P&G keeps its fiscal 2027 outlook and now expects a $1.4 billion commodity cost headwind

As of 8:41 a.m. ET, Friday, Oct. 23, 2026

Procter & Gamble said Thursday, Oct. 22, that net sales rose 4% to $23.3 billion in the first quarter of its 2027 fiscal year, and that organic sales, which exclude acquisitions, divestitures and currency effects, also rose 4%.

Diluted net earnings per share were $1.97, up 1%, and core earnings per share were $2.00, up 1%, the company said. Operating cash flow was $5.8 billion and net earnings were $4.8 billion. P&G said it returned $3.9 billion to shareholders through $2.6 billion of dividends and $1.3 billion of share repurchases.

"Our solid sales, earnings and cash results in the first quarter reflect sharpened execution of our integrated strategy," said Shailesh Jejurikar, P&G's chairman, president and chief executive. "While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth and free cash flow productivity for the fiscal year."

Outlook and cost pressures

P&G said it maintained its fiscal 2027 outlook for organic sales growth of 1% to 3% and for core earnings per share growth of in line to 3%, which it said equates to $6.89 to $7.11 a share. It also maintained its outlook for diluted net earnings per share growth of 1% to 5%.

The company updated its all-in sales growth range to 2% to 4%, reflecting its acquisition of Thorne as of Oct. 1, 2026.

"P&G now expects a commodity cost headwind of approximately $1.4 billion after tax driven by higher raw materials, energy and transportation costs," the company said. It also listed after-tax headwinds of $300 million from higher net interest expense, $150 million from lower non-operating income and $50 million from foreign exchange. Combined, P&G said, these equal a headwind of $0.79 a share for fiscal 2027, or an 11% drag on core earnings per share growth.

What is not known

The release does not break down how much of the commodity headwind comes from each of raw materials, energy and transportation.