A maker of everyday household goods, Procter & Gamble sells brands like Tide, Pampers, Gillette, and Head & Shoulders in about 180 countries through stores and online. It began in 1837 when Cincinnati's candle-maker William Procter and soap-maker James Gamble — who married sisters — merged their rival shops at their father-in-law's urging. Fun fact: a young Thomas Edison once tended the company's telegraph line before he became famous.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
FY2026 net sales rose 3% to $87.0B but operating margin fell 160 bps to 22.7% on mix and investments
fell for the first time in three years. rose 3% to $87.0B and rose 1.7% to $6.62 as 180 of manufacturing productivity savings failed to offset unfavorable mix and product investments that cut gross margin 100 bps to 50.2%. The company grew sales but absorbed the gain in margin and restructuring costs, leaving it with $19.6B and a $3.8B pending acquisition.
Key takeaways
declined 100 to 50.2% as unfavorable product mix (120 bps) and product/packaging investments (70 bps) outweighed 180 bps of manufacturing productivity savings, the first annual contraction since FY2023.
rose 3% to $87.0B on 2% favorable foreign exchange and 1% pricing while unit volume was flat; led at 5% while fell 1%.
fell 3.4% to $19.7B and fell 160 to 22.7% as SG&A rose 60 bps to 27.5% from an 80 bps increase in marketing spend.
Section summaries
Business
P&G is a global consumer goods company selling branded daily-use products in about 180 countries through a diversified portfolio and multi-channel distribution.
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The business model relies on balanced top- and bottom-line growth by driving product superiority across performance, packaging, brand communication, retail execution, and value.
Products are sold through mass merchandisers, digital commerce, grocery stores, membership clubs, drug stores, and direct-to-consumer channels, with Walmart Inc. representing approximately 16% of total sales.
The company incurred $1.2B in before-tax and $903M after-tax under its portfolio and productivity plan, with remaining costs expected in fiscal 2027.
No was recorded; the $12.8B indefinite-lived intangible carrying value remains a .
grew 10% to $19.6B and adjusted reached 100%; a subsequent event disclosed a $3.8B agreement to acquire Thorne, expected to close Q2 FY2027.
What changed
FY2026 came in at 3% ( 5%, others mixed), recovering from FY2025's 2% and holding below the 4% FY2024 level flagged to watch.
Pre-tax restructuring costs under the $1.5–$2.0B plan totaled $1.2B in FY2026, with $903M after-tax booked and the remainder expected in fiscal 2027 — progress on the 7,000 overhead cuts not separately quantified.
's $12.8B carrying value again passed its annual test with no , continuing the status flagged since FY2024.
Adjusted rose to 100% in FY2026 after two years of decline to 87% in FY2025, reversing the trajectory flagged after FY2025.
fell 100 to 50.2% in FY2026 after the FY2024 expansion to 51.4% and FY2025's 51.2%, confirming the relief did not hold as mix and investments pressed it down.
The U.K. Environment Agency's sub-$2M civil penalty notice for a past emissions permit failure is a new legal item not present in prior filings' disclosures.
What to watch
FY2027 rate to see if the 3% holds, fades, or recovers toward 4%.
Remaining pre-tax restructuring costs booked in fiscal 2027 and progress on the 7,000 non-manufacturing overhead reductions.
Next test given the $12.8B carrying value and continued status.
Close of the $3.8B Thorne acquisition in Q2 FY2027 and its initial contribution to results.
The top ten customers accounted for approximately 43% of total in fiscal 2026, and no other customer besides Walmart exceeds 10%.
The company competes against both branded products and retailers' , often holding a leadership or significant market share position.
As of June 30, 2026, P&G had approximately 104,000 employees, a 4% decline from the prior year due to an ongoing restructuring program.
Environmental sustainability is integrated into business strategy, including a 2040 net zero ambition and goals to reduce virgin petroleum-based plastic packaging and improve water efficiency.
In the U.S., we own and operate 24 manufacturing sites located in 18 different states. In addition, we own and operate 72 manufacturing sites in 31 other countries. Many of the domestic and international sites manufacture products for multiple businesses. Beauty products are man…
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In the U.S., we own and operate 24 manufacturing sites located in 18 different states. In addition, we own and operate 72 manufacturing sites in 31 other countries. Many of the domestic and international sites manufacture products for multiple businesses. Beauty products are manufactured at 20 of these locations; Grooming products at 17; Health Care products at 19; Fabric & Home Care products at 34; and Baby, Feminine & Family Care products at 32. We own our Corporate headquarters in Cincinnati, Ohio. We own or lease our principal regional general offices in Switzerland, Panama, Singapore, China and the United Arab Emirates. We own or lease our principal regional shared service centers in Costa Rica, the United Kingdom and the Philippines. Management believes that the Company's sites are adequate to support the business and that the properties and equipment have been well maintained.
P&G FY26 net sales rose 3% to $87.0B, but operating margin fell 160 bps to 22.7% on product mix and investments.
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increased 3% to $87.0 billion, driven by 2% favorable foreign exchange and 1% higher pricing, while unit volume was flat.
declined 100 to 50.2%, primarily due to unfavorable product mix (120 ) and product/packaging investments (70 bps), partially offset by 180 bps of manufacturing productivity savings.
SG&A as a percentage of rose 60 to 27.5%, driven by an 80 bps increase in marketing spending, while overhead costs were flat.
led with a 5% increase, while organic sales declined 1%.
grew 10% to $19.6 billion, and reached 100%.
The Company incurred $903 million in after-tax incremental restructuring charges under its portfolio and productivity plan and expects the remaining costs in fiscal 2027.
Quantitative and Qualitative Disclosures About Market Risk
The information required by this item is incorporated by reference to the section entitled Other Information in the MD&A and Note 9 to the Consolidated Financial Statements. 34 The Procter & Gamble Company
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The information required by this item is incorporated by reference to the section entitled Other Information in the MD&A and Note 9 to the Consolidated Financial Statements.
34 The Procter & Gamble Company
Management and Deloitte confirm effective internal controls; financials show $87.0B net sales and a $12.8B Gillette brand carrying value.
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Management assessed internal control over financial reporting as effective as of June 30, 2026, using the COSO 2013 framework.
Deloitte & Touche LLP issued unqualified opinions on both the financial statements and internal control effectiveness for the fiscal year.
The evaluation was a ; its was $12.8 billion with no impairment recorded in 2026.
rose to $87.0 billion in 2026 from $84.3 billion in 2025, while attributable to P&G increased to $16.0 billion.
The company incurred $1.2 billion in before-tax in 2026, primarily under a new portfolio and productivity plan.
A subsequent event disclosed the agreement to acquire Thorne, a premium wellness brand, for $3.8 billion, expected to close in the second quarter of fiscal 2027.