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Procter & Gamble (PG)
NYSE:PG
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Procter & Gamble
(NYSE:PG)
Rating:73Outperform
Price Target:
$175.00
â–²(13.37% Upside)
Positive Factors
Market Share
Procter is gaining market share among the 'big 3,' particularly Walmart and Costco, creating strategic opportunities and supporting the case for rerating PG shares.
Product Innovation
The stock is expected to outperform consumer packaged goods peers in the long term as the company's investments in compelling product innovation come to fruition.
Negative Factors
Geopolitical Risks
Outgoing CEO Jon Moeller said that the business has never faced more challenges than it faces today and that uncertainties on tariffs, curbs on immigration, and geopolitical risks continue to weigh on the business.
Organic Sales Growth
The fiscal year finished with muted organic sales growth and a cautious fiscal outlook due to heightened macro uncertainty and softer market growth rates in key geographies.
Procter & Gamble (PG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$360.12B
Dividend Yield2.67%
Average Volume (3M)7.96M
Price to Earnings (P/E)23.6
Beta (1Y)0.19
Revenue Growth0.29%
EPS Growth7.85%
CountryUS
Employees108,000
SectorConsumer Defensive
Sector Strength57
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.48
Shares Outstanding2,342,371,600
10 Day Avg. Volume6,927,629
30 Day Avg. Volume7,961,364
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit9.67
Enterprise Value/Ebitda17.86
Forecast
1Y Price Target
$171.54Price Target Upside11.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Procter & Gamble Business Overview & Revenue Model
Company DescriptionProcter & Gamble (P&G) is a multinational consumer goods corporation headquartered in Cincinnati, Ohio. Founded in 1837, P&G operates in various sectors, including beauty, grooming, health care, fabric and home care, and baby, feminine, and family care. The company is known for its extensive range of popular brands, such as Tide, Pampers, Gillette, and Crest, which are sold in over 180 countries worldwide.
How the Company Makes MoneyProcter & Gamble generates revenue primarily through the sale of its consumer goods products across its various sectors. The company operates on a direct-to-consumer model as well as through retail partnerships, including large chains and online platforms. Key revenue streams include sales from personal care products, household cleaning supplies, and health care items. P&G invests significantly in marketing and brand development to maintain a strong presence in the market, which helps drive consumer loyalty and repeat purchases. Additionally, strategic partnerships with retailers and e-commerce platforms enhance distribution and accessibility of its products, further contributing to its earnings.
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:
Main Street Data
Main Street DataProcter & Gamble Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q4-2025)
| % Change Since: -1.75%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced perspective, with steady growth in organic sales and EPS alongside successful innovations and shareholder returns. However, challenges persist in Greater China, inventory adjustments in the U.S., and tariff impacts, requiring strategic restructuring and renewed focus on product superiority.Q4-2025 Updates
Positive Updates
Steady Organic Sales Growth
Procter & Gamble achieved a 2% growth in organic sales for fiscal year 2025, with volume and price/mix each contributing 1 point. Nine out of ten product categories experienced growth, while e-commerce sales increased by 12%, now representing 19% of the total company sales.
Earnings Per Share Increase
Earnings per share reached $6.83, up 4% year-over-year, with a core operating margin increase of 50 basis points, supported by $2.7 billion in productivity improvements across cost of goods sold and SG&A.
Cash Return to Shareholders
Procter & Gamble returned $16 billion of value to shareholders, including nearly $10 billion in dividends and $6.5 billion in share repurchases, consistent with guidance.
Successful Innovation and Product Launches
The company launched several successful products, such as Pampers in China and the Swiffer PowerMop, contributing significantly to category growth. P&G earned 4 of the top 10 spots in the Circana U.S. New Products Pacesetters report for nonfood product launches.
Restructuring Program Announced
A two-year restructuring program was announced to focus on portfolio, supply chain, and organization design, aiming to reduce up to 7,000 nonmanufacturing roles and improve execution of the growth strategy.
Negative Updates
Challenges in Greater China
Organic sales in Greater China were down 5% for the year, although they showed sequential improvement, growing 2% in the most recent quarter.
Inventory Reductions Impact
The U.S. market experienced inventory reductions due to retailer inventory adjustments, which impacted sell-in versus sell-out dynamics.
