Earnings Call
Jul 29, 2026
Q2 FY2026
EPS Estimate
1.43
EPS Actual
1.88
Post-Earnings Close
$146.10
Earnings Reaction
-1.9%
Procter & Gamble's fiscal second quarter 2026 results were shaped almost entirely by a known and well-telegraphed base period distortion, trade and consumer pantry loading ahead of port strikes and hurricane disruptions in October and December of the prior year, which compressed reported organic sales to flat year-over-year. Strip out Family Care, the category most exposed to that inventory dynamic, and organic sales grew 1%. Strip out the US entirely, and the rest of the portfolio grew nearly 3%, with Latin America up 8%, Europe enterprise markets up 6%, and Greater China up 3% on top of 5% growth last quarter. Core EPS of $1.88 was in line with the prior year, with currency-neutral core EPS of $1.85. Gross margin contracted 50 basis points and operating margin 70 basis points, as strong productivity improvement of 270 basis points was reinvested into innovation and demand creation. Adjusted free cash flow productivity came in at 88%, and P&G returned $4.8 billion to shareholders, $2.5 billion in dividends and $2.3 billion in buybacks.
Report generated on Jul 28, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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