PG · 10-Q · 2026Q1 · Full report
Operating Expense Trends
PROCTER & GAMBLE Co · 2026-04-24 · Importance 49 · Surprise 32 · No source text
SG&A as a percentage of net sales decreased across multiple segments due to the positive scale impact of higher net sales, reducing the SG&A burden despite ongoing marketing and overhead investments. Reported SG&A expense was $5,936 million for the three months ended March 31, 2026 (with a $28 million incremental restructuring adjustment) and $17,588 million for the nine months (with a $249 million adjustment), per the reconciliation. In Baby segment nine months, SG&A as a percentage of net sales decreased due to lower overhead spending, partially offset by increased marketing spend. The decrease in SG&A ratio was a meaningful offset to margin pressure from gross margin declines in certain segments.
Key facts
- Three months ended March 31, 2026 reconciliation: Cost of products sold $10,722 million; adjusted for incremental restructuring $(115) million to $10,606 million; Selling, general and administrative expense $5,936 million; adjusted $(28) million to $5,908 million. source
- Nine months ended March 31, 2026 reconciliation: Cost of products sold $32,442 million; adjustment for incremental restructuring $(306) million to $32,136 million; Selling, general and administrative expense $17,588 million; adjustment $(249) million to $17,338 million; Operating income $15,798 million. source
- Total SG&A spending for the quarter increased 7% to $5.9 billion; SG&A as a percentage of net sales increased 10 basis points to 28.0%. source
- SG&A for the nine months increased 5% to $17.6 billion and SG&A as a percentage of net sales increased 30 basis points to 26.7%. source
- For the nine months ended March 31, 2026 operating income decreased 2% to $15,798 million versus $16,096 million prior year. source
- Operating income for the three months ended March 31, 2026 was $4,576 million, unchanged versus the prior year period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -4.0% | SG&A for the nine months increased 5% to $17.6 billion and SG&A as a percentage of net sales increased 30 basis points to 26.7%. |
| operating_income | negative | realized | -1.8% | Total SG&A spending for the quarter increased 7% to $5.9 billion; SG&A as a percentage of net sales increased 10 basis points to 28.0%. |
| operating_income | negative | realized | -1.4% | Nine months ended March 31, 2026 reconciliation: Cost of products sold $32,442 million; adjustment for incremental restructuring $(306)… |
| operating_income | negative | realized | -1.4% | For the nine months ended March 31, 2026 operating income decreased 2% to $15,798 million versus $16,096 million prior year. |
| operating_income | negative | realized | -1.2% | Nine months ended March 31, 2026 reconciliation: Cost of products sold $32,442 million; adjustment for incremental restructuring $(306)… |
| operating_income | negative | realized | -0.5% | Three months ended March 31, 2026 reconciliation: Cost of products sold $10,722 million; adjusted for incremental restructuring $(115)… |
| margin | negative | realized | -0.3% | SG&A for the nine months increased 5% to $17.6 billion and SG&A as a percentage of net sales increased 30 basis points to 26.7%. |
| operating_income | negative | realized | -0.1% | Three months ended March 31, 2026 reconciliation: Cost of products sold $10,722 million; adjusted for incremental restructuring $(115)… |
| margin | negative | realized | -0.1% | Total SG&A spending for the quarter increased 7% to $5.9 billion; SG&A as a percentage of net sales increased 10 basis points to 28.0%. |
| operating_income | positive | realized | +0.1% | Operating income for the three months ended March 31, 2026 was $4,576 million, unchanged versus the prior year period. |