PG · 8-K · 20261022PR000252

Macroeconomic Factors Impact

PROCTER & GAMBLE Co · 2026-10-22 · Importance 50 · Surprise 42 · In source text

Management described the macro environment as challenging and expects cost headwinds to increase over the next few quarters. FY 2027 guidance includes a $1.4 billion after-tax impact from higher energy, transportation and raw-material costs. The company also expects $300 million of higher after-tax net interest expense and $150 million of lower non-operating income. Potential headwinds not included in guidance include significant deceleration in market growth rates, additional geopolitical disruptions and major supply-chain disruption or store closures.

Key facts

• The Company projects a $1.4 billion after-tax impact from higher energy, transportation, and raw material costs for FY 2027. source
• The Company projects $300 million after-tax of higher net interest expense for FY 2027. source
• The Company projects $150 million after-tax of lower non-operating income for FY 2027. source
• Company expects cost headwinds to increase in next few quarters and volatility remains. source
• Guidance potential headwinds not included in guidance include significant deceleration of market growth rates, significant currency weakness, significant commodity cost increases, additional geopolitical disruptions, major supply chain disruption or store closures, and significant tariff changes. source

Impact estimates