PG · The Procter & Gamble Company

The Procter & Gamble Company delivered a solid acceleration in top-line growth for the third quarter of fiscal year 2026, with net sales rising 7% to $21.2 billion. Organic sales increased 3%, primarily driven by a 2% volume increase and 1% higher pricing, with mix remaining neutral. Growth was broad-based across segments, highlighted by an 11% net sales increase in the Beauty segment and a 7% increase in Grooming. The Fabric & Home Care and Baby, Feminine & Family Care segments also contributed with 7% and 6% net sales growth, respectively.

Profitability faced pressure during the quarter. Core gross margin declined 100 basis points versus the prior year, attributed to 180 basis points of unfavorable mix, 100 basis points of reinvestments, and 50 basis points of tariff costs. These headwinds were partially mitigated by 210 basis points of gross productivity savings and 50 basis points of pricing benefits. Core SG&A as a percentage of sales decreased 10 basis points, driven by productivity savings and scale impacts, though reinvestments offset some of the gains. Consequently, Core operating margin declined 80 basis points.

Core EPS increased 3% to $1.59, while reported Diluted EPS of $1.63 included a gain from the dissolution of the Glad joint venture. The company returned $3.2 billion to shareholders through dividends and repurchases. Management maintained its fiscal year 2026 guidance ranges but noted that results are expected to be toward the lower end due to increased investments in innovation and demand creation, as well as headwinds from tariffs estimated at $400 million after-tax.