Potential Impact of Tariffs
Procter & Gamble anticipates a $1 billion pre-tax headwind in fiscal 2026 due to higher costs from tariffs, impacting products imported to the U.S. from China, Canada, and other regions.
Superiority Gaps in Some Categories
There are categories where P&G has lost superiority, necessitating efforts to regain market leadership and increase share.
Company Guidance
During Procter & Gamble's fiscal year 2025 fourth quarter earnings call, the company provided guidance for fiscal 2026, highlighting several key metrics. P&G expects organic sales growth to range from flat to 4%, with a 30 to 50 basis point headwind anticipated from product discontinuations linked to a two-year restructuring program. Core earnings per share (EPS) growth is projected in line to up 4% from fiscal 2025's $6.83, equating to a range of $6.83 to $7.09 per share, with a midpoint of $6.96 or a 2% increase. The guidance considers a $200 million after-tax commodity cost headwind and a $300 million foreign exchange tailwind. Tariffs present a notable challenge, with an estimated $1 billion in higher costs before tax for fiscal 2026, representing a 5-point headwind to core EPS growth. Adjusted free cash flow productivity is forecasted at 85% to 90%, with plans to return approximately $15 billion to shareholders through $10 billion in dividends and $5 billion in share repurchases. The company remains focused on executing its integrated growth strategy amid anticipated macroeconomic and geopolitical volatility.Procter & Gamble Financial Statement Overview
Summary
Procter & Gamble demonstrates strong financial health with consistent revenue growth, robust profitability metrics, and effective cash flow management despite slowing growth rates. The company maintains a healthy balance sheet with moderate leverage and solid return on equity, though slight increases in debt levels should be monitored.Income Statement
Procter & Gamble has demonstrated consistent revenue growth over the years, with a revenue growth rate of 0.29% in the most recent year, indicating stability in its top-line performance. The company maintains strong profitability metrics, with a gross profit margin of 51.15% and a net profit margin of 18.95% in 2025. The EBIT margin at 24.25% and EBITDA margin at 25.00% further underscore its operational efficiency. However, the growth rate has slowed compared to previous years, which could be a point of concern if the trend continues.85
Very Positive
Balance Sheet
Procter & Gamble exhibits a solid balance sheet with a debt-to-equity ratio of 0.66, indicating a balanced approach to leverage. The return on equity stands at 30.54%, reflecting efficient use of shareholders' equity to generate profits. The equity ratio of 41.73% shows a healthy proportion of assets funded by equity, enhancing financial stability. Despite the strong metrics, the company should monitor its debt levels, which have slightly increased in absolute terms.78
Positive
Cash Flow
The company maintains robust cash flow generation, evidenced by the operating cash flow to net income ratio of 1.12, indicating effective cash conversion from profits. The free cash flow to net income ratio is 0.88, showcasing the ability to generate cash after capital expenditures. However, the free cash flow has declined by 15.01% from the previous year, which could impact future flexibility if this trend continues.82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.93B | 84.28B | 84.04B | 82.01B | 80.19B | 76.12B |
| Gross Profit | 43.05B | 43.12B | 43.19B | 39.25B | 38.03B | 39.01B |
| EBITDA | 23.31B | 21.07B | 22.58B | 21.77B | 21.24B | 20.85B |
| Net Income | 15.49B | 15.97B | 14.88B | 14.65B | 14.74B | 14.31B |
Balance Sheet | ||||||
| Total Assets | 122.98B | 125.23B | 122.37B | 120.83B | 117.21B | 119.31B |
| Cash, Cash Equivalents and Short-Term Investments | 9.12B | 9.56B | 9.48B | 8.25B | 7.21B | 10.29B |
| Total Debt | 34.14B | 34.51B | 33.37B | 35.42B | 32.29B | 32.84B |
| Total Liabilities | 70.44B | 72.95B | 71.81B | 73.76B | 70.35B | 72.65B |
| Stockholders Equity | 52.27B | 52.28B | 50.29B | 46.78B | 46.59B | 46.38B |
Cash Flow | ||||||
| Free Cash Flow | 15.03B | 14.04B | 16.52B | 13.79B | 13.57B | 15.58B |
| Operating Cash Flow | 18.59B | 17.82B | 19.85B | 16.85B | 16.72B | 18.37B |
| Investing Cash Flow | -3.27B | -3.82B | -3.50B | -3.50B | -4.42B | -2.83B |
| Financing Cash Flow | -12.92B | -14.04B | -14.86B | -12.15B | -14.88B | -21.53B |
Procter & Gamble Technical Analysis
Negative
154.36
Price Trends
156.76
Negative
159.87
Negative
162.93
Negative
Market Momentum
-0.76
Negative
47.77
Neutral
63.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PG, the sentiment is Negative. The current price of 154.36 is below the 20-day moving average (MA) of 154.56, below the 50-day MA of 156.76, and below the 200-day MA of 162.93, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 63.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PG.
