Procter & Gamble beats earnings estimates as quarterly sales rise 4%

Procter & Gamble reported a 4% rise in fiscal first-quarter sales on October 22, beating analysts’ revenue and earnings estimates as demand grew for its fabric and home care products. The company also raised its fiscal 2027 sales growth forecast to reflect an acquisition completed after the quarter ended.

Net sales were $23.3 billion for the three months ended September 30, up from $22.4 billion a year earlier, P&G said. Organic sales, which exclude the effects of acquisitions, divestitures and currency movements, rose 4%. CNBC reported that analysts surveyed by LSEG had expected revenue of $22.8 billion and adjusted earnings of $1.88 a share.

Fabric and home care led volume growth

Company-wide sales volume rose 2.4%, according to P&G. Fabric and home care posted a 4.3% volume increase, the strongest among its reported segments. CNBC attributed the segment’s strength to demand for laundry detergent and fabric enhancers. P&G said fabric care and home care each recorded mid-single-digit organic sales growth, with volume increases in North America and Europe.

The gains were uneven across P&G’s businesses. Volume rose 2.3% in baby, feminine and family care and 2.2% in beauty, but fell 0.4% in grooming and 2.9% in health care, the company reported. CNBC identified weaker demand for oral and personal health products as part of the health care decline.

Thorne acquisition lifts sales forecast

P&G raised its forecast for total fiscal 2027 sales growth to 2%–4%, from 1%–3%, to reflect its acquisition of supplements brand Thorne, which closed October 1. Because the deal closed after the first quarter, the higher full-year range reflects the acquisition rather than a change to the quarter’s reported sales. P&G kept its organic sales growth forecast at 1%–3% and its core earnings-per-share growth forecast at 0%–3%.

Chief Executive Shailesh Jejurikar said the first-quarter performance kept P&G on track to meet its guidance ranges for organic sales, core earnings and free cash flow productivity. He also said the company expected continued geopolitical and economic challenges. The distinction between total and organic sales matters for the outlook: the acquisition lifts the former forecast, while P&G’s forecast for growth in its existing business remains unchanged.