Procter & Gamble reported mixed quarterly results on Thursday, as demand weakened across several everyday categories and consumers continued to stay cautious with household spending.
The company beat Wall Street expectations on adjusted earnings per share, but revenue came in slightly below forecasts, reflecting slower momentum in parts of its portfolio.
P&G also updated its fiscal 2026 guidance, cutting its forecast for net earnings per share growth as it expects higher restructuring charges.
Shares of the company fell about 1% in premarket trading.
Earnings beat, revenue comes in softer
P&G reported adjusted earnings per share of $1.88, compared with $1.86 expected, based on a survey of analysts by LSEG.
Revenue was $22.21 billion, slightly under the $22.28 billion analysts had forecast.
Net income attributable to the company came in at $4.32 billion, or $1.78 per share.
That was down from $4.63 billion, or $1.88 per share, a year earlier. Excluding items such as restructuring costs, the company earned $1.88 per share.
Net sales rose 1% to $22.21 billion during the quarter. Organic sales, which strip out foreign currency, acquisitions, and divestitures, were flat, pointing to limited growth in underlying demand.
Volume declines as consumers hunt for deals
P&G’s overall volume fell 1% in the quarter, and three out of its five product categories reported shrinking volume.
The metric excludes pricing, which makes it a clearer indicator of demand than sales alone.
Like other consumer-focused companies, P&G has been navigating a shift in shopping behaviour as inflation-weary consumers hunt for discounts, cut back on non-essential purchases, and trade down to cheaper options in some categories.
The volume decline suggests that the company’s pricing and product mix were not enough to fully offset softer unit demand.
The results also highlight how spending patterns can differ sharply across categories, depending on how easily shoppers can delay purchases or switch brands.
Everyday essentials face the biggest pressure
The sharpest decline came in P&G’s baby, feminine, and family care segment, where volume dropped 5% in the quarter.
This segment includes brands such as Bounty paper towels, Puffs tissues, and Charmin toilet paper.
P&G’s grooming business also reported a weaker quarter, with volume down 2%.
The segment includes Gillette and Venus razors, and the decline suggests consumers may be stretching replacement cycles or shifting spending choices in personal care.
The company’s health-care segment, which includes Oral-B, Vicks, and Pepto-Bismol, saw volume fall 1%.
Meanwhile, fabric and home care, home to brands such as Febreze and Tide, reported no change in volume compared with the year-ago period, indicating steadier demand in cleaning products.
P&G’s beauty segment was the only division to post volume growth, rising 3% during the quarter.
The company said the increase was driven by stronger demand for its hair care products, making beauty a key area of resilience in the broader portfolio.
Alongside the earnings report, P&G adjusted its earnings guidance for fiscal 2026.
The company now expects net earnings per share growth in the range of 1% to 6%, down from its prior forecast of 3% to 9%. P&G said the change was linked to higher restructuring charges.
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