Procter & Gamble reported a solid acceleration in top-line results for Q3 FY2026, with broad-based growth across product categories and regions. The company is increasing investments to maintain momentum despite a challenging environment, while reaffirming its full-year guidance.
Net sales increased 7% to $21.2 billion, with organic sales up 3% driven by 2% volume and 1% pricing.
positiveDiluted EPS increased 6% to $1.63, driven by a gain from the dissolution of the Glad joint venture business.
positiveMaintained fiscal year sales and EPS growth guidance.
positiveThe dividend increase marks the 70th consecutive year of dividend increases and 136th consecutive year of dividend payments.
positiveReported gross margin decreased 150 basis points YoY to 49.5%, driven by unfavorable mix (180 bps) and reinvestments (100 bps).
attentionReported operating margin decreased 150 basis points YoY to 21.5%.
attentionCore EPS growth was 3%, while currency-neutral Core EPS was flat at $1.54, indicating FX headwinds.
attentionDespite maintaining guidance, the company expects fiscal 2026 EPS results to be toward the lower-end of the guidance range due to increased investments and headwinds.
attentionCommodity costs are expected to be a headwind of approximately $150 million after tax, and higher tariffs are estimated at $400 million after tax for fiscal 2026.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Beauty | N/A | — | — | — |
Grooming | N/A | — | — | — |
Health Care | N/A | — | — | — |
Fabric & Home Care | N/A | — | — | — |
Baby, Feminine & Family Care | N/A | — | — | — |
Corporate | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| organic_sales_growth | in line to 4% | FY26 | tight_range | Maintained |
| core_eps_growth | in line to 4% | FY26 | tight_range | Maintained |
| core_effective_tax_rate | 20-21% | FY26 | tight_range | New |
| adjusted_free_cash_flow_productivity | 85-90% | FY26 | tight_range | Maintained |
| dividends | $10 billion | FY26 | point | New |
| common_stock_repurchases | $5 billion | FY26 | point | New |
| cash_returned_to_share_owners | $15 billion | FY26 | point | New |
3% · earlier this month
$2.5 billion · quarter
over $600 million · quarter
$10 billion · fiscal 26 · funded by cash
$5 billion · fiscal 26 · funded by cash
$15 billion · fiscal 26 · funded by cash
increase · fiscal 26 · funded by cash flow
increase · fiscal 26 · funded by free cash flow
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Delivered a solid acceleration in top-line results in fiscal third quarter, with broad-based growth across product categories and regions.
Increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining guidance ranges for the fiscal year.
Continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy.
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