics
Net Sales
$21.2 billion
Fiscal Q3 2026, up 7% year over year
Organic Sales Growth
3%
Fiscal Q3 2026 vs prior year
Diluted EPS
$1.63
Fiscal Q3 2026, up 6% vs prior year
Core EPS
$1.59
Fiscal Q3 2026, up 3% vs prior year
Operating Cash Flow
$4.0 billion
Fiscal Q3 2026
Adjusted Free Cash Flow
$3.0 billion
Fiscal Q3 2026, 82% productivity
Shareholder Returns
$3.2 billion
Q3 2026 dividends and buybacks
FY 2026 Sales Guidance
1%–5% growth
All-in net sales vs prior year
Key Terms
organic sales, Core EPS, adjusted free cash flow productivity, currency-neutral Core EPS, +1 more
5 terms
organic sales financial
"Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased three percent versus the prior year."
Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.
Core EPS financial
"Core earnings per share were $1.59, an increase of three percent versus prior year."
Core EPS is a company’s reported earnings per share after removing one-time or unusual items so investors see the business’s regular profit per share; think of it as the household’s monthly income after ignoring a one-off inheritance or emergency expense. It matters because it highlights the company’s underlying, repeatable profitability and makes it easier to compare performance across periods and with other firms, though the adjustments can vary by company.
adjusted free cash flow productivity financial
"Adjusted free cash flow productivity was 82%. Adjusted free cash flow productivity is calculated as operating cash flow less capital spending, as a percentage of net earnings excluding the gain..."
A measure of how effectively a company turns its core business activity into cash that is truly available for things like paying debt, dividends, or reinvesting — after removing one-time items and accounting adjustments that can hide the real picture. Think of it as the share of the company's operating output that arrives as clean, usable cash; investors use it to judge the reliability and quality of cash generation beyond headline profits.
currency-neutral Core EPS financial
"Core earnings per share increased three percent to $1.59 and currency-neutral core EPS was unchanged at $1.54."
Core operating margin financial
"Core operating margin for the quarter decreased 80 basis points versus the prior year and decreased 70 basis points on a currency-neutral basis."
Core operating margin measures the percentage of sales a company keeps as profit from its regular business activities after routine operating costs, excluding one-time gains or losses. Think of it like checking how much a bakery earns from selling bread each month while ignoring a single big equipment sale or a rare legal bill; investors use it to judge sustainable profitability, operational efficiency, and to compare businesses on a like-for-like basis.
Earnings Snapshot
Net Sales: $21.2 billion · Guidance included
Q3 fiscal 2026
Net Sales
$21.2 billion
+7% YoY
Diluted EPS
$1.63
+6% YoY
Core EPS
$1.59
+3% YoY
Guidance
For fiscal 2026, P&G guides all-in sales growth of 1%–5%, organic sales growth in-line to up 4%, diluted EPS growth of 1%–6%, and core EPS growth in-line to up 4%, with EPS expected toward the lower end of the ranges.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
| FORM | |||||
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act Of 1934
| Date of Report (Date of earliest event reported) | |||||
THE PROCTER & GAMBLE CO MPANY
(Exact name of registrant as specified in its charter)
| OH | ||||||||||||||
| (State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
| One Procter & Gamble Plaza | , | Cincinnati | OH | |||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(513 ) 983-1100
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨ False
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||
On | |||||
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS | ||||
| Exhibit Number | Description | ||||
| 99.1 | News Release by The Procter & Gamble Company dated | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE PROCTER & GAMBLE COMPANY | |||||
| By | /s/ SANDRA T. LANE | ||||
| Sandra T. Lane, Assistant Secretary | |||||
EXHIBIT(S)
