Procter & Gamble (PG) Q2 2026 earnings

Procter & Gamble on Thursday reported mixed quarterly results as demand for its Gillette razors and Pampers diapers fell.

The company also tweaked its earnings outlook for fiscal 2026. P&G now expects net earnings per share growth in the range of 1% to 6%, down from its prior forecast of 3% to 9%. The company attributed the change to higher restructuring charges. It reiterated its outlook for sales growth.

“We’ve now completed what we fully expect will be the softest quarter of the fiscal year,” CFO Andre Schulten said on a call with reporters Thursday.

Shares of the company rose more than 2% in morning trading, boosted by executives’ optimism about the rest of the fiscal year.

Here’s what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $1.88 adjusted vs. $1.86 expected
• Revenue: $22.21 billion vs. $22.28 billion expected

P&G reported fiscal second-quarter net income attributable to the company of $4.32 billion, or $1.78 per share, down from $4.63 billion, or $1.88 per share, a year earlier.

Excluding items such as restructuring costs, the company earned $1.88 per share.

Net sales rose 1% to $22.21 billion. Organic sales, which strips out foreign currency, acquisitions and divestitures, were flat for the quarter.

P&G’s volume fell 1%, as three out of its five product categories reported shrinking volume. The metric excludes pricing, which makes it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen demand for some of its products fall as inflation-weary consumers hunt for deals, particularly in the U.S., its biggest market.

“People have not stopped washing their hair, they still buy diapers, they do their laundry — albeit at a little bit slower pace, so the market growth has certainly slowed over the last 18 to 24 months,” Schulten said.

The company’s baby, feminine and family care segment saw the steepest decline in demand, with volume falling 5% in the quarter. The company said demand for its family care products, which includes Bounty paper towels, Puffs tissues and Charmin toilet paper, fell the most as it faced tough comparisons with the year-ago period, when retailers and consumers stocked up ahead of expected port strikes.

P&G’s grooming business, which includes Gillette and Venus razors, reported a 2% drop in volume.

The company’s health-care segment saw volume fall 1% in the quarter. The division includes Oral-B, Vicks and Pepto-Bismol.

P&G’s fabric and home-care business, which includes brands like Febreze and Tide, reported that volume was unchanged from the year-ago period.

The company’s beauty segment was the only division to report volume growth. It saw volume rise 3%, fueled by stronger demand for its hair-care products.

In the second half of the fiscal year, P&G is anticipating stronger sales, fueled by upcoming innovation, according to Schulten. For fiscal 2026, the company expects sales growth between 1% and 5%.

“It’s been a…