Procter & Gamble’s (PG) shares gained about 4% on Friday morning after the consumer goods giant exceeded expectations for its third-quarter fiscal 2026 results. This comes as the Tide laundry detergent maker expects about a $1 billion hit to its profits in fiscal 2027 due to soaring energy prices from the ongoing U.S.-Israel-Iran war.
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P&G Sales Top $21 Billion in Q3
During the three-month period that ended on March 31, Procter & Gamble grew its earnings per share by 3% from a year ago to $1.59 adjusted, surpassing the Wall Street consensus of $1.56.
The Ohio-based company — which is behind other popular brands such as baby care product Pampers and shaving tool Gillette — also expanded its net sales by 7% year-over-year to $21.2 billion. That figure came in well ahead of analysts’ estimates of $20.52 billion.
Shailesh Jejurikar, Procter & Gamble’s president and CEO, noted that sales growth in the quarter was widespread across many parts of the business across regions.
P&G Keeps Sales Target as Earnings Face Tariff Hit
Looking ahead, however, the company expects higher prices for raw materials to lower its net income by about $150 million, after tax, in fiscal 2026. The consumer goods business is also anticipating roughly a $500 million after-tax hit to its earnings due to higher costs from tariffs.
As a result of these two factors, P&G now sees its fiscal 2026 EPS coming in toward the lower-end of its guidance range. Nonetheless, the company is still guiding for total reported sales to grow between 1% and 5% year-over-year.
“We’re increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year,” Jeurikar noted.
Is P&G a Good Stock to Buy Now?
On Wall Street, Procter & Gamble’s shares hold a Moderate Buy consensus rating from analysts. This is based on nine Buys and nine Holds issued over the past three months.
However, the average GP price target of $158.40 implies only a modest 5% growth potential. Yet, it is important to note that analysts’ ratings may change following the latest earnings report.
