PG · 8-K · 20261022PR000250

Operating Margin Drivers

PROCTER & GAMBLE Co · 2026-10-22 · Importance 25 · Surprise 32

Reported operating income increased 1% to $5.937 billion, but operating margin declined 70 basis points to 25.5%. Core operating margin declined 80 basis points to 25.9%, or 90 basis points to 25.8% on a currency-neutral basis. Core operating margin included 250 basis points of gross productivity savings, which were more than offset by commodity costs, product reinvestments and mix pressure. Incremental restructuring charges reduced reported operating income by $98 million and reduced reported operating margin by 40 basis points.

Key facts

• Operating income for the quarter was $5,937 million, up 1% versus prior year. source
• Reported operating margin for the quarter decreased 70 basis points versus the prior year. source
• Excluding the impact of non-core restructuring charges, core operating margin decreased 80 basis points versus the prior year and decreased 90 basis points on a currency-neutral basis. source
• Core operating margin included gross productivity savings of 250 basis points. source