The Procter & Gamble Company Q3 FY2026 earnings call

Solid top-line acceleration in fiscal third quarter. Broad-based growth across business and regions. Progress on near-term interventions and longer-term transformation. Examples of innovations like Ferry Skip the Soak, Mr. Clean innovations, Germany Pantene social media investments. Leveraging large brands, innovation capabilities, supply chain 3.0, and connecting R&D, supply chain, and procurement.

Organic sales increased more than 3% versus prior year. Volume increased two points, pricing was up a point, and mix was flat. Skin and personal care grew high single digits. Hair care, family care, and home care grew mid-singles. Personal health care, oral care, fabric care, baby care, feminine care, and grooming each grew low single digits. Growth was broad-based geographically with each of seven regions growing organic sales. North America grew 4%, Europe 2%, Greater China 3%, Latin America 5%, Asia Pacific, Middle East, Africa enterprise region 4%. Global aggregate market share improved. Core earnings per share came in at $1.59, up 3% versus prior year. Core growth margin down 100 basis points, cooperating margin down 80 basis points. Adjusted free cash flow productivity 82%, returned $3.2 billion to share owners.

Maintaining fiscal 26 guidance ranges. Organic sales growth in line to 4%. Core EPS growth in line to 4%. Headwind from Middle East conflict. Expect full-year EPS toward lower end of guidance range. Forecast adjusted free cash flow productivity 85-90%. Plan to return ~$15B to share owners. Won't provide fiscal 27 guidance until July call.

Geopolitical dynamics causing cost headwinds, supply chain disruptions, inflation affecting consumer value assessment, media fragmentation, retail landscape changes.

Q: Assessment of underlying progress on organic growth and confidence into Q4 and 27, A: Confidence in growth progress, examples like Tide Liquid, SK2, strong brand-country combinations.

Q: Supply chain advantage post Iran conflict, outperformance vs competitors, A: Supply chains resilient, confident in outperformance.

Q: China market performance, beauty market in China, A: China up 3%, SK2 up 18%, baby care up 19%, maturing strategy.

Q: Earnings growth path next year despite headwinds, A: Work in progress on macro, productivity, P&L, won't compromise investment in momentum.

Q: Incremental investments in country product combinations, A: Areas with opportunities like baby care in US, beauty care, FabricCare.

Q: Pricing power, competitive activity, A: Pricing power earned through innovation, competitive activity too early to assess.

Q: Volume impact, restructuring program, A: Volume pull forward, restructuring on track.

Q: Gross margin, base case, A: Don't know, but focus on activity system driving growth.

Q: Enterprise market impact, demand from Middle East conflict, A: Middle East impact minimal, Southeast Asia upstream supply chain exposed.

Q: Baby care turnaround, market share vs end market growth, A: Baby care growing share, focus on US, execution of playbook.

Q: Cost impact components, tariff refunds, A: Cost impact broader than commodity, following tariff refund process.

Q: Volume lift staying power, reinvestment level, A: Staying power strong, reinvestment different by business, country, etc.

Q: Fourth quarter organic sales, consumer pull forward, A: Q4 growth rate lower, no visible consumer pull forward.

Q: Supply chain 3.0 advantage, AI, A: Supply chain 3.0 applies technology, scaling across categories.

Q: Inflation mitigation, spending on momentum businesses, A: Control destiny through productivity, innovation, invest in momentum businesses