P&G Beats Quarterly Estimates, Raises Sales Forecast on Laundry and Home Care Demand

Procter & Gamble reported fiscal first-quarter earnings and revenue that exceeded Wall Street expectations on Thursday, driven by resilient demand for its laundry detergent and home care products. Shares climbed more than 5% in morning trading.

Here is how the company performed for the three-month period ended September 30 versus LSEG consensus estimates:

• Adjusted earnings per share: $2.00 vs. $1.88 expected
• Revenue: $23.3 billion vs. $22.8 billion expected

Net income attributable to P&G reached $4.73 billion, or $1.97 per share, compared with $4.75 billion, or $1.95 per share, a year earlier. Excluding restructuring charges and other items, earnings came in at $2.00 per share. Net sales increased 4% to $23.3 billion, while organic volume grew 2.4%—a strong start to the fiscal year after the company logged just a single quarter of volume growth in fiscal 2026.

Chief Financial Officer Andre Schulten told CNBC’s “Squawk Box” that P&G continues to see a bifurcated consumer environment. High-income shoppers are trading up to premium innovations, such as a $30 shampoo, while lower-income households are stretching value packs of staples like Tide and Pampers. To address both cohorts, the company is deploying promotional pricing, new pack sizes, and premium product innovation. Recent launches such as Pampers Amore and Pantene’s Abundant & Strong haircare line have helped capture market share in their respective categories.

On the earnings call, Schulten described the competitive landscape as “intense” and emphasized the delicate balance between pricing and product improvements. “We are getting the balance between pricing and product improvements, package improvements, claims, communication and retail execution right,” he said. “But it’s also a very fragile balance that we want to make sure we don’t compromise on, so we will price, and we will price with innovation, not jeopardizing the top-line momentum.”

The Fabric & Home Care division led the portfolio with 4.3% volume growth, fueled by stronger demand for laundry detergent and fabric enhancers. The Baby, Feminine & Family Care segment and the Beauty business each posted volume gains exceeding 2%.

Grooming volume dipped 0.4%, while the Health Care segment was the weakest performer, declining 2.9% as demand for oral care products like Crest and personal health items like Pepto-Bismol softened.

Despite ongoing “geopolitical and economic challenges,” CEO Shailesh Jejurikar affirmed the company is on track to meet its targets. For fiscal 2027, P&G reiterated its core earnings per share guidance of $6.89 to $7.11. The company raised its all-in sales growth outlook to a range of 2% to 4%, up from the previous 1% to 3%, reflecting the acquisition of supplement brand Thorne, which closed on October 1.

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