Procter & Gamble Misses Earnings Estimates and Faces Cost Headwinds
Procter & Gamble (PG) reported fiscal fourth-quarter results below expectations with flat organic sales growth and a 3% decline in core earnings per share. The company guided for modest 1-3% organic sales growth and $6.89 to $7.11 of core EPS in fiscal 2027, which is slightly below analyst forecasts. P&G cited over $1 billion in after-tax headwinds from higher material costs, energy expenses, transportation, interest rates, non-operating income declines, and currency effects—equivalent to a $0.56-per-share drag on earnings growth. These pressures are expected to persist throughout fiscal 2027. The company's recent performance shows signs of strain: while net sales rose slightly year-over-year in the fourth quarter, organic sales were flat, with all gains coming from pricing rather than volume or product mix improvements.
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