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Procter & Gamble
(NYSE:PG)
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Rating:79Outperform
Price Target:
$180.00
â–²(23.80% Upside)
Action:Reiterated
Date:10/22/26
PG scores well primarily on durable financial quality (strong margins, consistently high returns, and robust free cash flow) with manageable leverage. Technicals are supportive with the stock trading above key moving averages, though near-term momentum looks somewhat stretched. Valuation is on the expensive side (P/E ~23) but cushioned by a solid dividend yield. The latest earnings call reinforced steady demand trends but highlighted substantial cost/FX/interest headwinds and expected volatility, keeping the overall score below the top tier.
Positive Factors
High profitability and cash generation
P&G combines strong margins with substantial operating and free cash flow, indicating durable earnings quality in its branded consumer-products model. Healthy cash conversion supports reinvestment in advertising, innovation and distribution while also funding dividends, buybacks and balance-sheet needs.
Negative Factors
Material input-cost and freight pressure
The sizable cost burden creates a direct threat to earnings and margin sustainability over the next several quarters. Although P&G is pursuing productivity and pricing with innovation, the scale of the expected headwind may limit operating leverage and reduce the benefit of sales growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and cash generation
P&G combines strong margins with substantial operating and free cash flow, indicating durable earnings quality in its branded consumer-products model. Healthy cash conversion supports reinvestment in advertising, innovation and distribution while also funding dividends, buybacks and balance-sheet needs.
Read all positive factors
Procter & Gamble Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows sales performance across various divisions, indicating which areas are growing or declining and how the company is diversifying its revenue streams.
Shows sales performance across various divisions, indicating which areas are growing or declining and how the company is diversifying its revenue streams.
Data provided by:
The Fly
The FlyProcter & Gamble (PG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$370.05B
Dividend Yield2.74%
Average Volume (3M)8.81M
Price to Earnings (P/E)23.3
Beta (1Y)0.22
Revenue Growth3.26%
EPS Growth1.15%
CountryUS
Employees104,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)6.75
Shares Outstanding2,322,672,400
10 Day Avg. Volume10,333,475
30 Day Avg. Volume8,807,271
Financial Highlights & Ratios
PEG Ratio18.11
Price to Book (P/B)6.54
Price to Sales (P/S)4.08
P/FCF Ratio23.45
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue4.36
Enterprise Value/Gross Profit8.70
Enterprise Value/Ebitda15.56
Forecast
1Y Price Target
$159.35Price Target Upside9.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)6.97
Revenue Forecast (FY)$88.79B
Procter & Gamble Business Overview & Revenue Model
Company Description
The Procter & Gamble Company, commonly referred to as P&G, is a global enterprise that supplies a broad spectrum of branded consumer products to markets worldwide. The company's operations are divided into five main business divisions: Beauty; Gro...
How the Company Makes Money
P&G primarily makes money by manufacturing and selling branded consumer products to retailers, distributors, and e-commerce platforms, as well as directly to consumers in some markets. Its revenue model is largely volume-and-price driven: it gener...
Procter & Gamble Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q1-2027)
| Next Earnings Date:Jan 20, 2027
Earnings Call Sentiment Positive
The call was broadly positive. P&G reported 4.0% organic sales growth, volume-led momentum across all categories and regions, improving share trends, strong performance in North America and China, and maintained its fiscal 2027 guidance. However, the outlook includes significant commodity, freight, foreign-exchange, interest, and geopolitical headwinds, along with margin pressure, flat aggregate market share, and unresolved challenges in several categories. Management remained confident in the company's ability to execute, but emphasized that results would be volatile and would not progress in a straight line.Positive Updates
Organic Sales Growth Accelerated
First-quarter organic sales increased 4.0% versus the prior year, with volume up 2.4 points, pricing up 0.4 points, and mix up more than 1 point. Management described the balance across top-line drivers as solid, with the majority of growth driven by volume.
Negative Updates
Higher Cost and Freight Headwinds
P&G expects higher costs from raw materials, energy, and freight, primarily in North America, with these headwinds expected to increase over the next few quarters. Core gross margin declined 150 basis points and core operating margin declined 80 basis points versus the prior year.
Read all updates
Q1-2027 Updates
Positive
Negative
Organic Sales Growth Accelerated
First-quarter organic sales increased 4.0% versus the prior year, with volume up 2.4 points, pricing up 0.4 points, and mix up more than 1 point. Management described the balance across top-line drivers as solid, with the majority of growth driven by volume.
