Key facts
- Procter & Gamble forecasts fiscal 2027 total net sales growth of 1% to 3%.
- The company expects fiscal 2027 adjusted earnings per share between $6.89 and $7.11.
- P&G's core operating margin declined by 130 basis points in the latest quarter.
- Higher commodity, energy, and transportation costs are expected to impact profits by roughly $1 billion in fiscal 2027.
- Fourth-quarter net sales increased 1.5% to $21.20 billion, missing analyst expectations.
- Fourth-quarter adjusted earnings per share were $1.43, slightly exceeding estimates.
Procter & Gamble has forecast a muted outlook for fiscal 2027, anticipating slower revenue and profit growth due to uneven consumer demand and persistent inflation. The company expects total net sales to increase between 1% and 3% in fiscal 2027, a slowdown from the 3.3% growth recorded in 2026 and slightly below analyst estimates.
The Tide maker projects fiscal 2027 adjusted earnings per share to range from $6.89 to $7.11, with the midpoint also falling slightly below analyst expectations. P&G CEO Shailesh Jejurikar described fiscal 2026 as a "year of foundation building."
Margins are under pressure, with P&G's core operating margin declining for the third consecutive quarter. This is attributed to increased investments in marketing and higher commodity costs, exacerbated by the U.S. war in Iran and surging oil prices. The company anticipates these higher raw material, energy, and transportation costs will impact profits by approximately $1 billion in fiscal 2027.
Overall fourth-quarter organic volumes were flat, with declines in three of the company's five reported segments. While pricier hair care and personal care products showed strength with volumes rising 3% in the beauty category, this contrasted with broader consumer spending weakness. P&G's fourth-quarter adjusted earnings per share of $1.43 narrowly beat estimates, but net sales of $21.20 billion missed expectations.