Procter & Gamble Tops Q1 Estimates With $23.28B Sales, $2.00 Core EPS

Procter & Gamble posted fiscal first-quarter sales of $23.276 billion and core earnings per share of $2.00, topping the higher of two separate published estimates as it maintained key parts of its annual outlook.

The quarter covered the three months ended Sept. 30. Two separate published estimates put sales at $22.80 billion and $22.82 billion, with core EPS estimates of $1.88 and $1.89, respectively. P&G's actual results exceeded the higher estimate in each pair. Net sales were up 4% from a year earlier, and core EPS increased 1%.

Organic sales also grew 4%. Volume rose 2.4%, pricing contributed 0.4% and favorable product mix added 1.1%. Organic sales exclude the effects of foreign exchange and acquisitions or divestitures, while net sales reflect the company's reported revenue.

Diluted earnings per share under generally accepted accounting principles (GAAP) were $1.97, up 1% from the year-earlier quarter. P&G defines core EPS as diluted EPS adjusted for certain items, including incremental restructuring costs, making it a non-GAAP measure. The company reported both figures for the quarter.

For fiscal 2027, P&G maintained its forecast for organic sales growth of 1% to 3% and core EPS of $6.89 to $7.11. It set an all-in sales growth outlook of 2% to 4%, reflecting its Thorne acquisition, which took effect Oct. 1. The all-in range includes the acquisition's effect, while the organic sales outlook excludes acquisitions and divestitures.

P&G expects commodity costs to reduce fiscal 2027 results by about $1.4 billion after tax. The expected pressure reflects costs for raw materials, energy and transportation. The forecast covers the full fiscal year and is separate from the quarter's reported sales and earnings.

The year-earlier first quarter recorded 3% net sales growth and 2% organic sales growth, the prior-year comparison for the quarter.

“This strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth and free cash flow productivity for the fiscal year,” P&G Chairman and CEO Shailesh Jejurikar said.