Read all positive updates
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%.Procter & Gamble Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
80
Positive
Cash Flow
83
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 87.03B | 84.28B | 84.04B | 82.01B | 80.19B |
| Gross Profit | 43.67B | 43.12B | 43.19B | 39.25B | 38.03B |
| EBITDA | 24.41B | 23.92B | 22.58B | 21.77B | 21.24B |
| Net Income | 16.05B | 15.97B | 14.88B | 14.65B | 14.74B |
Balance Sheet | |||||
| Total Assets | 126.52B | 125.23B | 122.37B | 120.83B | 117.21B |
| Cash, Cash Equivalents and Short-Term Investments | 9.94B | 9.56B | 9.48B | 8.25B | 7.21B |
| Total Debt | 35.03B | 35.46B | 33.37B | 35.42B | 32.29B |
| Total Liabilities | 72.21B | 72.95B | 71.81B | 73.76B | 70.35B |
| Stockholders Equity | 54.31B | 52.01B | 50.29B | 46.78B | 46.59B |
Cash Flow | |||||
| Free Cash Flow | 15.15B | 14.04B | 16.52B | 13.79B | 13.57B |
| Operating Cash Flow | 19.56B | 17.82B | 19.85B | 16.85B | 16.72B |
| Investing Cash Flow | -4.62B | -3.82B | -3.50B | -3.50B | -4.42B |
| Financing Cash Flow | -14.46B | -14.04B | -14.86B | -12.15B | -14.88B |
Procter & Gamble Technical Analysis
Positive
145.40
Price Trends
147.60
Positive
147.20
Positive
147.04
Positive
Market Momentum
3.19
Negative
63.43
Neutral
81.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Positive. The current price of 145.4 is below the 20-day moving average (MA) of 151.02, below the 50-day MA of 147.60, and below the 200-day MA of 147.04, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 81.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PG.
Procter & Gamble Risk Analysis
Procter & Gamble disclosed 16 risk factors in its most recent earnings report. Procter & Gamble reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Procter & Gamble Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $370.05B | 23.26 | 29.84% | 2.74% | 3.26% | 1.15% | |
75 Outperform | $25.13B | 33.65 | 17.78% | 1.16% | 2.69% | 46.04% | |
70 Outperform | $138.98B | 22.37 | 37.05% | 3.45% | -17.45% | 8.84% | |
66 Neutral | $36.03B | 18.14 | 122.57% | 4.78% | -12.19% | -19.22% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $75.36B | 36.71 | 631.14% | 2.26% | 5.24% | -29.04% | |
57 Neutral | $37.03B | 21.89 | 15.58% | 5.48% | 1.75% | 16.81% |
* Consumer Defensive Sector Average
PG
Procter & Gamble
156.84
8.99
6.08%
CHD
Church & Dwight
105.00
18.01
20.70%
CL
Colgate-Palmolive
93.40
15.41
19.76%
KMB
Kimberly Clark
106.64
-7.72
-6.75%
UL
Unilever
64.40
<0.01
0.01%
KVUE
Kenvue, Inc.
19.04
4.72
32.94%
Procter & Gamble Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Procter & Gamble Posts Solid Fiscal Q1 2027 Results
Positive
Oct 22, 2026
Procter Gamble reported first-quarter fiscal 2027 results on October 22, 2026, delivering 4.0% organic sales growth, driven by 2.4% volume, modest pricing and mix gains, despite a volatile macro backdrop and rising cost headwinds. Core earnings p...
Other
Procter & Gamble Reports Security Holder Voting Outcomes
Neutral
Oct 16, 2026
Procter Gamble did not provide substantive content in this release, leaving key details about the company’s current initiatives, products, or strategic focus unstated. As a result, there is no additional context on how its consumer goods op...
Regulatory Filings and Compliance
Procter & Gamble Issues Regulation FD Disclosure Update
Neutral
Oct 13, 2026
Procter Gamble issued a news release, but the provided text does not contain any substantive information about the announcement’s content, timing, or operational implications. Without additional details, it is not possible to assess the imp...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Procter & Gamble Issues Cautious Fiscal 2027 Outlook
Negative
Jul 29, 2026
For the fiscal year ended July 29, 2026, Procter Gamble delivered results within guidance in a difficult macro environment, posting 1% organic sales growth driven by pricing, flat volumes and core earnings per share up 1% to $6.89. While nine of ...
Business Operations and StrategyExecutive/Board Changes
Procter & Gamble appoints Jejurikar as board chairman
Positive
Jul 29, 2026
On July 29, 2026, Procter Gamble announced that President and Chief Executive Officer Shailesh Jejurikar has been appointed Chairman of the Board, effective August 1, 2026. He will now combine the roles of chairman and CEO, signaling a consolidat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.