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what it is
P&G sells everyday essentials like diapers, detergent, shampoo, and toothpaste to households around the world.
how it gets paid
Last year Procter & Gamble made $84.3B in revenue. Fabric/Home Care was the main engine at $30.3B, or 36% of sales.
why it's growing
Revenue grew 0.3% last year. The $1.88 EPS print mattered because it missed the $1.95 consensus by $0.07.
what just happened
P&G posted $1.88 EPS, missing Yahoo's $1.95 bar even though some coverage had $1.86.
At a glance
A++ balance sheet — fortress balance sheet — as safe as it gets
100/100 earnings predictability — you can trust these numbers
23.9x trailing p/e — priced about right
2.6% dividend yield — cash in your pocket every quarter
20.0% return on capital — nothing to write home about
xvary composite: 84/100 — above average
What they do
P&G sells everyday essentials like diapers, detergent, shampoo, and toothpaste to households around the world.
P&G has five big buckets: Fabric/Home Care at 36% of sales and Baby/Feminine/Family Care at 24%. That means your Tide and Pampers habit keeps sending cash back to Cincinnati. The punchline is 100 earnings predictability and a 0.65 beta, so this stock acts calmer than the market.
How they make money
$84.3B
annual revenue · their business grew +0.3% last year
Fabric/Home Care
$30.3B
Baby/Feminine/Family Care
$20.2B
Beauty
$15.2B
Health Care
$11.8B
Grooming
$6.8B
The products that matter
laundry and home cleaning
Fabric & Home Care
$16.1B · 36% of sales
it is the biggest segment at $16.1B, or 36% of company sales. when investors call PG a staples stock, this is what they mean.
36% of sales
diapers and paper products
Baby, Feminine & Family Care
$10.7B · 24% of sales
this $10.7B segment contributes 24% of revenue. diapers and tissue are not optional purchases, which is why this bucket matters in a slowdown.
defensive demand
hair and skin care
Beauty
$8.0B · 18% of sales
Beauty is an $8.0B business, or 18% of sales. it is also one of the first places shoppers can trade down if the consumer gets tight.
watch the consumer
Key numbers
23.9x
trailing p/e
You are paying 23.9 times trailing earnings for a business with 100 earnings predictability. That is the price of sleep.
2.6%
dividend yield
The dividend pays 2.6% while you wait. Cash is still cash, even when the stock is pricey.
20.0%
return on capital
P&G earns 20 cents for each dollar tied up in the business. That is why it can fund brands and buybacks without drama.
$84.3B
annual revenue
That is the size of the machine. A 1% swing means about $843M.
Financial health
A++
strength
- balance sheet grade A++ — the absolute highest — fortress balance sheet
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- long-term debt $25.6B (6% of capital)
- net profit margin 19.2% — keeps 19 cents of every dollar in revenue
- return on equity 26% — $0.26 profit for every $1 investors have put in
A++ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in PG 3 years ago → it's now worth $12,610.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
P&G posted $1.88 EPS, missing Yahoo's $1.95 bar even though some coverage had $1.86.
Revenue sat at $22.4B and gross margin was 51.9%. That is steady, not hot, and the EPS miss was the part investors noticed.
$22.4B
revenue
$1.88
eps
51.9%
gross margin
the number that mattered
The $1.88 EPS print mattered because it missed the $1.95 consensus by $0.07, or 3.6%.
-
earnings came in at $1.88 a share, matching the year-ago figure.
-
sales, excluding foreign currency effects and the impact of portfolio adjustments, also held steady during the december period, as pricing initiatives countered the negative impact of lower sales volume, and total sales increased 1%.the household goods giant will probably experience rising geopolitical tensions, the challenging consumer backdrop, and higher incremental tariff expenses in the coming months. however, management’s ongoing business improvements should aid results in the back half of the year.
-
in all, we look for sales and earnings per share to advance 3% and 2%, respectively, in fiscal 2026.
-
looking out to next year, the top and bottom lines ought to expand at a low-single-digit clip.
-
strategic business improvements should augur well for p&g’s long-term growth prospects.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is private-label trade-down in household staples. PG can usually raise prices. the problem starts when shoppers decide store brands are good enough.
med
private-label trade-down
PG sells branded staples at a premium. if consumers get stretched, some of that pricing power leaks to cheaper alternatives.
Beauty is an $8.0B segment and one of the cleaner places to watch for softer discretionary behavior inside a $44.6B revenue base.
med
tariffs and input-cost inflation
management already flagged higher incremental tariff expenses. detergents, paper goods, and packaged consumer products do not make their own commodity pressures vanish.
an 18.7% net margin gives PG room, but the street is only looking for 2% EPS growth in fiscal 2026. there is not much slack there.
med
premium valuation for slow growth
23.9x trailing earnings is a healthy multiple for a company expected to grow sales 3% and EPS 2% next year.
if that low-single-digit plan slips, the stock can still stay safe and go nowhere. those are different things.
the combined risk is not existential. it is slower growth, tighter margins, and a premium multiple that leaves less room for disappointment than the company’s defensive image suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
whether 3% sales growth actually shows up
that is the fiscal 2026 sales expectation in the analyst note. if PG misses a low bar, valuation becomes the story.
trend
price versus volume
recent commentary says pricing offset lower volume. that works for a while. you want to see both moving in the same direction eventually.
risk
tariff cost creep
management already flagged higher tariff expense. with EPS expected up just 2%, even small cost pressure matters.
next check-in
institutional flow
three straight quarters of net selling is not a thesis by itself, but it tells you big money is not rushing to buy this safety trade here.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a steady stock, not a short-term trade.
risk profile
safest 5%
stability score 1 — lower drawdown risk than almost any stock in the market.
chart momentum
bottom 5%
technical score 5 — the business is stable, but the tape is not helping you right now.
earnings predictability
100 / 100
few companies score perfect here. the quiet part: PG is boring in exactly the way income investors usually like.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 1,416 buyers vs. 1,756 sellers in 4q2025. total institutional holdings: 1.6B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$141
$215
$164
current price
$178
target midpoint · +9% from current · 3-5yr high: $230 (+40% · 11% ann'l return)
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