P&G stock dips on soft outlook despite 'stable' consumer

Brian SozziWed, July 29, 2026 at 11:54 AM UTC

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Procter & Gamble (PG) stock is being put through a mild wash cycle after a mixed earnings day.

Shares fell 2.5% in early trading as the company reported a muted quarter and outlook amid still high inflation and cautious consumers.

“The consumer is OK and stable," Procter & Gamble CFO Andre Schulten told Yahoo Finance.

Schulten explained that P&G is seeing divergent trends among consumers, however. Higher-income consumers are continuing to spend on P&G's latest innovations. But lower-income shoppers living paycheck to paycheck remain cautious in how they replenish items and what they take off the shelves.

Those spending trends and an expected $1 billion after-tax hit from raw materials inflation led P&G to issue soft guidance for its new fiscal year.

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"Management has warned investors at recent conferences that the U.S. consumer in particular has been more cautious than anticipated," JPMorgan analyst Andrea Teixeira wrote in a note ahead of the results.

Earnings insight: Pressured sales -

Net sales: $21.2 billion, +2% from the prior year vs. $21.34 billion estimate

Organic sales growth: +0% vs. +1.85% estimate

Beauty segment organic revenue growth: +4% vs. +4.2% estimate

Grooming segment organic revenue growth: +0% vs. +1.45% estimate

Healthcare segment organic revenue growth: -1% vs. +1.78% estimate

Fabric and home care segment organic revenue growth: +0% vs. +1.81% estimate

Baby, feminine, and family care segment organic revenue growth: -2% vs. +0.77% estimate

Gross margin: 48.5% vs. 48.3% estimate

Adjusted earnings per share: $1.43, -3% from the prior year vs. $1.41 estimate

What else caught our attention: A muted outlook

P&G outlined organic sales growth of 1% to 3% for its new fiscal year. For the year, earnings are expected to range from $6.89 to $7.11. Analysts were looking for fiscal year 2027 organic revenue growth of 2.44% and core earnings per share of $7.02.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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Source: “AOL Money”