99.1 News Release by The Procter & Gamble Company dated April 24, 2026.
| News Release | The Procter & Gamble Company | ||||
One P&G Plaza | |||||
Cincinnati, OH 45202 | |||||
P&G ANNOUNCES FISCAL YEAR 2026 THIRD QUARTER RESULTS | ||
| Net Sales +7%; Organic Sales 3% | ||
| Diluted EPS $1.63, +6%; Core EPS $1.59, +3% | ||
| MAINTAINS FISCAL YEAR SALES, EPS GROWTH AND CASH RETURN GUIDANCE | ||
CINCINNATI, April 24, 2026 - The Procter & Gamble Company (NYSE:PG) reported third quarter fiscal year 2026 net sales of $21.2 billion, an increase of seven percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased three percent versus the prior year. Diluted net earnings per share were $1.63, an increase of six percent versus prior year, driven by a gain from the dissolution of the Glad joint venture business. Core earnings per share were $1.59, an increase of three percent versus prior year.
Operating cash flow was $4.0 billion, and net earnings were $4.0 billion for the quarter. Adjusted free cash flow productivity was 82%. Adjusted free cash flow productivity is calculated as operating cash flow less capital spending, as a percentage of net earnings excluding the gain from the dissolution of the Glad joint venture business. The Company returned $3.2 billion of cash to shareowners via $2.5 billion of dividend payments and over $600 million of share repurchases. The dividend increase announced earlier this month marks the 70th consecutive year that P&G has increased its dividend and the 136th consecutive year that P&G has paid a dividend since its incorporation in 1890.
Third Quarter ($ billions, except EPS) | ||||||||||||||||||||||||||
GAAP | 2026 | 2025 | % Change | Non-GAAP* | 2026 | 2025 | % Change | |||||||||||||||||||
Net Sales | 21.2 | 19.8 | 7% | Organic Sales | n/a | n/a | 3% | |||||||||||||||||||
Diluted EPS | 1.63 | 1.54 | 6% | Core EPS | 1.59 | 1.54 | 3% | |||||||||||||||||||
*Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures.
“We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions,” said Shailesh Jejurikar, President and Chief Executive Officer. “We’re increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year. We continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy. We are confident in the progress we’re making and excited about the longer-term opportunity to leverage P&G’s strengths and unique capabilities to create the CPG company of the future.”
January - March Quarter Discussion
Net sales in the third quarter of fiscal year 2026 were $21.2 billion, a seven percent increase versus the prior year. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased three percent driven by a two percent increase from volume and a one percent increase from higher pricing. Mix had a neutral impact on sales for the quarter.
| January - March 2026 | Volume | Foreign Exchange | Price | Mix | Other (2) | Net Sales | Organic Volume | Organic Sales | ||||||||||||||||||
Net Sales Drivers (1) | ||||||||||||||||||||||||||
| Beauty | 5% | 4% | 1% | 1% | —% | 11% | 5% | 7% | ||||||||||||||||||
| Grooming | (2)% | 6% | 3% | —% | —% | 7% | (2)% | 1% | ||||||||||||||||||
| Health Care | (2)% | 5% | 2% | 1% | 1% | 7% | (2)% | 2% | ||||||||||||||||||
| Fabric & Home Care | 2% | 4% | 1% | —% | —% | 7% | 2% | 3% | ||||||||||||||||||
| Baby, Feminine & Family Care | 3% | 3% | —% | —% | —% | 6% | 3% | 3% | ||||||||||||||||||
| Total P&G | 2% | 4% | 1% | —% | —% | 7% | 2% | 3% | ||||||||||||||||||
(1)Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2)Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
•Beauty segment organic sales increased seven percent versus year ago. Hair Care organic sales increased mid-single digits driven by volume increase and innovation-based pricing in North America and Europe. Personal Care organic sales increased high single digits driven by innovation-based volume growth, favorable geographic mix and pricing. Skin Care organic sales also increased high single digits driven by favorable premium product mix and a volume increase, partially offset by merchandising investments, primarily in Greater China.
•Grooming segment organic sales increased one percent versus year ago as innovation-based pricing, primarily in North America and Europe, was partially offset by volume declines.
•Health Care segment organic sales increased two percent versus year ago. Oral Care organic sales increased low single digits driven by innovation-based pricing, primarily in North America, and favorable premium product mix, partially offset by a volume decline, led by Greater China. Personal Health Care organic sales also increased low single digits driven by higher pricing, primarily in North America, and favorable geographic mix, partially offset by a volume decline, led by North America and Europe.
