Procter & Gamble delivered first quarter results that exceeded Wall Street’s revenue and non-GAAP profit expectations, with management crediting broad-based volume growth and robust product innovation as key drivers. CFO Andre Schulten pointed to particularly strong results in Skin and Personal Care, as well as the successful launch of new cleaning and hair care products. Management noted that all ten product categories grew organically, and that North America and China contributed meaningfully to volume improvements, despite ongoing cost pressures and an evolving consumer landscape.
Is now the time to buy PG? Find out in our full research report (it’s free for active Edge members).
Procter & Gamble (PG) Q1 CY2026 Highlights:
- Revenue: $21.24 billion vs analyst estimates of $20.5 billion (7.4% year-on-year growth, 3.6% beat)
- Adjusted EPS: $1.59 vs analyst estimates of $1.56 (2.2% beat)
- Adjusted EBITDA: $5.74 billion vs analyst estimates of $5.46 billion (27% margin, 5% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.96 at the midpoint
- Operating Margin: 23%, in line with the same quarter last year
- Organic Revenue rose 3% year on year
- Sales Volumes rose 2% year on year (-1% in the same quarter last year)
- Market Capitalization: $342.5 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Procter & Gamble’s Q1 Earnings Call
- Stephen Robert Powers (Deutsche Bank) asked about the sustainability of organic growth and the ability to offset $1 billion in after-tax cost headwinds. CFO Andre Schulten said, "There's a lot of room in our P&L to drive short-term productivity," but added that selective pricing with innovation would also be necessary.
- Dara Mohsenian (Morgan Stanley) questioned whether P&G's supply chain resilience offers a competitive advantage post-Middle East conflict. Schulten replied that while it’s too early to fully assess, P&G’s diversified and flexible supply chain has historically outperformed peers during disruptions.
- Lauren Lieberman (Barclays) asked about progress in China, particularly in Beauty and Baby Care. Schulten highlighted double-digit growth in SK-II and Baby Care, citing successful reinvention of the go-to-market model and localized innovations as key drivers.
- Peter Galbo (Bank of America) sought details on where incremental investments are being deployed geographically and by product. Schulten declined to specify, but indicated a focus on U.S. Baby Care, Fabric Care, and Beauty Care, where interventions and innovation are showing momentum.
- Christopher Carey (Wells Fargo Securities) pressed on pricing power and whether cumulative inflation has weakened P&G’s ability to raise prices. Schulten said pricing power "has to be earned" through innovation and value, emphasizing that the company avoids blanket price increases.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the effectiveness of new product launches and reinvestment strategies in driving further volume growth, (2) the company’s ability to manage and offset continued cost inflation and supply chain disruptions, and (3) the impact of ongoing restructuring efforts on operational agility and margin recovery. Progress in key international markets and consumer response to innovation will also be closely monitored.
Procter & Gamble currently trades at $147.30, up from $145.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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