Procter & Gamble has reported quarterly earnings and revenue ahead of analysts’ expectations, helped by stronger demand for laundry detergent and home care products.
Shares in the consumer goods group rose by more than 2% in pre-market trading after it posted adjusted earnings of $2 a share, against an expected $1.88. Revenue reached $23.3 billion, compared with forecasts of $22.8 billion.
Net sales increased by 4% in the fiscal first quarter. Net income attributable to the company was $4.73 billion, or $1.97 a share, compared with $4.75 billion, or $1.95 a share, a year earlier.
Excluding restructuring costs and other items, Procter & Gamble earned $2 a share.
Home care leads Procter & Gamble growth
The company recorded volume growth of 2.4%, marking a strong start to its new financial year after reporting volume growth in only one quarter of fiscal 2026.
Its fabric and home care division, which includes Tide and Febreze, was the strongest performer. Volumes in the division rose by 4.3% during the quarter.
Baby, feminine and family care, along with the beauty division, both recorded volume growth of more than 2%. Grooming volumes fell by 0.4%, with the division including Gillette and Venus razors.
Healthcare was the weakest part of the business, with volumes down 2.9%. Demand for oral care products such as Crest toothpaste and personal healthcare products including Pepto-Bismol declined.
Procter & Gamble has been responding to more value-conscious shoppers with promotional pricing, new pack sizes and product innovation. Chief financial officer Andre Schulten said the company was still seeing a divided economy, with higher-income consumers trading up to products such as a $30 shampoo while lower-income households were trying to make brands including Tide and Pampers fit their budgets.
Chief executive Shailesh Jejurikar said the company expected continuing “geopolitical and economic challenges”, but remained on track to meet its guidance.
For fiscal 2027, Procter & Gamble maintained its forecast for core earnings per share of between $6.89 and $7.11. It raised its projection for all-in sales growth to between 2% and 4%, from a previous range of 1% to 3%, reflecting the acquisition of supplements brand Thorne, which completed on October 1.
