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News ReleaseThe Procter & Gamble Company
One P&G Plaza
Cincinnati, OH 45202
P&G ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS
Q4 ’26: Net Sales +2%; Organic Sales 0%; Diluted EPS -15%; Core EPS -3%
FY ’26: Net Sales +3%; Organic Sales +1%; Diluted EPS +2%; Core EPS +1%

CINCINNATI, July 29, 2026 - The Procter & Gamble Company (NYSE:PG) reported fourth quarter and fiscal year 2026 results.

“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,” said Shailesh Jejurikar, President and Chief Executive Officer. “In fiscal 2027, we expect to deliver progress on each of these key measures despite continued volatility. We believe the best path to sustainable, balanced growth is to double down on our strategy and put the consumer first in everything we do. Stronger, integrated execution to delight consumers with superior products at a superior value. 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.”
Fiscal Year ($ billions, except EPS)
GAAP
2026
2025
% ChangeNon-GAAP*
2026
2025
% Change
Net Sales$87.0$84.3+3%Organic Salesn/an/a+1%
Diluted EPS$6.62$6.51+2%Core EPS$6.89$6.83+1%
Fourth Quarter ($ billions, except EPS)
GAAP
2026
2025
% ChangeNon-GAAP*
2026
2025
% Change
Net Sales$21.2$20.9+2%Organic Salesn/an/a—%
Diluted EPS$1.26$1.48(15)%Core EPS$1.43$1.48(3)%
* Please refer to Exhibit 1 - Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures.


Fiscal Year 2026 Results

The Company reported fiscal year 2026 net sales of $87.0 billion, an increase of three percent versus the prior year, comprised of a two percent increase due to favorable foreign exchange impacts and a one percent increase from higher pricing. Volume and mix were unchanged versus prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased one percent from higher pricing.

Diluted net earnings per share were $6.62, an increase of two percent versus prior year, as the increase in net sales and a reduction in shares outstanding were partially offset by a reduction in gross margin and an increase in selling, general and administrative costs (SG&A). Core net earnings per share increased by one percent to $6.89. Currency-neutral core EPS was unchanged versus the prior year core EPS.

The Company generated operating cash flow of $19.6 billion and net earnings of $16.1 billion for the fiscal year. Adjusted free cash flow productivity was 100%, which is calculated as operating cash flow less capital spending and certain other items, as a percentage of net earnings excluding the gain from the dissolution of the Glad joint venture business in fiscal year 2026.

The Company returned over $15 billion of value to shareholders in fiscal 2026, comprised of $10.2 billion in dividend payments and $5.0 billion of share repurchases. With the dividend increase in April 2026, this marks the 70th consecutive year that P&G has increased its dividend and the 136th consecutive year that P&G has paid a dividend since its incorporation in 1890.

April-June Quarter Results
The Company reported fiscal year 2026 fourth quarter net sales of $21.2 billion, an increase of two percent versus the prior year. Foreign exchange and rounding each contributed one percent. Volume, pricing and mix had a neutral impact on sales growth for the quarter. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, were unchanged versus the prior year.
Diluted net earnings per share were $1.26, a decrease of fifteen percent versus the prior year as an increase in net sales was more than offset by an increase in selling, general and administrative costs (SG&A) and a decrease in gross margin. Core net earnings per share decreased three percent to $1.43. Currency-neutral core EPS decreased five percent versus the prior year core EPS.

Operating cash flow was $5.1 billion and net earnings were $3.1 billion, with adjusted free cash flow productivity of 133%.
April-June Quarter Business Discussion
April - June 2026
VolumeForeign ExchangePriceMix
Other (2)
Net SalesOrganic VolumeOrganic Sales
Net Sales Drivers (1)
Beauty3%2%1%—%—%6%3%4%
Grooming(1)%1%1%(1)%1%1%(1)%—%
Health Care(3)%2%2%1%(1)%1%(3)%(1)%
Fabric & Home Care1%—%—%—%—%1%1%—%
Baby, Feminine & Family Care(1)%1%(1)%—%—%(1)%(1)%(2)%
Total P&G—%1%—%—%1%2%—%—%
(1)    Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2)    Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.

