Procter & Gamble Co.
PGBusiness Overview
ticker: PG step: 01 generated: 2026-05-11 source: quick-research
The Procter & Gamble Company (PG) — Business Overview
Business Description
Procter & Gamble is the world's largest consumer packaged goods company by revenue, with an iconic portfolio of household and personal-care brands spanning fabric care, home care, baby/feminine/family care, beauty, grooming, and health care. P&G operates on a "superiority" strategy — invest in premium product performance, packaging, brand communication, retail execution, and value — to defend pricing power and capture share against private label.
Revenue Model
- Fabric & Home Care (~36% of revenue): Detergents, dish, surface care
- Baby, Feminine & Family Care (~24%): Diapers, period care, paper towels, toilet paper
- Beauty (~18%): Hair care, skin care, deodorants
- Health Care (~14%): Oral care, personal health (cold/flu, digestive)
- Grooming (~8%): Razors, shaving products
- Mostly mature category growth driven by mix shift to premium tiers + emerging market expansion
Products & Services
- Fabric & Home Care: Tide, Ariel, Downy, Gain, Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer
- Baby/Feminine/Family Care: Pampers, Luvs, Always, Tampax, Bounty, Charmin, Puffs
- Beauty: Pantene, Head & Shoulders, Olay, SK-II, Old Spice, Secret, Native, Herbal Essences
- Health Care: Crest, Oral-B, Vicks, Metamucil, Pepto-Bismol, Neurobion
- Grooming: Gillette, Venus, Braun
- 21+ "billion-dollar brands" generating $1B+ in annual sales each
Customer Base & Go-to-Market
- Retail customers: Mass retailers (Walmart, Target, Costco, Amazon), drug chains, grocery, club, e-commerce — P&G's top 10 customers are ~40% of sales
- End consumers: ~5B+ global consumers across 180+ countries
- B2B: Some hospital and institutional sales (e.g., Tampax to hospitals)
- Channel mix: Mass + grocery dominant; e-commerce now ~17% of sales and growing
Competitive Position
P&G's primary moats: (1) brand equity built over decades of advertising — many P&G brands have 60%+ category mindshare in their categories; (2) global scale provides advertising, R&D, and supply chain efficiencies private-label and smaller competitors can't match; (3) "superiority" execution discipline keeps premium price tiers defendable; (4) retailer relationships (P&G is often the largest CPG vendor for major retailers). Faces structural pressure from private label (especially in fabric care and family care), the "GLP-1 effect" on snacking-adjacent categories (less direct exposure than Mondelez/Hershey but indirect via reduced retailer foot traffic), and emerging-market FX volatility.
Key Facts
- Founded: 1837 (William Procter + James Gamble in Cincinnati)
- Headquarters: Cincinnati, OH
- Employees: ~108,000
- Exchange: NYSE
- Sector / Industry: Consumer Staples / Household Products
- Market Cap: ~$355B (May 2026)
- CEO: Jon Moeller (CEO transition announced — Shailesh Jejurikar to succeed in 2026)
- Dividend: $4.20+ annual; 68+ consecutive years of dividend growth (Dividend King)
- FY end: June
Financial Snapshot
ticker: PG step: 04 generated: 2026-05-11 source: quick-research
The Procter & Gamble Company (PG) — Financial Snapshot
Note: P&G's fiscal year ends in June. "FY2025" below = fiscal year ended June 30, 2025.
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Net Sales | $82.0B | $84.0B | $84.3B | flat |
| Organic Sales Growth | +7% | +4% | +2% | decelerating |
| Gross Margin | 49.0% | 51.6% | 52.0% | +0.4pp |
| Operating Margin | 22.0% | 24.0% | 24.5% | +0.5pp |
| Net Income | $14.7B | $14.9B | $15.5B | +4% |
| Core EPS (diluted) | $5.90 | $6.59 | $6.85 | +4% |
Q3 FY2026 Highlights (most recent reported, Jan-Mar 2026)
| Metric | Q3 FY26 | YoY |
|---|---|---|
| Net Sales | $21.1B | +3% |
| Organic Sales | +3% | (2% volume, 1% price) |
| Core EPS | $1.59 | |
| Adj. FCF Productivity | 82% |
Segment Performance Q1 FY26 (most relevant)
| Segment | Organic Growth | Volume | Notes |
|---|---|---|---|
| Beauty | +6% | +5% | Olay, Pantene drove |
| Health Care | +3% | +2% | Crest, Oral-B |
| Grooming | +2% | flat | Pricing-led |
| Fabric & Home Care | +2% | +2% | Tide volume strong |
| Baby/Feminine/Family | flat | +3% (offset by -10% Family Care vol from tariff front-loading) |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Cash Flow from Operations | $19.8B |
| Capital Expenditures | ~($3.8B) |
| Free Cash Flow | ~$16.0B |
| FCF Productivity (% of Net Income) | 103% |
| Cash & Investments | ~$10B |
| Total Debt | ~$33B |
Key Ratios (approximate, May 2026)
- P/E (forward): ~22x | EV/EBITDA: ~17x | Dividend Yield: ~2.6%
- ROE: ~30%+ | ROIC: ~17%
- FCF Yield: ~4.5%
- Net Debt / EBITDA: ~1.0x
Growth Profile
P&G is in slow-grow territory: FY2025 organic sales +2% (vs. multi-year average ~4-5%), driven by 2% volume and 1% pricing. The pricing fortress (52% gross margin, 24.5% operating margin) remains intact via the "superiority" strategy, but volume in core categories (Family Care -10%) is showing strain from $1B+ tariff costs and consumer trade-down to private label in certain commoditized SKUs. Beauty is the growth bright spot at +6% organic.
Forward Estimates
- FY2026E Net Sales: ~$87B (+3%)
- FY2026E Core EPS: ~$6.85-7.10 (consensus, +1-3%)
- FY2026E FCF: ~$16-17B
- FY2027E EPS: ~$7.40 (consensus, +5-7%)
Capital Return
- Dividend $4.20+ annual ($10B+ paid annually) — 68 consecutive years of increases (Dividend King)
- Share buybacks: $7-9B annual run-rate
- Total capital return: ~$17-20B annual
- Long-term target: 60% of earnings as dividend, balance as buybacks
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $PG.