The Procter & Gamble Company

For fiscal 2026, P&G said organic sales grew more than 1%, core EPS was $6.89, core gross margin declined 40 basis points, core operating margin fell 70 basis points, and adjusted free cash flow productivity was 100%. Fourth-quarter core EPS was $1.43, down 3% year over year, core gross margin was in line with last year, and core operating margin decreased 130 basis points. For fiscal 2027, the company guided to organic sales growth of 1% to 3% and core EPS growth of 0% to 3%, which equates to $6.89 to $7.11 per share; it also expects about $1 billion after tax of cost headwind, about $50 million after tax of FX headwind, about $150 million after tax of higher net interest expense, and $150 million after tax of lower nonoperating income, for roughly a $1.4 billion after-tax earnings headwind in total. P&G expects capital spending of 4.5% to 5.5% of sales, adjusted free cash flow productivity of 85% to 90%, and more than $10 billion in dividends plus about $5 billion in share repurchases.

Shailesh Jejurikar framed fiscal 2026 as a year of foundation-building, saying P&G delivered within guidance despite a very challenging operating environment and that share trends improved, especially in the U.S. and China. He emphasized the integrated growth strategy, with focus on superiority, productivity, constructive disruption, and building capabilities for the “CPG company of the future.” His tone was confident but measured, repeatedly noting that progress is real but not linear and that more work remains.

Andre Schulten focused on the financial bridge from fiscal 2026 to 2027: $6.89 core EPS in fiscal 2026, 40 basis points of gross margin pressure, 70 basis points of operating margin pressure, and 100% adjusted free cash flow productivity. He highlighted $2.8 billion before tax of productivity improvement in fiscal 2026 and $3.5 billion returned to shareholders in the quarter, including $2.6 billion in dividends and roughly $900 million in buybacks. For fiscal 2027, he cited a roughly $1.4 billion after-tax earnings headwind, planned capex of 4.5% to 5.5% of sales, adjusted FCF productivity of 85% to 90%, and a $15 billion total cash return plan.

Analysts pressed on the pace of restructuring benefits, the lag between shipment and consumption, and whether P&G can consistently outperform category growth. Management said share has stabilized, volume share recently inflected, and customer-level share improvement in the U.S. rose from less than 10% in the first half to around 50% in the second half, with more improvement expected over the next six months. Questions also focused on margins and investment levels; Andre said P&G remains fully invested but is becoming more selective and expects productivity, media effectiveness, and product improvements to offset cost pressure.