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Procter & Gamble's 1Q sales offset rising fuel costs. Published on 10/22/2026 at 07:18 am EDT - Modified on 10/22/2026 at 12:08 pm EDT By Katherine Hamilton Procter & Gamble logged higher sales and said it is managing to stay on track despite rising fuel costs. The consumer goods company, which owns Tide detergent and Crest toothpaste, logged profit of $4.73 billion, or $1.97 a share, compared with $4.75 billion, or $1.95 a share, a year earlier. Stripping out certain one-time items, adjusted per-share earnings were $2, ahead of the $1.88 a share anticipated by analysts, according to FactSet. Revenue rose 4% to $23.28 billion in the latest quarter, beating analysts' expectations of $22.80 billion. Higher prices gave a small boost to the company's top line, P&G said. Sales of beauty products, grooming and fabric and home care increased the most. The increase in sales helped buffer results against rising commodity costs, which are climbing due to elevated oil prices. P&G raised its outlook for commodity costs to $1.4 billion after tax, up from the $1 billion projection it gave in July. P&G increased its outlook for all-in sales growth to 2% to 4%, up from its prior guidance range of 1% to 3% growth. The bump reflected the acquisition of Thorne Healthtech, a nutritional supplements company, which closed Oct. 1. The company maintained the rest of its guidance. "While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges," Chief Executive and Chair Shailesh Jejurikar said. Write to Katherine Hamilton at [email protected] Corrections & Amplifications This article was corrected at 12:02 p.m. ET because it incorrectly said Thorne Healthtech is a biometrics company. Procter & Gamble increased its outlook for all-in sales growth to 2% to 4%, up from its prior guidance range of 1% to 3% growth. The bump reflected the acquisition of Thorne Healthtech, a nutritional supplements company, which closed Oct. 1. (END) Dow Jones Newswires 10-22-26 0715ET (C) Dow Jones - 2026

P&G warns of bigger cost hit from oil prices, even as consumer demand holds up. Posted on October 22, 2026 · Last updated: October 22, 2026 P&G faces greater profit hit from oil prices as demand remains strong. P&G's financial performance amid rising costs. By Juveria Tabassum and Alexander Marrow Oct 22 (Reuters) - Procter & Gamble on Thursday warned that rising raw material, energy and freight costs would take a bigger bite out of annual profit, even as resilient demand for its beauty and home-care products drove first-quarter sales. The Tide detergent and Pantene shampoo maker now expects higher costs to reduce fiscal 2027 profit by about $1.4 billion, up from its previous estimate of $1 billion. Pressures from high commodity costs are expected to increase over the next two quarters, CFO Andre Schulten said on a media call. Still, shares of P&G rose about 6% after the company posted better-than-expected first-quarter results. Impact of commodity inflation. Commodity inflation has become a growing concern across industries, from consumer goods giants to airlines, as oil-price volatility following the US war on Iran pushes up fuel and transportation costs. "P&G's results suggest the consumer is holding up better than feared," said Brian Jacobsen, chief economic strategist at Annex Wealth Management, which holds P&G shares. Consumer spending and company forecasts. The company's results offer a gauge of the resilience of US consumer spending as higher fuel and food costs squeeze household budgets and push shoppers towards cheaper alternatives. P&G also maintained its annual forecasts for organic sales growth of 1% to 3% and core earnings of roughly $7 per share. Schulten pointed to rising gasoline prices, continued volatility in the Middle East and inventory shifts as reasons for caution, saying the company did not want to "get ahead of ourselves." He said 3% growth would be "healthy" in the current environment. Pricing strategies and consumer pressure. The company's ability to raise prices to counter higher costs, however, could be crimped by the pressure on consumers already burdened by higher fuel costs, Jacobsen said. Higher costs squeeze margins. P&G's core operating margin fell 80 basis points in the quarter ended September 30 despite 250 basis points of productivity savings, including efforts to streamline its supply chain under new CEO Shailesh Jejurikar. Progress will not be a "straight line," and volatility will remain a mid-term reality, CFO Schulten said on a post-earnings call. Higher fuel prices have pushed up transportation and freight costs for packaged-goods companies, while a shortage of truck drivers on some routes has added pressure, a P&G spokesperson told Reuters. US retail diesel prices hit a record $6 a gallon in September following the US war in Iran and have remained elevated. P&G was trying to raise prices alongside product innovation, without jeopardizing top-line growth, Schulten