Cincinnati, Ohio-based The Procter & Gamble Company (PG) is a leading global consumer goods company that develops, manufactures, and markets branded household and personal care products. Operating in about 180 countries, its portfolio includes fabric, home, baby, feminine, grooming, hair, skin, oral, and personal healthcare brands. The company has a market capitalization of approximately $336.5 billion.
Shares of this consumer goods giant have significantly underperformed the broader market over the past year. PG has declined 3.8% during this period, while the broader S&P 500 Index ($SPX) has rallied nearly 21.8%. Likewise, the stock has lagged on a year-to-date basis, rising 1.2% compared with the index's 11% gain over the same period.
Narrowing the comparison, PG has underperformed the State Street Consumer Staples Select Sector SPDR ETF (XLP), which has gained 5.9% over the past year. The stock has also underperformed the ETF’s 9.2% rise on a year-to-date basis.
On July 29, Procter & Gamble reported its Q4 FY2026 earnings, sending its shares 1.9% lower as sales and margins came in below expectations. Fourth-quarter net sales grew 1.5% to $21.2 billion, while organic sales remained flat, with strength in Beauty offset by weaker performance in Health Care and Baby, Feminine & Family Care segments. The company reported a core EPS of $1.43, down 3.4% year over year, as productivity savings were more than offset by increased SG&A reinvestment and an unfavorable product mix.
For the current fiscal year, ending in June 2027, analysts expect PG’s EPS to increase 1.5% to $6.99 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 26 analysts covering PG stock, the consensus is a “Moderate Buy.” That's based on 10 "Strong Buys," four "Moderate Buys," and 12 "Holds."
The configuration has been consistent over the past months.
On July 30, Deutsche Bank analyst Stephen Powers maintained a “Buy” rating on Procter & Gamble while lowering the price target to $162 from $163.
The mean price target of $161.48 represents a 11.4% premium to PG's current share price. The Street-high price target of $180 suggests potential upside of 24.2%.