•Fabric and Home Care segment organic sales increased three percent versus year ago. Fabric Care organic sales increased low single digits driven by a unit volume increase in North America. Home Care organic sales increased mid-single digits driven by a unit volume increase in Europe and higher pricing, primarily in Europe and North America.
•Baby, Feminine and Family Care segment organic sales increased three percent versus year ago. Baby Care organic sales increased low single digits driven by an increase in unit volume, primarily in India, Middle East and Africa and Greater China. Feminine Care organic sales also increased low single digits driven by innovation-based pricing, primarily in North America, and favorable geographic mix, partially offset by a unit volume decline. Family Care organic sales increased mid-single digits driven by strong volume growth due to retail inventory reduction in the prior year, partially offset by merchandising investments.
Diluted net earnings per share increased by six percent versus the prior year to $1.63, driven by a gain from the dissolution of the Glad joint venture business. Core earnings per share increased three percent to $1.59 and currency-neutral core EPS was unchanged at $1.54.
Reported gross margin for the quarter decreased 150 basis points versus the prior year. Core gross margin and currency-neutral core gross margin for the quarter decreased 100 basis points versus the prior year and excluded the impact from incremental restructuring charges. The decrease was driven by 180 basis points of unfavorable mix, 100 basis points of reinvestments, 50 basis points of higher costs from tariffs, 20 basis points of rounding and other items and 10 basis points of unfavorable commodity costs, partially offset by gross productivity savings of 210 basis points and increased pricing of 50 basis points.
Reported selling, general and administrative expense (SG&A) as a percentage of sales increased 10 basis points versus year ago. Core SG&A as a percentage of sales decreased 10 basis points versus year ago and decreased 20 basis points on a currency-neutral basis. Core SG&A excluded the impact from incremental restructuring charges. The Core SG&A decrease was driven by 120 basis points of productivity savings, 90 basis points of positive scale impacts of the net sales increase and 20 basis points of rounding and other items, partially offset by 210 basis points of reinvestments.
Reported operating margin for the quarter decreased 150 basis points versus the prior year. Core operating margin for the quarter decreased 80 basis points versus the prior year and decreased 70 basis points on a currency-neutral basis. Core operating margin included gross productivity savings of 330 basis points.
Fiscal Year 2026 Guidance
P&G maintained its guidance range for fiscal 2026 all-in sales growth to be in the range of one to five percent versus the prior year. The net impacts of foreign exchange rates and acquisitions and divestitures are expected to be a tailwind of approximately one percentage point to all-in sales growth. The Company also maintained its outlook for organic sales growth in the range of in-line to up four percent versus the prior year.
P&G maintained its outlook for fiscal 2026 diluted net earnings per share growth to be in the range of one percent to six percent versus fiscal 2025 diluted net EPS of $6.51. P&G also maintained its fiscal 2026 core earnings per share growth to be in the range of in-line to up four percent versus fiscal 2025 core EPS of $6.83. This outlook equates to a range of $6.83 to $7.09 per share.
P&G now expects commodity costs to be a headwind of approximately $150 million after tax and higher costs from tariffs are estimated at approximately $400 million after tax for fiscal 2026. The Company continues to expect a net headwind of roughly $250 million after-tax from modestly higher net interest expense and a higher core effective tax rate versus the prior year. Foreign exchange is forecasted to be a tailwind of approximately $200 million after tax. Collectively these impacts equate to a headwind of $0.25 per share for fiscal 2026. The Company also noted it is increasing investments in innovation and demand creation to maintain positive momentum with consumers. Given these factors, P&G now expects fiscal 2026 EPS results to be toward the lower-end of the guidance range.
The Company is unable to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.
P&G continues to expect a core effective tax rate to be in the range of 20% to 21% in fiscal 2026.
Capital spending is estimated to be in the range of four to five percent of fiscal 2026 net sales.
P&G continues to expect adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal 2026.
Forward-Looking Statements
Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law.
Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, pricing controls or tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war (such as the conflict in the Middle East), terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party
relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions.
For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.
About Procter & Gamble
P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.
# # #
P&G Media Contacts:
Wendy Kennedy, 513.780.7212
Henry Molski, 513.505.3587
P&G Investor Relations Contact:
John Chevalier, 513.983.9974
Category: PG
| THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES | |||||||||||||||||
| Consolidated Earnings Information | |||||||||||||||||
| Three Months Ended March 31 | |||||||||||||||||
| Amounts in millions except per share amounts | 2026 | 2025 | % Chg | ||||||||||||||
| NET SALES | $ | 21,235 | $ | 19,776 | 7% | ||||||||||||
| Cost of products sold | 10,722 | 9,694 | 11% | ||||||||||||||
| GROSS PROFIT | 10,513 | 10,081 | 4% | ||||||||||||||
| Selling, general and administrative expense | 5,936 | 5,524 | 7% | ||||||||||||||
| OPERATING INCOME | 4,576 | 4,558 | —% | ||||||||||||||
| Interest expense | (223) | (217) | 3% | ||||||||||||||
| Interest income | 100 | 111 | (10)% | ||||||||||||||
| Other operating income, net | 537 | 210 | 156% | ||||||||||||||
| EARNINGS BEFORE INCOME TAXES | 4,989 | 4,661 | 7% | ||||||||||||||
| Income taxes | 1,039 | 868 | 20% | ||||||||||||||
| NET EARNINGS | 3,951 | 3,793 | 4% | ||||||||||||||
| Less: Net earnings attributable to noncontrolling interests | 18 | 23 | (22)% | ||||||||||||||
| NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE | $ | 3,932 | $ | 3,769 | 4% | ||||||||||||
| EFFECTIVE TAX RATE | 20.8 | % | 18.6 | % | |||||||||||||
NET EARNINGS PER COMMON SHARE (1) | |||||||||||||||||
| Basic | $ | 1.66 | $ | 1.58 | 5% | ||||||||||||
| Diluted | $ | 1.63 | $ | 1.54 | 6% | ||||||||||||
| DIVIDENDS PER COMMON SHARE | $ | 1.0568 | $ | 1.0065 | |||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 2,416.5 | 2,449.8 | |||||||||||||||
| COMPARISONS AS A % OF NET SALES | Basis Pt Chg | ||||||||||||||||
| Gross profit | 49.5% | 51.0% | (150) | ||||||||||||||
| Selling, general and administrative expense | 28.0% | 27.9% | 10 | ||||||||||||||
| Operating income | 21.5% | 23.0% | (150) | ||||||||||||||
| Earnings before income taxes | 23.5% | 23.6% | (10) | ||||||||||||||
| Net earnings | 18.6% | 19.2% | (60) | ||||||||||||||
| Net earnings attributable to Procter & Gamble | 18.5% | 19.1% | (60) | ||||||||||||||
(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
Certain columns and rows may not add due to rounding.
| THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES | ||||||||||||||||||||
| Consolidated Earnings Information | ||||||||||||||||||||
| Three Months Ended March 31, 2026 | ||||||||||||||||||||
| Amounts in millions | Net Sales | % Change Versus Year Ago | Earnings/(Loss) Before Income Taxes | % Change Versus Year Ago | Net Earnings/(Loss) | % Change Versus Year Ago | ||||||||||||||
| Beauty | $ | 3,866 | 11% | $ | 761 | 11% | $ | 579 | 7% | |||||||||||
| Grooming | 1,608 | 7% | 436 | 8% | 331 | 3% | ||||||||||||||
| Health Care | 3,073 | 7% | 768 | 5% | 579 | 2% | ||||||||||||||
| Fabric & Home Care | 7,403 | 7% | 1,689 | 3% | 1,300 | 1% | ||||||||||||||
| Baby, Feminine & Family Care | 5,058 | 6% | 1,282 | 11% | 980 | 11% | ||||||||||||||
| Corporate | 225 | N/A | 54 | N/A | 181 | N/A | ||||||||||||||
| Total Company | $ | 21,235 | 7% | $ | 4,989 | 7% | $ | 3,951 | 4% | |||||||||||
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
Net Sales Drivers (1) | Volume | Organic Volume | Foreign Exchange | Price | Mix | Other (2) | Net Sales | ||||||||||||||||||||||||||||||||||
| Beauty | 5% | 5% | 4% | 1% | 1% | —% | 11% | ||||||||||||||||||||||||||||||||||
| Grooming | (2)% | (2)% | 6% | 3% | —% | —% | 7% | ||||||||||||||||||||||||||||||||||
| Health Care | (2)% | (2)% | 5% | 2% | 1% | 1% | 7% | ||||||||||||||||||||||||||||||||||
| Fabric & Home Care | 2% | 2% | 4% | 1% | —% | —% | 7% | ||||||||||||||||||||||||||||||||||
| Baby, Feminine & Family Care | 3% | 3% | 3% | —% | —% | —% | 6% | ||||||||||||||||||||||||||||||||||
| Total Company | 2% | 2% | 4% | 1% | —% | —% | 7% | ||||||||||||||||||||||||||||||||||
(1)Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2)Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
Certain columns and rows may not add due to rounding.
| THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES | |||||||||||
| Consolidated Statements of Cash Flows | |||||||||||
| Nine Months Ended March 31 | |||||||||||
| Amounts in millions | 2026 | 2025 | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 9,556 | $ | 9,482 | |||||||
OPERATING ACTIVITIES (1) | |||||||||||
| Net earnings | 13,063 | 12,439 | |||||||||
| Depreciation and amortization | 2,348 | 2,124 | |||||||||
| Share-based compensation expense | 394 | 364 | |||||||||
| Deferred income taxes | 178 | 183 | |||||||||
| (Gain)/loss on sale of assets | (345) | 782 | |||||||||
| Change in accounts receivable | (186) | (79) | |||||||||
| Change in inventories | (346) | (409) | |||||||||
| Change in accounts payable | 196 | (547) | |||||||||
| Other | (877) | (2,026) | |||||||||
| TOTAL OPERATING ACTIVITIES | 14,425 | 12,832 | |||||||||
| INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | (3,386) | (2,777) | |||||||||
| Proceeds from asset sales | 501 | 64 | |||||||||
| Acquisitions, net of cash acquired | (85) | (11) | |||||||||
| Other investing activity | (458) | (33) | |||||||||
| TOTAL INVESTING ACTIVITIES | (3,428) | (2,755) | |||||||||
| FINANCING ACTIVITIES | |||||||||||
| Dividends to shareholders | (7,623) | (7,319) | |||||||||
| Additions to short-term debt with original maturities of more than three months | 7,785 | 5,905 | |||||||||
| Reductions in short-term debt with original maturities of more than three months | (6,353) | (3,781) | |||||||||
| Net additions/(reductions) to other short-term debt | 1,028 | (543) | |||||||||
| Additions to long-term debt | 2,652 | 995 | |||||||||
| Reductions in long-term debt | (2,361) | (1,478) | |||||||||
| Treasury stock purchases | (4,153) | (5,800) | |||||||||
| Impact of stock options and other | 872 | 1,601 | |||||||||
| TOTAL FINANCING ACTIVITIES | (8,154) | (10,420) | |||||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (94) | (22) | |||||||||
| CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,749 | (365) | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 12,306 | $ | 9,116 | |||||||
(1)Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the previously reported Total Operating Activities.
