Procter & Gamble reported fiscal first-quarter earnings and revenue that surpassed Wall Street expectations on Thursday, driven by robust demand for home care products and laundry detergents. Following the financial release, shares of the consumer goods giant rose more than 2% in premarket trading.
According to a survey of analysts conducted by LSEG, the company outperformed consensus projections across key financial metrics. P&G posted adjusted earnings per share of $2.00, beating the $1.88 anticipated by analysts. Total revenue reached $23.3 billion, topping the projected $22.8 billion.
The company reported fiscal first-quarter net income attributable to shareholders of $4.73 billion, or $1.97 per share, compared with $4.75 billion, or $1.95 per share, during the same period a year earlier. Excluding restructuring costs and other specific items, adjusted earnings stood at $2 per share, while net sales climbed 4% to $23.3 billion.
P&G delivered a volume growth of 2.4% for the quarter, marking a strong start to the new fiscal year. The results offer a notable shift following fiscal 2026, a period in which the company recorded only a single quarter of volume growth as shoppers increasingly tightened their purse strings. Consumer goods companies have observed a persistent trend of value-conscious purchasing, with shoppers squeezing every last drop out of household supplies and gravitating toward value packs.
Chief Financial Officer Andre Schulten noted during an appearance on television that the company continues to observe a bifurcated economic landscape. High-income consumers remain willing to trade up for premium items, such as a $30 bottle of shampoo, whereas lower-income consumers must carefully stretch tight budgets to afford everyday staples like Tide detergent and Pampers diapers. To capture both ends of the consumer spectrum, P&G has leaned into promotional pricing, introduced new packaging sizes, and pursued product innovations capable of commanding higher price points.
Performance across P&G’s business segments varied during the quarter. The fabric and home care division, which houses major brands like Tide and Febreze, emerged as the top-performing segment with a 4.3% increase in volume. Meanwhile, the baby, feminine and family care segment and the beauty business both posted volume growth exceeding 2%.
Conversely, the grooming division experienced a slight contraction, with volume shrinking 0.4% across brands including Gillette and Venus razors. The health care business proved to be the portfolio’s weakest performer for the quarter. Demand for oral care products, such as Crest toothpaste, and personal health items like Pepto-Bismol declined, driving the health care segment’s volume down by 2.9%.
Looking ahead, Chief Executive Officer Shailesh Jejurikar stated in an announcement that the company anticipates continued geopolitical and economic headwinds, though P&G remains on track to fulfill its financial guidance. For the 2027 fiscal year, P&G reaffirmed its forecast for core earnings per share to land between $6.89 and $7.11.
Additionally, the company upgraded its projection for all-in sales growth to a range of 2% to 4% compared with the previous year, up from its earlier outlook of 1% to 3%. The upward revision accounts for the completion of its acquisition of supplements brand Thorne, which officially closed on October 1.
