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Procter & Gamble Misses Fourth-Quarter Revenue Views, Says Higher Costs Could Hit Fiscal 2027 Earnings

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Procter & Gamble Misses Fourth-Quarter Revenue Views, Says Higher Costs Could Hit Fiscal 2027 Earnings

Procter & Gamble's (PG) fiscal fourth-quarter revenue fell short of market estimates on Wednesday, while the consumer goods giant said higher costs could weigh on its fiscal 2027 earnings.

Sales improved 2% year on year to $21.2 billion, but trailed Wall Street's $21.38 billion view. Volume and pricing were both flat in the June quarter, and so were organic sales on a yearly basis.

Adjusted earnings fell to $1.43 a share from $1.48 the year before, but topped the FactSet-polled consensus of $1.41.

The stock declined 2.9% in Wednesday trade.

For fiscal 2027, the maker of Crest toothpaste and Pampers anticipates adjusted EPS of $6.89 to $7.11, reflecting a range of flat to 3% growth from the previous year's $6.89 figure. The company forecasts a headwind of $0.56 per share on the bottom line due to factors including higher raw materials, energy and transportation costs. The Street is looking for non-GAAP EPS of $7.02.

"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," Chief Executive Shailesh Jejurikar said in a statement. "In fiscal 2027, we expect to deliver progress on each of these key measures despite continued volatility."

Sales are pegged to rise by 1% to 3% for the ongoing fiscal year, compared with a 3% increase recorded in the year just ended. The average analyst estimate is for $89.4 billion.

Deutsche Bank expected Procter & Gamble's guidance to reflect continued macro uncertainty, uneven global demand trends, geopolitical risk and commodity volatility.

"Even so, (Procter & Gamble) enters (fiscal 2027) with more company-specific self-help than it had entering (fiscal 2026), as market interventions, portfolio simplification, restructuring actions, and productivity initiatives continue to scale," Deutsche Bank analyst Steve Powers wrote in a note earlier this month.

Beauty revenue gained 6% year over year in the quarter to $3.98 billion, while sales in the baby, feminine and family care business ticked down 1% to $5.05 billion.

In a separate statement, Procter & Gamble said it appointed Jejurikar to the additional role of chairman, effective Aug. 1. Executive Chairman Jon Moeller will retire from the board at the end of July and from the company on Aug. 14.

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