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Procter & Gamble Pre-Q1 Earnings: Is It Wise to Buy the Stock Now?
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Key Takeaways
Procter & Gamble's Q1 sales are projected to rise 1.4% to $22.7B, while EPS is expected to fall 5%.
Higher input costs and inflation may weigh on PG's Q1 gross margin, projected to contract 120 bps to 50.3%.
PG shares have gained 9.2% YTD, but a 22.02X forward P/E and slowing earnings raise valuation concerns.
The Procter & Gamble Company (PG - Free Report) , also known as P&G, is set to report first-quarter fiscal 2027 results on Oct. 22, before the opening bell. The company is expected to have witnessed year-over-year sales growth in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $22.7 billion, indicating a 1.4% rise from the prior-year quarter’s reported figure. The consensus mark for PG’s earnings is pegged at $1.89 per share, indicating a decline of 5% from the year-ago quarter’s actual. The consensus mark for earnings has been unchanged in the past 30 days.
PG has a trailing four-quarter earnings surprise of 2.2%, on average. The company delivered an earnings surprise of 1.4% in the fourth quarter of fiscal 2026.
Procter & Gamble Company (The) Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Procter & Gamble currently has an Earnings ESP of -0.46% and a Zacks Rank #3.
Key Trends to Watch Ahead of PG's Q1 Earnings
Procter & Gamble’s first-quarter fiscal 2027 results are expected to reflect persistent input cost inflation, cautious consumer spending and ongoing investments in product innovation and brand-building initiatives. Higher raw material, energy and transportation expenses, alongside supply-chain-related surcharges, are likely to have weighed on profitability.
On the last reported quarter’s earnings call, management anticipated these cost pressures to be concentrated in the first half of fiscal 2027, projecting a decline of 5% or more in fiscal first-quarter core earnings per share.
We expect the core cost of products sold to increase 4.1% year over year in first-quarter fiscal 2027. Our model predicts the core gross margin to contract 120 bps year over year to 50.3%.
On the revenue front, Procter & Gamble is likely to have benefited from improving consumption trends, targeted pricing interventions and innovation-led demand. Momentum in Greater China, particularly across Baby Care, Beauty and Fabric Care, alongside sustained growth in enterprise markets, is expected to have supported organic sales. However, sluggish category growth in North America and Europe, heightened promotional activity and retailer inventory fluctuations may have constrained the overall sales performance.
Our model predicts year-over-year organic sales growth of 0.5% for PG in the fiscal first quarter. Our model estimates organic sales growth of 4% for Beauty and 1% for the Fabric & Home Care segment, with flat organic sales for the Grooming segment. However, organic sales for the Health Care, and Baby, Feminine & Family Care segments are expected to decline 1% and 2%, respectively, in the fiscal first quarter.
The company’s integrated strategy, built on innovation, market expansion and productivity, has enabled it to adapt to shifting consumer dynamics and maintain competitiveness.
Procter & Gamble's focus on strengthening core brands, expanding premium offerings and improving consumer value propositions is expected to have aided market-share recovery. Innovations such as Tide evo and upgraded Tide liquid formulations, coupled with productivity savings and disciplined marketing investments, may have provided some support to operating performance despite elevated costs.
Procter & Gamble’s Price Performance & Valuation
PG shares have gained 9.2% in the year-to-date period compared with the industry and Consumer Staples sector’s growth of 3.8% and 7.8%, respectively. However, the stock has underperformed the S&P 500’s return of 13.8%.
PG’s YTD Performance
Image Source: Zacks Investment Research
From the valuation standpoint, Procter & Gamble is trading at a forward 12-month P/E multiple of 22.02X, exceeding the industry and the S&P 500’s average of 18.93X and 19.81X, respectively. PG’s valuation appears pricey relative to the industry.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
e.l.f. Beauty (ELF - Free Report) currently has an Earnings ESP of +6.10% and sports a Zacks Rank #1. The company is likely to register growth in the top line when it reports second-quarter fiscal 2027 numbers. The consensus mark for revenues is pegged at $469.2 million, which indicates a rise of 36.4% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ELF’s quarterly earnings per share of 59 cents implies a decline of 13.2% from the year-ago quarter’s actual. The consensus mark has moved down 3.3% in the past 30 days. ELF has a trailing four-quarter earnings surprise of 61.5%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +32.92% and a Zacks Rank #2. The company is likely to register growth in the bottom line when it reports third-quarter 2026 numbers. The consensus mark for revenues is pegged at $117.4 million, which indicates a decline of 1.2% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Purple Innovation’s quarterly loss per share of $1.07 implies an improvement from a loss per share of $2.00 incurred in the year-ago quarter. The consensus mark for loss per share has narrowed in the past 30 days. PRPL has a trailing four-quarter earnings surprise of 21.3%, on average.
Archer Daniels Midland Company (ADM - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank #3. The company is likely to register growth in the top and bottom lines when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for ADM’s quarterly EPS is pegged at $1.44, up 56.5% from the year-ago period. The consensus mark for EPS has moved up 3.6% in the past seven days.
The consensus estimate for ADM’s quarterly revenues is pegged at $22.7 billion, which implies growth of 11.3% from the prior-year quarter’s actual. Archer Daniels has a trailing four-quarter earnings surprise of 11.3%, on average.
