Procter & Gamble there was reported quarterly earnings and revenue that beat analysts’ expectations, backed by the growing demand for laundry detergent and home care products.
The company’s shares rose more than 5% in morning trade.
Here’s what the company reported for the three-month period ended September 30 compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $2.00 adjusted vs $1.88 expected
- result: $23.3 billion vs $22.8 billion expected
P&G reported fiscal first-quarter net income attributable to the company of $4.73 billion, or $1.97 per share, down from $4.75 billion, or $1.95 per share, a year ago.
Excluding restructuring charges and other items, the company earned $2 per share.
net sales increased 4% to $23.3 billion.
P&G reported volume growth of 2.4%, a strong start to the new fiscal year. Like many consumer companies, P&G is seeing demand for its products shrink as shoppers become more value-conscious.
Executives previously said consumers are now using every last drop of shampoo or laundry detergent, and value packs are becoming more popular. In fiscal 2026, P&G reports only a quarter of its volume growth.
P&G is still seeing signs of a bifurcated economy, CFO Andre Schulten said on CNBC’s “Squawk Box” on Friday. High-income consumers are willing to trade up to new products, even $30 shampoo, while low-income consumers are trying to make brands like Tide and Pampers work for tight budgets.
Companies have tried to address both ends of the spectrum with promotional pricing, new pack sizes and product innovations that can offer higher prices. New premium products like Pampers Amore and Pantene’s Abundant & Strong haircare line have helped P&G grow market share in the category, executives said.
Adding to P&G’s challenges, the competitive environment is “intense,” Schulten said on the company’s monthly earnings call.
“We got the balance between pricing and product improvement, package improvement, claims, communication and retail execution right,” Schulten told analysts. “But it is also a very fragile balance that we want to make sure that we do not compromise on it, so that we will price, and we will price with innovation, not jeopardizing the top-line momentum.”
P&G’s best-performing divisions are fabric and home care, which includes brands like Tide and Febreze. The segment’s volume grew 4.3% in the quarter, helped by stronger demand for laundry detergents and fabric conditioners.
The company’s baby, women and family care and beauty business segments reported volume growth of more than 2%.
P&G’s grooming division saw volume shrink 0.4% in the quarter. The segment includes Gillette and Venus razors.
The company’s healthcare business was the laggard of its portfolio this quarter. That volume fell 2.9% as demand for oral health products, such as Crest toothpaste, and personal care items, such as Pepto-Bismol, shrank.
The company expects continued “geopolitical and economic challenges,” but P&G is on track to meet its guidance, CEO Shailesh Jejurikar said in a statement.
For fiscal 2027, P&G stated its forecast for core earnings per share in the range of $6.89 to $7.11. The company now projects overall sales growth in the range of 2% to 4% compared to the previous year, up from its previous outlook of 1% to 3%. The change reflects the acquisition of Thorne brand supplements, which closed on October 1.