Procter & Gamble Reports Q1 FY 2027 Results: Organic Sales Up 4.0%

The Procter & Gamble Company reported financial results for the first quarter of fiscal year 2027, which ended on September 30, 2026. The company announced that organic sales grew by 4.0% compared to the prior year period. This growth was driven by a 2.4% increase in organic volume, a 1.1% contribution from mix, and a 0.4% increase in pricing.

On a currency-neutral basis, core earnings per share (EPS) were reported at $1.99, which was in line with the prior year. Core EPS for the quarter was $2.00, representing a 1% increase compared to the prior year. The company reported a free cash flow productivity of 93% for the quarter.

Performance was reported across the company's five segments. The Beauty segment saw organic sales growth of 5.4%, while the Health Care segment reported organic sales growth of 4.8%. The Baby, Feminine and Family Care segment grew organic sales by 3.0%, and the Fabric & Home Care segment grew organic sales by 2.7%. The Grooming segment reported organic sales growth of 1.6%.

Regarding share performance, 29 of the company's top 50 category and country combinations held or grew value share through August 2026. The Global Hair Care value share was in line with the previous year, while Global Personal Care value share decreased by 0.4 points and Global Skin Care value share decreased by 0.6 points.

The company provided updated guidance for fiscal year 2027. It expects organic sales growth to be between 1% and 3%. The company anticipates a net sales growth range of 2% to 4%. For core EPS, the company expects growth of 0% to 3%, with an all-in EPS growth range of 1% to 5%. The company projects a core effective tax rate of 20% to 21% and free cash flow productivity of 85% to 90%.

The company also outlined specific headwinds included in its guidance, including $1.4 billion in after-tax costs related to higher energy, transportation, and raw materials, $50 million in after-tax foreign exchange headwinds, $300 million in after-tax higher net interest expense, and $150 million in after-tax lower non-operating income.