Procter & Gamble (P&G) reported mixed financial results for its fiscal second quarter, with demand declines noted for several key product categories, including Gillette razors and Pampers diapers. The company also adjusted its earnings outlook for fiscal year 2026, narrowing its net earnings per share growth forecast.
Key Financial Highlights
P&G's adjusted earnings per share (EPS) for the quarter was $1.88, exceeding the LSEG analyst estimate of $1.86. However, 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 like restructuring costs, the company reported an EPS of $1.88.
Net sales saw a 1% increase to $22.21 billion. Organic sales, which exclude the impact of foreign currency fluctuations, acquisitions, and divestitures, remained flat for the quarter.
Volume Performance by Segment
Overall, P&G's product volume decreased by 1%, with three out of its five product categories experiencing shrinking demand. This decline reflects broader consumer trends where inflation-weary shoppers are seeking value, impacting demand for some of P&G's premium brands.
- Baby, Feminine and Family Care: This segment recorded the steepest drop in demand, with a 5% volume decrease. Products like Bounty paper towels, Puffs tissues, and Charmin toilet paper were particularly affected.
- Grooming: The business segment encompassing Gillette and Venus razors saw a 2% reduction in volume.
- Health Care: Products under Oral-B, Vicks, and Pepto-Bismol experienced a 1% fall in volume.
- Fabric and Home Care: Brands such as Febreze and Tide maintained stable volume, showing no change from the prior-year period.
- Beauty: This was the only division to report volume growth, increasing by 3%, driven primarily by stronger demand for hair care products.
Outlook Adjustment
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%. This adjustment was attributed to higher anticipated restructuring charges. The company reaffirmed its sales growth outlook. Following the announcement, P&G's shares declined by approximately 1% in premarket trading.