Procter & Gamble guides FY 2027 growth to 1–3% amid cost headwinds
The consumer goods company forecasts earnings growth of 0–3% as higher energy, transportation and raw material costs will reduce earnings by $1 billion after-tax.
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Procter & Gamble forecasts FY 2027 organic sales growth of 1% to 3%, slower than the prior year, with brand, product form and go-to-market discontinuations accounting for 30 to 50 basis points, or 0.3 to 0.5 percentage points, of headwind.
FY 2027 core earnings per share are projected to grow 0% to 3%, constrained by $1 billion after-tax impact from higher energy, transportation, and raw material costs. FY 2027 core effective tax rate is expected to be approximately 20%, unchanged from FY 2026. Lower non-operating income will subtract $150 million after-tax, while higher net interest expense will subtract another $150 million after-tax. Foreign exchange will create a $50 million after-tax headwind.
FY 2026 results show pricing driven growth amid volume pressures
Procter & Gamble reported FY 2026 organic sales growth of 1%, with pricing contributing 1% and volume flat. Core earnings per share were $6.89, up 1% from the prior year. Nine of 10 product categories held or grew organic sales, and all 7 regions held or grew organic sales.
By quarter, performance deteriorated through the year. Q3 achieved 3% organic sales growth—with volume contributing 2% and pricing 1%—but Q4 organic sales were flat. Core EPS rose 3% in Q3 but fell 3% in Q4.
Segment results diverge across the five units
Beauty segment delivered organic sales growth across all quarters, expanding 4% in Q2 and Q3 and 4% in Q4, with volume growth ranging from 3% to 5%. Health Care grew 3% in Q2, 2% in Q3 but declined 1% in Q4, pressured by volume declines. Baby, Feminine and Family Care declined 4% in Q2 and 2% in Q4, but rebounded 3% in Q3. Fabric & Home Care held flat in Q2 and Q4 while growing 3% in Q3. Grooming held flat in Q2 and Q4 but grew 1% in Q3.
Capital returns and portfolio moves
Procter & Gamble repurchased $5.0 billion of shares in FY 2026 and paid $10.2 billion in dividends. FY 2027 plans include approximately $5 billion in direct share repurchases and dividends of more than $10 billion. Over the past 10 years, Procter & Gamble returned $155 billion to shareholders.
In January 2026, Clorox purchased Procter & Gamble's minority interest in the Glad joint venture for $476 million at fair market value, generating an after-tax gain of $261 million for Procter & Gamble when the joint venture dissolved.
Q1 FY 2027 forecast shows near-term pressure
Procter & Gamble forecasts Q1 FY 2027 earnings per share will decline 5% or more, signaling steeper near-term headwinds before the annual growth trajectory begins.