PG · 10-K · 2026A · Full report

Net Earnings and Profitability

PROCTER & GAMBLE Co · 2026-08-04 · Importance 43 · Surprise 32 · In source text

Net earnings decreased 4% to $5.6 billion in 2026, as net earnings margin declined 110 basis points. The margin reduction reflected a 140-basis-point gross-margin decline, partly offset by lower SG&A as a percentage of net sales. Gross-margin pressure came from unfavorable product mix and higher commodity costs, while productivity savings provided a partial offset.

Key facts

• Net earnings were $16,144 million in fiscal 2026 versus $16,065 million in prior year (increase of $79 million). source
• Net earnings attributable to Procter & Gamble were $16,046 million in fiscal 2026 versus $15,974 million prior year (increase of $72 million). source
• Earnings before income taxes increased $210 million, or 1%, to $20.4 billion. source
• Net earnings decreased 4% to $5.6 billion. source
• Baby, Feminine & Family Care net earnings decreased 2% to $3.9 billion; net earnings margin declined 50 basis points. source
• Diluted net earnings per common share increased to $6.62 in fiscal 2026 from $6.51 prior year (increase of $0.11 or 2%). source
• Core earnings per share increased to $6.89 in fiscal 2026 from $6.83 prior year (increase of 1%). source
• Net earnings margin declined 110 basis points. source

Impact estimates