P&G beats fiscal Q1 estimates while raising all-in sales guidance

Procter & Gamble reported fiscal Q1 2027 net sales of $23.28 billion and core EPS of $2.00, above the $22.82 billion and $1.89 consensus estimates. Organic sales increased 4%, while reported diluted EPS was $1.97 and core EPS rose 1% from $1.99. P&G raised fiscal 2027 all-in sales growth guidance to 2%-4% because of the Thorne acquisition, while maintaining organic sales growth guidance of 1%-3% and core EPS guidance of $6.89-$7.11.

The results indicate that P&G exceeded near-term sales and core-earnings expectations, but investors still face pressure from higher commodity costs and a core EPS outlook below the cited $7.39 consensus. The acquisition lifts the all-in sales outlook without changing the organic sales-growth range.

  • 1Fiscal Q1 2027 net sales were $23.28 billion and core EPS was $2.00, versus consensus estimates of $22.82 billion and $1.89, respectively.
  • 2Reported diluted EPS was $1.97 versus $1.95 in the prior-year quarter, while non-GAAP core EPS was $2.00 versus $1.99.
  • 3Organic sales increased 4%, driven by a 2% increase in volume and favorable product mix.
  • 4P&G raised fiscal 2027 all-in sales growth guidance to 2%-4% from 1%-3% because of the Thorne acquisition, while maintaining organic sales growth guidance of 1%-3%.
  • 5The company maintained EPS guidance of $6.69-$6.95 and core net EPS guidance of $6.89-$7.11.
  • 6Reported gross margin decreased 160 basis points, while core gross margin and currency-neutral core gross margin each decreased 150 basis points from the prior year.
  • The materials give different estimates for P&G's annual commodity-cost profit headwind: $1.4 billion in materials 5 and 19 versus $1.9 billion in material 4.

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