Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
P&G's fiscal 2026 was characterized by modest revenue growth driven by favorable foreign exchange and pricing, as underlying organic sales inched up 1% on flat volumes. Operating income declined 3% amid margin pressure from unfavorable product mix, product investments, and higher restructuring costs. Marketing spend increased as a percentage of sales, reflecting strategic reinvestment in brands, while productivity savings partially offset cost headwinds. The company generated strong adjusted free cash flow of $15.8 billion, achieving 100% free cash flow productivity. Looking ahead, the planned Thorne acquisition and ongoing restructuring charges could continue to weigh on margins, though management aims to sustain its long-term growth algorithm.
Revenue
$87.03B
+3.26% YoY
EPS (Diluted)
$6.62
+1.69% YoY
Operating Income
$19.75B
-3.44% YoY
Audit Opinion: Unqualified opinion — the financial statements present fairly, in all material respects, the financial position and results of operations.(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Procter & Gamble (PG) reported FY2026 revenue of $87.03B, up 3.3% year over year. Operating margin was 22.7%, down 1.6 points from 24.3% a year earlier. Operating cash flow was $19.56B, up 9.8% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.43 | 1.45 | Miss -1.5% |
| Mar 2026 | 1.59 | 1.60 | Miss -0.8% |
| Dec 2025 | 1.88 | 1.91 | Miss -1.6% |
| Sep 2025 | 1.99 | 1.95 | Beat +1.9% |
Reported EPS of $1.43 versus the $1.45 analyst consensus — a -1.5% miss for Jun 2026.
5 reported segments · SEC XBRL
Segment revenue totals $86.11B; with $919M of reconciling items (corporate, unallocated and eliminations) it ties to the $87.03B of consolidated revenue on the income statement.
Profit above is reported as profit after tax, the measure PG itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Organic sales, which exclude foreign exchange, acquisitions, and divestitures, grew only 1% in FY2026, compared to 3% reported net sales growth, reflecting flat unit volumes and the impact of pricing actions.
Source: 10-K Item 7 MD&A
Gross margin decreased 100 basis points to 50.2%, primarily due to unfavorable product mix (120 bps), product and packaging investments (70 bps), and higher restructuring costs (60 bps), partially offset by 180 bps of manufacturing productivity savings.
Source: 10-K Item 7 MD&A
Marketing spending as a percentage of net sales increased 80 basis points, contributing to a 60 bps rise in SG&A as a percentage of sales, as the company invested in brand building and awareness.
Source: 10-K Item 7 MD&A
P&G incurred over half of the expected $1.5–$2.0 billion in before-tax costs under its June 2025 portfolio and productivity plan in fiscal 2026, with the remainder expected in fiscal 2027, including a reduction of up to 7,000 non-manufacturing overhead roles.
Source: 10-K Item 7 MD&A
The effective tax rate rose to 20.8% from 20.3%, driven by lower excess tax benefits on share-based compensation and unfavorable geographic mix, partially offset by discrete tax items.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 2 high, 3 medium, 0 low
With over 50% of net sales generated outside the U.S., P&G is exposed to foreign exchange fluctuations that can reduce the dollar value of earnings, increase supply costs, and impact competitiveness. The company also carries significant floating-rate and foreign-currency debt, exposing it to interest rate volatility.
Source: 10-K Item 1A
Ongoing conflicts in Ukraine and the Middle East, as well as broader geopolitical tensions, could lead to operational disruptions, sanctions, supply chain interruptions, and asset impairments. P&G’s Russia business, though small, remains a risk, and the company may face boycotts or trade restrictions in various markets.
Source: 10-K Item 1A
The company relies on sole suppliers and sole manufacturing plants for some key inputs and products. Disruptions from natural disasters, labor disputes, or cybersecurity incidents could interrupt product supply, harming sales and profitability.
Source: 10-K Item 1A
Intense competition from global and local players, private-label growth, and evolving digital commerce channels require continuous innovation and marketing investment. Failure to adapt could erode market share and margins.
Source: 10-K Item 1A
Increasingly sophisticated cyberattacks, including ransomware, pose a significant risk to the company’s IT/OT systems and data. A breach could cause operational disruptions, financial losses, and reputational damage.
Source: 10-K Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 87.03 $B | 84.28 $B | +3.26% |
Cost of Revenue $B | 43.36 $B | 41.16 $B | +5.34% |
Operating Income $B | 19.75 $B | 20.45 $B | -3.44% |
Net Income $B | 16.05 $B | 15.97 $B | +0.45% |
EPS (Basic) $ | 6.75 $ | 6.67 $ | +1.20% |
EPS (Diluted) $ | 6.62 $ | 6.51 $ | +1.69% |
R&D Expense $B | 2.10 $B | 2.10 $B | 0.00% |
SG&A Expense $B | 23.92 $B | 22.67 $B | +5.53% |
Answers draw on this SEC filing and the data on this page
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