Procter & Gamble Co (NYSE:PG, XETRA:PRG) shares fell more than 3% on Wednesday after the consumer goods giant reported fourth-quarter revenue that missed analyst estimates, even as it topped profit expectations.
The maker of Tide detergent and Pampers diapers posted revenue of $21.2 billion for the quarter, up 2% from a year earlier but below analysts' estimate of $21.38 billion. Organic sales were flat year-over-year.
Adjusted earnings per share came in at $1.43, above the $1.41 estimate, though down 3% from the prior year. Diluted EPS fell 15% to $1.26, while net earnings dropped 16% to $3.04 billion.
Both operating and gross margins contracted during the quarter, while SG&A costs rose as a share of sales.
By segment, Beauty led growth, with Grooming, Health Care and Fabric & Home Care also posting modest increases. Baby, Feminine & Family Care was the only segment to decline.
For fiscal 2027, the company guided for core EPS of $6.89 to $7.11, below the $7.04 estimate, alongside net sales growth of 1% to 3% and organic sales growth of 1% to 3%. Core EPS growth is expected to range from in-line to up 3%, with a core effective tax rate of approximately 20%.
"Fiscal 2026 was a year of foundation building while continuing to grow sales and profit and return high levels of cash to shareowners despite a very challenging geopolitical and economic environment,” CEO Shailesh Jejurikar said in a statement.
"We are confident in our plans to accelerate growth from semester-to-semester, and our investments will be funded with a strong productivity program. We are building momentum with consumers, and we are excited about the long-term opportunities ahead."
