Procter & Gamble $PG reported fiscal fourth-quarter net sales of $21.2 billion on Wednesday, falling short of Wall Street expectations as weak consumer demand weighed on the company's results. P&G stock fell more than 3% in premarket trading.
P&G posted flat organic sales growth in its fiscal fourth quarter as consumers shifted to cheaper alternatives
Cheng Xin / Getty Images
Procter & Gamble $PG reported fiscal fourth-quarter net sales of $21.2 billion on Wednesday, falling short of Wall Street expectations as weak consumer demand weighed on the company's results. P&G stock fell more than 3% in premarket trading.
Analysts surveyed by LSEG had expected revenue of $21.38 billion, according to CNBC. Net sales rose 2% from a year earlier, but organic sales — which strip out currency moves, acquisitions, and divestitures — were unchanged for the quarter, with volume having no net impact.
Net income attributable to the company came in at $3.04 billion, or $1.26 per diluted share, down from $3.62 billion, or $1.48 per diluted share, a year earlier. Excluding restructuring charges and other items, P&G earned $1.43 per share. Analysts had expected adjusted earnings of $1.41 per share, according to CNBC.
Shoppers have become increasingly price-sensitive, turning to store-brand alternatives or making everyday products like shampoo and laundry detergent last longer. Over P&G's full fiscal year 2026, the company reported volume growth in only one quarter.
P&G's beauty division led all segments in the quarter, with volume up 3%. The segment, which includes Pantene, Olay, and SK-II, posted organic sales growth of 4%. The fabric and home care segment, which houses brands such as Tide and Swiffer, rounded out the gainers with a 1% volume increase, making it the only other division to post growth.
The health care segment posted the steepest volume drop, down 3%, as oral care sales softened in North America and Greater China. The baby, feminine, and family care division and the grooming segment each saw volume decline 1%.
For the full fiscal year 2026, P&G reported net sales of $87.0 billion, up 3%, with organic sales growth of 1%. The company returned more than $15 billion to shareholders through dividends and share repurchases, the company said.
Looking to fiscal 2027, P&G expects organic sales growth of 1% to 3% and core earnings per share in a range of $6.89 to $7.11. The company said it anticipates an $0.56 per share drag on core earnings from higher raw materials, energy and transportation costs, increased net interest expense, lower non-operating income, and unfavorable foreign exchange rates.
Also on Wednesday, P&G said Shailesh Jejurikar, who serves as chief executive officer, will add the chairmanship to his responsibilities starting Aug. 1, a position previously held by former CEO Jon Moeller.
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