Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $356.90B
• Dividend Yield: 2.74%
• Average Volume (3M): 7.50M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.19
• Revenue Growth: 1.23%
• EPS Growth: 18.02%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.99
• Shares Outstanding: 2,340,485,400
• 10 Day Avg. Volume: 7,710,949
• 30 Day Avg. Volume: 7,502,904
• PEG Ratio: 3.09
• Price to Book (P/B): 7.52
• Price to Sales (P/S): 4.64
• P/FCF Ratio: 27.84
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.70
• Enterprise Value/Gross Profit: 9.22
• Enterprise Value/Ebitda: 16.09
• 1Y Price Target: $169.43
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $171.00 ▲(12.14% Upside)

Procter & Gamble's overall stock score reflects its strong financial performance and strategic execution, particularly in emerging markets. However, technical indicators suggest caution, and market share challenges could impact future growth. The company's valuation is reasonable, supported by a solid dividend yield.

Positive Factors

Consistent Revenue Growth

P&G's consistent revenue growth over 40 quarters indicates a strong market position and effective business strategy, reinforcing its ability to maintain and expand its market reach.

Strong Cash Flow Management

Effective cash flow management allows P&G to reinvest in growth opportunities and return value to shareholders, supporting long-term financial stability and operational flexibility.

Innovation and Product Development

Continuous innovation, such as the significant upgrade to Tide, strengthens brand loyalty and competitive advantage, ensuring P&G remains a leader in the consumer goods sector.

Negative Factors

Global Market Share Decline

A decline in global market share could indicate increasing competition and challenges in retaining consumer loyalty, potentially impacting long-term revenue growth.

Challenges in North America

Decelerating consumption in a key market like North America suggests potential headwinds in maintaining sales momentum, which could affect overall performance.

Restructuring and Job Reductions

While restructuring may improve efficiency, significant job reductions could disrupt operations and morale, impacting productivity and innovation in the long term.

Procter & Gamble Business Overview & Revenue Model

Company Description

The Procter & Gamble Company provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; and antiperspirants and deodorants, personal cleansing, and skin care products under the Olay, Old Spice, Safeguard, Secret, and SK-II brands. The Grooming segment provides shave care products and appliances under the Braun, Gillette, and Venus brand names. The Health Care segment offers toothbrushes, toothpastes, and other oral care products under the Crest and Oral-B brand names; and gastrointestinal, rapid diagnostics, respiratory, vitamins/minerals/supplements, pain relief, and other personal health care products under the Metamucil, Neurobion, Pepto-Bismol, and Vicks brands. The Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents under the Ariel, Downy, Gain, and Tide brands; and air care, dish care, P&G professional, and surface care products under the Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer brands. The Baby, Feminine & Family Care segment offers baby wipes, taped diapers, and pants under the Luvs and Pampers brands; adult incontinence and feminine care products under the Always, Always Discreet, and Tampax brands; and paper towels, tissues, and toilet papers under the Bounty, Charmin, and Puffs brands. The company sells its products primarily through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, high-frequency stores, pharmacies, electronics stores, and professional channels, as well as directly to consumers. The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

Procter & Gamble generates revenue primarily through the sale of its consumer goods products across its various sectors. The company operates on a direct-to-consumer model as well as through retail partnerships, including large chains and online platforms. Key revenue streams include sales from personal care products, household cleaning supplies, and health care items. P&G invests significantly in marketing and brand development to maintain a strong presence in the market, which helps drive consumer loyalty and repeat purchases. Additionally, strategic partnerships with retailers and e-commerce platforms enhance distribution and accessibility of its products, further contributing to its earnings.

Procter & Gamble Financial Statement Overview

Summary

Procter & Gamble demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. However, the slowing growth rate and slight increase in debt levels warrant attention.

Income Statement

Procter & Gamble has demonstrated consistent revenue growth over the years, with a revenue growth rate of 0.29% in the most recent year, indicating stability in its top-line performance. The company maintains strong profitability metrics, with a gross profit margin of 51.15% and a net profit margin of 18.95% in 2025. The EBIT margin at 24.25% and EBITDA margin at 25.00% further underscore its operational efficiency. However, the growth rate has slowed compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

Procter & Gamble exhibits a solid balance sheet with a debt-to-equity ratio of 0.66, indicating a balanced approach to leverage. The return on equity stands at 30.54%, reflecting efficient use of shareholders' equity to generate profits. The equity ratio of 41.73% shows a healthy proportion of assets funded by equity, enhancing financial stability. Despite the strong metrics, the company should monitor its debt levels, which have slightly increased in absolute terms.