Certain columns and rows may not add due to rounding.
| THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| Amounts in millions | March 31, 2026 | June 30, 2025 | |||||||||
| Cash and cash equivalents | $ | 12,306 | $ | 9,556 | |||||||
| Accounts receivable | 6,322 | 6,185 | |||||||||
| Inventories | 7,853 | 7,551 | |||||||||
| Prepaid expenses and other current assets | 1,506 | 2,100 | |||||||||
| TOTAL CURRENT ASSETS | 27,987 | 25,392 | |||||||||
| Property, plant and equipment, net | 24,574 | 23,897 | |||||||||
| Goodwill | 41,359 | 41,650 | |||||||||
| Trademarks and other intangible assets, net | 21,531 | 21,910 | |||||||||
| Other noncurrent assets | 12,928 | 12,381 | |||||||||
| TOTAL ASSETS | $ | 128,378 | $ | 125,231 | |||||||
| Accounts payable | $ | 15,030 | $ | 15,227 | |||||||
| Accrued and other liabilities | 10,031 | 11,318 | |||||||||
| Debt due within one year | 13,174 | 9,513 | |||||||||
| TOTAL CURRENT LIABILITIES | 38,235 | 36,058 | |||||||||
| Long-term debt | 23,852 | 24,995 | |||||||||
| Deferred income taxes | 6,047 | 5,774 | |||||||||
| Other noncurrent liabilities | 5,513 | 6,120 | |||||||||
| TOTAL LIABILITIES | 73,647 | 72,946 | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | 54,731 | 52,284 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 128,378 | $ | 125,231 | |||||||
Certain columns and rows may not add due to rounding.
The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
The following provides definitions of the non-GAAP measures used in Procter & Gamble's April 24, 2026 earnings release and the reconciliation to the most closely related GAAP measures. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. Certain of these measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results. Note that certain columns and rows may not add due to rounding.
The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following item:
•Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax. On June 5, 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina. The adjustment to Core earnings includes the restructuring charges that exceed the normal, recurring level of restructuring charges.
•Glad joint venture agreement: In January 2026, the Glad joint venture agreement between the Company and The Clorox Company (Clorox) expired. Under the terms of the agreement, Clorox purchased the Company’s minority interest in the venture at fair market, for $476 million. This transaction was accounted for as a dissolution of the Glad joint venture business and the Company recorded an after-tax gain of $261 million.
We do not view the above items to be part of our sustainable results, and their exclusion from Core earnings measures provides a more comparable measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at-risk compensation.
Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing the achievement of management goals for at-risk compensation.
Core EPS and Currency-neutral Core EPS: Core earnings per share, or Core EPS, is a measure of diluted net earnings per common share (diluted EPS) adjusted for items as indicated. Currency-neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. Management views these non-GAAP measures as useful supplemental measures of Company performance over time.
Core gross margin and Currency-neutral Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Currency-neutral Core gross margin is a measure of the Company's Core gross margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.
Core selling, general and administrative (SG&A) expense as a percentage of sales and Currency-neutral Core SG&A expense as a percentage of sales: Core SG&A expense as a percentage of sales is a measure of the Company's selling, general and administrative expense as a percentage of net sales adjusted for items as indicated. Currency-neutral Core SG&A expense as a percentage of sales is a measure of the Company's Core selling, general and administrative expense as a percentage of net sales excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company's operating efficiency over time.
Core operating margin and Currency-neutral Core operating margin: Core operating margin is a measure of the Company's operating margin adjusted for items as indicated. Currency-neutral Core operating margin is a measure of the Company's Core operating margin excluding the incremental current year impact of foreign exchange. Management believes these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.
Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital spending. Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. We view adjusted free cash flow as an important
measure because it is one factor used in determining the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments.
Adjusted free cash flow productivity: Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings excluding the gain from the dissolution of the Glad joint venture business. We view adjusted free cash flow productivity as a useful measure to help investors understand P&G’s ability to generate cash. Adjusted free cash flow productivity is used by management in making operating decisions, in allocating financial resources and for budget planning purposes. This measure is also used in assessing the achievement of management goals for at-risk compensation.
| THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES Reconciliation of Non-GAAP Measures | |||||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||
| Amounts in millions except per share amounts | As Reported (GAAP) | Incremental Restructuring | Glad Joint Venture Agreement | Core (Non-GAAP) | As Reported (GAAP) (1) | ||||||||||||||||||||||||
| Cost of products sold | $ | 10,722 | $ | (115) | $ | — | $ | 10,606 | $ | 9,694 | |||||||||||||||||||
| Gross profit | 10,513 | 115 | — | 10,628 | 10,081 | ||||||||||||||||||||||||
| Gross margin | 49.5 | % | 0.5 | % | — | % | 50.0 | % | 51.0 | % | |||||||||||||||||||
| Currency impact to Core gross margin | — | % | |||||||||||||||||||||||||||
| Currency-neutral Core gross margin | 50.0 | % | |||||||||||||||||||||||||||
| Selling, general and administrative expense | 5,936 | (28) | — | 5,908 | 5,524 | ||||||||||||||||||||||||
| Selling, general and administrative expense as a % of net sales | 28.0 | % | (0.2) | % | — | % | 27.8 | % | 27.9 | % | |||||||||||||||||||
| Currency impact to Core selling, general and administrative expense as a % of net sales | (0.1) | % | |||||||||||||||||||||||||||
| Currency-neutral Core selling, general and administrative expense as a % of net sales | 27.7 | % | |||||||||||||||||||||||||||
| Operating income | 4,576 | 144 | — | 4,720 | 4,558 | ||||||||||||||||||||||||
| Operating margin | 21.5 | % | 0.7 | % | — | % | 22.2 | % | 23.0 | % | |||||||||||||||||||
| Currency impact to Core operating margin | 0.1 | % | |||||||||||||||||||||||||||
| Currency-neutral Core operating margin | 22.3 | % | |||||||||||||||||||||||||||
| Other non-operating income/(expense), net | 537 | — | (343) | 194 | 210 | ||||||||||||||||||||||||
| Income taxes | 1,039 | (23) | (81) | 934 | 868 | ||||||||||||||||||||||||
| Net earnings | 3,951 | 167 | (261) | 3,856 | 3,793 | ||||||||||||||||||||||||
| Less: Net earnings attributable to noncontrolling interests | 18 | 5 | — | 23 | 23 | ||||||||||||||||||||||||
| Net earnings attributable to P&G | 3,932 | 162 | (261) | 3,833 | 3,769 | ||||||||||||||||||||||||
| Core EPS | |||||||||||||||||||||||||||||
Diluted net earnings per common share (2) | $ | 1.63 | $ | 0.07 | $ | (0.11) | $ | 1.59 | $ | 1.54 | |||||||||||||||||||
| Currency impact to Core EPS | $ | (0.05) | |||||||||||||||||||||||||||
| Currency-neutral Core EPS | $ | 1.54 | |||||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 2,416.5 | 2,449.8 | |||||||||||||||||||||||||||
(1)For the three months ended March 31, 2025, there were no adjustments to or reconciling items for Core EPS.
(2)Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
Certain columns and rows may not add due to rounding.
| CHANGE VERSUS YEAR AGO | |||||||||||
| Gross margin | (150) | BPS | |||||||||
| Core gross margin | (100) | BPS | |||||||||
| Currency-neutral Core gross margin | (100) | BPS | |||||||||
| Selling, general and administrative expense as a % of net sales | 10 | BPS | |||||||||
| Core selling, general and administrative expense as a % of net sales | (10) | BPS | |||||||||
| Currency-neutral Core selling, general and administrative as a % of net sales | (20) | BPS | |||||||||
| Operating margin | (150) | BPS | |||||||||
| Core operating margin | (80) | BPS | |||||||||
| Currency-neutral Core operating margin | (70) | BPS | |||||||||
| Diluted EPS | 6 | % | |||||||||
| Core EPS | 3 | % | |||||||||
| Currency-neutral Core EPS | — | % | |||||||||
Organic sales growth:
| January - March 2026 | Net Sales Growth | Foreign Exchange Impact | Acquisition & Divestiture Impact/Other (1) | Organic Sales Growth | |||||||||||||||||||
| Beauty | 11% | (4)% | —% | 7% | |||||||||||||||||||
| Grooming | 7% | (6)% | —% | 1% | |||||||||||||||||||
| Health Care | 7% | (5)% | —% | 2% | |||||||||||||||||||
| Fabric & Home Care | 7% | (4)% | —% | 3% | |||||||||||||||||||
| Baby, Feminine & Family Care | 6% | (3)% | —% | 3% | |||||||||||||||||||
| Total Company | 7% | (4)% | —% | 3% | |||||||||||||||||||
(1)Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.
