Beauty, home and personal care giant Procter & Gamble has cut its profit guidance for FY26, as CEO Shailesh Jejurikar warned of a “challenging consumer and geopolitical environment”.
Cutting earnings per share growth forecasts for the year from 3%-9% to 1%-6%, P&G revealed operating profits had fallen 7% across the group in the three months to 31 December 2025.
Despite the fall in profits, P&G maintained guidance for 1%-5% revenue growth in the full year, as its Q2 results met analyst expectations with 1% net growth to $22.2bn (£16.5bn), though organic sales were flat.
“Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, core EPS growth and adjusted free cash flow productivity in a challenging consumer and geopolitical environment,” said Jejurikar.
“We have confidence in our plans to deliver stronger results in the second half of the fiscal year. We remain committed to our integrated growth strategy and are excited by the opportunity ahead to reinvent P&G and create the CPG company of the future, delivering long-term balanced top and bottom-line growth and value creation.”
The company saw volumes fall in several divisions, with baby, feminine and family care losing 5% of its organic volume. Grooming and healthcare likewise lost volume.
Beauty was P&G’s only division to gain in volumes, driving a 4% rise in organic sales.
“Procter and Gamble makes so many of the day-to-day products that we rely on. It’s behind many trusted, instantly recognisable brands that consumers will seek out and even pay a little bit extra for,” said Danni Hewson, AJ Bell head of financial analysis.
“But when cost pressures mount and living standards come under pressure, many consumers trade down and that’s had an impact on the company’s latest set of results.
“Shares initially fell but quickly recovered thanks to the expectation that some of those headwinds will ease over the course of the year, and the development of new products or formulas will recapture consumer attention.
“People are still willing to pay a bit more if they feel they are getting value for money which is why so many goods makers are doubling down on innovation.”
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