Procter & Gamble (P&G) delivered mixed results for its latest quarter, revealing a decline in demand for some of its key products, such as Gillette razors and Pampers diapers. On Thursday, the consumer goods giant adjusted its earnings outlook for fiscal 2026, predicting net earnings per share growth between 1% and 6%, a downgrade from the prior forecast of 3% to 9%. The company attributed this revision to increased restructuring charges but maintained its projections for overall sales growth. Following the announcement, P&G shares dipped approximately 1% in premarket trading.
In its fiscal second-quarter report, P&G posted a net income attributable to the company of $4.32 billion, translating to $1.78 per share. This figure is down from the previous year’s $4.63 billion, or $1.88 per share. Adjusted earnings, excluding one-time restructuring costs, stood at $1.88 per share, slightly surpassing analysts’ expectations of $1.86. However, revenue fell short of projections, coming in at $22.21 billion against an anticipated $22.28 billion.
The company’s sales figures reflect a broader trend, with net sales rising just 1% year-over-year. Organic sales, which strip out the effects of foreign currency, acquisitions, and divestitures, were flat for the quarter. Volume across P&G’s product categories fell by 1%, indicating a decline in consumer demand, especially as inflation continues to pressure household budgets.
Particularly hard-hit was P&G’s baby, feminine, and family care segment, which saw a significant 5% drop in volume. The company noted that demand for family care products such as Bounty paper towels, Puffs tissues, and Charmin toilet paper declined notably, partly due to challenging comparisons with the previous year. In the grooming division, which includes Gillette and Venus razors, volume decreased by 2%.
Additionally, the healthcare segment, featuring brands like Oral-B, Vicks, and Pepto-Bismol, experienced a volume decline of 1%. P&G’s fabric and home care division, which encompasses well-known brands such as Febreze and Tide, reported stable volumes, mirroring the previous year’s performance.
In a rare point of growth, P&G’s beauty segment was the standout performer, recording a 3% increase in volume, driven largely by heightened demand for hair care products. This trend reflects a possible shift in consumer behavior as individuals adjust their spending priorities amidst economic uncertainty.
As inflation-weary consumers remain cautious, P&G continues to navigate a challenging retail environment. The company’s mixed quarterly results serve as a reminder of the fluctuating dynamics in consumer goods, highlighting both the pressures faced and the opportunities available within various market segments. With its sights set on adapting to these changes, P&G remains focused on delivering value to its shareholders while striving to meet evolving consumer needs.
Original Source: https://www.cnbc.com/2026/01/22/procter-gamble-pg-q2-2026-earnings.html
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Publish Date: 2026-01-22 18:11:00
