Procter & Gamble (PG) AI Stock Analysis

Company Guidance

For fiscal 2027, P&G is maintaining guidance for sales growth of 1% to 3%, core EPS growth of 0% to 3% versus prior year, or $6.89 to $7.11 per share, and free cash flow productivity at 85% to 90%; top line guidance includes roughly 30% to 50% basis points headwinds from product and market exits, the outlook includes a cost headwind of approximately $1.4 billion after tax assuming an effective Brent crude oil price of $100 a barrel, an expected foreign exchange headwind of approximately $50 million after tax, approximately $300 million of higher net interest expense after tax, around €150 million higher due to debt issuance related to recent M&A activity, and $150 million after tax of lower non operating income; the core effective tax rate is expected to be in the range of 20% to 21%, combined input costs, foreign exchange items below the operating line are expected to be roughly $1.9 billion after tax headwind of earnings, or $0.79 per share and 11% of fiscal 2026 core EPS, capital spending is expected to be between 4.5% to 5.5% of sales, dividends are expected to exceed $10 billion, approximately $5 billion of common stock is expected to be repurchased, and the company plans to return $15 billion of cash to shareowners; P&G expects H1 to be at about 3% organic sales growth, with slight acceleration in half 2, and category value growth of 2.5% to 3%.