Executive Summary
The Procter & Gamble Company delivered a robust start to QQ1 2026, with total revenue of $22.386 billion, up 9.0% year over year and 13.2% quarter over quarter, underpinned by a resilient consumer environment and favorable product mix. Gross profit reached $11.499 billion, yielding a gross margin of approximately 51.37%. Operating income of $5.856 billion supports an EBIT margin of ~26.16%, with net income of $4.75 billion and earnings per share (diluted) of $1.95, or $2.00 per basic share, reflecting solid profitability and ongoing capital efficiency.
Key Performance Indicators
Key Insights
Revenue: $22.386B; YoY growth 9.03%, QoQ growth 13.20%; Gross Profit: $11.499B; Gross Margin: 51.37%; Operating Income: $5.856B; Operating Margin: 26.16%; Net Income: $4.75B; Net Margin: 21.22%; EBITDA: $6.992B; Interest & Taxes: Interest expense $0.197B; Income tax expense $1.253B; D&A: $0.761B; EPS (diluted): $1.95; GAAP EPS: $2.00; Weighted avg shares: 2.4368B; Free Cash Flow: $4.208B; Operating Cash Flow: $5.408B; Capital Expenditures: $1.20B; Cash at end of period: $11.171B; Net Deb...
Financial Highlights
Revenue: $22.386B; YoY growth 9.03%, QoQ growth 13.20%; Gross Profit: $11.499B; Gross Margin: 51.37%; Operating Income: $5.856B; Operating Margin: 26.16%; Net Income: $4.75B; Net Margin: 21.22%; EBITDA: $6.992B; Interest & Taxes: Interest expense $0.197B; Income tax expense $1.253B; D&A: $0.761B; EPS (diluted): $1.95; GAAP EPS: $2.00; Weighted avg shares: 2.4368B; Free Cash Flow: $4.208B; Operating Cash Flow: $5.408B; Capital Expenditures: $1.20B; Cash at end of period: $11.171B; Net Debt: $24.775B; Total Debt: $35.946B; Total Liabilities: $74.048B; Total Equity: $53.551B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.39B |
9.03% |
13.20% |
| Gross Profit |
11.50B |
12.91% |
14.05% |
| Operating Income |
5.86B |
50.73% |
28.48% |
| Net Income |
4.75B |
51.42% |
26.03% |
| EPS |
2.00 |
53.85% |
26.58% |
Management Commentary
Note: The earnings call transcript data was not provided in the prompt. The following highlights synthesize the disclosed financial results and common themes typically discussed in Procter & Gamble earnings calls. Expected management focus areas include: (1) sustained pricing discipline and mix shift toward higher-margin categories, (2) ongoing cost discipline and supply chain optimization, (3) investments in brand-building, digital/e-commerce growth, and direct-to-consumer initiatives, (4) capital allocation strategy including dividends and buybacks, and (5) macro considerations such as currency effects and commodity input costs.
Forward Guidance
Explicit management guidance for QQ2/2026 was not provided in the input. Based on the QQ1 2026 performance, the quarterly cadence suggests potential for continued mid-single-digit revenue growth and margin expansion through price realization, mix optimization, and ongoing cost controls. Investors should monitor: (i) currency headwinds and hedging effectiveness, (ii) commodity/input cost trajectory, (iii) promotional intensity and channel mix, (iv) progress in e-commerce and direct-to-consumer initiatives, and (v) share repurchase cadence and dividend sustainability. If these factors remain favorable, the cash flow runway supports continued dividend growth and strategic buybacks.