P&G Stock Falls on Mixed Earnings Amid Cautious Consumer Spending
Procter & Gamble (PG) reported mixed earnings, leading to a decline in its stock price by 2.5% as the company issued softer-than-expected guidance for fiscal year 2027. Despite describing consumer spending as 'stable,' P&G noted divergent trends: higher-income consumers are buying more of its innovations while lower-income shoppers remain cautious due to inflation and financial constraints. The results were impacted by a $1 billion after-tax hit from rising raw material costs, which pressured sales across several segments. Organic revenue growth was below estimates in most business lines, including healthcare (-1%) and baby care (-2%). P&G expects organic sales growth of 1% to 3%, with core earnings per share projected between $6.89 and $7.11 for the year.
Tickers: $PG
Topics: consumer_spending inflation_impact stock_performance