Shares of the company rose more than 2% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.00 adjusted vs. $1.88 expected
- Revenue: $23.3 billion vs. $22.8 billion expected
P&G reported fiscal first-quarter net income attributable to the company of $4.73 billion, or $1.97 per share, down from $4.75 billion, or $1.95 per share, a year earlier.
Excluding restructuring costs and other items, the company earned $2 per share.
Net sales rose 4% to $23.3 billion.
Executives have previously said that consumers are now using every last drop of shampoo or laundry detergent, and value packs have become more popular. In fiscal 2026, P&G reported just one quarter of volume growth.
P&G is still seeing signs of a bifurcated economy, CFO Andre Schulten said on CNBC’s “Squawk Box” on Thursday. High-income consumers are willing to trade up to new products, even a $30 shampoo, while low-income consumers are trying to make brands like Tide and Pampers work for their tight budgets.
The company has tried to address both ends of the spectrum with promotional pricing, new pack sizes and product innovation that can command higher prices. New premium products like Pampers Amore and Pantene’s Abundant and Strong haircare line have helped P&G grow market share in those categories, executives said.
Adding to P&G’s challenges, the competitive environment is “intense,” Schulten told analysts.
“We are getting the balance between pricing and product improvements, package improvements, claims, communication and retail execution right,” Schulten said on the company’s quarterly earnings call. “But it’s also a very fragile balance that we want to make sure we we don’t compromise on, so we will price, and we will price with innovation, not jeopardizing the topline momentum.”
P&G’s top performing division was fabric and home care, which includes brands like Tide and Febreze. The segment’s volume rose 4.3% in the quarter, helped by stronger demand for laundry detergent and fabric enhancers.
The company’s baby, feminine and family care segment and its beauty business both reported volume growth of more than 2%.
P&G’s grooming division saw volume shrink 0.4% in the quarter. The segment includes Gillette and Venus razors.
The company’s health care business was the laggard of the portfolio this quarter. Its volume fell 2.9% as demand for oral health care products, like Crest toothpaste, and personal health care items, like Pepto-Bismol, shrank.
The company is expecting continued “geopolitical and economic challenges,” but P&G is on track to meet its guidance, CEO Shailesh Jejurikar said in a statement.
For fiscal 2027, P&G reiterated its forecast for core earnings per share in a range of $6.89 to $7.11. The company is now projecting all-in sales growth in the range of 2% to 4% compared with the prior year, up from its prior outlook of 1% to 3%. The change reflects its acquisition of supplements brand Thorne, which closed on Oct. 1.
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