Procter & Gamble Risk Analysis
Procter & Gamble disclosed 20 risk factors in its most recent earnings report. Procter & Gamble reported the most risks in the "Macro & Political" 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $360.12B | 23.62 | 31.23% | 2.67% | 0.29% | 7.85% | |
73 Outperform | $149.07B | 24.90 | 28.36% | 3.26% | -0.30% | -14.60% | |
68 Neutral | $22.53B | 43.62 | 12.07% | 1.26% | 1.13% | -34.78% | |
66 Neutral | $40.68B | 28.80 | 13.56% | 3.88% | -2.15% | 26.65% | |
63 Neutral | $68.76B | 23.91 | 705.21% | 2.40% | 0.05% | 3.55% | |
63 Neutral | $20.97B | 14.57 | -8.07% | 3.14% | 2.79% | -9.97% | |
61 Neutral | $44.11B | 18.32 | 196.26% | 3.73% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
Performance Comparison
PG
Procter & Gamble
154.36
-9.91
-6.03%
CHD
Church & Dwight
92.48
-6.51
-6.58%
CL
Colgate-Palmolive
85.07
-14.54
-14.60%
KMB
Kimberly Clark
132.94
-5.53
-3.99%
UL
Unilever
61.00
1.54
2.59%
KVUE
Kenvue, Inc.
21.20
0.34
1.63%
Procter & Gamble Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Procter & Gamble Beauty CEO Announces Retirement
Neutral
Aug 14, 2025
On August 12, 2025, Alexandra Keith, the CEO of Procter & Gamble‘s Beauty division, announced her retirement effective February 20, 2026, after over 36 years with the company. Her retirement agreement includes retaining a special equity award set to vest in August 2026, impacting the company’s leadership transition and potentially influencing its market strategy in the beauty sector.
The most recent analyst rating on (PG) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.
Stock BuybackDividendsFinancial Disclosures
Procter & Gamble Reports Fiscal Year 2025 Results
Positive
Jul 29, 2025
Procter & Gamble reported its fiscal year 2025 results, highlighting a 2% growth in organic sales and a 4% increase in core earnings per share despite challenging macroeconomic conditions. The company maintained or grew its market share in 30 of its top 50 category-country combinations. For fiscal year 2026, P&G projects organic sales growth between 0% to 4% and core EPS growth of 0% to 4%, while planning significant cash returns to shareholders through dividends and share repurchases.
The most recent analyst rating on (PG) stock is a Buy with a $174.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Procter & Gamble Reports 5% Increase in Net Sales
Positive
Jul 8, 2025
Procter & Gamble announced its financial results for the fiscal year ending June 30, 2023, reporting a 5% increase in net sales compared to the previous year. The company attributed this growth to strong consumer demand across its product categories and effective cost management strategies, which have reinforced its competitive position in the consumer goods industry.
The most recent analyst rating on (PG) stock is a Buy with a $174.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Procter & Gamble Appoints Craig Arnold to Board
Positive
Jun 9, 2025
On June 9, 2025, Procter & Gamble appointed Craig Arnold, former Chairman and CEO of Eaton Corporation, to its Board of Directors. Arnold’s extensive experience in global enterprise management and innovation, particularly in renewable energy and digital technologies, is expected to enhance P&G’s strategic direction and market growth.
The most recent analyst rating on (PG) stock is a Buy with a $174.00 price target. To see the full list of analyst forecasts on Procter & Gamble stock, see the PG Stock Forecast page.
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.