Company Reports

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with flat to low-single-digit organic sales growth lagging the mid- to high-single-digit marks that had characterized the business not that long ago. This was initially a byproduct of more muted price increases (low single digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive armor. After rightsizing its category and geographic reach by shedding around 100 brands more than 10 years ago, P&G also embraced a more holistic approach to brand spending, including product performance, packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers. We believe P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily-use, essential offerings—should help its brands maintain their clout with retailers and consumers, reinforcing its moat long term.

Organic sales were flat in Procter & Gamble's fiscal fourth quarter, a marked slowdown from the 3% growth it posted in the fiscal third quarter. Adjusted operating margins slipped 130 basis points to 19.5% due to stepped-up brand investments.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with flat to low-single-digit organic sales growth lagging the mid- to high-single-digit marks that had characterized the business not that long ago. This was initially a byproduct of more muted price increases (in the low single digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive armor. After rightsizing its category and geographic reach by shedding around 100 brands more than 10 years ago, P&G also embraced a more holistic approach to brand spending, including how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers. We believe P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily-use, essential offerings—should help its brands maintain their clout with retailers and consumers, reinforcing its wide moat over the long term.

Procter & Gamble chalked up 3% organic sales growth in its fiscal third quarter, reflecting a 2% benefit from volumes and a 1% increase in price. Its adjusted gross margin contracted 100 basis points to 50% as reinvestments, mix, and cost pressures offset productivity and pricing initiatives.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with the firm posting flat to low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that had characterized the business not that long ago. This was initially a byproduct of more muted price increases (the low-single digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning just more than 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). We believe P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily-use, essential offerings—should help its brands maintain their clout with retailers and consumers, reinforcing its wide moat over the long term.

Procter & Gamble's fiscal second-quarter sales languished as 1% higher prices were offset by 1% lower volume. Despite a 160-basis-point benefit from cost savings, the combination of unfavorable mix, tariffs, and reinvestment capped adjusted gross margin at 51.2%, down 30 basis points year over year.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with the firm posting low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that had more recently characterized the business. This was initially a byproduct of more muted price increases (low single digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning just over 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we believe P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily-use, essential offerings—should ensure its brands maintain their clout with retailers and consumers, supporting its wide moat over the long term.

Organic sales edged up 2% in Procter & Gamble's fiscal first quarter, on the heels of higher prices and a favorable mix, as volumes held flat year over year. Costs related to tariffs and commodities inflated, eating into profits, with the adjusted gross margin contracting 50 basis points to 51.4%.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with the firm posting low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that had more recently characterized the business. This was initially a byproduct of more muted price increases (low single digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning about 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we believe P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily-use, essential offerings—should ensure its brands maintain their clout with retailers and consumers, supporting its wide moat over the long term.

Procter & Gamble's fourth quarter featured a 2% bump in organic sales (driven by a benefit from higher prices and favorable mix) that came alongside a 150-basis-point uptick in the adjusted operating margin to 20.8%.

After more than four years at the helm and 37 years at the firm, CEO Jon Moeller is ceding the corner office to COO Shailesh Jejurikar on Jan. 1, 2026. Moeller will continue to serve as executive chairman to ensure a smooth transition.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with the firm posting low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that had more recently characterized the business. This was initially a byproduct of more muted price increases (low-single-digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning about 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we think P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily use, essential offerings—should ensure its brands maintain clout with retailers and consumers, supporting its wide moat over the long term.

Procter & Gamble's fiscal third-quarter organic sales ticked up a mere 1% on price hikes. The adjusted gross margin slumped 30 basis points to 51%, as productivity savings and stepped-up prices were offset by unfavorable mix, inflation, and reinvestment in the business.

Tempered sales have characterized the last few quarters for wide-moat Procter & Gamble, with the firm posting low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that have more recently characterized the business. This was primarily a byproduct of more muted price increases (low-single-digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning about 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we think P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily use, essential offerings—should ensure its brands maintain clout with retailers and consumers, supporting its wide moat over the long term.

Procter & Gamble posted a 3% rise in organic sales, on a 2% bump in volumes and a 1% benefit from favorable mix. However, margins contracted, with the adjusted gross margin down 30 basis points to 52.4%, and the adjusted operating margin off 80 basis points to 26.2%.

Procter & Gamble reaffirmed its long-term targets for sales growth ahead of the markets in which it plays and mid to high-single-digit adjusted earnings per share growth at its recent biennial investor event at its headquarters in Cincinnati, Ohio, on Nov. 21.

Tepid sales have characterized the last three quarters for wide-moat Procter & Gamble, with the firm posting low-single-digit organic sales growth in each period, lagging the mid- to high-single-digit marks that have more recently characterized the business. This was primarily a byproduct of more muted price increased (low-single-digits, down from 7% in the first quarter of 2024). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning about 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we think P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily use, essential offerings—should ensure its brands maintain clout with retailers and consumers, supporting its wide moat over the long term.

Organic sales growth remained tepid, increasing just 2% in its fiscal first quarter, reflecting a 1-percentage-point contribution from both price and volumes. But this is a far cry from the mid- to high-single-digit percentage gains the business has boasted the past few years.

Tepid sales characterized the end of fiscal 2024 for wide-moat Procter & Gamble, as the firm posted low-single-digit organic sales growth in each of the last two quarters, lagging the mid- to high-single-digit marks that have more recently characterized the business. This was primarily a byproduct of more muted price increased (low-single-digits, down from 7% in the first quarter). However, we don’t believe this suggests cracks in the firm’s competitive prowess. After rightsizing its category and geographic reach by shedding around 100 brands beginning about 10 years ago, P&G also embraced a more holistic approach to brand investing (consisting of how a product performs, the packaging, brand messaging, execution in stores and online, and the value a product offers its retail partners and consumers). And we think P&G’s strategic aims—investing in product innovation and marketing to support its portfolio of daily use, essential offerings—should ensure its brands maintain clout with retailers and consumers, supporting its wide moat over the long term.

The market dogged Procter & Gamble after it closed the book on its second consecutive quarter of tepid sales performance, up just 2% on an organic basis in its fiscal fourth quarter (versus 3% growth in the prior quarter and the mid- to high-single-digit percentage jumps that have more recently characterized the business), with shares down around 5%-6% in intraday trading. However, we had expected its sales growth would slow. Indeed, its fiscal 2024 results and fiscal 2025 guidance for 3%-5% organic sales growth against 5%-7% EPS growth generally square with our preprint estimates, rendering our $143 per share fair value estimate largely unchanged (beyond time value). Although we still don’t view the stock as a bargain, trading at a 10%-15% premium to our intrinsic valuation, we think investors should keep this wide-moat name on their radar to the extent that trepidation around intensifying competition and a waning macro landscape offer a more attractive entry point.