Procter & Gamble beats Q1 forecasts as sales rise 4% and earnings hit $2.00 per share

Procter & Gamble posted Q1 net sales of $23.3 billion, a 4% increase from the prior year, and core earnings per share of $2.00, outpacing forecasts of $22.8 billion and $1.88 respectively. The shares rose over 2% ahead of the opening bell, and diluted EPS was $1.97 versus $1.95 a year earlier. Net earnings were $4.73 billion, slightly below the previous $4.75 billion.

Organic sales rose 4% thanks to a 2% volume gain and a 1% mix benefit, with Fabric & Home Care volume up 4.3% while Health Care and Grooming fell. Core gross margin slipped 150 basis points due to higher commodity costs and product reinvestments, partially offset by productivity savings. The firm reaffirmed its fiscal-2027 sales growth outlook of 2%-4% after acquiring Thorne, kept its organic growth target of 1%-3%, and expects commodity costs to weigh on earnings. Operating cash flow reached $5.8 billion, and $3.9 billion was returned to shareholders through dividends and share repurchases.