•Beauty segment organic sales increased four percent versus year ago. Hair Care organic sales increased mid-single digits driven by volume growth in Asia Pacific and Europe, innovation-driven pricing in Latin America and Asia Pacific and favorable geographic mix. Personal Care organic sales increased mid-single digits driven by volume growth across all regions and higher pricing, primarily in North America, partially offset by unfavorable geographic mix. Skin Care organic sales were unchanged as favorable product mix, led by growth of the super-premium SK-II brand, was offset by a volume decline in Greater China.
•Grooming segment organic sales were unchanged versus year ago as the impacts of innovation-based pricing were offset by the impacts of a volume decline, primarily in IMEA, and unfavorable product mix.
•Health Care segment organic sales decreased one percent versus year ago. Oral Care organic sales decreased mid-single digits driven by a volume decline, led by North America and Greater China. Personal Health Care organic sales increased mid-single digits driven by higher pricing and a volume increase, primarily in North America.
•Fabric and Home Care segment organic sales were unchanged versus year ago. Fabric Care organic sales increased low single digits driven primarily by volume growth, led by Europe, and favorable product mix, partially offset by merchandising investments, primarily in North America. Home Care organic sales decreased low single digits due to volume decline, partially offset by higher pricing, both primarily in North America.
•Baby, Feminine and Family Care segment organic sales decreased two percent versus year ago. Baby Care organic sales increased low single digits driven by volume growth, led by Greater China, and favorable product mix, partially offset by lower pricing. Feminine Care organic sales decreased low single digits driven by a volume decline, primarily in Europe, partially offset by
favorable geographic mix. Family Care organic sales decreased mid-single digits driven by a volume decline, merchandising investments and unfavorable product mix.

Reported gross margin for the quarter decreased 60 basis points versus year ago. Core gross margin for the quarter and currency-neutral Core gross margin were unchanged versus year ago. Core gross margin was unchanged as 160 basis points of productivity savings, 40 basis points of net tariff benefit from recognized recoveries and higher costs, 20 basis points of other miscellaneous items and rounding and 10 basis points of pricing benefit were offset by 120 basis points of unfavorable product mix, 70 basis points of product/package reinvestments and 40 basis points of higher commodity costs.

Reported selling, general and administrative expense (SG&A) as a percentage of sales increased 160 basis points versus the prior year. Core and currency-neutral SG&A as a percentage of sales each increased 130 basis points versus year ago. Core SG&A increased by 410 basis points of reinvestments, primarily in marketing, and 20 basis points of other miscellaneous items and rounding, partially offset by 300 basis points of productivity savings, which includes reductions across marketing and overhead costs.

Reported operating margin for the quarter decreased 220 basis points versus the prior year. Excluding 90 basis points of non-core restructuring charges, core operating margin and currency-neutral core operating margin for the quarter each decreased 130 basis points versus the prior year. Core operating margin included gross productivity savings of 460 basis points.

Focused Portfolio, Supply Chain and Productivity Plan
In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and invest in growth. The Company expects to incur non-core restructuring costs of approximately $1 to $1.6 billion before-tax over a two-year period. The Company incurred over half of the costs under this plan in fiscal 2026, with the remainder expected in fiscal 2027.

Fiscal Year 2027 Guidance
P&G expects fiscal year 2027 all-in sales growth in the range of one to three percent versus the prior year. The Company also expects organic sales growth in the range of one to three percent versus prior year. Included in this organic sales growth guidance is a headwind of 30 to 50 basis points from brand, product form and go-to-market discontinuations.

P&G expects fiscal year 2027 diluted net earnings per share growth in the range of one to five percent versus fiscal 2026 GAAP EPS of $6.62. GAAP EPS includes expected non-core restructuring charges of $0.13 to $0.17 per share. P&G expects its fiscal 2027 core earnings per share growth in the range of in-line to three percent versus fiscal 2026 core EPS of $6.89. This outlook equates to a range of $6.89 to $7.11 per share, with a mid-point estimate of $7.00, or an increase of one and a half percent.

The Company estimates a headwind of approximately $1 billion after-tax driven by higher raw materials, energy and transportation costs, $150 million after-tax from higher net interest expense, $150 million after-tax from lower non-operating income and $50 million after-tax from unfavorable foreign exchange rates. Combined, these impacts equate to a headwind of $0.56 per share for fiscal 2027, or an eight percent drag on core EPS growth.

The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.

P&G expects its core effective tax rate to be approximately 20% in fiscal 2027, in-line with fiscal 2026.

Capital spending is estimated to be in the range of four and a half to five and a half percent of fiscal 2027 net sales.

P&G expects adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal year 2027.


Forward-Looking Statements

Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law.

Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, pricing controls or tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully
manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions.

For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.

