FY2526 Q4 AMJ 8-K EXHIBIT 99.1
PG to acquire platform ($1B)
EPS beat consensus by 0.02
expects to incur non-core restructuring costs of approximately $1 to $1.6 billion before-tax over a two-year period. The Compan
#1prepared remarks
EX-99.1 2 fy2526q4amj8-kexhibit991.htm FY2526 Q4 AMJ 8-K EXHIBIT 99.1
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| | | | | | News Release | The Procter & Gamble Company | | One P&G Plaza | | Cincinnati, OH 45202 |
#3prepared remarks
| | | P&G ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS | Q4 ’26: Net Sales +2%; Organic Sales 0%; Diluted EPS -15%; Core EPS -3% | FY ’26: Net Sales +3%; Organic Sales +1%; Diluted EPS +2%; Core EPS +1% |
#4prepared remarks
CINCINNATI, July 29, 2026 - The Procter & Gamble Company (NYSE:PG) reported fourth quarter and fiscal year 2026 results.
#5Shailesh Jejurikar · President and Chief Executive Officer
Fiscal 2026 was a year of foundation building while continuing to grow sales and profit and return high levels of cash to shareowners despite a very challenging geopolitical and economic environment,
#6prepared remarks
* Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures.
#7prepared remarks
The Company reported fiscal year 2026 net sales of $87.0 billion, an increase of three percent versus the prior year, comprised of a two percent increase due to favorable foreign exchange impacts and a one percent increase from higher pricing. Volume and mix were unchanged versus prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased one percent from higher pricing.
#8prepared remarks
Diluted net earnings per share were $6.62, an increase of two percent versus prior year, as the increase in net sales and a reduction in shares outstanding were partially offset by a reduction in gross margin and an increase in selling, general and administrative costs (SG&A). Core net earnings per share increased by one percent to $6.89. Currency-neutral core EPS was unchanged versus the prior year core EPS.
#9prepared remarks
The Company generated operating cash flow of $19.6 billion and net earnings of $16.1 billion for the fiscal year. Adjusted free cash flow productivity was 100%, which is calculated as operating cash flow less capital spending and certain other items, as a percentage of net earnings excluding the gain from the dissolution of the Glad joint venture business in fiscal year 2026.
#10prepared remarks
The Company returned over $15 billion of value to shareholders in fiscal 2026, comprised of $10.2 billion in dividend payments and $5.0 billion of share repurchases. With the dividend increase in April 2026, this marks the 70th consecutive year that P&G has increased its dividend and the 136th consecutive year that P&G has paid a dividend since its incorporation in 1890.
#11prepared remarks
April-June Quarter Results The Company reported fiscal year 2026 fourth quarter net sales of $21.2 billion, an increase of two percent versus the prior year. Foreign exchange and rounding each contributed one percent. Volume, pricing and mix had a neutral impact on sales growth for the quarter. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, were unchanged versus the prior year. Diluted net earnings per share were $1.26, a decrease of fifteen percent versus the prior year as an increase in net sales was more than offset by an increase in selling, general and administrative costs (SG&A) and a decrease in gross margin. Core net earnings per share decreased three percent to $1.43. Currency-neutral core EPS decreased five percent versus the prior year core EPS.
#12prepared remarks
Operating cash flow was $5.1 billion and net earnings were $3.1 billion, with adjusted free cash flow productivity of 133%. April-June Quarter Business Discussion | | | | | | | | | | | | | | | | | | | | | | | | | | | April - June 2026 | Volume | Foreign Exchange | Price | Mix | Other (2) | Net Sales | Organic Volume | Organic Sales | Net Sales Drivers (1) | Beauty | 3% | 2% | 1% | —% | —% | 6% | 3% | 4% | Grooming | (1)% | 1% | 1% | (1)% | 1% | 1% | (1)% | —% | Health Care | (3)% | 2% | 2% | 1% | (1)% | 1% | (3)% | (1)% | Fabric & Home Care | 1% | —% | —% | —% | —% | 1% | 1% | —% | Baby, Feminine & Family Care | (1)% | 1% | (1)% | —% | —% | (1)% | (1)% | (2)% | Total P&G | —% | 1% | —% | —% | 1% | 2% | —% | —% |
#13prepared remarks
(1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied. (2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
#14prepared remarks
• Beauty segment organic sales increased four percent versus year ago. Hair Care organic sales increased mid-single digits driven by volume growth in Asia Pacific and Europe, innovation-driven pricing in Latin America and Asia Pacific and favorable geographic mix. Personal Care organic sales increased mid-single digits driven by volume growth across all regions and higher pricing, primarily in North America, partially offset by unfavorable geographic mix. Skin Care organic sales were unchanged as favorable product mix, led by growth of the super-premium SK-II brand, was offset by a volume decline in Greater China. • Grooming segment organic sales were unchanged versus year ago as the impacts of innovation-based pricing were offset by the impacts of a volume decline, primarily in IMEA, and unfavorable product mix. • Health Care segment organic sales decreased one percent versus year ago. Oral Care organic sales decreased mid-single digits driven by a volume decline, led by North America and Greater China. Personal Health Care organic sales increased mid-single digits driven by higher pricing and a volume increase, primarily in North America. • Fabric and Home Care segment organi…
#15prepared remarks
Reported gross margin for the quarter decreased 60 basis points versus year ago. Core gross margin for the quarter and currency-neutral Core gross margin were unchanged versus year ago. Core gross margin was unchanged as 160 basis points of productivity savings, 40 basis points of net tariff benefit from recognized recoveries and higher costs, 20 basis points of other miscellaneous items and rounding and 10 basis points of pricing benefit were offset by 120 basis points of unfavorable product mix, 70 basis points of product/package reinvestments and 40 basis points of higher commodity costs.
