Procter & Gamble (P&G) reported mixed financial results for its fiscal fourth quarter, revealing earnings that surpassed analyst expectations while revenue figures dipped below forecasts. The company posted an adjusted earnings per share of $1.43 compared to the expected $1.41, but revenue came in at $21.2 billion, falling short of the anticipated $21.38 billion. Net income attributable to the company declined to $3.04 billion, or $1.26 per share, versus $3.62 billion a year prior, with net sales growing by 2%. Organic revenue, which excludes acquisitions and currency effects, remained flat due to stagnant volume across P&G’s product lines.

Volume growth was limited in fiscal 2026, with only one quarter showing expansion across P&G’s portfolio. Consumer demand appears to have softened as buyers have become more cost-conscious, opting for value packs or extending product usage. The beauty division was the standout performer in the fourth quarter, achieving 3% volume growth propelled by brands such as Pantene, Olay, and SK-II. Fabric and home care, including Tide and Swiffer, also saw a 1% volume increase, while baby, feminine, family care, grooming, and health care divisions experienced volume declines, with health care dropping 3% largely due to weaker oral care sales.

CFO Andre Schulten highlighted challenges such as trade dynamics in the U.S. and rising input costs, which have pressured results despite improving global market share trends. He signaled the company’s intention to rebalance its growth strategy by combining price increases with volume growth, moving away from a post-pandemic reliance solely on pricing power. P&G is also increasing media investment to better engage consumers amid a fragmented advertising landscape and aiming to adapt to evolving digital commerce trends involving AI-powered search and shopping agents.

Looking ahead to fiscal 2027, P&G projects core earnings per share between $6.89 and $7.11, slightly under Wall Street’s $7.04 consensus, with expected sales growth of 1% to 3%. The company forecasts a significant $1 billion after-tax headwind from rising raw material, energy, and transportation costs, along with higher net interest expenses and unfavorable currency impacts, which could collectively reduce earnings per share by about 56 cents. Additionally, P&G announced that CEO Shailesh Jejurikar will assume the role of board chair starting August 1, succeeding former CEO Jon Moeller.