The Procter & Gamble Company (PG) AI Stock Analysis

The Procter & Gamble Company is a global consumer goods company operating across five core business segments. Its Beauty segment provides skincare, hair care, personal cleansing, and deodorants. The Grooming division offers shave care products and appliances under brands such as Braun, Gillette, and Venus. The Health Care segment delivers oral care alongside personal health products including gastrointestinal, respiratory, diagnostics, vitamins, supplements, and pain relief items. Fabric & Home Care features laundry detergents, fabric enhancers, air care, dish care, and professional cleaning supplies. The Baby, Feminine & Family Care unit produces diapers, baby wipes, feminine care, incontinence products, towels, and tissues. P&G distributes through mass merchandisers, grocery stores, drug stores, specialty beauty outlets, high-frequency stores, and professional channels.

P&G's revenue expanded from $80.19B in FY2022 to $87.03B in FY2026, reflecting a 5-year revenue compound annual growth rate of 2.7%. Revenue growth was 5.3% in FY2022, 2.3% in FY2023, 2.5% in FY2024, 0.3% in FY2025, and 3.3% in FY2026. Gross margin rose from 47.4% in FY2022 to 50.2% in FY2026, while operating margin shifted from 22.2% to 22.7% over the same period. Net income climbed from $14.74B in FY2022 to $16.05B in FY2026, lifting diluted earnings per share from $5.81 to $6.89. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.5% year-over-year, while quarterly earnings declined 15.5%.

As of June 30, 2026, Procter & Gamble held $9.94B in cash and short-term investments against total debt of $35.03B, resulting in net debt of $25.08B. The company closed the fiscal year with shareholders' equity of $54.31B and total assets of $126.52B. Its debt-to-equity ratio was 0.64, and its current ratio stood at 0.68. For FY2026, P&G generated $19.56B in operating cash flow and $15.15B in free cash flow. Capital expenditures totaled $4.41B, while capital returns included $10.23B in dividends paid and $5.03B in share repurchases.

P&G trades at a trailing price-to-earnings multiple of 24.1x, compared to the median of 23.3x for its S&P 500 Consumer Defensive peers. Its forward price-to-earnings ratio of 21.2x sits above the peer median of 15.2x, and its enterprise value to EBITDA ratio is 15.2x versus the peer median of 13.3x. The stock's price-to-sales ratio is 4.3x compared to the sector peer median of 1.6x. Over the past year, P&G shares gained 9.6%, trailing the S&P 500 return of 16.8%. Over five years, the stock achieved a 25.5% return compared to 83.0% for the broader index.

Procter & Gamble has paid dividends for 57 consecutive years. The forward annual dividend is $4.35 per share, representing a dividend yield of 2.73% based on the last close of $159.35. The dividend is distributed quarterly with a payout ratio of 62.7%. Over the past five years, P&G's dividend has expanded at an annualized growth rate of 6.0%.

Wall Street coverage on P&G includes 8 Strong Buy, 5 Buy, and 12 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $161.65, representing a 1.4% premium over the last close of $159.35. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $88.86B and earnings per share of $6.98. Analysts anticipate FY2028 revenue of $91.55B and earnings per share of $7.39. P&G has beaten earnings estimates in all 4 of its last four quarters, with its next earnings report scheduled for October 22, 2026.

This page is an AI-written research summary of The Procter & Gamble Company (PG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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