Procter & Gamble revenue misses estimates as volume stays unchanged

Procter & Gamble reported quarterly earnings per share that topped Wall Street's estimates, but its revenue fell short of expectations. For the fiscal fourth quarter, P&G's beauty division was the top performer, posting 3% volume growth. P&G also announced that CEO Shailesh Jejurikar will become chair of the board, effective Aug. 1.

Procter & Gamble on Wednesday reported mixed quarterly results, as underwhelming demand for its products resulted in weaker-than-expected sales. Shares of the company fell more than 3% in premarket trading.

Here's what Procter & Gamble reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $1.43 adjusted vs. $1.41 expected

Revenue: $21.2 billion vs. $21.38 billion expected

P&G reported fiscal fourth-quarter net income attributable to the company of $3.04 billion, or $1.26 per share, down from $3.62 billion, or $1.48 per share, a year earlier. Excluding restructuring costs, transaction gains and other items, the company earned $1.43 per share. Net sales rose 2% to $21.2 billion.

The company's organic revenue, which excludes acquisitions, divestitures and currency fluctuations, was unchanged for the quarter, thanks to flat volume across P&G's portfolio.

During P&G's full fiscal year 2026, the company has reported volume growth in just one quarter. Like many consumer companies, it has seen demand for its products weaken as shoppers have grown more value conscious, substituting cheaper private label versions instead or stretching their shampoos and laundry detergents further.

For the fiscal fourth quarter, P&G's beauty division was the top performer, posting 3% volume growth. The segment includes Pantene shampoo and Olay and SK-II skincare products. Fabric and home care was the only other reporting segment to see volume growth. The division, which includes Tide detergent and Swiffer, reported that its volume rose 1% in the quarter. P&G's baby, feminine and family care division as well as its grooming business both reported that volume fell 1%. Health care was the worst performer for P&G this quarter. The division, which houses Oral-B and Vicks, saw its volume shrink 3%, fueled by declining sales of its oral care products.

Looking ahead to the next fiscal year, the company is not projecting a significant upswing in demand for its products. For fiscal 2027, P&G expects core earnings per share in a range of $6.89 to $7.11. The company is also projecting all-in sales growth in the range of 1% to 3% compared with the prior year. Wall Street was anticipating earnings per share of $7.04 and revenue growth of 2.7% for fiscal 2027.

P&G is currently estimating a $1 billion headwind after taxes from higher costs for raw materials, energy and transportation. Combined with its projections for a higher net interest expense, lower non-operating income and unfavorable exchange rates, P&G anticipates an 8% — or 56 cent — drag on its earnings per share for fiscal 2027.

P&G also announced Wednesday that CEO Shailesh Jejurikar will become chair of the board, effective Aug. 1, in addition to his current role. He replaces former chief executive Jon Moeller.