PG US S&P 500DJIARussell 1000 Earnings call · transcribed from the recording
Procter & Gamble (PG) · Q3 2026 results and valuation
Share price: $167.67 · 2026-11-11
Procter & Gamble is a consumer goods company that manufactures, markets, and distributes a portfolio of daily-use products. It sells these products to various customers, including retailers, wholesalers, and directly to consumers, in approximately 180 countries and territories. Source: 10-K annual report (2026-08-04)
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q1 2027 · published 22 Oct 2026 and 29 Jul 2026
Net income up 52.7% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+52.7%
Net income vs Q2 2026
Outlook given
Net income 4.73B vs 3.10B
Revenue +9.8%
Against the same quarter last year (Q3 2025) it is −0.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Upbeat
More upbeat than 72% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Procter & Gamble expects to return 15 billion dollars of cash to shareholders in fiscal 2027 through over 10 billion dollars in dividends and approximately five billion dollars in stock repurchases.
Valuation
Is Procter & Gamble undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.0% growth a year (3-year revenue growth), the model's fair value is $70.37 a share — the stock trades 138% above it. Today's price assumes 12.3% growth a year.
Current price
$167.67
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.3% for 10 yrs
Fair value / share
$70.37
Buy below
$52.77
Price vs fair value
Overvalued 138%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +3% · from the Q3 2026 report: “The company expects organic sales growth of about 3% for half one to achieve sequential acceleration semester by semester.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The outlook includes a cost headwind of approximately $1.4 billion after tax due to higher raw material, energy, and transportation costs from the conflict in the Middle East.
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Guidance
PG expects to return 15 billion dollars of cash to shareholders in fiscal 2027 through over 10 billion dollars in dividends and approximately five billion dollars in stock repurchases.
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Guidance
A projected price of $100 a barrel results in a $1.4 billion after-tax impact, creating an 8% earnings headwind for the year.
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Figure
Revenue grew as volume increased 2.4 points, pricing rose 0.4 points, and mix increased over a point, with the majority of growth driven by volume.
Source quote
“Volume increased 2.4 points, pricing was up 0.4 points, and mix was up over a point for the quarter, a solid balance across top-line drivers and with a majority of growth driven by volume.”
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Guidance
The company expects organic sales growth of about 3% for half one to achieve sequential acceleration semester by semester.
4 more
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Key theme
The company is executing a complete project list across all businesses to achieve the identified record productivity levels.
Source quote
“It will take record productivity levels, which we have identified. The project list is complete and sufficient. And it's being executed across every one of our businesses.”
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Key theme
PG will price with innovation to maintain top line momentum.
Source quote
“So we will price and we will price with innovation, not jeopardizing the top line momentum.”
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Key theme
Top line progress and productivity offset higher raw material, energy, and freight costs in North America to impact the bottom line results for Q1 2027.
Source quote
“Bottom line results reflect the strength of the top line progress and productivity to offset the higher costs from raw materials, energy and increasing freight costs, primarily in North America.”
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Guidance
The company projects 3% organic sales growth for the first half of the year and higher growth in the second half.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“even if you exclude the China acceleration, we have very strong results in baby, femcare doing great, adult incontinence improving, beauty care at 5%, very strong, and across all three...”
“that the strategy of being superior and trading consumers up as we are doing on tape diapers is the same model we can apply on pants the same model we...”
“Consumers are delighted with improvement in hair strength and less shedding with delightful fragrance and a tingling sensorial experience in the shower.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 23.28B | 21.20B | +9.8% | 22.39B | +4.0% |
| Gross profit | 11.60B | 10.28B | +12.8% | 11.50B | +0.9% |
| Operating income | 5.94B | 3.95B | +50.3% | 5.86B | +1.4% |
| Net income | 4.73B | 3.10B | +52.7% | 4.75B | −0.4% |
| EPS | 1.97 | 1.26 | +56.3% | 1.95 | +1.0% |
| P/E today 24.9 | 21.9 | 22.2 | −0.3 | 22.4 | −0.5 |
Topics
Most discussed now
- In non-manufacturing headcount is starting to impact the quarter this fiscal year recall Procter & Gamble started the execution last fiscal…
- Procter & Gamble remains fully invested in the business, but it finds ways to make that spending work harder for it.
- Flattered one queue at the expense of two queue in your mind just want to get underneath that if i...
- Greater China organic sales grew 8%, continued strong growth in what remains a challenging consumer environment....
- Pampers and SK2 led the growth, with SK2 up 12%, and Pampers up close to 50%, benefiting from near-term competitive...
Faded since Q2 2026
- Fading Procter & Gamble will maintain strong investment in the business, balance by a strong productivity program with an intent to improve…
- Fading Procter & Gamble built plans to return the business to consistent growth across all categories and regions, it stabilized global market…
- Fading Procter & Gamble remains committed to the integrated growth strategy as the roadmap for growth and value creation.
- Fading Procter & Gamble exited the year holding global share with trends improving in the second half.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
Organic sales grew 4.0% year over year, while core earnings per share were $2.00, up 1% compared to the prior year.
- Results of operations · SEC 8-K
Procter & Gamble reported first-quarter net sales of $23.3 billion, up 4.0% from the prior year, with diluted earnings per share of $1.97, an increase of 1% year over year.
- Shareholder vote results · SEC 8-K · routine
- Regulation FD disclosure · SEC 8-K
Procter & Gamble declared a quarterly dividend of $1.0885 per share, continuing a streak of 70 consecutive years of dividend increases.
- Regulation FD disclosure · SEC 8-K
For fiscal year 2026, the company reported organic sales growth of 1% and core earnings per share of $6.89, which was up 1% compared to the previous year.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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fiscal 26 into the first quarter of fiscal 27
delivered double digital growth
Source quote
“delivered double digital growth in fiscal 26 into the first quarter of fiscal 27 after the team transformed how consumers engaged with ferry”
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near term
return to sustainable growth
Source quote
“While we continue to execute our plans in the near term to return to sustainable growth, We're also making progress on a long-term reinvention of P &G capabilities to become what we call the CPG company of the future.”
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fiscal 27
maintaining guidance ranges across organic sales, core EPS, and free cash flow productivity
Source quote
“Moving to guidance, as you saw in our press release this morning, we are maintaining our fiscal 27 guidance ranges across organic sales, core EPS, and free cash flow productivity.”
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early October
Thorn business closed
Source quote
“Our all-in-gap outlook now includes the Thorn business, which closed in early October.”
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fall and winter
monitoring consumer demand as high fuel and energy costs persist
Source quote
“Also we'll be closely watching consumer demand as high fuel and energy costs persist into the fall and winter.”