PG · 10-K · 2026A · Full report

Supply Chain Discipline and Demand Signals

PROCTER & GAMBLE Co · 2026-08-04 · Importance 25 · Surprise 32

Total inventories increased and consumed $641 million of cash, driven primarily by higher safety stock levels and new product initiatives. Days inventory on hand increased by two days, indicating a deliberate increase in inventory coverage. Accounts payable rose alongside increased supply chain activity and inventory, while the filing does not identify material supply shortages or extended lead times.

Key facts

• Total inventories increased, consuming $641 million of cash, driven primarily by increased safety stock levels and new product initiatives. source
• Accounts payable increased, generating $919 million of cash, driven primarily by increased supply chain activity and increased marketing support activity. source
• Productivity-driven cost savings delivered 160 basis points of benefit to SG&A as a percentage of net sales. source