PG reported a soft second quarter of its fiscal year with reported revenue of $22.208 billion and organic sales tracking roughly flat year-over-year. The quarter was heavily affected by base-period dynamics, including port-strike and pantry-loading effects that primarily weighed on Baby, Feminine, and Family Care as well as Fabric & Home Care in the US. Management emphasized that performance outside the US was a source of resilience, with organic sales up mid-single digits in several regions and 3% growth in Greater China and 8% in Latin America on an organic basis. Core EPS was $1.88, in line with the prior year, with currency-neutral EPS of $1.85, and the company delivered $4.8 billion in cash returned to shareholders (dividends of $2.5 billion and buybacks of $2.3 billion).
The company remains focused on a multi-year reinvention anchored in integrated brand-building, sharper consumer insights, data platforms, and supply-chain improvements. Management signaled a longer-term trajectory toward higher, sustainable growth through investments in Tide EVO, Olay, Pampers/SK-II, and other innovations, supported by a broader data ecosystem and enhanced in-market execution. The FY2026 guidance was reiterated: organic sales growth in line to up 4%, core EPS growth in line to up 4%, and adjusted free cash flow productivity of 85-90% for the year, along with a plan to return roughly $15 billion to shareholders (dividends around $10 billion and buybacks around $5 billion).
Looking ahead, PG expects a meaningful improvement in the second half as base-period headwinds fade and as interventions outside the US are rolled into the US allocation. Management also stressed a 12- to 18-month horizon to evenly distribute the benefits of the reinvention, with a focus on stronger core brands, higher-quality media and retail execution, and value-based propositions that do not rely on price discounts. Investors should monitor progress in the US market recovery, the ramp of Tide EVO and other innovations, regional growth dynamics (notably Greater China and Latin America), and the pace of margin expansion driven by productivity and selective reinvestment.