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- P & G ( PG ) Q1 2027 Earnings Call Transcript
Procter & Gamble reported first-quarter fiscal 2027 net sales of $23.3 billion, up 4.0%, with organic sales also up 4.0%, driven mainly by volume (2.4 points) and product mix (1.1 points). Core EPS rose 1% to $2.00, while core gross margin fell 150 basis points to 50.0% and core operating margin fell 80 basis points to 25.9%. Management estimates commodity cost headwinds of about $1.4 billion after tax for the year, assuming Brent crude at $100 a barrel for the rest of the fiscal year. Greater China organic sales grew 8.0%, and the company returned $2.6 billion in dividends and $1.3 billion through share repurchases in the quarter, with about $5 billion in buybacks planned for the full year.
- Procter & Gamble Earnings : Accelerating Sales Growth Evidences Prudence of Strategic Course
Morningstar says P&G's first-quarter organic sales rose 4.0%, with volume up 2.4% and pricing and mix adding 1.6%, but cost savings did not fully offset inflation, cutting adjusted gross margin 150 basis points to 49.8%. US sales grew 3% (versus a 1% decline in the fourth quarter) and China rose 8% (from 4%). Morningstar kept its $155 fair value estimate and wide-moat rating, and it views the roughly $4 billion Thorne HealthTech deal, under 1% of sales, as not signaling a push into consolidation, with cash returns still the priority. The firm expects more details on supply chain initiatives at P&G's Nov. 19 investor event. Shares rose more than 5% on Oct. 22.
- Procter & Gamble Jumps 6% as Earnings Beat Draws Defensive Buyers; Johnson & Johnson Rises 3%, Coca-Cola Ticks Up
Procter & Gamble shares rose 6% to $166.19 in morning trading after its Q1 FY2027 results beat expectations, with core EPS of $2 versus the $1.89 consensus and net sales of $23.28 billion against $22.82 billion expected. CFO Andre Schulten said the U.S. consumer is “remarkably resilient,” though lower-income shoppers are more cautious. The company kept its full-year outlook of 1% to 3% organic sales growth and core EPS of $6.89 to $7.11. Core gross margin fell 150 basis points year over year, and the company expects $1.4 billion in after-tax commodity cost pressure this fiscal year. Johnson & Johnson rose 3% and Coca-Cola 2% as defensive stocks drew buyers, while the SPDR S&P 500 ETF Trust fell 1%.
- Procter & Gamble earnings beat as sales rise 4%, boosted by laundry and home products
P&G reported fiscal first-quarter adjusted earnings of $2.00 per share and revenue of $23.3 billion, both ahead of analyst expectations of $1.88 and $22.8 billion according to an LSEG survey. Net sales rose 4% and volume grew 2.4%, led by the fabric and home care segment, which includes Tide and Febreze, with volume up 4.3%. The health care business was the weakest, with volume down 2.9%, while grooming volume fell 0.4%. P&G reiterated its fiscal 2027 core EPS forecast of $6.89 to $7.11 but raised its all-in sales growth outlook to 2% to 4% from 1% to 3%, reflecting the Thorne acquisition, which closed on Oct. 1. Shares rose more than 2% in premarket trading.
- Why I Just Invested in This Dividend King -- Even Though a Smaller Rival Has Grown Faster.
The author bought Procter & Gamble (PG) for defensive stability, citing its 70 straight years of dividend increases and a market trading at a historically rich valuation. He weighed Church & Dwight (CHD), whose 4%+ annual organic revenue growth and 8%+ adjusted EPS growth over the past decade produced roughly 9% annualized total returns, but noted it trades at 26 times forward earnings with a yield of about 1.2%. P&G, by contrast, trades below 22 times forward earnings with a yield near 3%. The author estimates P&G could deliver about 8% annualized returns if earnings grow 5% per year with no valuation change, and 9–10% if its valuation recovers. He concludes P&G offers better long-term total return potential without needing fast growth.
- 2 Dividend Stocks to Buy and Hold Forever
Procter & Gamble has raised its dividend annually for 70 consecutive years, and in fiscal 2026 it generated about $87 billion in net sales (up 3%), $16.1 billion in net earnings and $19.6 billion in operating cash flow. The company returned more than $15 billion to shareholders, including $10.2 billion in dividends and $5 billion in buybacks, though organic sales grew only 1%. Stryker, a medical technology maker of products such as artificial hips and knees and the Mako robotic surgery platform, reported Q2 2026 revenue of $6.6 billion (up 9.4%) and adjusted EPS up 17.9% to $3.69. The article argues that an aging population should support demand for Stryker's products, with Americans aged 65 and older projected to reach about 82 million by 2050. It concludes that P&G offers stability and dependable income, while Stryker offers exposure to a growing healthcare market.
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