PG · 8-K · 20261022PR000252

Operating Margin Drivers

PROCTER & GAMBLE Co · 2026-10-22 · Importance 24 · Surprise 14

Q1 FY 2027 core operating margin was 25.9%, compared with 26.7% in the prior-year quarter, a decline of 80 basis points. Currency reduced the margin by 0.1 percentage points, producing a 90-basis-point decline in currency-neutral core operating margin. Productivity savings and sales growth were offset by marketing investments, commodity and transportation costs, product mix and product investment across the operating segments.

Key facts

• Core operating margin declined 80 basis points versus the prior year for Q1 FY 2027. source
• Currency-neutral Core operating margin for Q1 FY 2027 was 25.8%, a 90 basis point decline versus prior year. source
• Q1 FY 2027 core operating margin was 25.9% (operating margin 25.5% plus incremental restructuring 0.4%). source