P&G starts fiscal 2027 with 4% organic sales growth, holds EPS outlook despite $1.4 billion cost headwind

Procter & Gamble opened its fiscal year with 4% sales growth and kept its earnings forecast intact, even as it now expects about $1.4 billion in after-tax commodity cost pressure.

Net sales for the July-to-September quarter rose 4% to $23.3 billion, and organic sales, which strip out currency and deals, also grew 4%, according to the earnings release the consumer-products giant filed with an 8-K on Thursday. Volume added two points and favorable mix one point.

Diluted EPS rose 1% to $1.97, and core EPS rose 1% to $2.00, as higher sales were partly offset by higher operating costs.

"While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges," Chairman, President and CEO Shailesh Jejurikar said in the release.

Guidance mostly held

P&G raised its fiscal 2027 all-in sales growth outlook to 2% to 4% to reflect the acquisition of Thorne as of Oct. 1, 2026. It kept organic sales growth guidance at 1% to 3% and core EPS growth at in-line to 3%, or $6.89 to $7.11 a share.

The company said it now expects a commodity cost headwind of about $1.4 billion after tax, driven by higher raw materials, energy and transportation costs, along with $300 million after tax from higher net interest expense.

Cash returned

P&G returned $3.9 billion to shareholders in the quarter, made up of $2.6 billion in dividends and $1.3 billion in share repurchases. Operating cash flow was $5.8 billion.

By the numbers

• Net sales: $23.3 billion, up 4%
• Organic sales: up 4%
• Core EPS: $2.00, up 1%
• Diluted EPS: $1.97, up 1%
• Cash returned: $3.9 billion
• FY27 core EPS outlook: $6.89 to $7.11

Sources

1. The Procter & Gamble Company, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0000080424-26-000250

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