Procter & Gamble Co (NYSE:PG, XETRA:PRG) beat Wall Street estimates for third-quarter revenue and profit on Friday, helped by stronger demand for beauty products and steady volume growth across its household staples business.
The Tide detergent maker reported quarterly revenue of $21.2 billion for the period ended March 31, above analysts’ average estimate of $20.57 billion, according to company data. Net sales rose 7% from a year earlier.
Adjusted earnings per share came in at $1.59, topping estimates of $1.56, while organic sales growth was 3%, ahead of expectations for roughly 2% growth.
Volumes rose 2% in the quarter, indicating resilient consumer demand despite persistent inflationary pressures and higher input costs.
P&G shares were up nearly 3% in premarket trading.
P&G’s beauty segment was a standout performer, with organic sales rising 7%, while baby, feminine and family care sales increased 3%. Fabric and home care, the company’s largest division, also posted 3% organic sales growth. Grooming rose 1%, while healthcare increased 2%.
Analysts at Jefferies called it a “solid quarter,” noting that both organic sales and earnings per share topped Street expectations. They highlighted particular strength in beauty and baby, feminine and family care, while saying fiscal 2026 guidance was maintained with earnings expected toward the lower end of the range.
The consumer goods giant reaffirmed its fiscal 2026 adjusted earnings per share forecast of $6.83 to $7.09, compared with analysts’ expectations of $6.94. It also maintained its all-in sales growth outlook of 1% to 5% and projected organic sales growth from flat to 4%.
P&G said it expects about a $150 million after-tax headwind from commodity costs and a roughly $400 million after-tax impact from tariffs in fiscal 2026, partly offset by a $200 million foreign exchange tailwind.
Operating cash flow was $4 billion in the quarter, while adjusted free cash flow productivity was 82%.
The company returned $3.2 billion to shareholders during the quarter, including $2.5 billion in dividends and more than $600 million in share repurchases. P&G said it expects to pay about $10 billion in dividends and repurchase roughly $5 billion of shares in fiscal 2026.