01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Procter & Gamble Co. (PG) reported a solid third quarter for fiscal year 2026, with net sales increasing by 7% year-over-year to $21.2 billiona, driven by a combination of favorable foreign exchange, unit volume growth, and price increases.
Net earnings attributable to the company grew 4% to $3.9 billionb, resulting in diluted Earnings Per Share (EPS) of $1.63, a 6% increase. The company's performance was broad-based, with all reportable segments showing net sales growth, highlighting the resilience and demand for its diverse product portfolio. Management's focus on productivity savings and strategic pricing initiatives appears to be effectively navigating cost pressures and contributing to profitability.
02—Key points
Key Highlights
- Net sales increased 7% to $21.2 billion for the three months ended March 31, 2026, driven by 2% volume growth, 4% favorable foreign exchange, and 1% higher pricing.
- Net earnings attributable to Procter & Gamble grew 4% to $3.9 billion.
- Diluted EPS increased 6% to $1.63 for the quarter, indicating improved profitability on a per-share basis.
- All five reportable segments (Beauty, Grooming, Health Care, Fabric & Home Care, Baby, Feminine & Family Care) demonstrated net sales growth.
- The company incurred $198 million in before-tax restructuring costs in the quarter related to its portfolio and productivity plan, impacting gross margin.
- Operating cash flow for the nine months ended March 31, 2026, was a strong $14.4 billion.
- The Gillette indefinite-lived intangible asset's fair value was noted to exceed its carrying value by greater than 10%, but it remains susceptible to impairment risk due to potential adverse economic conditions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Procter & Gamble Co kept $0.19.
- Revenue$21.23B100.0%
- Cost of revenue−$10.72B50.5%
- Gross profit$10.51B49.5%
- Operating costs−$5.94B28.0%
- Operating income$4.58B21.5%
- Interest, other & tax−$644.0M3.0%
- Net income$3.93B18.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed April 24, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $21.23B$19.78B | +7.4% |
| Cost of Revenue | $10.72B$9.69B | +10.6% |
| Gross Profit | $10.51B$10.08B | +4.3% |
| SG&A Expenses | $5.94B$5.52B | +7.5% |
| Operating Income | $4.58B$4.56B | +0.4% |
| Net Income | $3.93B$3.77B | +4.3% |
| EPS (Basic) | $1.66$1.58 | +5.1% |
| EPS (Diluted) | $1.63$1.54 | +5.8% |
| Shares Outstanding (Basic) | 2.33B2.35B | −0.8% |
| Shares Outstanding (Diluted) | 2.42B2.45B | −1.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of the net sales increase in the quarter?
The 7% increase in net sales to $21.2 billion was driven by a 2% increase in unit volume, 4% favorable foreign exchange, and 1% higher pricing. Product mix remained unchanged.
How did the company's profitability perform in the quarter?
Net earnings attributable to Procter & Gamble increased by 4% to $3.9 billion, and diluted EPS grew by 6% to $1.63. However, gross margin decreased by 150 basis points due to unfavorable product mix, investments, and restructuring costs, which were partially offset by manufacturing productivity savings and higher pricing.
What is the company's outlook regarding the Gillette intangible asset?
While the Gillette indefinite-lived intangible asset's fair value currently exceeds its carrying value by more than 10%, the company notes that adverse changes in the economic environment, such as currency devaluation, inflation, or market contraction, could lead to an impairment charge. Sensitivity analyses were performed on key assumptions like discount rates, growth rates, and royalty rates.
What restructuring activities are underway?
Procter & Gamble announced a portfolio and productivity plan in June 2025, expecting to incur $1.5 to $2.0 billion in before-tax restructuring costs over two years. In the three months ended March 31, 2026, the company incurred $198 million in before-tax charges related to this plan, primarily for employee separations and asset-related costs.
06—Continue