View the Zacks #1 Rank List
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Procter & Gamble Pre-Q1 Earnings: Is It Wise to Buy the Stock Now?
Key Takeaways
The Procter & Gamble Company (PG - Free Report) , also known as P&G, is set to report first-quarter fiscal 2027 results on Oct. 22, before the opening bell. The company is expected to have witnessed year-over-year sales growth in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $22.7 billion, indicating a 1.4% rise from the prior-year quarter’s reported figure. The consensus mark for PG’s earnings is pegged at $1.89 per share, indicating a decline of 5% from the year-ago quarter’s actual. The consensus mark for earnings has been unchanged in the past 30 days.
PG has a trailing four-quarter earnings surprise of 2.2%, on average. The company delivered an earnings surprise of 1.4% in the fourth quarter of fiscal 2026.
Procter & Gamble Company (The) Price and EPS Surprise
Procter & Gamble Company (The) price-eps-surprise | Procter & Gamble Company (The) Quote
PG’s Q1 Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Procter & Gamble currently has an Earnings ESP of -0.46% and a Zacks Rank #3.
Key Trends to Watch Ahead of PG's Q1 Earnings
Procter & Gamble’s first-quarter fiscal 2027 results are expected to reflect persistent input cost inflation, cautious consumer spending and ongoing investments in product innovation and brand-building initiatives. Higher raw material, energy and transportation expenses, alongside supply-chain-related surcharges, are likely to have weighed on profitability.
On the last reported quarter’s earnings call, management anticipated these cost pressures to be concentrated in the first half of fiscal 2027, projecting a decline of 5% or more in fiscal first-quarter core earnings per share.
We expect the core cost of products sold to increase 4.1% year over year in first-quarter fiscal 2027. Our model predicts the core gross margin to contract 120 bps year over year to 50.3%.
On the revenue front, Procter & Gamble is likely to have benefited from improving consumption trends, targeted pricing interventions and innovation-led demand. Momentum in Greater China, particularly across Baby Care, Beauty and Fabric Care, alongside sustained growth in enterprise markets, is expected to have supported organic sales. However, sluggish category growth in North America and Europe, heightened promotional activity and retailer inventory fluctuations may have constrained the overall sales performance.
Our model predicts year-over-year organic sales growth of 0.5% for PG in the fiscal first quarter. Our model estimates organic sales growth of 4% for Beauty and 1% for the Fabric & Home Care segment, with flat organic sales for the Grooming segment. However, organic sales for the Health Care, and Baby, Feminine & Family Care segments are expected to decline 1% and 2%, respectively, in the fiscal first quarter.
The company’s integrated strategy, built on innovation, market expansion and productivity, has enabled it to adapt to shifting consumer dynamics and maintain competitiveness.
Procter & Gamble's focus on strengthening core brands, expanding premium offerings and improving consumer value propositions is expected to have aided market-share recovery. Innovations such as Tide evo and upgraded Tide liquid formulations, coupled with productivity savings and disciplined marketing investments, may have provided some support to operating performance despite elevated costs.
Procter & Gamble’s Price Performance & Valuation
PG shares have gained 9.2% in the year-to-date period compared with the industry and Consumer Staples sector’s growth of 3.8% and 7.8%, respectively. However, the stock has underperformed the S&P 500’s return of 13.8%.
PG’s YTD Performance
Image Source: Zacks Investment Research
From the valuation standpoint, Procter & Gamble is trading at a forward 12-month P/E multiple of 22.02X, exceeding the industry and the S&P 500’s average of 18.93X and 19.81X, respectively. PG’s valuation appears pricey relative to the industry.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
e.l.f. Beauty (ELF - Free Report) currently has an Earnings ESP of +6.10% and sports a Zacks Rank #1. The company is likely to register growth in the top line when it reports second-quarter fiscal 2027 numbers. The consensus mark for revenues is pegged at $469.2 million, which indicates a rise of 36.4% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ELF’s quarterly earnings per share of 59 cents implies a decline of 13.2% from the year-ago quarter’s actual. The consensus mark has moved down 3.3% in the past 30 days. ELF has a trailing four-quarter earnings surprise of 61.5%, on average.
Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +32.92% and a Zacks Rank #2. The company is likely to register growth in the bottom line when it reports third-quarter 2026 numbers. The consensus mark for revenues is pegged at $117.4 million, which indicates a decline of 1.2% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Purple Innovation’s quarterly loss per share of $1.07 implies an improvement from a loss per share of $2.00 incurred in the year-ago quarter. The consensus mark for loss per share has narrowed in the past 30 days. PRPL has a trailing four-quarter earnings surprise of 21.3%, on average.
Archer Daniels Midland Company (ADM - Free Report) currently has an Earnings ESP of +18.48% and a Zacks Rank #3. The company is likely to register growth in the top and bottom lines when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for ADM’s quarterly EPS is pegged at $1.44, up 56.5% from the year-ago period. The consensus mark for EPS has moved up 3.6% in the past seven days.
The consensus estimate for ADM’s quarterly revenues is pegged at $22.7 billion, which implies growth of 11.3% from the prior-year quarter’s actual. Archer Daniels has a trailing four-quarter earnings surprise of 11.3%, on average.