PG · 10-Q · 2026Q1 · Full report

Adjusted Free Cash Flow and Capex

PROCTER & GAMBLE Co · 2026-04-24 · Importance 60 · Surprise 24 · In source text

Adjusted free cash flow (operating cash flow less capital spending and excluding transitional tax payments) was $11,727 million for the nine months ended March 31, 2026 (operating cash flow $14,425 million less capital spending $3,386 million). The company defines adjusted free cash flow to reflect cash available after maintenance and expansion capex, and uses it to determine dividends, share repurchases and acquisitions. Adjusted free cash flow productivity is presented versus adjusted net earnings (Adjusted free cash flow $11,727 million versus net earnings as adjusted $12,802 million). Capital spending of $3.386 billion fiscal year to date was the primary investing cash use, consistent with the $3.4 billion of investing activities reported.

Key facts

• Adjusted free cash flow was $11.7 billion for the nine months ended March 31, 2026 (defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act). source
• Adjusted free cash flow definition reconciliation: Operating Cash Flow $14,425 million; Capital Spending $(3,386) million; Adjusted Free Cash Flow $11,727 million for nine months ended March 31, 2026. source
• Nine months ended March 31, 2026: Net earnings as reported were $13,063 million and adjustments to net earnings related to the Glad joint venture gain were $(261) million resulting in net earnings as adjusted $12,802 million (used in adjusted free cash flow productivity). source
• Adjusted free cash flow productivity was 92% for the nine months ended March 31, 2026 (adjusted free cash flow as a percentage of net earnings excluding the Glad gain). source
• Adjusted free cash flow productivity reconciliation for nine months ended March 31, 2026: Adjusted Free Cash Flow $11,727 million; Net Earnings $13,063 million; Adjustments to Net Earnings $(261) million; Net Earnings as Adjusted $12,802 million. source

Impact estimates