Procter & Gamble fell about 1 percent today, continuing a slow slide that has seen the stock drop nearly 5 percent over the last month. We think this is mostly the whole market drifting lower today, combined with a lingering cautious mood after the company recently reported flat sales volumes.
Our view
Shoppers are feeling the pinch, which makes it harder for the company to raise prices without losing customers. This is a temporary squeeze rather than a broken business, and owners should sit tight and keep owning it.
Procter & Gamble announced a change to its leadership team
Procter & Gamble disclosed a change to its executive team or board of directors in a recent filing with the SEC, the government agency that oversees public companies. These filings are required whenever there is a shift in the small group of people running the business.
For a company as large as P&G, which manages dozens of household brands like Tide and Gillette, leadership transitions are a routine part of long-term planning. While the company did not immediately name a specific successor or reason for the change in this summary, these moves are closely watched to see if they signal a shift in how the company plans to grow or manage its costs.
Buying supplements maker Thorne for 3.8 billion dollars
The company reached a deal to buy Thorne, a firm that sells science-backed vitamins and health supplements, for 3.8 billion dollars in cash. This is a clear move to grow its presence in the wellness market, adding a premium brand to a health portfolio that already includes names like Vicks and Pepto-Bismol.
For a company that relies on household staples, this acquisition provides a new way to reach shoppers who are increasingly focused on longevity and preventative health. While the price is significant, it fits the company's strategy of owning top-tier brands in categories where people are willing to pay more for quality.
HSBC analysts moved their rating from Buy to Hold and set a price target of 149 dollars. The change comes after the company reported that the total amount of products sold did not grow last quarter, as higher prices and economic pressure caused some shoppers to pull back.
This downgrade reflects a more cautious view on how quickly the company can grow in a tough environment. While the business remains highly profitable, analysts are watching closely to see if it can win back shoppers who have switched to cheaper store brands or smaller pack sizes to save money.
The company brought in 21.2 billion dollars in revenue last quarter, which was slightly below the 21.38 billion dollars analysts expected. While earnings of 1.43 dollars per share were a bit better than the 1.41 dollars predicted, the underlying story was one of flat sales volumes. This means the company isn't selling more boxes of detergent or diapers; any growth is coming from higher prices.
Management warned that 2027 could be another slow year, citing a challenging environment where high gas prices and inflation are forcing consumers to look for deals or buy smaller sizes. The stock fell about 3 percent on the news. For long-term owners, the focus is now on whether the company can use its massive marketing budget and new product launches to get volumes growing again without having to cut prices.
CEO Shailesh Jejurikar named Chairman of the Board
Shailesh Jejurikar, who already serves as President and CEO, became Chairman of the Board on August 1. He takes over from Jon Moeller, who is retiring after a long career with the company. This move consolidates leadership under one person, which is a common structure for the company.
While this change was expected, it puts Jejurikar firmly in control as the company navigates a period of slowing demand. His primary task will be executing the plan he laid out during the recent earnings call: focusing on product superiority to convince inflation-weary shoppers that the company's brands are worth the higher price.
Analysts have recently turned more cautious, issuing a few downgrades over the past month. Most analysts remain positive with 27 buys out of 53 ratings, and the average target of $159 suggests an 11% upside from today's price.
Average target$158.56+11%vs $142.73 today
TodayAvg price
Low $142High $172
Buy53 analysts
1Bearish
25Neutral
27Bullish
FirmRatingPrice TargetDate
HSBC
Hold
$149
7/30/2026
HSBC
Hold
$142
7/29/2026
Barclays
Equal Weight
$146→$152
7/21/2026
Bernstein
Market Perform
$156
6/11/2026
UBS
Buy
$166→$172
4/27/2026
Deutsche Bank
Hold
$162→$163
4/27/2026
Evercore ISI
In Line
$170→$162
4/27/2026
Wells Fargo
Overweight
$158→$164
4/27/2026
Barclays
Equal Weight
$155→$146
4/14/2026
RBC Capital
Outperform
$172→$167
4/9/2026
Piper Sandler
Neutral
$150→$142
4/8/2026
Wells Fargo
Overweight
$165→$177
2/17/2026
Procter & Gamble earnings
Management has a very consistent habit of setting a bar they can clear, beating analyst profit targets in seven of the last eight quarters.
Earnings history
EstimateBeatMiss
Procter & Gamble past earnings results
Expected
Actual
Surprise
EPS
$1.41
$1.43
+1.4%
Revenue
$21.38B
$21.20B
-0.8%
Key highlights
Sluggish sales growth: Organic sales growth, which strips out the effects of currency and buyouts, stalled at 0% this quarter compared to 2% a year ago. Higher prices added 1% to sales, but this was canceled out by consumers choosing different product mixes and flat volume.
Profit margins shrinking: The core operating margin, a measure of how much profit is left after running the business, fell to 19.5% from 20.8% last year. While the company saved money through productivity gains, it spent more on marketing and faced higher costs for raw materials.
Cash generation remains strong: Adjusted free cash flow productivity reached 100% for the full fiscal year, meaning the company turned all of its adjusted profit into actual cash. This strength allowed the company to return $10.2 billion to owners through dividends and buying back its own stock.
Mixed segment performance: Beauty was a bright spot with 4% organic sales growth, but the healthcare division saw sales drop 1% as volume fell by 3%. The baby and family care unit also struggled, with sales down 2% as the company lowered prices to stay competitive.
Cautious outlook for 2027: The company expects organic sales to grow between 1% and 3% next year, even with a $1 billion headwind from higher energy and material costs. Profit is expected to be flat or grow up to 3%, with the first quarter predicted to be particularly weak with a 5% drop.
Our take: A soft quarter that shows the limits of using price hikes to drive growth. While P&G is still excellent at generating cash, the drop in operating margins to 19.5% and flat sales suggest a tougher road ahead. It does not break the long-term case, but the company needs volume to return to sustain its results.
Procter & Gamble’s next earnings date
Q1 2027
OCT
23
Expectation
EPS
$1.89
Revenue
$22.72B
Metrics we are tracking
Metric
Expectations
Status
Organic Sales Growth
Sustaining above 3% annually over a full fiscal year
0% in Q4 FY2026
Unit Volume Growth
Turning positive and staying above 1% for two quarters
