Procter & Gamble (PG) AI Stock Analysis

• Market Cap: $371.19B
• Dividend Yield: 2.92%
• Average Volume (3M): 11.48M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.12
• Revenue Growth: 1.23%
• EPS Growth: 17.97%
• Country: US
• Employees: 108,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.88
• Shares Outstanding: 2,324,000,700
• 10 Day Avg. Volume: 11,334,943
• 30 Day Avg. Volume: 11,484,950
• 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: 1.07
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 9.15
• Enterprise Value/Ebitda: 16.75
• 1Y Price Target: $166.25
• Price Target Upside: 4.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 6.96
• Revenue Forecast (FY): $86.68B

• Rating: 74 Outperform
• Price Target: $187.00 ▲(17.08% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is driven primarily by PG’s strong profitability and returns on equity, supported by maintained guidance and continued shareholder returns. The rating is tempered by weakening recent free-cash-flow momentum, mixed technical setup (below the 200-day average and stretched oscillators), and a valuation that is reasonable but not clearly discounted.

Positive Factors

High Profitability & ROE

Sustained high margins and a ~32% ROE indicate durable pricing power, efficient cost structure and strong returns on invested capital. This underpins long-term cash generation, funds reinvestment and supports ongoing shareholder distributions even through moderate top-line cycles.

Strong Brands & Innovation

Consistent innovation and premium-brand strength (notably double-digit wins in China and successful rollouts in key markets) drive sustainable category share gains. A deep brand portfolio and repeatable innovation pipeline strengthen long-term competitive moats across core consumer segments.

Robust Capital Returns & Healthy Balance Sheet

Large, predictable shareholder returns combined with moderate leverage (debt-to-equity ~0.67) reflect disciplined capital allocation. The balance between dividends/repurchases and investment capacity supports durable investor trust and signals financial flexibility for multi-year strategic investments.

Negative Factors

Weakening Free Cash Flow Momentum

A steep TTM decline in free cash flow and weaker cash conversion reduce internal funding capacity for buybacks, capex and resilience to cost shocks. If cash-generation recovery lags, the company may face trade-offs between returns, reinvestment and debt management over the next several quarters.

Flat Organic Sales & Volume Weakness

Stagnant organic growth and persistent volume declines, especially U.S. weakness, signal structural demand headwinds in core markets. Over time, sustained flat volumes constrain revenue leverage and make margin recovery harder, increasing reliance on pricing and cost cuts to meet targets.

Margin Compression & Competitive Pressure

Recent margin contraction despite productivity gains points to reinvestment, higher promotions and cost pressures. Continued margin erosion from elevated promotional intensity and tariffs can reduce structural profitability and limit the company's ability to fund innovation and returns without further price or efficiency actions.

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 products across various categories. The company employs a revenue model based on direct sales to retailers and distributors, as well as online sales through e-commerce platforms. Key revenue streams include sales from personal care products, household cleaning items, and health care products. Procter & Gamble also benefits from brand loyalty and premium pricing on its established brands, which allows for significant profit margins. Additionally, the company engages in strategic partnerships with retailers and distributors to enhance market penetration and improve product availability. Factors contributing to its earnings include effective marketing strategies, innovation in product development, and a strong supply chain management system.

Procter & Gamble Financial Statement Overview

Summary

Strong profitability for a consumer staples business (TTM gross margin ~51%, operating margin ~26%, net margin ~20%) and very strong ROE (~32%) support a high score. Offsetting factors are essentially flat recent revenue growth (~0.3% latest annual) and a notable recent deterioration in cash-flow momentum (TTM free cash flow growth ~-64% and weaker cash conversion).

Income Statement

PG shows strong and improving profitability, with TTM (Trailing-Twelve-Months) gross margin ~51%, operating margin ~26%, and net margin ~20%—all solid for a consumer staples business. Earnings power has expanded versus prior years (notably higher margins than 2022–2024). The main weak spot is growth: revenue growth is essentially flat in the latest annual period (~0.3%), while the TTM growth figure is unusually high and appears non-recurring versus the multi-year trend.

Balance Sheet

The balance sheet looks healthy with moderate leverage: debt-to-equity is ~0.67 in TTM (Trailing-Twelve-Months), broadly stable across the period, and equity has grown over time. Profitability on shareholders’ capital is very strong (TTM return on equity ~32%), indicating efficient capital use. The trade-off is that leverage remains meaningful (debt in the mid-$30B range), which can limit flexibility if rates stay high or cash generation softens.

