Why P&G's 4% Revenue Growth Leads Us to Look at Volume Before Price

Procter & Gamble (PG) maintained its fiscal 2027 earnings forecast despite higher expected costs, including raw materials, energy, and transportation. Management estimates these costs at 11% of fiscal 2026 core earnings, up from 8%, with no change in the 0%-3% EPS growth target. PG plans to offset costs through savings and price increases, but analysts await details on execution.

P&G's new Amore diapers, priced 10% higher than Pampers Swaddlers, contributed to its best organic sales growth in 11 quarters, with sales expected to hit $100M in the first year. The company reported a 4% rise in organic sales for Q1 2027, reassuring investors and driving a 6% share price increase. P&G's strategy focuses on innovation for higher-end products and cost savings for budget-conscious consumers, aiming to navigate inflation and maintain growth.

Procter & Gamble (PG) expects higher oil prices to increase costs by $1.9 billion after tax by fiscal 2027, impacting 11% of fiscal 2026 core earnings per share. Management plans to offset costs through savings, price increases, and cash flow. PG's stock has historically underperformed during inflation shocks. The next cost estimate update is expected in January 2027.

Piper Sandler raised its price target for Procter & Gamble (PG) to $167 from $145, citing strong organic growth and cost management. The firm kept its Neutral rating and EPS estimates for 2026 and 2027. PG's Q1 results exceeded expectations, with $2.00 EPS on $23.28B revenue, leading other analysts to raise their targets. PG shares have risen 12% this month.

Lockheed Martin (LMT) reported Q3 EPS of $7.97, beating estimates, and raised its full-year revenue forecast to $80B-$82B. Blackstone (BX) beat EPS estimates with $1.32, and shares rose 8.4%. Procter & Gamble (PG) reported Q1 EPS of $2.00, beating estimates, with sales up 4%. Equifax (EFX) saw Q3 revenue rise 10%, with mortgage revenue up 15%, despite market weakness. Shares of all companies rose following earnings reports.

Procter & Gamble (PG) reported a strong fiscal first quarter with 4% organic sales growth and $23.3B in revenue, exceeding estimates. EPS rose to $2.00, topping consensus. Despite higher commodity costs, the company maintained full-year EPS guidance. The stock surged 5.6% on the news, its best day in over six years, highlighting resilience in consumer demand despite inflation.