Procter & Gamble (PG) stock dropped on Thursday alongside the release of the consumer packaged goods company’s Fiscal Q2 2026 earnings report. The report included adjusted earnings per share of $1.88, which was just above Wall Street’s estimate of $1.86. Its adjusted EPS was also in line with what was reported in Fiscal Q2 2025.
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Procter & Gamble reported revenue of $22.2 billion during the quarter, which barely failed to meet analysts’ estimate of $22.3 billion. It also only represented a 1% increase year-over-year from $21.9 billion. The company also noted that its organic sales for the period were unchanged when compared to the same time last year.
Procter & Gamble stock was down 1.55% in pre-market trading on Thursday, following a 0.64% drop yesterday. The shares have rallied 1.92% year-to-date but were down 12.9% over the past 12 months.
Procter & Gamble Guidance
Procter & Gamble also provided investors with a guidance update for Fiscal 2026 in its most recent earnings report.
- Diluted EPS growth of 1% to 6%, compared to its prior growth outlook of 3% to 9%.
- Adjusted EPS growth to be flat to up 4%, representing a range of $6.83 to $7.09 with a midpoint of $6.96, compared to Wall Street’s estimate of $6.96.
- Neutral commodity costs for the year.
- A net headwind of $250 million from modestly higher net interest expense and a higher core effective tax rate.
- A core effective tax rate to be in the range of 20% to 21%.
- Capital spending of 4% to 5% of net sales.
- Adjusted free cash flow productivity of 85% to 90%.
- $10 billion in dividends and $5 billion worth of PG stock repurchased.
Is Procter & Gamble Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Procter & Gamble is Moderate Buy, based on 10 Buy and seven Hold ratings over the past three months. With that comes an average PG stock price target of $163.79, representing a potential 12.14% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
