Procter & Gamble Company (PG) Q1 2027 Financial Results Summary
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Procter & Gamble Company (PG) Q1 2027: Revenue Growth Steady, EPS Up Slightly — Cautiously Optimistic
Procter & Gamble Company (NYSE: PG) reported its first quarter results for fiscal year 2027, revealing a net sales increase of $0.9 billion or +4.0% year-over-year, reaching $23.3 billion. This growth was mirrored in organic sales, which also rose by +4.0%. Diluted earnings per share (EPS) increased by $0.02 to $1.97, reflecting a +1% growth compared to the previous year. Core EPS also saw a similar increase, rising to $2.00, up +1% from the prior year.
This quarter's performance can be viewed as a positive outcome for shareholders, as the company managed to maintain revenue growth amidst rising operating costs. The slight increase in EPS indicates that P&G is effectively managing its profitability despite external pressures.
Key Metrics:
- Net Sales: $23.3 billion, up $0.9 billion or +4.0% YoY
- Organic Sales: +4.0% YoY
- Diluted EPS: $1.97, up +1% YoY
- Core EPS: $2.00, up +1% YoY
- Operating Cash Flow: $5.8 billion
- Free Cash Flow: $4.4 billion
- Free Cash Flow Productivity: 93%
- Cash Returned to Shareholders: $3.9 billion (including $2.6 billion in dividends and $1.3 billion in share repurchases)
P&G's ability to achieve a 4.0% increase in both net and organic sales is commendable, especially in a challenging economic environment characterized by rising commodity costs and inflationary pressures. The company reported a gross margin decrease of 160 basis points, primarily due to higher commodity costs and product reinvestments, which were partially offset by productivity savings.
Shareholder Returns and Guidance:
P&G returned $3.9 billion to shareholders through dividends and share repurchases, demonstrating its commitment to returning capital while navigating cost pressures. The company maintained its fiscal year 2027 guidance for organic sales growth in the range of +1% to +3% and diluted EPS growth of +1% to +5%. This guidance reflects the anticipated impact of the Thorne acquisition and ongoing cost challenges.
Forward-Looking Catalysts:
Investors should keep an eye on P&G's ability to manage its cost structure and maintain sales momentum in the upcoming quarters. The company faces headwinds from commodity costs, which are expected to impact EPS growth by approximately $0.79 per share, translating to an 11% drag on core EPS growth for fiscal 2027. Additionally, P&G's focus on innovation and premium product offerings will be crucial in driving future sales growth.
In summary, while the quarter showed modest growth, the challenges ahead require careful monitoring. P&G's strategic initiatives and commitment to shareholder returns position it well for the future, but investors should remain vigilant regarding external economic pressures.
Amounts in millions except per share amounts
| 2027 | 2026 | % Chg | |
|---|---|---|---|
| NET SALES | 23,276 | 22,386 | % Chg |
| Cost of products sold | 11,678 | 10,887 | 4% |
| GROSS PROFIT | 11,598 | 11,499 | 7% |
| Selling, general and admin… | 5,661 | 5,643 | 1% |
| OPERATING INCOME | 5,937 | 5,856 | —% |
| Interest expense | (223) | (197) | 1% |
| Interest income | 102 | 108 | 13% |
| Other operating income/(ex… | 207 | 268 | (6)% |
| EARNINGS BEFORE INCOME TAXES | 6,023 | 6,034 | (23)% |
| Income taxes | 1,267 | 1,253 | —% |
| NET EARNINGS | 4,757 | 4,781 | 1% |
| Less: Net earnings attributab… | 26 | 31 | (1)% |
| to noncontrol… | 4,731 | 4,750 | (16)% |
| NET EARNINGS ATTRIBUTABLE | 21.0% | 20.8% | —% |
| TO PROCTER & GAMBLE | |||
| Basic | $2.00 | $2.00 | —% |
| Diluted | $1.97 | $1.95 | 1% |
| DIVIDENDS PER COMMON SHARE | $1.0885 | $1.0568 | |
| DILUTED | |||
| WEIGHTED AVERAGE COMMON SHARES | 2,407.2 | 2,436.8 |
Amounts in millions
| September 30, 2026 | June 30, 2026 | |
|---|---|---|
| Cash and cash equivalents | $15,365 | $9,942 |
| Accounts receivable | 6,620 | 6,056 |
| Inventories | 8,485 | 8,170 |
| Prepaid expenses and other current | 2,038 | 2,040 |
| TOTAL CURRENT ASSETS | 32,508 | 26,208 |
| Property, plant and equipment, net | 25,519 | 25,360 |
| Goodwill | 41,197 | 41,276 |
| Trademarks and other intangible as | 21,359 | 21,444 |
| sets, net | 12,549 | 12,231 |
| TOTAL ASSETS | 133,132 | 126,521 |
| Accounts payable | 17,056 | 16,306 |
| Accrued and other liabilities | 10,911 | 11,091 |
| Debt due within one year | 17,028 | 11,296 |
| TOTAL CURRENT LIABILITIES | 44,996 | 38,694 |
| Long-term debt | 21,897 | 22,842 |
| Deferred income taxes | 5,949 | 5,760 |
| Other noncurrent liabilities | 4,954 | 4,914 |
| TOTAL LIABILITIES | 77,795 | 72,210 |
| TOTAL SHAREHOLDERS' EQUITY | 55,337 | 54,311 |
| TOTAL LIABILITIES AND SHAREHOLDERS | 133,132 | 126,521 |
| EQUITY |
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