Procter & Gamble (NYSE:PG) Shares Up 5.8% After Better-Than-Expected Earnings

Procter & Gamble Company (The) (NYSE:PG)’s share price traded up 5.8% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $166.85 and last traded at $165.9360. Approximately 21,917,473 shares were traded during mid-day trading, an increase of 124% from the average daily volume of 9,763,962 shares. The stock had previously closed at $156.84.

The company reported $2.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.89 by $0.11. The business had revenue of $23.28 billion during the quarter, compared to analysts’ expectations of $22.80 billion. Procter & Gamble had a net margin of 18.44% and a return on equity of 31.36%. The firm’s quarterly revenue was up 4.0% compared to the same quarter last year. During the same period in the prior year, the company earned $1.99 EPS.

Procter & Gamble Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Friday, October 23rd will be issued a dividend of $1.0885 per share. The ex-dividend date is Friday, October 23rd. This represents a $4.35 annualized dividend and a yield of 2.6%. Procter & Gamble’s dividend payout ratio (DPR) is presently 65.71%.

Procter & Gamble News Roundup

Here are the key news stories impacting Procter & Gamble this week:

• Positive Sentiment: Fiscal Q1 2027 adjusted earnings were $2.00 per share, above the roughly $1.89 consensus estimate, while revenue rose 4% year over year to $23.28 billion, exceeding expectations of about $22.80 billion. Procter & Gamble earnings beat as sales rise 4%, boosted by laundry and home products
• Positive Sentiment: Organic sales increased 4%, supported by volume growth, favorable product mix, productivity savings and strength in laundry and home-care products. These trends helped offset pressure on consumer budgets. Procter & Gamble Q1 Earnings Beat on Volume Growth & Favorable Mix
• Positive Sentiment: P&G raised its fiscal 2027 all-in sales-growth outlook, primarily reflecting the acquisition of Thorne. Management maintained its broader full-year revenue framework, providing investors with improved visibility. Procter & Gamble Boosts FY27 All-in-sales Growth Outlook
• Positive Sentiment: The earnings beat attracted defensive investors as broader markets weakened, while increased call-option activity indicated heightened bullish trading interest. Procter & Gamble Jumps as Earnings Beat Draws Defensive Buyers
• Neutral Sentiment: CFO Andre Schulten said artificial-intelligence shopping agents could change product discovery and purchasing, but emphasized that P&G’s products will continue to be used by consumers; near-term financial effects remain uncertain. How agentic AI shopping changes consumer staples
• Negative Sentiment: Management warned that higher commodity and fuel costs could reduce annual profit by approximately $1.4 billion, creating a significant margin risk even though sales momentum remains solid. P&G flags bigger hit to annual profit from higher commodity costs

Analysts Set New Price Targets

PG has been the subject of several recent analyst reports. JPMorgan Chase & Co. decreased their price objective on shares of Procter & Gamble from $164.00 to $162.00 and set an “overweight” rating for the company in a research report on Thursday, July 16th. UBS Group restated a “buy” rating on shares of Procter & Gamble in a report on Friday, October 16th. Evercore raised shares of Procter & Gamble from an “in-line” rating to an “outperform” rating and set a $166.00 price target on the stock in a research report on Tuesday, October 6th. Bank of America decreased their price target on Procter & Gamble from $170.00 to $166.00 and set a “buy” rating for the company in a report on Friday, July 10th. Finally, Argus lowered Procter & Gamble from a “buy” rating to a “hold” rating in a research report on Friday, August 7th. Fourteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, Procter & Gamble currently has an average rating of “Moderate Buy” and an average price target of $162.20.

Insider Activity at Procter & Gamble

In related news, CAO Matthew Janzaruk sold 359 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $145.24, for a total transaction of $52,141.16. Following the transaction, the chief accounting officer owned 1,271 shares in the company, valued at $184,600.04. The trade was a 22.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Susan Whaley sold 2,369 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $145.34, for a total transaction of $344,310.46. Following the transaction, the insider directly owned 30,730 shares in the company, valued at approximately $4,466,298.20. This represents a 7.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 15,135 shares of company stock worth $2,189,970. Corporate insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On Procter & Gamble

Institutional investors have recently made changes to their positions in the stock. Baxter Bros Inc. purchased a new position in Procter & Gamble in the 2nd quarter valued at $12,381,000. Empowered Funds LLC acquired a new stake in shares of Procter & Gamble during the second quarter valued at about $53,549,000. Bank of America Corp DE purchased a new stake in Procter & Gamble in the second quarter valued at approximately $3,850,628,000. Rokos Capital Management LLP purchased a new stake in Procter & Gamble during the first quarter worth about $29,914,000. Finally, State Street Corp grew its stake in shares of Procter & Gamble by 1.0% in the second quarter. State Street Corp now owns 102,216,308 shares of the company’s stock worth $14,988,999,000 after acquiring an additional 965,461 shares in the last quarter. Institutional investors and hedge funds own 65.77% of the company’s stock.

Procter & Gamble Stock Performance

The firm has a market capitalization of $385.41 billion, a price-to-earnings ratio of 25.07, a P/E/G ratio of 3.96 and a beta of 0.39. The stock has a 50-day moving average price of $147.65 and a 200 day moving average price of $146.83. The company has a quick ratio of 0.47, a current ratio of 0.68 and a debt-to-equity ratio of 0.43.

About Procter & Gamble

Procter & Gamble Company (NYSE: PG) is a global consumer products company that develops, manufactures and markets branded products used in households and personal care. Its portfolio includes personal health and grooming products, beauty and skin care items, baby, feminine and family care products, fabric and home care products, and oral care products.

The company’s well-known brands include Pampers, Tide, Gillette, Crest, Oral-B, Head & Shoulders, Pantene, Olay, Old Spice, Dawn, Febreze and Mr.