Cash Flow

The company maintains robust cash flow generation, evidenced by the operating cash flow to net income ratio of 1.12, indicating effective cash conversion from profits. The free cash flow to net income ratio is 0.88, showcasing the ability to generate cash after capital expenditures. However, the free cash flow has declined by 15.01% from the previous year, which could impact future flexibility if this trend continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	84.93B	84.28B	84.04B	82.01B	80.19B	76.12B
Gross Profit	43.30B	43.12B	43.19B	39.25B	38.03B	39.01B
EBITDA	24.81B	23.92B	22.58B	21.77B	21.24B	20.85B
Net Income	16.77B	15.97B	14.88B	14.65B	14.74B	14.31B
Balance Sheet
Total Assets	127.60B	125.23B	122.37B	120.83B	117.21B	119.31B
Cash, Cash Equivalents and Short-Term Investments	11.17B	9.56B	9.48B	8.25B	7.21B	10.29B
Total Debt	35.95B	35.46B	33.37B	35.42B	32.29B	32.84B
Total Liabilities	74.05B	72.95B	71.81B	73.76B	70.35B	72.65B
Stockholders Equity	53.55B	52.01B	50.29B	46.78B	46.59B	46.38B
Cash Flow
Free Cash Flow	14.94B	14.04B	16.52B	13.79B	13.57B	15.58B
Operating Cash Flow	18.92B	17.82B	19.85B	16.85B	16.72B	18.37B
Investing Cash Flow	-4.25B	-3.82B	-3.50B	-3.50B	-4.42B	-2.83B
Financing Cash Flow	-15.64B	-14.04B	-14.86B	-12.15B	-14.88B	-21.53B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 152.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Neutral. The current price of 152.49 is above the 20-day moving average (MA) of 150.21, below the 50-day MA of 153.55, and below the 200-day MA of 158.91, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 60.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PG.

Procter & Gamble Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	75 Outperform	$356.90B	22.26	31.90%	2.74%	1.23%	18.02%
UL	73 Outperform	$152.98B	25.58	28.36%	3.17%	-0.30%	-14.60%
CL	68 Neutral	$63.04B	21.92	705.21%	2.64%	0.05%	3.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KVUE	59 Neutral	$28.96B	20.50	13.56%	5.48%	-2.15%	26.65%
KMB	57 Neutral	$39.46B	16.39	196.26%	4.20%	-6.89%	7.52%
EL	53 Neutral	$36.77B	―	-24.69%	1.37%	-8.14%	-389.12%

Procter & Gamble Corporate Events

Procter & Gamble’s Earnings Call Highlights Strategic Growth

Procter & Gamble’s recent earnings call revealed a balanced sentiment, highlighting strong strategic execution and innovation, particularly in Greater China and Latin America. However, this was counterbalanced by challenges in market share and restructuring efforts in North America and Europe.

Procter & Gamble Reports Q1 FY 2026 Results

Procter & Gamble reported its Q1 FY 2026 results, highlighting a 2% growth in organic sales driven by pricing and mix, despite a challenging geopolitical and competitive environment. The company achieved a 3% increase in core earnings per share, with productivity savings partially offsetting tariff costs and negative category mix. While some segments experienced a decrease in value share, others like Global Personal Care saw slight increases. The company also provided guidance for FY 2026, projecting organic sales growth between 0% to 4% and core EPS growth from 0% to 4%, while acknowledging potential headwinds such as commodity cost increases and geopolitical disruptions.

The most recent analyst rating on (PG) stock is a Hold with a $153.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.

Procter & Gamble Declares Quarterly Dividend at Shareholder Meeting

On October 14, 2025, Procter & Gamble announced at its Annual Meeting of Shareholders that the Board of Directors declared a quarterly dividend of $1.0568 per share, continuing its 135-year tradition of dividend payments and 69 consecutive years of dividend increases. Additionally, all 14 director nominees were elected, and shareholders approved several board proposals, including the ratification of the independent accounting firm and the 2025 Stock and Incentive Compensation Plan, while rejecting a proposal for additional reporting on flexible plastic packaging.

The most recent analyst rating on (PG) stock is a Hold with a $156.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.

Procter & Gamble Beauty CEO Announces Retirement

On August 12, 2025, Alexandra Keith, the CEO of Procter & Gamble‘s Beauty division, announced her retirement effective February 20, 2026, after over 36 years with the company. Her retirement agreement includes retaining a special equity award set to vest in August 2026, impacting the company’s leadership transition and potentially influencing its market strategy in the beauty sector.

The most recent analyst rating on (PG) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.

Procter & Gamble Reports Steady Growth Amid Challenges

Procter & Gamble Company, a leading global consumer goods corporation, specializes in a wide range of personal health, hygiene, and home care products, boasting a portfolio of well-known brands such as Tide, Pampers, and Gillette.

Procter & Gamble’s Earnings Call Highlights Growth and Challenges

Procter & Gamble’s recent earnings call presented a balanced outlook, showcasing steady growth in organic sales and earnings per share (EPS), alongside successful innovations and shareholder returns. However, the company faces challenges in Greater China, U.S. inventory adjustments, and tariff impacts, necessitating strategic restructuring and a renewed focus on product superiority.

Procter & Gamble Reports Fiscal Year 2025 Results

Procter & Gamble reported its fiscal year 2025 results, highlighting a 2% growth in organic sales and a 4% increase in core earnings per share despite challenging macroeconomic conditions. The company maintained or grew its market share in 30 of its top 50 category-country combinations. For fiscal year 2026, P&G projects organic sales growth between 0% to 4% and core EPS growth of 0% to 4%, while planning significant cash returns to shareholders through dividends and share repurchases.

The most recent analyst rating on (PG) stock is a Buy with a $174.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.