Core Insights - Procter & Gamble (P&G) has seen its stock increase over 10,000% since the 1980s, but it has struggled to attract market attention recently [1] - The company's recent quarterly earnings are not expected to significantly change its market status, with geopolitical factors influencing investor behavior [2] Business Backdrop - Over the past decade, P&G has focused on a tighter portfolio of essential brands, moving away from food and smaller brands, which has allowed it to outperform competitors like Unilever [4] - Growth is now more reliant on pricing, product mix, and cost control rather than volume gains from innovation, making the company vulnerable in a tightening consumer environment [5] Quarterly Performance - For the quarter ending December 31, P&G reported $22.2 billion in sales, a 1% increase from the previous year, but organic sales remained flat due to a 1% drop in volume [6] - The decline in volume affected various segments, with Baby, Feminine, and Family Care seeing a 4% drop in organic sales, while Health Care and Beauty performed better due to premium products [7] Margin Pressures - Tariffs have significantly impacted P&G's margins, with an expected $400 million in after-tax tariff costs for fiscal 2026, leading to a 60 basis point decline in margins [8]

Procter & Gamble reported mixed quarterly results on Thursday, as demand weakened across several everyday categories and consumers continued to stay cautious with household spending. The company beat ... ...

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 3%, with volume down one point and pricing up one point, resulting in flat mix for the quarter [4][6] - Core earnings per share (EPS) were $1.88, consistent with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points [6][7] - Adjusted free cash flow productivity was 88%, with $4.8 billion returned to shareholders, including $2.5 billion in dividends and $2.3 billion in share repurchases [7] Business Line Data and Key Metrics Changes - Seven out of ten product categories either held or grew organic sales, with hair care growing mid-single digits and skin and personal care, personal health care, home care, and oral care each up low single digits [4][5] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [5] - Organic sales excluding family care were up 1% for the quarter [5] Market Data and Key Metrics Changes - Organic sales in North America were down 2%, with volume down three points, while European focus market organic sales were up 1% [5][6] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [5] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [6] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, particularly in Greater China and Mexico [8][10] - A commitment to an integrated growth strategy is emphasized, aiming to deliver significant growth and value creation [11][12] - The company is undergoing a longer-term reinvention to adapt to changing consumer preferences and market dynamics, leveraging data and technology for competitive advantage [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the fiscal year due to softer consumer markets and aggressive competition but expects stronger results in the second half [22] - The company maintains its fiscal year 2026 guidance for organic sales growth in line to plus 4%, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management is confident in the near-term performance improvements driven by ongoing innovations and execution changes [20][34] Other Important Information - The company is focused on leveraging insights and capabilities to drive growth in high-potential segments, particularly in e-commerce and premium product offerings [67][68] - A restructuring program is in place to enhance operational efficiency and productivity, with expectations for growth without significant additional investments [53][54] Q&A Session Questions and Answers Question: Confidence in near-term acceleration and fundamental improvement - Management highlighted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration, with expectations for improved U.S. results as base period headwinds diminish [30][32] Question: Excitement about the longer-term "reinvention" of P&G - Management expressed enthusiasm about leveraging shifts in the media and retail landscape, along with the company's strengths in consumer understanding and innovation capabilities [36][37] Question: Category segment improvements and timeline for operational enhancements - Management indicated that improvements are expected across various categories, with a timeline of 12 to 18 months for full integration of operational enhancements [46][47] Question: Investment levels and balance between restructuring and growth - Management clarified that significant investments have already been made in technology and infrastructure, with future capital expenditures focused on capacity building rather than major new investments [51][53] Question: Priorities for driving better execution and organic sales growth in the U.S. - Management emphasized the need to adjust brand building plans to reflect changes in media consumption, innovate with a focus on core products, and enhance consumer value across categories [60][61]

The Procter & Gamble Company (NYSE:PG) Q2 2026 Earnings call January 22, 2026 08:30 AM ET Company ParticipantsAndre Schulten - CFOShailesh Jejurikar - CEOConference Call ParticipantsChris Carey - AnalystDara Mohsenian - AnalystKaumil Gajrawala - AnalystEdward Lewis - AnalystSteve Powers - AnalystOlivia Tong - AnalystRobert Moskow - AnalystRobert Ottenstein - AnalystBonnie Herzog - AnalystPeter Galbo - AnalystLauren Lieberman - AnalystAndrea Teixeira - AnalystFilippo Falorni - AnalystKevin Grundy - AnalystMi ...

Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 3%, with volume down one point and pricing up one point for the quarter [3][4] - Core earnings per share (EPS) were $1.88, in line with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points compared to the previous year [5][6] - Adjusted free cash flow productivity was 88%, with $4.8 billion returned to shareholders, including $2.5 billion in dividends and $2.3 billion in share repurchases [6] Business Line Data and Key Metrics Changes - Seven out of ten product categories held or grew organic sales, with hair care growing mid-single digits and skin and personal care, personal health care, home care, and oral care each up low single digits [3][4] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [4] - Organic sales excluding family care were up 1% for the quarter [4] Market Data and Key Metrics Changes - Organic sales in North America were down 2%, with volume down three points, while European focus market organic sales were up 1% [4] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [4] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [5] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, with a commitment to integrated growth strategies [11][12] - The strategy includes a long-term reinvention of P&G to adapt to changing consumer preferences and market dynamics, emphasizing the importance of brand building and consumer engagement [12][15] - The company aims to leverage superior data, technology, and capabilities to create competitive advantages and drive market growth [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stronger growth in the second half of the fiscal year, despite a challenging start due to softer consumer markets and aggressive competition [22][25] - The company anticipates organic sales growth of in line to plus 4% for fiscal 2026, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management highlighted the need for continuous adaptation to the evolving retail landscape and consumer behavior, emphasizing the importance of innovation and execution quality [12][13] Other Important Information - The company is undergoing a restructuring program aimed at improving operational efficiency and focusing on higher growth segments [22][41] - There is an expectation of modestly higher interest expenses and a core effective tax rate in the range of 20%-21% for fiscal 2026 [23] Q&A Session Summary Question: What gives confidence in near-term acceleration? - Management noted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration [27][28] Question: What excites about the longer-term "reinvention" of P&G? - Management highlighted growth opportunities in changing media and retail landscapes, leveraging unique strengths and capabilities [32][33] Question: What are the most important priorities for driving better execution in the U.S.? - Key priorities include adjusting to the new media landscape, focusing on stronger core products, and enhancing consumer value across categories [46][49]

