Why it matters
- Procter & Gamble said Thursday, Oct. 22, that net sales for its fiscal first quarter, July through September, rose 4% to $23.3 billion, with organic sales also up 4% on 2% higher volume. Diluted EPS rose 1% to $1.97 and core EPS rose 1% to $2.00.
- P&G kept its fiscal 2027 forecast for organic sales growth of 1% to 3% and core EPS of $6.89 to $7.11, and raised its all-in sales growth outlook to 2% to 4% to reflect its acquisition of Thorne. It now expects about $1.4 billion in after-tax commodity cost headwinds.
- P&G shares traded at about $160.66 at 8:57 a.m. ET, up about 2.4% from Wednesday's close of $156.84, according to Yahoo Finance data.
Procter & Gamble shares rose about 2% in premarket trading Thursday, Oct. 22, after the maker of Tide, Pampers and Gillette reported a 4% rise in fiscal first-quarter net sales to $23.3 billion and kept its full-year profit outlook. The stock traded at about $160.66 at 8:57 a.m. ET, up from Wednesday's close of $156.84, according to Yahoo Finance data.
Core earnings per share, which exclude restructuring charges, rose 1% to $2.00, and diluted EPS rose 1% to $1.97, the company said in its earnings release, filed with the Securities and Exchange Commission at about 7 a.m. ET. Organic sales, which strip out currency moves, acquisitions and divestitures, also rose 4%, driven by a 2% gain in volume and a 1% lift from favorable product mix. Nasdaq's earnings calendar had listed a consensus EPS forecast of $1.89 for the quarter, based on 10 estimates.
How did P&G stock react to earnings?
It rose after the release. P&G traded near $158.50 just before 7 a.m. ET, climbed to about $162.06 by 7:55 a.m. ET and eased to about $160.66 by 8:57 a.m. ET, Yahoo Finance data show. Premarket prices can change before the 9:30 a.m. ET open.
P&G first-quarter fiscal 2027 results at a glance
| Measure | Q1 FY2027 | Q1 FY2026 | Change |
|---|---|---|---|
| Net sales | $23.28 billion | $22.39 billion | +4% |
| Organic sales growth | — | — | +4% |
| Operating income | $5.94 billion | $5.86 billion | +1% |
| Operating margin | 25.5% | 26.2% | -0.7 pts |
| Net earnings attributable to P&G | $4.73 billion | $4.75 billion | flat |
| Diluted EPS | $1.97 | $1.95 | +1% |
| Core EPS | $2.00 | $1.99 | +1% |
Source: Procter & Gamble first-quarter fiscal 2027 earnings release (Exhibit 99.1 to Form 8-K).
All five business segments grew organic sales. Beauty and Grooming each rose 5%, Fabric and Home Care rose 5%, and Health Care and Baby, Feminine and Family Care each rose 3%, P&G said. Fabric and Home Care, the largest segment, posted net sales of $8.21 billion on volume gains in North America and Europe.
Costs ate into margins. Reported gross margin fell 160 basis points, which P&G attributed mainly to 140 basis points of higher commodity costs and 140 basis points of product reinvestment, partly offset by productivity savings. The company returned $3.9 billion to shareholders through $2.6 billion in dividends and $1.3 billion in share buybacks.
What is P&G's outlook for fiscal 2027?
P&G kept its core EPS growth forecast of flat to 3%, or $6.89 to $7.11 a share, with a midpoint of $7.00. It also kept its organic sales growth forecast of 1% to 3%, and raised its all-in sales growth forecast to 2% to 4% to include Thorne, which it acquired as of Oct. 1, 2026.
| Fiscal 2027 forecast | Oct. 22 release |
|---|---|
| All-in sales growth | 2% to 4% (updated for Thorne) |
| Organic sales growth | 1% to 3% (maintained) |
| Diluted EPS growth | 1% to 5% (maintained) |
| Core EPS | $6.89 to $7.11 (maintained) |
| After-tax commodity cost headwind | About $1.4 billion |
| Total after-tax headwinds | $0.79 a share |
| Dividends / buybacks | Over $10 billion / about $5 billion |
Source: Procter & Gamble first-quarter fiscal 2027 earnings release.
P&G said the commodity headwind reflects higher raw material, energy and transportation costs. Together with higher net interest expense, lower non-operating income and currency, it equals a drag of 79 cents a share, or 11 percentage points of core EPS growth. Chief Executive Shailesh Jejurikar said in the release that "this strong start keeps us on track to deliver within our guidance ranges."
For more consumer company results, read about Philip Morris International's third-quarter earnings and outlook and PepsiCo's cut to its 2026 profit forecast. Follow more earnings news in our companies section.
Sources
- Procter & Gamble, First-quarter fiscal 2027 earnings release (Exhibit 99.1 to Form 8-K, Oct. 22, 2026)
- SEC EDGAR, Procter & Gamble Form 8-K filing index, Oct. 22, 2026
- Nasdaq, Earnings calendar for Oct. 22, 2026
- Yahoo Finance, chart data for Procter & Gamble (PG), premarket and daily closes
