PG · 10-Q · 2026Q3 · Full report

Operating Expense Trends

PROCTER & GAMBLE Co · 2026-10-22 · Importance 36 · Surprise 14 · No source text

Total SG&A spending was essentially unchanged at $5.7 billion year over year, while SG&A declined 90 basis points to 24.3% of net sales. Lower overhead costs and scale benefits offset higher marketing spending, and productivity-driven savings provided a 130-basis-point SG&A benefit. Operating income increased 1% to $5.937 billion, but operating margin declined 70 basis points to 25.5% because gross-margin contraction exceeded the benefit from productivity savings. Beauty net earnings declined 1% as higher marketing spending increased SG&A as a percentage of sales, while Fabric & Home Care reduced SG&A as a percentage of sales through lower marketing and overhead spending.

Key facts

• Selling, general & administrative (SG&A) spending was unchanged versus the prior year period at $5,661 million. source
• Productivity-driven cost savings delivered 130 basis points of benefit to SG&A as a percentage of net sales. source
• SG&A as a percentage of net sales decreased 90 basis points to 24.3% due primarily to a decrease in overhead costs as a percentage of net sales and a decrease in marketing spending as a percentage of net sales. source

Impact estimates