Procter & Gamble sees $1.4B FY2027 after-tax cost hit
FY 2027 guidance includes a 1% to 3% organic sales growth range alongside a $1.4 billion after-tax cost impact.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
The Procter & Gamble Company (PG) reported first-quarter FY 2027 organic sales growth of 4.0% for the quarter ended September 30, 2026, with organic volume up 2.4%; all 10 product categories and all six regions recorded organic sales growth. Core EPS was $2.00, up 1% from the prior year, while currency-neutral Core EPS was $1.99, in line with the prior year. Free cash flow productivity was 93%. Core gross margin was 50.0%, down 150 basis points, and core operating margin was 25.9%, down 80 basis points, versus the prior year.
FY 2027 guidance is 1% to 3% organic sales growth, 2% to 4% net sales growth, 0% to 3% Core EPS growth and 1% to 5% all-in EPS growth. The outlook includes a $1.4 billion after-tax impact from higher energy, transportation and raw material costs, plus after-tax headwinds of $50 million from foreign exchange, $300 million from higher net interest expense and $150 million from lower non-operating income. P&G expects cost headwinds to increase in the next few quarters. FY 2027 guidance also lists dividends of more than $10 billion and approximately $5 billion in direct share repurchases.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Organic sales growth: 4.0%
Core EPS: $2.00 per share; up 1%
Currency-neutral Core EPS: $1.99 per share
+5 more
8 metrics
Organic sales growth
4.0%
Q1 FY 2027, versus prior year
Core EPS
$2.00 per share; up 1%
Q1 FY 2027 versus prior year
Currency-neutral Core EPS
$1.99 per share
Q1 FY 2027, in line with prior year
Core gross margin
50.0%; down 150 basis points
Q1 FY 2027 versus prior year
Core operating margin
25.9%; down 80 basis points
Q1 FY 2027 versus prior year
Free cash flow productivity
93%
Three months ended September 30, 2026
FY 2027 organic sales growth guidance
1% to 3%
FY 2027 estimate
FY 2027 Core EPS growth guidance
0% to 3%
FY 2027 estimate
Key Terms
Organic sales growth, Core EPS, Currency-neutral Core EPS, Free cash flow productivity
4 terms
Organic sales growth financial
"sales growth excluding the impacts of acquisitions and divestitures and foreign exchange"
Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.
Core EPS financial
"Core net earnings per share, or Core EPS"
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.
Currency-neutral Core EPS financial
"Currency-neutral Core EPS is a measure of the Company's Core EPS"
Free cash flow productivity financial
"defined as the ratio of free cash flow to net earnings"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did PG organic sales grow in Q1 FY 2027?
PG reported 4.0% organic sales growth in Q1 FY 2027. Organic volume grew 2.4%, and all 10 product categories and all six regions recorded organic sales growth.
What is PG's FY 2027 sales and earnings guidance?
PG's FY 2027 guidance is 1% to 3% organic sales growth, 2% to 4% net sales growth, 0% to 3% Core EPS growth and 1% to 5% all-in EPS growth.
What cost impacts are included in PG's FY 2027 outlook?
The outlook includes a $1.4 billion after-tax impact from higher energy, transportation and raw material costs. It also includes after-tax headwinds of $50 million from foreign exchange, $300 million from higher net interest expense and $150 million from lower non-operating income.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 22, 2026
___________________________________
(Exact name of registrant as specified in its charter)
___________________________________
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices and zip code) | ||||||||
( | ||||||||
(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:
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 12b-2 of the Exchange Act.
Emerging growth company ☐
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 7.01 - Regulation FD Disclosure
On October 22, 2026, The Procter & Gamble Company (the "Company") issued a press release announcing its first quarter results and hosted a conference call related to those results. The Company is furnishing on Form 8-K a series of slides referenced in the conference call, which are also posted on the Company's website.
This 8-K is being furnished pursuant to Item 7.01, "Regulation FD Disclosure."
Item 9.01 - Financial Statements and Exhibits
(d): The following exhibits are being filed herewith:
Exhibit No. | Description | |||||||
99.1 | Informational Slides Provided by The Procter & Gamble Company dated October 22, 2026. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 22nd day of October, 2026.