About Procter & Gamble
P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.
# # #
P&G Media Contacts:
Wendy Kennedy, 513.780.7212
Holly Stutz Smith, 513.659.9949
P&G Investor Relations Contact:
Keri Cowan, 513.983.2414

Category: PG-IR


THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
Three Months Ended June 30Fiscal Year Ended June 30
20262025% Chg20262025% Chg
NET SALES$21,203 $20,889 2%$87,032 $84,284 3%
Cost of products sold10,920 10,631 3%43,362 41,164 5%
GROSS PROFIT10,283 10,258 —%43,669 43,120 1%
Selling, general and administrative expense6,334 5,903 7%23,922 22,669 6%
OPERATING INCOME3,949 4,355 (9)%19,748 20,451 (3)%
Interest expense(236)(212)11%(877)(907)(3)%
Interest income107 104 3%430 469 (8)%
Other non-operating income/(expense), net112 274 (59)%1,076 154 599%
EARNINGS BEFORE INCOME TAXES3,933 4,521 (13)%20,377 20,167 1%
Income taxes852 895 (5)%4,233 4,102 3%
NET EARNINGS3,081 3,626 (15)%16,144 16,065 —%
Less: Net earnings/(loss) attributable to non controlling interests37 11 236%98 91 8%
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE$3,044 $3,615 (16)%$16,046 $15,974 —%
EFFECTIVE TAX RATE21.7 %19.8 %20.8 %20.3 %
NET EARNINGS PER COMMON SHARE: (1)
Basic$1.28 $1.51 (15)%$6.75 $6.67 1%
Diluted$1.26 $1.48 (15)%$6.62 $6.51 2%
DIVIDENDS PER COMMON SHARE$1.0885 $1.0568 3%$4.2589 $4.0763 4%
Diluted Weighted Average Common Shares Outstanding2,412.7 2,443.8 2,422.5 2,454.4 
COMPARISONS AS A % OF NET SALESBasis Pt ChangeBasis Pt Change
Gross margin48.5%49.1%(60)50.2%51.2%(100)
Selling, general and administrative expense29.9%28.3%16027.5%26.9%60
Operating margin18.6%20.8%(220)22.7%24.3%(160)
Earnings before income taxes18.5%21.6%(310)23.4%23.9%(50)
Net earnings14.5%17.4%(290)18.5%19.1%(60)
Net earnings attributable to Procter & Gamble14.4%17.3%(290)18.4%19.0%(60)
(1)Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding.

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
Three Months Ended June 30, 2026
Net Sales% Change Versus Year AgoEarnings/(Loss) Before Income Taxes% Change Versus Year AgoNet Earnings/(Loss)% Change Versus Year Ago
Beauty$3,975 6 %$588 (17)%$450 (19)%
Grooming1,699 1 %414 (10)%317 (15)%
Health Care2,757 1 %449 (8)%336 (10)%
Fabric & Home Care7,432 1 %1,598 (9)%1,233 (10)%
Baby, Feminine & Family Care5,049 (1)%1,078 (11)%825 (13)%
Corporate292 N/A(194)N/A(80)N/A
TOTAL$21,203 2 %$3,933 (13)%$3,081 (15)%
Three Months Ended June 30, 2026
(Percent Change vs. Year Ago) (1)
Volume with Acquisitions & DivestituresVolume Excluding Acquisitions & DivestituresForeign ExchangePriceMix
Other (2)
Net Sales Growth
Beauty3%3%2%1%—%—%6%
Grooming(1)%(1)%1%1%(1)%1%1%
Health Care(3)%(3)%2%2%1%(1)%1%
Fabric & Home Care1%1%—%—%—%—%1%
Baby, Feminine & Family Care(1)%(1)%1%(1)%—%—%(1)%
TOTAL—%—%1%—%—%1%2%
Fiscal Year Ended June 30, 2026
Net Sales% Change Versus Year AgoEarnings/(Loss) Before Income Taxes% Change Versus Year AgoNet Earnings/(Loss)% Change Versus Year Ago
Beauty$16,0237%$3,4731%$2,672(2)%
Grooming6,9184%1,9661%1,529(3)%
Health Care12,4564%3,163—%2,404(1)%
Fabric & Home Care30,3142%7,290(2)%5,632(4)%
Baby, Feminine & Family Care20,4011%5,145(1)%3,930(2)%
Corporate919N/A(660)N/A(23)N/A
TOTAL$87,0323%$20,3771%$16,144—%
Fiscal Year Ended June 30, 2026
(Percent Change vs. Year Ago) (1)
Volume with Acquisitions & DivestituresVolume Excluding Acquisitions & DivestituresForeign ExchangePriceMix
Other (2)
Net Sales Growth
Beauty4%4%2%1%—%—%7%
Grooming(1)%(1)%3%2%—%—%4%
Health Care(2)%(2)%3%2%1%—%4%
Fabric & Home Care—%—%1%1%—%—%2%
Baby, Feminine & Family Care(1)%(1)%2%—%—%—%1%
TOTAL—%—%2%1%—%—%3%
(1)    Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2)    Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding.

