Procter & Gamble reported mixed results for Q2 FY2026, with net sales increasing slightly but organic sales remaining flat due to offsetting price increases and volume declines. The company maintained its full-year guidance, citing a challenging consumer and geopolitical environment, while expressing confidence in delivering stronger second-half results.
Net sales increased 1% to $22.2 billion.
positiveMaintained fiscal year guidance for organic sales growth (in-line to up 4%), core EPS growth (in-line to up 4%), and adjusted free cash flow productivity (85% to 90%).
positiveAdjusted free cash flow productivity was strong at 88%.
positiveReturned $4.8 billion to shareholders via dividends ($2.5B) and share repurchases ($2.3B).
positiveOrganic sales were unchanged, as a 1% increase in pricing was offset by a 1% decline in unit volume.
attentionDiluted EPS decreased 5% to $1.78, primarily due to incremental restructuring charges.
negativeReported operating margin decreased 200 basis points to 24.2%, and core operating margin decreased 70 basis points.
negativeUnit volume declined 1% for the total company, indicating potential consumer demand weakness.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Fabric & Home Care | $7686000.0B | — | — | 34.9% |
Baby, Feminine & Family Care | $5123000.0B | — | — | 23.2% |
Beauty | $4039000.0B | — | — | 18.3% |
Health Care | $3406000.0B | — | — | 15.4% |
Grooming | $1794000.0B | — | — | 8.1% |
| Total Revenue | $22048000.0B | — | — | 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.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, core EPS growth and adjusted free cash flow productivity in a challenging consumer and geopolitical environment.
We have confidence in our plans to deliver stronger results in the second-half of the fiscal year.
We remain committed to our integrated growth strategy and are excited by the opportunity ahead to reinvent P&G and create the CPG company of the future, delivering long-term balanced top- and bottom-line growth and value creation.
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