Procter & Gamble Q1 2027 earnings: profit beats estimates as sales growth shifts from pricing to volume
P&G's Q1 2027 profit topped forecasts and sales grew 4%, but revenue landed just under estimates as the company leaned more on volume than price increases.
| Q1 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $2.00 | $1.94 | +3.1% |
| Revenue | $23.28B | $23.48B | -0.9% |
Key takeaways
- Adjusted profit per share came in at $2.00, ahead of the $1.94 Wall Street expected, while sales rose 4% from a year earlier to $23.3 billion — a hair below the roughly $23.5 billion analysts had forecast. So profit beat expectations even though sales growth landed just short of them.
- Most of the sales increase came from selling more stuff rather than charging more for it: volume added 2.4 points of growth and a shift toward pricier products (mix) added another 1.1 points, while straight price increases contributed only 0.4 points — a reversal from the tariff-driven price hikes P&G leaned on over the past couple of years.
- Stripping out currency effects, adjusted earnings per share was $1.99, essentially flat with a year ago — meaning a weaker dollar, not better underlying business performance, accounted for most of the reported profit growth this quarter.
- The trailing-twelve-month net profit margin of roughly 18% and return on equity near 30% point to a business that still converts a large share of sales into profit and cash, even as management flagged that cost pressures from tariffs and raw materials are expected to get heavier in the coming quarters.
- P&G tweaked its full-year sales guidance to reflect its recent purchase of supplement maker Thorne, but left its full-year targets for organic sales growth, profit growth and cash returned to shareholders unchanged from the outlook it gave in late July.
- CEO Shailesh Jejurikar said the quarter keeps the company on track to hit its full-year goals, while acknowledging that geopolitical and economic volatility — including tariffs and commodity costs — remains a headwind the company is managing through pricing and cost discipline.
- The report is the first full quarter under P&G’s new leadership structure, with Jejurikar having taken over as CEO and later chairman during 2026 after predecessor Jon Moeller’s transition to executive chairman and eventual retirement.
How the stock took it
Procter & Gamble Co closed at $156.84 on Oct 21, 2026, the last session before the report, and at $161.02 on Oct 23, 2026, the first session after it — +2.7% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 50.9% | Trailing 12 months |
| Operating margin | 22.9% | Trailing 12 months |
| Net profit margin | 18.4% | Trailing 12 months |
| Pretax margin | 23.4% | Trailing 12 months |
| EPS | $6.62 | Trailing 12 months |
| Revenue growth (YoY) | 3.3% | Trailing 12 months |
| EPS growth (YoY) | 1.7% | Trailing 12 months |
| Return on equity | 29.8% | Trailing 12 months |
Sources: company report