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Statements of Cash Flows
Fiscal Year Ended June 30
20262025
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR$9,556 $9,482 
OPERATING ACTIVITIES (1)
Net earnings16,144 16,065 
Depreciation and amortization3,160 2,847 
Share-based compensation expense524 476 
Deferred income taxes51 149 
(Gain)/loss on sale of assets(351)755 
Change in accounts receivable84 45 
Change in inventories(641)(324)
Change in accounts payable919 (542)
Other(333)(1,653)
TOTAL OPERATING ACTIVITIES19,556 17,817 
INVESTING ACTIVITIES
Capital expenditures(4,409)(3,773)
Proceeds from asset sales508 107 
Acquisitions, net of cash acquired(85)(11)
Other investing activity(638)(141)
TOTAL INVESTING ACTIVITIES(4,624)(3,818)
FINANCING ACTIVITIES
Dividends to shareholders(10,232)(9,872)
Additions to short-term debt with original maturities of more than three months7,941 8,020 
Reductions in short-term debt with original maturities of more than three months(9,984)(6,512)
Net additions/(reductions) to other short-term debt2,674 (1,138)
Additions to long-term debt2,652 2,237 
Reductions of long-term debt(3,390)(1,977)
Treasury stock purchases(5,028)(6,500)
Impact of stock options and other907 1,707 
TOTAL FINANCING ACTIVITIES(14,460)(14,036)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH(86)112 
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH386 75 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR$9,942 $9,556 
(1)Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the previously reported Total Operating Activities.
Amounts in millions of dollars except per share amounts or as otherwise specified. Certain columns and rows may not add due to rounding.

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Condensed Consolidated Balance Sheets
June 30, 2026
June 30, 2025
Cash and cash equivalents$9,942 $9,556 
Accounts receivable6,056 6,185 
Inventories8,170 7,551 
Prepaid expenses and other current assets2,040 2,100 
TOTAL CURRENT ASSETS26,208 25,392 
PROPERTY, PLANT AND EQUIPMENT, NET25,360 23,897 
GOODWILL41,276 41,650 
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET21,444 21,910 
OTHER NONCURRENT ASSETS12,231 12,381 
TOTAL ASSETS$126,521 $125,231 
Accounts payable$16,306 $15,227 
Accrued and other liabilities11,091 11,318 
Debt due within one year11,296 9,513 
TOTAL CURRENT LIABILITIES38,694 36,058 
LONG-TERM DEBT22,842 24,995 
DEFERRED INCOME TAXES5,760 5,774 
OTHER NONCURRENT LIABILITIES4,914 6,120 
TOTAL LIABILITIES72,210 72,946 
TOTAL SHAREHOLDERS’ EQUITY54,311 52,284 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$126,521 $125,231 



The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
The following provides definitions of the non-GAAP measures used in Procter & Gamble's July 29, 2026 earnings release and the reconciliation to the most closely related GAAP measure. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. These measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results. Note that certain columns and rows may not add due to rounding.
The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items:
•Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax. During the period ended September 30, 2024, the Company completed its limited market portfolio restructuring with the substantial liquidation of its operations in Argentina. In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company incurred over half of the costs under this plan in fiscal 2026, with the remainder expected to be incurred in fiscal 2027. The adjustments to Core earnings include the restructuring charges that exceed the normal, recurring level of restructuring charges.
•Glad joint venture agreement: In January 2026, the Glad joint venture agreement between the Company and Clorox expired. Under the terms of the agreement, Clorox purchased the Company’s minority interest in the venture at fair market value for $476 million. This transaction was accounted for as


