PG · 10-K · 2026A · Full report

Commodities and Input Costs

PROCTER & GAMBLE Co · 2026-08-04 · Importance 36 · Surprise 40

Higher commodity costs contributed to a 140-basis-point decline in consolidated gross margin in fiscal 2026, partially offset by productivity savings. In Baby, Feminine & Family Care, lower commodity costs partially offset unfavorable category mix and supported a 40-basis-point gross-margin decline. P&G reported no financial commodity-hedging activity in fiscal 2026 or 2025, leaving raw-material exposure subject to weather, supply conditions, and political and economic variables.

Key facts

• Gross margin decline included 20 basis points of higher commodity costs. source
• During the fiscal years ended June 30, 2026 and 2025, the Company did not have any financial commodity hedging activity. source