FMP

FMP

Procter & Gamble (NYSE:PG) Surpasses EPS Estimates but Misses on Revenue

  • Earnings Per Share (EPS) of $1.88, beating the estimated $1.86.
  • Revenue of $22.2 billion, slightly below the forecasted $22.3 billion.
  • Financial health indicators such as P/E ratio of 21.22 and a debt-to-equity ratio of 0.67.

Procter & Gamble (NYSE:PG) is a leading consumer goods company known for its wide range of products, including household and personal care items. The company operates in a competitive market, with major competitors like Unilever and Colgate-Palmolive. P&G's diverse product portfolio includes well-known brands such as Gillette, Pampers, and Tide.

On January 22, 2026, P&G reported earnings per share (EPS) of $1.88, surpassing the estimated $1.86. Despite this positive earnings surprise, the company's revenue of $22.2 billion slightly missed the forecasted $22.3 billion. This shortfall was primarily due to a decline in demand for Gillette razors and Pampers diapers, as highlighted by the Wall Street Journal.

P&G's fiscal second-quarter net income was $4.32 billion, or $1.78 per share, down from the previous year's $4.63 billion, or $1.88 per share. The decrease in net income was mainly due to restructuring charges. However, excluding these costs, the EPS is reported at $1.88. Despite challenges, net sales increased by 1% to $22.2 billion.

The company's financial metrics provide further insight into its performance. P&G has a price-to-earnings (P/E) ratio of approximately 21.22, indicating investor confidence in its earnings potential. The price-to-sales ratio is about 4.02, and the enterprise value to sales ratio is around 4.31, reflecting the market's valuation of its sales.

P&G's financial health is supported by a debt-to-equity ratio of approximately 0.67, suggesting a moderate level of debt. The current ratio of around 0.71 indicates the company's ability to cover short-term liabilities. Despite a 2% drop in share price in premarket trading, P&G's earnings yield of about 4.71% offers a reasonable return on investment.