分组1 - Procter & Gamble (P&G) reported quarterly earnings of $1.88 per share, slightly exceeding the Zacks Consensus Estimate of $1.87 per share, with an earnings surprise of +0.33% [1] - The company posted revenues of $22.21 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.36%, but an increase from $21.88 billion a year ago [2] - P&G has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] 分组2 - The stock has gained approximately 1.9% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $20.55 billion, and for the current fiscal year, it is $6.97 on revenues of $86.72 billion [7] 分组3 - The Zacks Industry Rank indicates that the Consumer Products - Staples sector is currently in the bottom 24% of over 250 Zacks industries, suggesting potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for P&G was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Group 1 - Global stock markets experienced a slight increase following Trump's withdrawal of trade threats against Europe, alleviating concerns about a trade war [2][28] - As of the report, Dow futures rose by 0.35%, S&P 500 futures increased by 0.56%, and Nasdaq futures climbed by 0.83% [3][29] - The European Stoxx 600 index rose by 1.1%, with the automotive sector leading gains, particularly Volkswagen which surged by 5.2% [3][29] Group 2 - Gold prices remained stable near record highs, indicating that risk appetite in the stock market has not fully translated into a significant drop in safe-haven demand [4][30] - The market interpreted Trump's statements as a sign of easing geopolitical and trade tensions, leading to a renewed preference for stock assets [4][30] Group 3 - Semiconductor stocks strengthened, with Nvidia's CEO comments at Davos boosting enthusiasm for AI investments, leading to a 17% surge in Disco Corp. and a 2.3% increase in Samsung Electronics [6][31][32] - The Korean benchmark index, a tech stock indicator, reached a historical high [32] Group 4 - The VIX volatility index, known as the "Wall Street fear gauge," saw a significant decline, indicating a reduction in market panic [34] - Japanese government bonds rebounded for the second consecutive trading day, while Bitcoin traded around $90,000 [33] Group 5 - Focused stocks included Western Digital, which rose over 4%, Micron Technology up over 3%, and Seagate Technology increasing by 2.5% [40] - Moderna continued to rise by 5.6% following positive data on its mRNA cancer vaccine [41] - GE Aerospace saw a pre-market increase of over 5%, with adjusted earnings per share expected to be between $7.10 and $7.40 for 2026, exceeding market expectations [42]

EARNINGS RELEASE Q2 FY 2026 Results January 22, 2026 BUSINESS RESULTS Q2 FY 2026 Q2 FY 2026 RESULTS Second quarter results heavily impacted by base period dynamics and underlying market trends. Organic sales were in-line with prior year. Pricing +1% offset by volume -1%. 7 of 10 product categories grew or held organic sales for the quarter. Global aggregate value share is down 20 basis points, with 25 of our top 50 category/country combinations holding or growing share for the quarter. Core earnings per sha ...

Core Insights - Proctor & Gamble (P&G) reported mixed earnings results, with second fiscal quarter sales missing estimates in key categories due to consumers opting for cheaper private label options, leading to a 1.5% decline in shares during pre-market trading [1] - Despite the sales miss, P&G beat earnings estimates and reaffirmed its full-year outlook, indicating confidence in future growth [1][7] Sales Performance - Net sales reached $22.2 billion, reflecting a 1% increase from the prior year but falling short of the $22.32 billion estimate [7] - Organic sales growth remained unchanged, compared to an estimated growth of +0.54% [7] - The beauty segment showed organic revenue growth of +4%, surpassing the +2.87% estimate, while the grooming segment reported no growth, missing the +2.42% estimate [7] - The healthcare segment achieved organic revenue growth of +3%, exceeding the +1.73% estimate, while the fabric and home care segment also reported no growth, below the +1.2% estimate [7] - The baby, feminine, and family care segment experienced a decline of -4%, worse than the -3.2% estimate [7] Margin and Earnings - Gross margin was reported at 51.2%, lower than the estimated 52.2% [7] - Adjusted earnings per share (EPS) remained unchanged at $1.88, slightly above the $1.86 estimate [7] - The full-year organic sales growth outlook was reiterated, previously set between 0% to +4%, with an estimate of +1.7% [7] - The full-year earnings per share guidance was also reiterated, ranging from $6.83 to $7.09, compared to the estimate of $6.97 [7] Market Context - Analysts have anticipated softer results for P&G, with the stock down approximately 6% over the past six months [3] - The current economic environment is characterized as a "K-shaped economy," where consumers are trading down in essential categories while trading up in discretionary beauty products [3]