P&G FY2027 Q1: sales up 4.0%, EPS beats, margin squeeze persists
P&G beat the $1.94 consensus EPS by $0.03 and grew sales 4.0%, yet gross margin fell 160 basis points — the quarter was a volume-and-mix win paid for with cost pressure. Read the scorecard for growth, then the margin lines and the $0.79 per-share cost headwind embedded in guidance, which is where the real story sits.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $1.97 rose 1.0% and cleared the $1.94 consensus by $0.03, while core EPS was $2.00, also up 1.0%. The gap between 4.0% sales growth and 1.0% earnings growth is the whole story: higher commodity and reinvestment costs absorbed the operating leverage. Currency-neutral core EPS was flat versus a year ago.
Net sales rose 4.0% to $23.28 billion from $22.39 billion, and organic growth was also 4.0%, so currency and deal-making added nothing. Volume contributed 2.4 points and mix 1.1 points, while pricing was barely positive at 0.4 points. That is a demand-led quarter rather than a price-led one, which is the harder kind to repeat.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-23
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