Procter & Gamble posts flat organic sales in second quarter, keeps full-year outlook
Published: 09:37 22 Jan 2026 EST
Procter & Gamble Co (NYSE:PG, XETRA:PRG) on Thursday reported flat organic sales for its fiscal second quarter, missing market expectations, as price increases were offset by lower volumes while higher restructuring charges weighed on year-on-year earnings growth.
The consumer goods maker said organic sales were unchanged in the quarter, compared with analyst expectations for modest growth. Net sales rose 1% from a year earlier to $22.2 billion, while core earnings per share came in at $1.88, slightly above expectations and flat from a year earlier.
Gross margin for the quarter was 51.2%.
Pricing contributed a 1% lift to sales during the period, but this was offset by a 1% decline in unit volumes, with product mix having a neutral impact, the company said.
P&G said earnings declined on a reported basis primarily due to higher restructuring charges, while tariffs were cited as a cost headwind during the quarter.
The company maintained its fiscal 2026 guidance, forecasting organic sales growth of between 0% and 4% and core earnings per share in the range of $6.83 to $7.09. However, it lowered its outlook for diluted earnings growth to a range of 1% to 6%, from a previous forecast of 3% to 9%, reflecting higher expected restructuring costs.
Operating cash flow for the quarter was $5 billion, while adjusted free cash flow productivity stood at 88%.
Analysts at Jefferies said results were broadly in line, noting that growth in Beauty and Healthcare helped offset weaker performance in Grooming and Baby, Feminine and Family Care. Jefferies added that the company’s reiterated guidance suggests an acceleration in sales and earnings growth in the second half of the fiscal year.
Shares of P&G opened 2.3% higher on Thursday morning.
