Q4 (period ended June 30, 2026): Following the February 20, 2026 U.S. Supreme Court ruling invalidating IEEPA tariffs, P&G recognized recovery of approximately $100 million (half of ~$200 million previously paid) in the quarter; separately, the Company substantially liquidated its Pakistan operations in the period and recorded a $131 million non-cash charge for accumulated foreign currency translation losses.
Annual context (fiscal year ended June 30, 2026): Under the portfolio and productivity plan announced June 2025, the Company incurred over half of its expected ~$1.5-2.0 billion in before-tax restructuring costs in fiscal 2026 (total before-tax restructuring charges of $1.2 billion, including $903 million after-tax incremental under the plan). The plan includes a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027, brand and market exits, and supply chain/manufacturing optimization; headcount declined 4% year-over-year to approximately 104,000 employees as of June 30, 2026.
Annual context: In January 2026 (Q2 fiscal 2026), the Glad joint venture with Clorox expired; Clorox purchased P&G's minority interest for $476 million at fair market value, resulting in a $261 million after-tax gain on dissolution of the venture.
Subsequent event (August 4, 2026): P&G agreed to acquire Thorne, a premium wellness and supplement brand in the vitamins, minerals and supplements category, for $3.8 billion; the transaction is expected to close in the second quarter of fiscal 2027, subject to regulatory approval and customary closing conditions.
Annual operating metrics (fiscal 2026): Net sales rose 3% to $87.0 billion (organic +1%, excluding FX and acquisitions/divestitures); operating margin decreased 160 basis points to 22.7%, driven by a 100 bps gross margin decline (product mix, product/packaging investments, restructuring costs, net tariff impact, commodity costs) partially offset by 180 bps of manufacturing productivity savings; Core EPS was $6.89 (+1%) and adjusted free cash flow productivity reached 100%. By segment, Beauty led with organic growth of mid-single digits on 4% volume growth, while Baby, Feminine & Family Care organic sales declined low single digits.
(Filed on April 24, 2026)
+7.4%
49.5%
$12.3B
In January 2026 (within this quarter), the Glad joint venture agreement with Clorox expired; Clorox purchased P&G's minority interest at fair market value for $476 million, resulting in an after-tax gain of $261 million (pre-tax $343 million) recognized in Corporate non-operating income.
Under the June 2025 portfolio and productivity restructuring plan (targeting $1.5–$2.0 billion in before-tax costs over two years, with up to 7,000 non-manufacturing overhead positions eliminated by end of fiscal 2027), P&G incurred $198 million in before-tax restructuring charges in Q3 and $782 million for the nine-month period; the remaining reserve at March 31, 2026 was $269 million, with over half of total plan costs expected by end of fiscal 2026.
On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were invalid; P&G previously paid approximately $200 million in IEEPA tariffs that may be recoverable but had not yet recognized any recovery in its consolidated financial statements as of March 31, 2026.
Q3 net sales rose 7% to $21.2 billion (organic +3%: volume +2%, pricing +1%, FX +4%); gross margin declined 150 bps to 49.5% driven by unfavorable product mix (-180 bps), product/packaging investments (-100 bps), tariff costs (-50 bps), and restructuring (-50 bps), partially offset by manufacturing productivity savings (+210 bps); operating income was essentially flat at $4.6 billion.
Segment highlights: Beauty organic sales grew 7% with volume +5% on innovation across Hair Care and Personal Care (both double-digit growth) and Skin Care (high-single-digit, led by SK-II mix and 20%+ Asia Pacific growth), though global Beauty market share slipped 0.3 pts; Grooming organic sales grew 1% with volume -2% (distribution loss in IMEA, competitive activity in Europe, market contraction in North America); Health Care gained 0.6 pts of global market share on Oral Care power-brush/premium-paste mix and Personal Health Care volume growth in IMEA.
(Filed on January 23, 2026)
+1.5%
51.2%
$10.8B
P&G incurred $369 million in before-tax restructuring charges in Q2 FY2026 (October–December 2025) under its June 2025 portfolio and productivity plan, which targets up to 7,000 non-manufacturing overhead reductions by end of FY2027, brand and market exits, and supply-chain optimization; total expected costs are $1.5–$2.0 billion over two years, with roughly half to be incurred by end of FY2026.
