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Procter & Gamble
(NYSE:PG)
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Rating:78Outperform
Price Target:
$170.00
▲(15.32% Upside)
Action:Reiterated
Date:07/29/26
Overall score reflects strong financial quality (durable margins and cash generation) as the primary driver, supported by a modestly positive price trend and reasonable income-oriented valuation. The main constraint is the earnings outlook: FY2027 guidance implies only modest growth with meaningful cost/FX/interest headwinds and near-term EPS pressure.
Positive Factors
Cash generation
Sustained high cash generation and strong conversion (FCF ≈77% of net income) provide durable funding for dividends, buybacks, and targeted reinvestment. This supports shareholder returns and strategic flexibility even if near-term earnings wobble.
Negative Factors
Cautious FY2027 outlook
Management's modest guidance signals limited near‑term growth upside driven by structural headwinds baked into plans. Slow organic growth and muted EPS guidance constrain earnings momentum and limit optionality for rapid strategic expansion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained high cash generation and strong conversion (FCF ≈77% of net income) provide durable funding for dividends, buybacks, and targeted reinvestment. This supports shareholder returns and strategic flexibility even if near-term earnings wobble.
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
$340.39B
Dividend Yield2.95%
Average Volume (3M)8.47M
Price to Earnings (P/E)21.5
Beta (1Y)0.18
Revenue Growth3.26%
EPS Growth1.15%
CountryUS
Employees104,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)6.75
Shares Outstanding2,324,433,000
10 Day Avg. Volume6,837,415
30 Day Avg. Volume8,465,655
Financial Highlights & Ratios
PEG Ratio18.11
Price to Book (P/B)6.54
Price to Sales (P/S)4.08
P/FCF Ratio22.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$159.19Price Target Upside7.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)6.99
Revenue Forecast (FY)$88.71B
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 selling branded consumer products to retailers, distributors, e-commerce platforms, and other intermediaries, who then sell to end consumers. Revenue is generated across its core segments—Fabric & Home Care (e.g., laun...
Procter & Gamble Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call struck a cautiously positive tone: P&G met fiscal 2026 guidance, demonstrated improving consumer momentum and share stabilization (particularly in H2), delivered strong productivity and cash returns, and highlighted several successful innovations and regional turnarounds (e.g., Greater China, Tide, SK‑II). However, material near‑term headwinds remain — input cost spikes, margin compression, inventory and trade timing issues (notably in the U.S.), and restructuring‑related top‑line drag — which are expected to weigh on near‑term profitability (Q1) and are explicitly modeled into FY2027 guidance. Overall, the company conveyed progress and a credible plan to accelerate growth while acknowledging meaningful short‑term challenges and external risks.Positive Updates
Met Fiscal 2026 Guidance and Delivered Core EPS Growth
P&G delivered fiscal 2026 within its initial guidance ranges: organic sales grew >1% and core EPS was $6.89, up 1% versus prior year (currency‑neutral core EPS in line).
Negative Updates
Margin Compression and Operating Profit Pressure
Fiscal 2026 core gross margin declined ~40 basis points and core operating margin decreased ~70 basis points year over year; Q4 core operating margin contracted ~130 basis points.
Read all updates
Q4-2026 Updates
Positive
Negative
Met Fiscal 2026 Guidance and Delivered Core EPS Growth
P&G delivered fiscal 2026 within its initial guidance ranges: organic sales grew >1% and core EPS was $6.89, up 1% versus prior year (currency‑neutral core EPS in line).
Read all positive updates
Company Guidance
P&G guided fiscal 2027 to modest top‑line and EPS growth, expecting market local‑currency value growth of 1%–3% (current run‑rate mid‑range) and organic sales growth of 1%–3% (which includes a 30–50 bps headwind from brand/product/form and go‑to‑market restructuring); core EPS is guided to 0%–3% vs FY26 core EPS of $6.89 (i.e., $6.89–$7.11, $7.00 at the midpoint), with Q1 EPS expected to be down ~5%+ yoy. The outlook embeds a roughly $1.0 billion after‑tax cost headwind (raw materials, energy, transportation) assuming a Brent price of ~$90/barrel, plus ~ $50M after‑tax FX headwind, ~ $150M after‑tax higher net interest expense and ~ $150M after‑tax lower non‑operating income — a combined ~$1.4 billion after‑tax drag (~$0.56/share, ~8% of FY26 core EPS). They expect a core effective tax rate of ~20%, capex of 4.5%–5.5% of sales, adjusted free cash flow productivity of 85%–90%, and plan to return ~$15 billion to shareholders (>$10 billion dividends and ~ $5 billion buybacks).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 | 21.25B | 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 | 15.91B | 14.04B | 16.52B | 13.79B | 13.57B |
| Operating Cash Flow | 20.32B | 17.82B | 19.85B | 16.85B | 16.72B |
| Investing Cash Flow | -4.62B | -3.82B | -3.50B | -3.50B | -4.42B |
| Financing Cash Flow | -15.20B | -14.04B | -14.86B | -12.15B | -14.88B |
Procter & Gamble Technical Analysis
Neutral
147.41
Price Trends
146.75
Negative
144.81
Positive
145.88
Positive
Market Momentum
-0.23
Positive
49.13
Neutral
55.62
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 147.41 is above the 20-day moving average (MA) of 146.93, above the 50-day MA of 146.75, and above the 200-day MA of 145.88, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 55.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PG.
Procter & Gamble Risk Analysis
Procter & Gamble disclosed 19 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $340.39B | 21.51 | 29.84% | 2.91% | 3.26% | 1.15% | |
70 Outperform | $134.91B | 20.90 | 35.40% | 3.71% | -17.45% | 8.84% | |
64 Neutral | $35.93B | 18.46 | 143.64% | 4.63% | -16.17% | -13.40% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $74.26B | 36.29 | 631.14% | 2.31% | 5.24% | -29.04% | |
61 Neutral | $36.55B | 21.87 | 15.58% | 4.30% | 1.75% | 16.81% | |
54 Neutral | $31.54B | -129.09 | -6.29% | 1.74% | 0.71% | 71.47% |
* Consumer Defensive Sector Average
PG
Procter & Gamble
145.21
-5.45
-3.62%
CL
Colgate-Palmolive
92.31
9.41
11.36%
EL
The Estée Lauder Companies
87.78
-2.59
-2.87%
KMB
Kimberly Clark
108.57
-18.83
-14.78%
UL
Unilever
62.37
-0.35
-0.56%
KVUE
Kenvue, Inc.
19.05
-1.88
-8.98%
Procter & Gamble Corporate Events
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...
Dividends
Procter & Gamble Announces Quarterly Dividend Declaration
Positive
Jul 15, 2026
On July 14, 2026, Procter Gamble’s Board of Directors declared a quarterly dividend of $1.0885 per share on its common stock and Series A and Series B ESOP Convertible Class A preferred shares. The dividend will be payable on or after Augus...
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.