US consumer goods giant Procter & Gamble (P&G) announced on Wednesday, July 29, that it expects growth to slow in fiscal 2026/2027, weighed down by persistent inflationary pressures in the United States, while forecasting an improvement in earnings per share.
Following a 2025/2026 fiscal year marked by continued growth but results that slightly missed market expectations, the group — whose portfolio includes brands such as Head & Shoulders, Oral-B, Gillette, Ariel, and Pampers — is projecting organic revenue growth of 1% to 3% for 2026/2027.
The outlook includes “a headwind” related “to brand, product form and go-to-market discontinuations,” P&G said in a statement, without providing further details. The forecast nevertheless reflects a clear deceleration from fiscal 2025/2026, when the company’s sales increased 3.3% to US$87 billion, broadly in line with Bloomberg analyst consensus estimates.
In the fourth quarter of fiscal 2025/2026, sales growth was led by the beauty segment (+4%), with hair care performing particularly well, while the baby care category lagged behind (-2%). Net earnings declined slightly by 0.49% to US$16.1 billion, coming in marginally below expectations. Adjusted earnings per share, a closely watched market indicator, reached US$6.62, up 2% year on year, but below the Bloomberg consensus estimate of US$6.87. For fiscal 2026/2027, P&G is targeting adjusted earnings per share of between US$6.89 and US$7.11.
“Fiscal 2026 was a year of foundation building while continuing to grow sales and profit and return high levels of cash to shareowners despite a very challenging geopolitical and economic environment,” said the group’s President and Chief Executive Officer, Shailesh Jejurikar, as quoted in the company’s press release.
According to P&G, the expected slowdown in growth reflects continued pressure from rising costs for raw materials, energy, and transportation, which the group estimates at around US$1 billion. Inflation has recently accelerated again in the United States, driven in part by the conflict in the Middle East following US and Israeli airstrikes on Iran and its impact on energy markets.