The Procter & Gamble Company | |||||
By: | /s/ Aaron B. Shepherd | ||||
Name: | Aaron B. Shepherd | ||||
Title: | Assistant Secretary | ||||
INDEX TO EXHIBIT(S)
99.1 - Informational Slides Provided by The Procter & Gamble Company dated October 22, 2026.
EARNINGS RELEASE Q1 FY 2027 Results October 22, 2026
INTEGRATED GROWTH STRATEGY SUPERIORITY TO WIN WITH CONSUMERS PORTFOLIO PERFORMANCE DRIVES BRAND CHOICE ACROSS OUR BUSINESS CONSTRUCTIVE DISRUPTION PRODUCTIVITY TO FUEL INVESTMENTS ORGANIZATION EMPOWERED • AGILE ACCOUNTABLE
BUSINESS RESULTS Q1 FY 2027
Continued acceleration on topline despite a challenging macro environment. Expect cost headwinds to increase in next few quarters. Volatility remains. Organic sales grew +4.0% vs prior year. Volume +2.4%, Pricing +0.4%, Mix +1.1%. 10 of 10 product categories and all 6 regions grew organic sales. 29 of our top 50 category/country combinations held or grew share fiscal year to date. Global aggregate value share was in line with the prior year. Core earnings per share were $2.00, +1% vs the prior year. On a currency-neutral basis, core EPS was $1.99, in-line with the prior year. Q1 FY 2027 RESULTS
Q1 FY ’27 +4.0%Organic Sales Growth +2.4%Organic Volume Growth +1%Core EPS Growth 0%Currency Neutral Core EPS Growth 93%Free Cash Flow Productivity Q1 FY 2027 RESULTS
1.6% 0.0% 3.5% 0.5% 4.0% Q1 FY '26 Q2 FY '26 Q3 FY '26 Q4 FY '26 Q1 FY '27 Q1 FY 2027 RESULTS Organic Sales Growth • Organic volume +2.4%. • Mix was +1.1%. • Pricing +0.4%.
• Core gross margin • Core operating margin • Total productivity savings 3% 0% 3% -3% 1% Q1 FY '26 Q2 FY '26 Q3 FY '26 Q4 FY '26 Q1 FY '27 Q1 FY 2027 RESULTS Core Earnings-Per-Share Growth -150 basis points -80 basis points +250 basis points
• Core Gross margin ex-FX • Core Operating margin ex-FX -150 basis points -90 basis points 3% -2% 0% -5% 0% Q1 FY '26 Q2 FY '26 Q3 FY '26 Q4 FY '26 Q1 FY '27 0% Q1 FY 2027 RESULTS Currency-Neutral Core EPS Growth
TOP 50 Category/ Country Combinations # Grew/Held Value Share 23 26 33 30 32 38 31 28 29 26 29 Global share data through Aug 2026 GLOBAL MARKET SHARES
SEGMENT RESULTS Q1 FY 2027
5.4% 2.2% -1% Organic Sales Organic Volume Net Earnings • Topline: +2.2% volume, +2.5% mix, +0.7% pricing. • Share: Global Hair Care value share in-line with year ago. Global Personal Care value share decreased 0.4 points. Global Skin Care value share decreased 0.6 points. • Net Earnings: Sales growth and productivity savings more than offset by marketing investments, increased commodity costs and product mix. Q1 FY 2027 RESULTS Beauty Segment
4.5% -0.4% 3% Organic Sales Organic Volume Net Earnings • Topline: +3.5% pricing, +1.5% mix, -0.4% volume. • Share: Global Grooming value share increased 0.2 points versus year ago. • Net Earnings: Sales growth, pricing, tariff recovery and productivity savings, partially offset by product mix and marketing investments. Q1 FY 2027 RESULTS Grooming Segment
2.7% -2.9% 9% Organic Sales Organic Volume Net Earnings Q1 FY 2027 RESULTS Health Care Segment • Topline: +2.8% pricing, +2.8% mix, -2.9% volume. • Share: Global Personal Health Care value share increased 0.5 points versus year ago. Global Oral Care value share decreased 0.6 points. • Net Earnings: Sales growth, pricing, tariff recovery and productivity savings, partially offset by increased marketing investments, product mix and increased commodities.
