P&G Q4 earnings beat estimates as revenue misses on flat demand
P&G beat profit expectations but missed sales forecasts as volume stayed flat, while CEO Shailesh Jejurikar adds the board chair role.
By Frankie Delgado · News Reporter
2 min read
P&G Q4 earnings came in ahead of Wall Street’s profit forecast Wednesday, but the consumer goods giant missed on revenue after demand stayed flat across its portfolio, according to results released by Procter & Gamble.
The maker of Tide, shampoo and other household staples reported adjusted earnings of $1.43 per share for its fiscal fourth quarter. Analysts surveyed by LSEG had expected $1.41 per share, CNBC reported.
Revenue landed at $21.2 billion, short of the $21.38 billion expected by analysts in the LSEG survey. P&G’s shares fell more than 3% in premarket trading after the results, according to CNBC.
Why did Procter & Gamble revenue miss estimates?
P&G said net sales rose 2% to $21.2 billion, but organic revenue was unchanged in the quarter. Organic revenue strips out acquisitions, divestitures and currency swings, giving a clearer read on the company’s underlying sales trends.
The key pressure point was volume, which was flat across P&G’s lineup. Volume measures how much product the company sells, separate from price changes, and it is a closely watched signal of shopper demand.
CNBC reported that P&G has posted volume growth in only one quarter during its full fiscal 2026 year. The company, like other consumer businesses, has been dealing with shoppers who are more focused on value, including those buying cheaper private-label products or making items such as shampoo and laundry detergent last longer, CNBC reported.
What did P&G report for profit?
Net income attributable to Procter & Gamble was $3.04 billion, or $1.26 per share, for the fiscal fourth quarter. That was down from $3.62 billion, or $1.48 per share, in the same period a year earlier.
After excluding restructuring costs, transaction gains and other items, P&G earned $1.43 per share, the company said in its earnings release.
The mixed report left investors with two very different takeaways: P&G protected adjusted profit better than analysts expected, while its top-line growth showed that shoppers are still pushing back.
What is P&G forecasting for fiscal 2027?
For fiscal 2027, P&G expects core earnings per share of $6.89 to $7.11. The company also forecast all-in sales growth of 1% to 3% from the prior year.
Wall Street had been looking for earnings per share of $7.04 and revenue growth of 2.7% for fiscal 2027, according to CNBC, citing analyst expectations.
Who is leading P&G’s board?
P&G also announced Wednesday that CEO Shailesh Jejurikar will become chair of the board on Aug. 1. He will hold that role in addition to his current job as chief executive.
Jejurikar replaces former CEO Jon Moeller as board chair, the company said.
This story draws on original reporting from CNBC.