📅 Fiscal year ends Jun🎙️ Last earnings: Jan 22, 2026
Latest Quarter Insights
2026 Q2
Sentiment
4/10-1
▸How this score was built
Base5Base 5GAAP revenue YoY +1.49% → base 5. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0Consumer Staples, no sector rule applies. GAAP revenue 1.49% is consistent with reported organic sales in line with prior year. No distortion.+EPS-1EPS -1GAAP EPS YoY -5.32% vs revenue YoY 1.49%, spread -6.81pp — outside ±5pp band, triggering mandatory OI cross-check. Operating income cross-check: OI YoY -6.53%, OI spread -8.02pp — same direction, also outside -5pp threshold, confirms genuine operating compression from gross margin decline and reinvestment despite 270bps productivity. -1.+Guidance0Guidance 0Fiscal 2026 guidance ranges maintained unchanged across organic sales (in line to +4%), core EPS (in line to +4%), and free cash flow productivity. Commodity headwind eliminated but offset by reduced FX tailwind, with net EPS range held. Reaffirmation → 0.=Final4
How this score was built
Base5Base 5GAAP revenue YoY +1.49% → base 5. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript0Transcript 0Consumer Staples, no sector rule applies. GAAP revenue 1.49% is consistent with reported organic sales in line with prior year. No distortion.+
Macro Signals
↓Consumer Spending→Trade & Tariffs↑Inflation↓FX
Key Themes7
mixed📊 company
Softest Quarter Of Fiscal Year As Expected
Organic sales in line with prior year with volume down one point; Q2 was the softest quarter of the fiscal year due to base period port-strike and hurricane-related pantry loading, most heavily impacting baby, feminine, family, fabric and home care sectors in the US.
DemandInventory
negative📊 company
Family Care Down Approximately 10%
Family Care was down roughly 10% primarily due to the base period pantry-loading dynamics; organic sales excluding Family Care were up 1% for the quarter.
EPS -1GAAP EPS YoY -5.32% vs revenue YoY 1.49%, spread -6.81pp — outside ±5pp band, triggering mandatory OI cross-check. Operating income cross-check: OI YoY -6.53%, OI spread -8.02pp — same direction, also outside -5pp threshold, confirms genuine operating compression from gross margin decline and reinvestment despite 270bps productivity. -1.
+
Guidance0Guidance 0Fiscal 2026 guidance ranges maintained unchanged across organic sales (in line to +4%), core EPS (in line to +4%), and free cash flow productivity. Commodity headwind eliminated but offset by reduced FX tailwind, with net EPS range held. Reaffirmation → 0.
=
Final4
Broad-Based International Acceleration
Balance of company outside the US grew organic sales nearly 3%; Latin America up 8%, Europe enterprise up 6%, Europe focused up 1%, Greater China up 3%, AMEA enterprise up 2%, seven of ten regions grew.
Geographic Expansion
positive📊 company
Shailesh Jejurikar'S Reinvention Framework
New CEO's first earnings call introduced the reinvention of P&G: stronger core and bigger more innovation, integrated consumer-centric brand building, AI and data platform integration to build the CPG company of the future.
Capital AllocationInnovation & R&D
mixed📊 company
Fiscal 2026 Guidance Maintained
All guidance ranges held: organic sales in line to +4%, core EPS in line to +4% ($6.83 to $7.09), adjusted free cash flow productivity 85-90%, with roughly $15 billion returned to shareholders.
Guidance Reliability
negative📊 company
Margin Compression With Heavy Reinvestment
Core gross margin down 50 basis points and core operating margin down 70 basis points; 270 basis points of productivity improvement fully reinvested in innovation and demand creation.
MarginCost Pressure
mixed🌍 macro
Commodity Headwind Eliminated
Commodity costs now expected roughly in line with the prior year versus the previously guided after-tax headwind; tariff impact still forecast at approximately $500 million before tax.
Cost PressureTrade Tariffs
give us a sense of the sort of cost of this progress, I suppose? And kind of the balance between the restructuring