4.8% 4.3% 3% Organic Sales Organic Volume Net Earnings • Topline: +4.3% volume, +0.8% mix, -0.3% pricing. • Share: Global Fabric Care value share increased 0.4 points and Global Home Care value share was in-line with year ago. • Net Earnings: Sales growth and productivity savings partially offset by increased commodity/transportation costs, product investment and product mix. Q1 FY 2027 RESULTS Fabric & Home Care Segment
3.0% 2.3% -4% Organic Sales Organic Volume Net Earnings • Topline: +2.3% volume, +1.8% mix, -1.2% pricing. • Share: Global Baby Care value share increased 0.8 points. Global Feminine Care value share in- line with year ago. Global Family Care share decreased 0.5 points versus year ago. • Net Earnings: Sales growth, productivity savings and lower tariff costs more than offset by increased commodity/transportation costs and marketing investments. Q1 FY 2027 RESULTS Baby, Feminine and Family Care Segment
FY 2027 GUIDANCE
• Organic Sales Growth: +1% to +3% • Included in organic sales is a growth headwind of 30 to 50 basis points from brand, product form and go-to-market discontinuations. • Net Sales Growth: +2% to +4% FY ‘27 +1% to +3%Organic Sales Growth (Maintain) +2% to +4%Net Sales Growth (Update) FY 2027 GUIDANCE SALES
FY 2027 GUIDANCE EARNINGS PER SHARE • Core EPS Growth: +0% to +3% • $1.4Bn after-tax impact from higher energy, transportation, and raw material costs • $50MM after-tax headwind from foreign exchange • $300MM after-tax of higher net interest expense • $150MM after-tax of lower non-operating income • All-in EPS Growth: +1% to +5% • Core effective tax rate 20 to 21% FY ‘26 Base Period EPSFY ‘27 $6.89+0% to +3%Core EPS Growth (Maintain) $6.62+1% to +5%All-in EPS Growth (Maintain)
FY 2027 GUIDANCE SUMMARY FY 2027 GUIDANCEMETRIC +1% to +3%Organic Sales Growth +2% to +4%Net Sales Growth +0% to +3%Core EPS Growth +1% to +5%All-In EPS Growth +0% to +3%Currency Neutral Core EPS Growth 20 to 21%Core Effective Tax Rate 85% to 90%Free Cash Flow Productivity 4.5% to 5.5%Capital Spending, % of Sales >$10bnDividends ~$5bnDirect Share Repurchase
FY 2027 GUIDANCE POTENTIAL HEADWINDS NOT INCLUDED IN GUIDANCE • Significant deceleration of market growth rates • Significant currency weakness • Significant commodity cost increases • Additional geopolitical disruptions • Major supply chain disruption or store closures • Significant tariff changes
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 or pricing controls and 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, 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, pensions 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, cyber incidents, 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 demand, supply and operational challenges; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving and more fragmented 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. FORWARD LOOKING STATEMENTS
For a full reconciliation, please visit: www.pginvestor.com REGULATION FD AND G DISCLOSURE
1 The Procter & Gamble Company Regulation G Reconciliation of Non-GAAP Measures The following provides definitions of the non-GAAP measures used in Procter & Gamble's (“the Company”) October 22, 2026 earnings call, associated slides and other materials and the reconciliation to the most closely related GAAP measure. We believe that these non- GAAP 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 year-on-year 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 measure, 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 effective 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 following measures are provided: 1. Organic sales growth — page 2 2. Core EPS and Currency-neutral Core EPS — page 3 3. Core gross margin and Currency-neutral Core gross margin — page 3 4. Core operating margin and Currency-neutral Core operating margin — page 4 5. Free cash flow and Free cash flow productivity — page 4 The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items: • Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax annually. In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $2 billion in before-tax restructuring costs over two years and has incurred over half of the costs under this plan in fiscal 2026, with the remainder expected to be incurred in fiscal 2027. 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 Clorox expired. Under the terms of the agreement, Clorox purchased the Company’s minority interest in the venture at fair market value, 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 its 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 also used in assessing the achievement of management goals for at-risk compensation. Core EPS and currency-neutral Core EPS: Core net 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. These measures are also used in assessing the achievement of management goals for at-risk compensation. 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.