| Total Company | Net Sales Growth | Combined Foreign Exchange & Acquisition/Divestiture Impact/Other (1) | Organic Sales Growth | |||||||||||||||||
| FY 2026 (Estimate) | +1% to +5% | -1% | -% to +4% | |||||||||||||||||
(1)Combined Foreign Exchange & Acquisition/Divestiture Impact/Other includes foreign exchange impacts, the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.
Core EPS growth:
| Total Company | Diluted EPS Growth | Impact of Incremental Non-Core Items (1) | Core EPS Growth | |||||||||||||||||
| FY 2026 (Estimate) | +1% to +6% | -1% to -2% | -% to +4% | |||||||||||||||||
(1)Includes the impact of incremental non-core restructuring charges including the limited market portfolio restructuring with the substantial liquidation of its operations in Argentina incurred in fiscal 2025 and the incremental restructuring and gain from the dissolution of the Glad joint venture business in fiscal 2026.
Adjusted free cash flow (dollar amounts in millions):
| Three Months Ended March 31, 2026 | ||||||||||||||
| Operating Cash Flow | Capital Spending | Adjusted Free Cash Flow | ||||||||||||
| $4,045 | $(1,019) | $3,026 | ||||||||||||
Adjusted free cash flow productivity (dollar amounts in millions):
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||
| Adjusted Free Cash Flow | Net Earnings | Adjustments to Net Earnings (1) | Net Earnings as Adjusted | Adjusted Free Cash Flow Productivity | ||||||||||||||||||||||
| $3,026 | $3,951 | $(261) | $3,690 | 82% | ||||||||||||||||||||||
(1)Adjustments to Net earnings relate to the gain from the dissolution of the Glad joint venture business.
Certain columns and rows may not add due to rounding.
FAQ
How did Procter & Gamble (PG) perform in fiscal Q3 2026?
Procter & Gamble delivered higher sales and earnings in fiscal Q3 2026. Net sales reached $21.2 billion, up 7%, while organic sales grew 3%. Diluted EPS increased 6% to $1.63, and core EPS rose 3% to $1.59 versus last year.
What were P&G’s key profit and margin trends in Q3 2026?
P&G’s net earnings attributable to shareholders rose 4% to $3.9 billion, and diluted EPS increased 6%. However, gross margin declined from 51.0% to 49.5% and operating margin fell from 23.0% to 21.5%, reflecting unfavorable mix and higher reinvestment despite productivity savings.
What fiscal 2026 guidance did Procter & Gamble (PG) reiterate?
P&G maintained fiscal 2026 guidance for all-in sales growth of 1%–5% and organic sales growth of in-line to up 4%. It also kept diluted EPS growth guidance at 1%–6% and core EPS growth of in-line to up 4%, now expecting EPS toward the lower end of these ranges.
What were P&G’s cash flow and adjusted free cash flow productivity in Q3 2026?
P&G generated $4.0 billion of operating cash flow in fiscal Q3 2026. After capital spending, adjusted free cash flow was $3.0 billion, yielding adjusted free cash flow productivity of 82%. This measure compares adjusted free cash flow to net earnings excluding the Glad joint venture gain.
How did Procter & Gamble’s business segments perform in Q3 2026?
All major segments posted sales growth. Beauty net sales rose 11%, Grooming 7%, Health Care 7%, Fabric & Home Care 7%, and Baby, Feminine & Family Care 6%. Segment organic sales grew between 1% and 7%, driven by a mix of volume gains and innovation-based pricing.
What headwinds and tailwinds affect P&G’s fiscal 2026 EPS outlook?
P&G expects about $150 million in after-tax commodity headwinds, roughly $400 million from higher tariffs, and around $250 million net from interest and tax changes, partly offset by a $200 million FX tailwind. Combined, these represent about $0.25 per-share EPS headwinds.