Cash Flow

Cash generation is solid in absolute terms (TTM operating cash flow ~$19.1B; free cash flow ~$14.8B), and free cash flow covers a large portion of earnings (TTM free cash flow is ~79% of net income). However, the recent trajectory is the concern: free cash flow declined sharply in TTM (Trailing-Twelve-Months) (growth ~-64%) after being stronger in 2024, and operating cash flow relative to reported earnings is only about ~50% in the last two periods, suggesting weaker cash conversion recently.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	85.26B	84.28B	84.04B	82.01B	80.19B	76.12B
Gross Profit	43.21B	43.12B	43.19B	39.25B	38.03B	39.01B
EBITDA	23.62B	23.92B	22.58B	21.77B	21.24B	20.85B
Net Income	16.47B	15.97B	14.88B	14.65B	14.74B	14.31B
Balance Sheet
Total Assets	127.29B	125.23B	122.37B	120.83B	117.21B	119.31B
Cash, Cash Equivalents and Short-Term Investments	10.82B	9.56B	9.48B	8.25B	7.21B	10.29B
Total Debt	36.64B	35.46B	33.37B	35.42B	32.29B	32.84B
Total Liabilities	73.97B	72.95B	71.81B	73.76B	70.35B	72.65B
Stockholders Equity	53.32B	52.01B	50.29B	46.78B	46.59B	46.38B
Cash Flow
Free Cash Flow	14.85B	14.04B	16.52B	13.79B	13.57B	15.58B
Operating Cash Flow	19.07B	17.82B	19.85B	16.85B	16.72B	18.37B
Investing Cash Flow	-4.55B	-3.82B	-3.50B	-3.50B	-4.42B	-2.83B
Financing Cash Flow	-14.16B	-14.04B	-14.86B	-12.15B	-14.88B	-21.53B

Procter & Gamble Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 159.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 159.72 is below the 20-day moving average (MA) of 160.57, above the 50-day MA of 150.90, and above the 200-day MA of 152.04, indicating a neutral trend. The MACD of 3.56 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 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	74 Outperform	$371.19B	23.67	31.58%	2.92%	1.23%	17.97%
UL	69 Neutral	$150.15B	21.95	32.63%	3.74%	-0.30%	-14.60%
KVUE	68 Neutral	$34.79B	23.76	14.39%	4.85%	-2.94%	34.54%
CL	65 Neutral	$76.56B	36.34	1602.26%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	61 Neutral	$36.43B	18.37	147.22%	5.03%	-10.04%	-23.41%
EL	55 Neutral	$35.71B	-197.30	-4.34%	1.30%	-6.36%	-554.84%

Procter & Gamble Corporate Events

Procter & Gamble Posts Flat Q2 Results, Maintains 2026 Outlook

Procter & Gamble reported second-quarter fiscal 2026 results on January 22, 2026, that were broadly flat year-on-year, as base-period dynamics and soft underlying market trends weighed on performance. Organic sales were unchanged, with 1% pricing growth offset by a 1% decline in volume, and seven of ten product categories managed to grow or hold organic sales. Global aggregate value share slipped by 20 basis points, with half of the company’s top 50 category/country combinations holding or gaining share, underscoring intensifying competition and mixed category momentum. Core earnings per share were steady at $1.88 (or $1.85 on a currency-neutral basis), while adjusted free cash flow productivity was a robust 88%. Segment results were uneven: Beauty and Health Care delivered organic sales growth but faced margin pressure from higher marketing, tariffs and unfavorable mix; Grooming and Fabric & Home Care saw weaker net earnings despite pricing support; and Baby, Feminine and Family Care posted a 4% organic sales decline on 5% lower volume and a 9% drop in net earnings despite some value share gains in Baby Care. For fiscal 2026, management maintained guidance for organic sales growth of 0%–4% and core EPS growth of 0%–4%, with all-in EPS expected to rise 1%–6%, and outlined plans for strong cash returns via roughly $10 billion in dividends and $5 billion in share repurchases, even as tariffs, tax headwinds and persistent cost pressures remain key constraints.

The most recent analyst rating on (PG) stock is a Hold with a $170.00 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, Extending Streak

On January 13, 2026, Procter & Gamble’s board declared a quarterly dividend of $1.0568 per share on its common stock and Series A and Series B ESOP Convertible Class A preferred shares, payable on or after February 17, 2026 to shareholders of record as of January 23, 2026. The announcement underscores P&G’s long-standing commitment to shareholder returns, extending its track record of 135 consecutive years of dividend payments and 69 consecutive years of dividend increases, reinforcing its positioning as a reliable income stock for investors who depend on steady cash distributions.

The most recent analyst rating on (PG) stock is a Buy with a $158.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.

Procter & Gamble Announces Health Care CEO Retirement

On December 9, 2025, Procter & Gamble announced that Jennifer Davis, the current Chief Executive Officer of their Health Care division, will retire on June 30, 2026, after over 33 years with the company. Her departure marks a significant transition for the company, potentially impacting its leadership dynamics and strategic direction within the health care sector.

The most recent analyst rating on (PG) stock is a Hold with a $152.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.