Procter & Gamble Reports Strong Fiscal Year 2026 First Quarter Results with 3% Sales Growth and 21% EPS Increase

Procter & Gamble (P&G) announced its fiscal year 2026 first quarter results, reporting net sales of $22.4 billion, a 3% increase compared to the prior year. Organic sales rose 2%, driven equally by pricing and favorable mix, while diluted net earnings per share surged 21% to $1.95. Core earnings per share increased 3% to $1.99. Despite a 70 basis point decline in gross margin primarily due to unfavorable mix and higher costs from tariffs and commodities, P&G achieved 140 basis points of productivity savings and strong cost control, reducing selling, general, and administrative expenses as a percentage of sales. Operating cash flow was $5.4 billion, with net earnings at $4.8 billion. P&G maintained its full-year guidance for sales growth of 1-5% and earnings per share growth of 3-9%, anticipating headwinds from commodity costs, tariffs, and interest expenses offset by favorable foreign exchange impacts.