P&G Q1 sales beat; maintains fiscal 2027 organic sales growth forecast

Overview

• Consumer goods giant's Q1 net sales rose 4%, beating analyst expectations

• Core EPS for Q1 increased 1%, beating analyst expectations

• Company returned $3.9 bln to shareholders through dividends and buybacks

Outlook

• P&G sees fiscal 2027 all-in sales growth of 2% to 4%, including Thorne acquisition impact

• Company maintains fiscal 2027 organic sales growth guidance of 1% to 3%

• P&G expects fiscal 2027 core EPS of $6.89 to $7.11

Result Drivers

• VOLUME AND MIX - Co said organic sales growth was driven by higher volume and favorable product mix, with minor positive impact from pricing

• HIGHER COSTS - Co said gross margin declined due to higher commodity, reinvestment, and transportation costs, partially offset by productivity savings

• PRODUCTIVITY SAVINGS - Co attributed lower SG&A expense ratio to productivity savings and sales growth leverage

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "hold."

• Wall Street's median 12-month price target for The Procter & Gamble Company is $162.00, about 3.3% above its October 21 closing price of $156.84

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Oct 20 - 3M lifts profit forecast as AI push deepens, shares rise

• Oct 20 - Germany's Adidas raises full-year profit outlook after record quarter

• Oct 22 - Switzerland's Nestlé maintains 2026 organic growth guidance at 3% to 4%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)