#16prepared remarks
Reported selling, general and administrative expense (SG&A) as a percentage of sales increased 160 basis points versus the prior year. Core and currency-neutral SG&A as a percentage of sales each increased 130 basis points versus year ago. Core SG&A increased by 410 basis points of reinvestments, primarily in marketing, and 20 basis points of other miscellaneous items and rounding, partially offset by 300 basis points of productivity savings, which includes reductions across marketing and overhead costs.
#17prepared remarks
Reported operating margin for the quarter decreased 220 basis points versus the prior year. Excluding 90 basis points of non-core restructuring charges, core operating margin and currency-neutral core operating margin for the quarter each decreased 130 basis points versus the prior year. Core operating margin included gross productivity savings of 460 basis points.
#18prepared remarks
Focused Portfolio, Supply Chain and Productivity Plan In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and invest in growth. The Company expects to incur non-core restructuring costs of approximately $1 to $1.6 billion before-tax over a two-year period. The Company incurred over half of the costs under this plan in fiscal 2026, with the remainder expected in fiscal 2027.
#19prepared remarks
Fiscal Year 2027 Guidance P&G expects fiscal year 2027 all-in sales growth in the range of one to three percent versus the prior year. The Company also expects organic sales growth in the range of one to three percent versus prior year. Included in this organic sales growth guidance is a headwind of 30 to 50 basis points from brand, product form and go-to-market discontinuations.
#20prepared remarks
P&G expects fiscal year 2027 diluted net earnings per share growth in the range of one to five percent versus fiscal 2026 GAAP EPS of $6.62. GAAP EPS includes expected non-core restructuring charges of $0.13 to $0.17 per share. P&G expects its fiscal 2027 core earnings per share growth in the range of in-line to three percent versus fiscal 2026 core EPS of $6.89. This outlook equates to a range of $6.89 to $7.11 per share, with a mid-point estimate of $7.00, or an increase of one and a half percent.
#21prepared remarks
The Company estimates a headwind of approximately $1 billion after-tax driven by higher raw materials, energy and transportation costs, $150 million after-tax from higher net interest expense, $150 million after-tax from lower non-operating income and $50 million after-tax from unfavorable foreign exchange rates. Combined, these impacts equate to a headwind of $0.56 per share for fiscal 2027, or an eight percent drag on core EPS growth.
#22prepared remarks
The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.
#23prepared remarks
P&G expects its core effective tax rate to be approximately 20% in fiscal 2027, in-line with fiscal 2026.
#24prepared remarks
Capital spending is estimated to be in the range of four and a half to five and a half percent of fiscal 2027 net sales.
#25prepared remarks
P&G expects adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal year 2027.
#26within the meaning of
forward-looking statements
#27prepared remarks
Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, pricing controls or tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of …
#28prepared remarks
For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.
#29prepared remarks
About Procter & Gamble P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news. # # # P&G Media Contacts : Wendy Kennedy, 513.780.7212 Holly Stutz Smith, 513.659.9949 P&G Investor Relations Contact : Keri Cowan, 513.983.2414
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES (Amounts in Millions Except Per Share Amounts) Consolidated Earnings Information | | Three Months Ended June 30 | | Fiscal Year Ended June 30 | | 2026 | | 2025 | | % Chg | | 2026 | | 2025 | | % Chg | NET SALES | $ | 21,203 | | | $ | 20,889 | | | 2% | | $ | 87,032 | | | $ | 84,284 | | | 3% | Cost of products sold | 10,920 | | | 10,631 | | | 3% | | 43,362 | | | 41,164 | | | 5% | GROSS PROFIT | 10,283 | | | 10,258 | | | —% | | 43,669 | | | 43,120 | | | 1% | Selling, general and administrative expense | 6,334 | | | 5,903 | | | 7% | | 23,922 | | | 22,669 | | | 6% | | | | | | | | | | | | | OPERATING INCOME | 3,949 | | | 4,355 | | | (9)% | | 19,748 | | | 20,451 | | | (3)% | Interest expense | (236) | | | (212) | | | 11% | | (877) | | | (907) | | | (3)% | Interest income | 107 | | | 104 | | | 3% | | 430 | | | 469 | | | (8)% | Other non-operating income/(expense), net | 112 | | | 274 | | | (59)% | | 1,076 | | | 154 | | | 599% | EARNINGS BEFORE INCOME TAXES | 3,933 | | | 4,521 | | | (13)% | | 20,377 | | | 20,167 | | | 1% | Income taxes | 852 | | | 895 | | | …