P&G Q1 net sales rise 4% to $23.3 billion
CINCINNATI, October 22 - The Procter & Gamble Company (NYSE:PG) disclosed that net sales for the first quarter of fiscal year 2027 reached $23.3 billion, marking a four percent year-over-year increase. Organic sales, a metric that strips out foreign exchange effects and the impact of acquisitions and divestitures, also climbed four percent. Diluted net earnings per share stood at $1.97, up one percent from the previous year, while core earnings per share were $2.00, also rising one percent. The company noted that the growth in sales was partly counterbalanced by higher operating costs.
CINCINNATI, October 22 - The Procter & Gamble Company (NYSE:PG) disclosed that net sales for the first quarter of fiscal year 2027 reached $23.3 billion, marking a four percent year-over-year increase. Organic sales, a metric that strips out foreign exchange effects and the impact of acquisitions and divestitures, also climbed four percent. Diluted net earnings per share stood at $1.97, up one percent from the previous year, while core earnings per share were $2.00, also rising one percent. The company noted that the growth in sales was partly counterbalanced by higher operating costs.
Operating cash flow for the period was $5.8 billion, with net earnings totaling $4.8 billion. Free cash flow productivity came in at 93%, defined as operating cash flow minus capital spending relative to net earnings. Procter & Gamble returned $3.9 billion to shareholders, split between $2.6 billion in dividends and $1.3 billion in share repurchases.
Shailesh Jejurikar, Chairman of the Board, President and Chief Executive Officer, attributed the solid sales, earnings and cash results to sharpened execution of the company's integrated strategy. He acknowledged ongoing geopolitical and economic challenges but stated that the strong start keeps the company on track to meet its fiscal year guidance ranges for organic sales growth, core EPS growth and free cash flow productivity.
Segment performance showed mixed results. Beauty organic sales rose five percent, with Hair Care, Personal Care and Skin Care each posting mid-single-digit gains driven by innovation-based pricing and favorable mix. Grooming organic sales increased five percent, supported by pricing in North America and IMETA. Health Care organic sales grew three percent, with Oral Care and Personal Health Care seeing low single-digit increases despite some unit volume declines. Fabric and Home Care organic sales rose five percent on volume gains in North America and Europe. Baby, Feminine and Family Care organic sales increased three percent.
Procter & Gamble updated its fiscal year 2027 all-in sales growth guidance to a range of two to four percent, reflecting the Thorne acquisition effective October 1, 2026. The company maintained its organic sales growth outlook at one to three percent, citing a headwind of 30 to 50 basis points from discontinuations. Fiscal year 2027 diluted net earnings per share growth guidance was also maintained at one to five percent.