Abstract
Procter & Gamble will report fiscal second-quarter results on January 22, 2026, Pre-Market, with consensus pointing to modest year-over-year growth in revenue and adjusted EPS and investors focused on the durability of price-mix and margin resilience into the new calendar year.Market Forecast
Consensus forecasts captured in the finance data point to fiscal second-quarter revenue of $22.58 billion, up 4.83% year over year, adjusted EPS of $1.94, up 4.29% year over year, and EBIT of $5.67 billion, down 1.50% year over year; forecasts for gross margin or net margin were not provided. Main business highlights center on sustaining price-mix and stabilizing volume in Fabric & Home Care, while balancing brand investment and promotional intensity.The most closely watched segment remains Fabric & Home Care, supported by last quarter’s revenue contribution of $7.79 billion; within the backdrop of total company revenue growing 2.99% year over year in the prior quarter, investors will look for volume normalization alongside maintaining price architecture and innovation slate.
Last Quarter Review
Procter & Gamble delivered fiscal first-quarter revenue of $22.39 billion, gross margin of 51.81%, GAAP net profit attributable to shareholders of $4.75 billion, net profit margin of 21.22%, and adjusted EPS of $1.99, up 3.11% year over year, with total company revenue up 2.99% year over year.A notable highlight was GAAP net profit rising 31.40% quarter over quarter, reflecting margin leverage and operational discipline. Main business momentum was anchored by Fabric & Home Care’s $7.79 billion contribution, with total revenue up 2.99% year over year, while Baby, Feminine & Family Care contributed $5.17 billion, Beauty contributed $4.14 billion, Health Care contributed $3.22 billion, Grooming contributed $1.82 billion, and Corporate contributed $242.00 million.
Current Quarter Outlook
Main Business: Fabric & Home Care
Fabric & Home Care is the largest revenue contributor and the core earnings engine, with last quarter revenue of $7.79 billion. Into fiscal second quarter, market expectations revolve around sustaining price and mix benefits achieved over the past year while progressively stabilizing volume. With gross margin at 51.81% last quarter and net margin at 21.22%, investors will watch whether the strong margin profile can be maintained as promotional intensity typically fluctuates through the winter season. A key swing factor will be the balance between reinvestment in brands and preserving operating margin, especially given the forecast for EBIT to decline 1.50% year over year this quarter. Execution on innovation rollouts, calibrated price-point strategies across laundry care and home cleaning, and retail shelf presence will be important to holding share without eroding price architecture. Operational efficiency and cost discipline can offset heavier media and in-store investments, helping protect margin even if volumes remain mixed. The segment’s scale also means its inventory positioning and retailer order cadence can influence reported growth rhythms, so clean channel inventories would support steadier sell-in and sell-through alignment.Most Promising Business: Health Care
Health Care, which generated $3.22 billion last quarter, appears well-positioned to contribute favorably to mix, aided by premium oral care and personal health SKUs that typically sustain price-mix and favorable margin characteristics. While segment-specific year-over-year data were not provided, the broader company forecast implies revenue up 4.83% year over year and EPS up 4.29% year over year, suggesting demand resilience that can support categories with premium tiers. In oral care, disciplined innovation cycles and breadth across brush heads, devices, and consumables can underpin steady category momentum. Execution on brand communication and trade coverage will matter for capturing seasonal demand and repeat purchases, particularly as retailers refine planograms into early spring. From a margin perspective, premiumization and product mix can be favorable, helping offset any incremental brand investment required to drive awareness and conversion. Health Care’s contribution to overall profitability is also influenced by the pace of innovation adoption; with EBIT forecast to be slightly lower year over year this quarter, maintaining higher-value product mix in Health Care can be valuable to overall portfolio profitability.Factors Most Impacting the Stock Price This Quarter
The foremost factor for shares this quarter is the balance between top-line growth and profitability, given the forecast dynamics of revenue up 4.83% year over year and EBIT down 1.50% year over year. Investors will be sensitive to the extent of brand investment that accompanies price-mix maintenance, as heavier marketing can pressure operating margin even when sales expand. Volume elasticity will be scrutinized in categories with prior price increases; evidence of stable or improving volumes would validate the sustainability of recent pricing decisions. Another significant factor is cost containment and the input-cost environment; alleviating commodity headwinds supports gross margin durability, while adverse currency movements can offset these benefits, complicating reported EBIT trends. Retail promotion calendars and competitive activity can influence share dynamics, affecting near-term sell-in as well as underlying consumer takeaway. Finally, execution consistency across geographies and channels will be watched closely; uncertainty in certain regions could affect net margin progression, making operational agility a differentiator in meeting guidance ranges.Analyst Opinions
The majority view among collected institutions is bullish. RBC Capital maintained Buy ratings in recent notes with price targets of $172.00 and $177.00, underscoring confidence in the earnings trajectory and the capacity to sustain price-mix without materially disrupting volumes. Argus Research reaffirmed a Buy rating with a $180.00 target, signaling an expectation for continued adjusted EPS expansion in line with the forecasted 4.29% year-over-year increase this quarter and longer-term support from portfolio innovation. Deutsche Bank maintained a Buy rating with a $175.00 target, reflecting a constructive outlook on cash generation and margin resilience even as EBIT is forecast to dip 1.50% year over year this quarter, a setup that can be mitigated by disciplined cost control and marketing efficiency.These bullish views share a common thread: confidence in the brand portfolio’s pricing power, margin structure, and the ability to deploy marketing investment in ways that defend share while protecting profitability. The forecast profile—revenue rising 4.83% year over year and adjusted EPS rising 4.29% year over year—provides a fundamental basis for those positive stances, even with the expected decline in EBIT. RBC’s perspective highlights near-term earnings support from pricing and mix, consistent with last quarter’s robust gross margin of 51.81% and net margin of 21.22%. Argus points to adjusted EPS progression backed by operational excellence and cost discipline, which is meaningful against a backdrop of quarter-over-quarter net profit growth of 31.40% last quarter. Deutsche Bank’s constructive view aligns with the notion that short-term EBIT pressure can be transitory when reinvestment is targeted and when price architecture remains intact across core categories.
From an analytical standpoint, the bullish cohort appears anchored on three pillars: continuity in price-mix strategies across leading categories, the ability to protect and potentially expand gross margin through cost discipline and input-cost management, and the cadence of innovation that supports premium tiers and repeat purchase behavior. The implication for the current quarter is that revenue growth and adjusted EPS can track the forecasted year-over-year increases, even if EBIT reflects higher brand-building spending or FX effects. For the next several quarters, the durability of these pillars—particularly the interplay of marketing efficiency and product mix—will be the determinant for whether adjusted EPS continues its upward trajectory. In this setup, evidence of stable volumes in Fabric & Home Care and incremental mix uplift in Health Care would validate the bullish thesis. The market will ultimately look for a reconciliation between reported EBIT and the top-line and EPS gains; if the company signals that reinvestment is discretionary and tied to specific growth levers, analysts are likely to maintain confidence in the margin framework and the earnings compounding pathway.
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