P&G and Clorox agreed not to renew their Glad joint venture; Clorox will purchase P&G's minority interest at fair market value as of January 2026, and P&G expects to receive approximately $500 million in cash and record an after-tax gain of $250–$300 million in Q3 FY2026.
Q2 net sales were $22.2 billion (+1% YoY) with organic sales flat and unit volume down 1%; gross margin fell 120 bps to 51.2% due to 60 bps of higher tariff costs, 70 bps of restructuring, and 120 bps of unfavorable product mix, partially offset by 170 bps of manufacturing productivity savings and 50 bps from pricing; Core EPS was flat at $1.88.
Segment volume dynamics diverged sharply: Beauty unit volume rose 3% (driven by innovation in Latin America and Asia Pacific), Health Care volume was down 1% (Greater China contraction), Grooming volume fell 2% (North America market contraction, Asia Pacific competition), while Baby, Feminine & Family Care volume dropped 5% (North America competitive losses and a double-digit Family Care decline tied to prior-year retail inventory build); global market share declined in four of five segments, with the largest drop in Fabric Care (-0.6 pts).
Six-month capital expenditures rose to $2,367 million from $1,918 million a year earlier, with Q2 capex of $1,167 million (vs. $925 million prior year), reflecting investment in manufacturing consolidation and new product initiatives; inventories increased to $7,817 million from $7,551 million at fiscal year-end, driven by elevated safety stock levels and new product launches.
(Filed on October 24, 2025)
+3.0%
51.4%
$11.2B
In June 2025, P&G announced a portfolio and productivity plan to streamline its portfolio and organization, with expected before-tax restructuring costs of $1.5–$2.0 billion over two years (half by end of fiscal 2026). The plan includes a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027, brand and market exits, and supply chain/manufacturing optimization. In Q1 FY2026, the company incurred $215 million in before-tax restructuring charges ($100M in cost of products sold, $106M in SG&A, $9M in other non-operating), with a remaining reserve of $273 million as of September 30, 2025.
P&G and Clorox jointly decided not to renew the Glad joint venture agreement. Clorox will purchase P&G's minority interest at fair market value upon the agreement's termination in January 2026. P&G expects cash proceeds of approximately $500 million and an after-tax gain of $250–$300 million in Q3 FY2026, subject to market conditions and negotiation on fair market value.
Q1 FY2026 net sales were $22.4 billion, up 3% year-over-year; organic sales (ex-fx, acquisitions/divestitures) grew 2% with volume neutral. Gross margin declined 70 bps to 51.4%, impacted by 60 bps from higher tariffs, 100 bps from unfavorable product mix, and 70 bps from product/packaging investments, partially offset by 140 bps of manufacturing productivity savings. Operating margin fell 50 bps to 26.2%. Core diluted EPS (excluding incremental restructuring) rose 3% to $1.99.
Segment volume and market share dynamics: Beauty volume grew 4% (led by innovation-driven growth in Europe and Latin America hair care), with global Beauty market share down 0.5 points. Grooming volume rose 1% (Latin America distribution gains offset IMEA competitive activity); global Grooming share declined 0.8 points. Health Care volume fell 2% (Oral Care down across most regions on market contraction and competition; Personal Health Care volume decline in North America due to respiratory-season order timing). Fabric & Home Care volume declined 2%, driven by a double-digit Europe decline in Fabric Care from competitive activity; global segment share down 0.4 points. Baby Care volume rose, with a 20% organic sales increase in Greater China on distribution gains.
On July 29, 2025, P&G announced a share repurchase program targeting approximately $5 billion in direct repurchases during fiscal 2026, financed by operating cash flows and debt issuance. In Q1 FY2026, the company purchased 10.8 million shares in the open market (8.0 million under the publicly announced plan) at an average price of $156.76 and paid dividends of $1.0568 per common share. Adjusted free cash flow was $4.9 billion (102% of net earnings).