a dissolution of the Glad joint venture business and the Company recorded an after-tax gain of $261 million.
We do not view the above items to be part of our sustainable results, and their exclusion from core earnings measures provides a more comparable measure of year-on-year results. These items are also excluded when evaluating senior management in determining their at-risk compensation.
Organic sales growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions and divestitures and foreign exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. This measure is used in assessing the achievement of management goals for at-risk compensation.
Core EPS and Currency-neutral Core EPS: Core net earnings per share, or Core EPS, is a measure of diluted net earnings per common share (diluted EPS) adjusted for items as indicated. Currency-neutral Core EPS is a measure of the Company's Core EPS excluding the incremental current year impact of foreign exchange. We view these non-GAAP measures as useful supplemental measures of Company performance over time.
Core gross margin and Currency-neutral Core gross margin: Core gross margin is a measure of the Company's gross margin adjusted for items as indicated. Currency-neutral Core gross margin is a measure of the Company's Core gross margin excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.
Core selling, general and administrative (SG&A) expense as a percentage of sales and Currency-neutral Core SG&A expense as a percentage of sales: Core SG&A expense as a percentage of sales is a measure of the Company's selling, general and administrative expense as a percentage of net sales adjusted for items as indicated. Currency-neutral Core SG&A expense as a percentage of sales is a measure of the Company's Core selling, general and administrative expense as a percentage of net sales excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provides a supplemental perspective to the Company's operating efficiency over time.
Core operating margin and Currency-neutral Core operating margin: Core operating margin is a measure of the Company's operating margin adjusted for items as indicated. Currency-neutral Core operating margin is a measure of the Company's Core operating margin excluding the incremental current year impact of foreign exchange. We believe these non-GAAP measures provide a supplemental perspective to the Company’s operating efficiency over time.


Adjusted free cash flow: Adjusted free cash flow is defined as operating cash flow less capital spending and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act. Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion. We view adjusted free cash flow as an important measure because it is one factor used in determining the amount of cash available for dividends, share repurchases, acquisitions and other discretionary investments.
Adjusted free cash flow productivity: Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings excluding the gain from the dissolution of the Glad joint venture business in fiscal 2026. We view adjusted free cash flow productivity as a useful measure to help investors understand P&G’s ability to generate cash. This measure is used by management in making operating decisions, in allocating financial resources and for budget planning purposes. This measure is also used in assessing the achievement of management goals for at-risk compensation.


THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
Amounts in millions except per share amountsAs Reported (GAAP)Incremental RestructuringCore
(Non-GAAP)
As Reported (GAAP) (1)
Cost of products sold$10,920 $(129)$10,791 $10,631 
Gross profit10,283 129 10,413 10,258 
Gross margin48.5 %0.6 %49.1 %49.1 %
Currency impact to gross margin— %
Currency-neutral gross margin49.1 %
Selling, general and administrative expense6,334 (64)6,270 5,903 
Selling, general and administrative expense as a % of net sales29.9 %(0.3)%29.6 %28.3 %
Currency impact to selling, general and administrative expense as a % of net sales— %
Currency-neutral selling, general and administrative expense as a % of net sales29.6 %
Operating income3,949 193 4,143 4,355 
Operating margin18.6 %0.9 %19.5 %20.8 %
Currency impact to operating margin— %
Currency-neutral operating margin19.5 %
Other non-operating income/(expense), net112 130 242 274 
Income taxes852 (53)798 895 
Net earnings3,081 376 3,458 3,626 
Less: Net earnings attributable to noncontrolling interests37 (19)18 11 
Net earnings attributable to P&G3,044 396 3,440 3,615 
Core EPS
Diluted net earnings per common share (2)
$1.26 $0.16 $1.43 $1.48 
Currency impact to earnings$(0.02)
Currency-neutral EPS$1.41 
Diluted weighted average common shares outstanding2,412.7 2,443.8 
(1)For the three months ended June 30, 2025, there were no adjustments to or reconciling items for Core EPS.
(2)Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
CHANGE VERSUS YEAR AGO
Gross margin(60)BPS
Core gross margin— BPS
Currency-neutral Core gross margin— BPS
Selling, general and administrative expense as a % of net sales160 BPS
Core selling, general and administrative expense as a % of net sales130 BPS
Currency-neutral Core selling, general and administrative as a % of net sales130 BPS
Operating margin(220)BPS
Core operating margin(130)BPS
Currency-neutral Core operating margin(130)BPS
Diluted EPS(15)%
Core EPS(3)%
Currency-neutral Core EPS(5)%





THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
Fiscal Year Ended June 30, 2026
Fiscal Year Ended June 30, 2025
Amounts in millions except per share amountsAs Reported (GAAP)Incremental RestructuringGlad Joint Venture AgreementCore (Non-GAAP)As Reported
(GAAP)		Incremental RestructuringCore (Non-GAAP)
Cost of products sold$43,362 $(436)$— $42,927 $41,164 $20 $41,184 
Gross profit43,669 436 — 44,105 43,120 (20)43,099 
Gross margin50.2 %0.5 %— %50.7 %51.2 %— %51.1 %
Currency impact to Core gross margin0.1 %
Currency-neutral Core gross margin50.8 %
Selling, general and administrative expense23,922 (313)— 23,608 22,669 (25)22,643 
Selling, general and administrative expense as a % of net sales27.5 %(0.4)%— %27.1 %26.9 %— %26.9 %
Currency impact to Core selling, general and administrative expense as a % of net sales— %
Currency-neutral Core selling, general and administrative expense as a % of net sales27.1 %
Operating income19,748 749 — 20,497 20,451 5 20,456 
Operating margin22.7 %0.9 %— %23.6 %24.3 %— %24.3 %
Currency impact to Core operating margin0.1 %
Currency-neutral Core operating margin23.7 %
Other non-operating income/(expense), net1,076 161 (343)894 154 789 943 
Income taxes4,233 6 (81)4,158 4,102 (7)4,094 
Net earnings16,144 904 (261)16,786 16,065 801 16,866 
Less: Net earnings attributable to noncontrolling interests98 1 — 98 91 — 91 
Net earnings attributable to P&G16,046 903 (261)16,688 15,974 801 16,775 
Core EPSCore EPS
Diluted net earnings per common share (1)
$6.62 $0.37 $(0.11)$6.89 $6.51 $0.33 $6.83 
Currency impact to Core EPS$(0.09)
Currency-neutral Core EPS$6.80 
Diluted weighted average common shares outstanding2,422.5 2,454.4 
(1)Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
CHANGE VERSUS YEAR AGO
Gross margin(100)BPS
Core gross margin(40)BPS
Currency-neutral Core gross margin(30)BPS
Selling, general and administrative expense as a % of net sales60 BPS
Core selling, general and administrative expense as a % of net sales20 BPS
Currency-neutral Core selling, general and administrative as a % of net sales20 BPS
Operating margin(160)BPS
Core operating margin(70)BPS
Currency-neutral Core operating margin(60)BPS
Diluted EPS2 %
Core EPS1 %
Currency-neutral Core EPS— %



Organic sales growth:
The reconciliation of reported sales growth to organic sales is as follows:
April - June 2026Net Sales GrowthForeign Exchange Impact
Acquisition & Divestiture Impact/Other (1)
Organic Sales Growth
Beauty6%(2)%—%4%
Grooming1%(1)%—%—%
Health Care1%(2)%—%(1)%
Fabric & Home Care1%—%(1)%—%
Baby, Feminine & Family Care(1)%(1)%—%(2)%
Total Company2%(1)%(1)%—%
(1)Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.

Total CompanyNet Sales GrowthForeign Exchange Impact
Acquisition & Divestiture Impact/Other (1)
Organic Sales Growth
FY 2026
3%(2)%—%1%
(1)Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
Total CompanyNet Sales GrowthCombined Foreign Exchange & Acquisition/Divestiture ImpactOrganic Sales Growth
FY 2027 (Estimate)+1% to +3%—%+1% to +3%
Core EPS growth:
Total CompanyDiluted EPS GrowthImpact of change in Non-Core ItemsCore EPS Growth
FY 2027 (Estimate)+1% to +5%-1% to -2%—% to +3%
Adjusted free cash flow (dollars in millions):
Three Months Ended June 30, 2026
Operating Cash FlowCapital SpendingAdjusted Free Cash Flow
$5,131$(1,023)$4,108

Fiscal Year Ended June 30, 2026
Operating Cash FlowCapital Spending2017 U.S. Tax Act PaymentsAdjusted Free Cash Flow
$19,556$(4,409)$688$15,835
Adjusted free cash flow productivity (dollars in millions):
Three Months Ended June 30, 2026
Adjusted Free Cash FlowNet EarningsAdjusted Free Cash Flow Productivity
$4,108$3,081133%

Fiscal Year Ended June 30, 2026
Adjusted Free Cash FlowNet Earnings
Adjustments to Net Earnings (1)
Net Earnings as AdjustedAdjusted Free Cash Flow Productivity
$15,835$16,144$(261)$15,883100%
(1) Adjustments to Net Earnings relate to the gain from the dissolution of the Glad joint venture business in fiscal 2026.