2 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. Free cash flow: Free cash flow is defined as operating cash flow less capital spending. Free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. We view 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. Free cash flow productivity: Free cash flow productivity is defined as the ratio of free cash flow to net earnings. We view free cash flow productivity as a useful measure to help investors understand P&G’s ability to generate cash. This measure is used by management in making operating decisions, allocating financial resources and for budget planning purposes. This measure is also used in assessing the achievement of management goals for at-risk compensation. 1. Organic sales growth: Three Months Ended September 30, 2026 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact Organic Sales Growth Beauty 6.4% (1.1)% —% 5.4% Grooming 4.0% 0.4% 0.2% 4.5% Health Care 3.1% (0.4)% —% 2.7% Fabric Care & Home Care 4.2% 0.6% —% 4.8% Baby, Feminine & Family Care 2.9% 0.1% —% 3.0% Total Company 4.0% —% —% 4.0% Prior Quarters Total Company Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact Organic Sales Growth Q4 FY 2026 1.5% (1.1)% —% 0.5% Q3 FY 2026 7.4% (3.9)% —% 3.5% Q2 FY 2026 1.5% (1.4)% —% —% Q1 FY 2026 3.0% (1.3)% —% 1.6% Guidance Total Company Net Sales Growth Combined Foreign Exchange and Acquisition & Divestiture Impact* Organic Sales Growth FY 2027 (Estimate) +2% to +4% -1% +1% to +3% * Combined Foreign Exchange and Acquisition & Divestiture Impact includes foreign exchange impacts and the volume and mix impact of acquisitions and divestitures.
3 2. Core EPS and Currency-neutral Core EPS: Three Months Ended September 30 2026 2025 Diluted EPS $1.97 $1.95 Incremental restructuring 0.03 0.04 Core EPS $2.00 $1.99 Percentage change vs. prior period Core EPS 1% Currency impact to earnings (0.01) Currency-Neutral Core EPS $1.99 Percentage change vs. prior period Core EPS —% Prior Quarters Note – All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying transaction. Guidance Total Company Diluted EPS Growth Impact of Incremental Non-Core Items* Core EPS Growth Impact of FX Currency-neutral Core EPS Growth FY 2027 (Estimate) +1% to +5% -1% to -2% —% to +3% —% —% to +3% * Includes the impact of incremental non-core restructuring charges including the portfolio and productivity plan. 3. Core gross margin and Currency-neutral Core gross margin: Three Months Ended September 30 2026 2025 Gross Margin 49.8% 51.4% Incremental restructuring 0.2% 0.1% Core Gross Margin 50.0% 51.5% Basis point change vs. prior year Core gross margin (150) Currency Impact to Margin — Currency-Neutral Core Gross Margin 50.0% Basis point change vs prior year Core gross margin (150) Q1 FY26 Q1 FY25 Q2 FY26 Q2 FY25 Q3 FY26 Q3 FY25 Q4 FY26 Q4 FY25 Diluted EPS $1.95 $1.61 $1.78 $1.88 $1.63 $1.54 $1.26 $1.48 Incremental restructuring 0.04 0.32 0.10 — 0.07 — 0.16 — Glad joint venture agreement — — — — (0.11) — — — Core EPS $1.99 $1.93 $1.88 $1.88 $1.59 $1.54 $1.43 $1.48 Percentage change vs. prior 3% —% 3% (3)% Currency Impact to Earnings — (0.03) (0.05) (0.02) Currency-Neutral Core EPS $1.99 $1.85 $1.54 $1.41 Percentage change vs. prior period Core EPS 3% (2)% —% (5)%
4 4. Core operating margin and Currency-neutral Core operating margin: Three Months Ended September 30 2026 2025 Operating Margin 25.5% 26.2% Incremental restructuring 0.4% 0.5% Core Operating Margin 25.9% 26.7% Basis point change vs. prior year Core operating margin (80) Currency Impact to Margin (0.1)% Currency-Neutral Core Operating Margin 25.8% Basis point change vs. prior year Core operating margin (90) 5. Free cash flow and Free cash flow productivity (dollar amounts in millions): Three Months Ended September 30, 2026 Operating Cash Flow Capital Spending Free Cash Flow Net Earnings Free Cash Flow Productivity $5,767 $(1,366) $4,401 $4,757 93%