PG · 8-K · 20260729PR000097

Core Gross Margin Drivers

PROCTER & GAMBLE Co · 2026-07-29 · Importance 25 · Surprise 32

FY 2026 core gross margin declined 40 basis points to 50.7% from 51.1% in FY 2025. Currency-neutral core gross margin declined 30 basis points to 50.8%. Q4 FY 2026 core gross margin was 49.1%, unchanged from the prior year, after excluding a 0.6-point incremental restructuring impact. FY 2026 gross-margin pressure reflected increased commodities and product mix in several segments, partly offset by productivity savings, pricing, tariff recovery, and a 340-basis-point productivity contribution.

Key facts

• FY 2026 Core gross margin change vs prior year: -40 basis points source
• Fiscal year ended June 30, 2026 Gross Margin: 50.2%; Fiscal 2026 Core Gross Margin: 50.7% (incremental restructuring 0.5%); Currency-neutral Core Gross Margin: 50.8%; Core gross margin basis point change vs prior year: (40) source
• Three months ended June 30, 2026 Gross Margin: 48.5%; Core Gross Margin: 49.1% (incremental restructuring 0.6%) source