said, adding that the industry was pricing up because there was no way to recover the level of commodity pressures. Resilient demand lifts volumes. First-quarter net sales rose 4% to $23.28 billion, beating analysts' estimates of $22.80 billion, according to data compiled by LSEG. Volumes increased in P&G's beauty business, helped by demand for higher-priced hair-care products as consumers continued to spend on self-care despite pressure on household budgets from higher fuel and food costs. Volumes in its home care business, which houses brands such as Tide and Ariel, rose 4.3% Overall volumes rose 2.4%, while prices increased about 0.4% in the three months through September. Swiss packaged-goods maker Nestle also topped estimates for organic sales growth on Thursday, helped by stronger volumes. P&G's first-quarter core earnings of $2 per share beat estimates of $1.88. (Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Anil D'Silva) Key takeaways. * P&G raised its fiscal 2027 profit impact estimate from $1 billion to $1.4 billion amid rising commodity, energy and transportation costs (srnnews.com). * First-quarter net sales grew 4% to $23.28 billion, beating analysts' $22.80 billion estimate, with volume gains in beauty and home-care categories (srnnews.com). * U.S. retail diesel prices hit new record highs - above $6 per gallon in September - adding to P&G's freight and logistics cost pressures (srnnews.com). References. Frequently asked questions. How much profit hit does P&G expect from higher oil prices? What are the main factors contributing to P&G's increased costs? How did P&G's first-quarter sales perform? Is consumer demand for P&G products holding up despite higher costs? How is P&G responding to increased cost pressures?

P&G warns of bigger profit hit from rising commodity, freight costs. By Thomson Reuters Oct 22, 2026 | 7:03 AM By Juveria Tabassum and Alexander Marrow Oct 22 (Reuters) - Procter & Gamble on Thursday warned that rising raw material, energy and freight costs would take a bigger bite out of annual profit, even as resilient demand for its beauty and home-care products helped first-quarter sales beat estimates. The Tide detergent and Pantene shampoo maker now expects those costs to reduce fiscal 2027 profit by about $1.4 billion, up from its previous estimate of $1 billion. Pressures from high commodity costs are expected to increase over the next two quarters, P&G CFO Andre Schulten said on a call with the media. P&G's results offer an early test of whether resilient US consumer spending can withstand another bout of inflation, as higher fuel and food costs squeeze household budgets and push shoppers towards cheaper alternatives. Commodity inflation has emerged as a growing concern across industries, from consumer goods giants to airlines, as volatility in oil prices following the US war on Iran drives up fuel and transportation costs. While P&G topped quarterly estimates, it maintained its fiscal 2027 forecasts for organic sales growth of 1% to 3% and core earnings of roughly $7 per share. "That is really a reflection of rising commodity prices in most companies, inability to continue to pass along increased input costs, which will likely cut into margins," said Art Hogan, chief market strategist at B. Riley Wealth. HIGHER COSTS SQUEEZE MARGINS P&G's core operating margin fell 80 basis points in the quarter ended September 30 despite 250 basis points of productivity savings, including efforts to streamline its supply chain under new CEO Shailesh Jejurikar. Higher fuel prices have pushed up transportation and freight costs for packaged-goods companies, while a shortage of truck drivers on some routes has added to the pressure, a P&G spokesperson told Reuters. US retail diesel prices hit a record $6 a gallon in September following the U.S. war in Iran and have remained elevated. P&G is negotiating with suppliers and optimizing transportation routes to contain costs while continuing to invest in product innovation, the spokesperson said. VOLUMES HOLD STEADY First-quarter net sales rose 4% to $23.28 billion, beating analysts' estimates of $22.80 billion, according to data compiled by LSEG. Its shares rose about 2% in premarket trading. Volumes increased in P&G's beauty business, helped by demand for higher-priced hair-care products as consumers continued to spend on self-care despite pressure on household budgets from higher fuel and food costs. Overall volumes rose 2.4%, while prices increased about 0.4% in the three months through September. Swiss packaged-goods maker Nestle also topped estimates for organic sales growth on Thursday, helped by stronger volumes. The company reported first-quarter core earnings of $2 per share, above analysts' estimate of $1.88. In August, P&G said it would buy supplements maker Thorne as it sought to tap growing demand for health and wellness products. (Reporting by Juveria Tabassum in Bengaluru and Alexander Marrow in London; Editing by Anil D'Silva)