Procter & Gamble (P&G) reported mixed financial results for its fiscal second quarter, missing revenue expectations while beating analyst estimates for earnings per share. Overall product volume declined by 1%.
Key Financial Results
P&G reported adjusted earnings per share (EPS) of $1.88, exceeding the LSEG analyst estimate of $1.86. Revenue reached $22.21 billion, slightly below the expected $22.28 billion.
Net income attributable to P&G fell to $4.32 billion, or $1.78 per share, compared to $4.63 billion, or $1.88 per share, in the same period last year. Excluding specific items such as restructuring costs, the company reported an adjusted EPS of $1.88.
Net sales increased by 1% to $22.21 billion. Organic sales, which exclude the impact of foreign currency fluctuations, acquisitions, and divestitures, remained flat for the quarter.
Segment Performance
Overall product volume decreased by 1% year-over-year. Performance varied significantly across the company's five business segments:
- Baby, Feminine and Family Care: Volume decreased by 5%. This segment, which includes brands such as Pampers diapers, Bounty paper towels, Puffs tissues, and Charmin toilet paper, recorded the steepest demand decline.
- Grooming: Volume decreased by 2%. This segment includes Gillette and Venus razors.
- Health Care: Volume decreased by 1%. This segment includes Oral-B, Vicks, and Pepto-Bismol.
- Fabric and Home Care: Volume was flat compared to the prior-year period. This segment includes Tide and Febreze.
- Beauty: Volume increased by 3%. This was the only division to report growth, driven primarily by stronger demand for hair care products.
Outlook
For fiscal 2026, P&G revised its net earnings per share growth projection to a range of 1% to 6%, down from its previous forecast of 3% to 9%. The company attributed this adjustment to higher anticipated restructuring charges. P&G reaffirmed its sales growth outlook.
Following the announcement, P&G's shares declined by approximately 1% in premarket trading.