PG · 8-K · 20260729PR000097

Core Operating Margin Drivers

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

FY 2026 core operating margin declined 70 basis points to 23.6% from 24.3% in FY 2025. Currency-neutral core operating margin declined 60 basis points to 23.7%. Q4 FY 2026 core operating margin declined 130 basis points to 19.5% from 20.8%. Segment earnings declines were driven by marketing investments, product mix, commodity costs, and product investment, while productivity savings, pricing, and tariff recovery provided offsets.

Key facts

• FY 2026 Core operating margin change vs prior year: -70 basis points source
• FY 2026 Total productivity savings: +340 basis points source
• Three months ended June 30, 2026 Operating Margin: 18.6%; Core Operating Margin: 19.5% (incremental restructuring 0.9%); Core operating margin change vs prior year: (130) basis points source
• Fiscal year ended June 30, 2026 Operating Margin: 22.7%; Core Operating Margin: 23.6% (incremental restructuring 0.9%); Core operating margin basis point change vs prior year: (70); Currency-Neutral Core Operating Margin: 23.7% (basis point change (60)) source