- Price
- $143.00
- Fair value
- $155.00
- Discount
- 7.7%
- Uncertainty
- Low
- LSEG rating
- 2.52
- Moat
- Wide
- Next earnings
- 2026-10-21
- Next earnings is estimate
- No
- Company name
- Procter & Gamble
- Sector
- Consumer packaged goods
- About
- Procter & Gamble makes household and personal care products. Its brands include Tide, Pampers, Gillette, and Crest. Retailers around the world sell these products to consumers every day. The company earns money through steady, repeat purchases of everyday items.
- Thesis
- Procter & Gamble grows sales mostly through higher prices, not through selling more units. In fiscal 2026, organic sales growth came almost entirely from price and mix, while volume did not grow. Investors worry that shoppers will keep trading down to store brands as prices rise further. The company is also running a two-year plan to cut 7,000 jobs and drop weaker brands, and this plan adds one-time costs that lower reported earnings today. Once the restructuring ends and these one-time costs stop, earnings should better reflect the strength of P&G's leading brands.
- Risks
- Almost all of fiscal 2026 organic sales growth came from price and mix, not from selling more units. If more shoppers trade down to store brands, further price increases may stop translating into sales growth.
P&G is in the middle of a two-year restructuring plan to cut about 7,000 jobs and exit weaker brands, carrying up to $1.6 billion in charges through mid-2027. These charges are already cutting reported earnings per share.
Tariffs still raise P&G's costs. The company expects several hundred million dollars in tariff costs, and fiscal 2027 guidance already includes a per-share cost from tariffs, commodities, and currency swings. A change in trade policy could push these costs higher.
- Recent events
- 2026-07-29: P&G reported fiscal 2026 results. Full-year organic sales grew 1%, and full-year core earnings per share was $6.89.
2025-06-05: P&G announced a two-year restructuring plan to cut about 7,000 non-manufacturing jobs, roughly 6% of its workforce, and to prune weaker brands and categories.