Procter & Gamble's beauty sector delivered solid growth in Q3 fiscal 2026, with a net sales gain of 11% and 7% rise in organic sales on a volume increase of 5% and a pricing jump of 1%.
Hair care posted mid-single-digit organic growth, driven primarily by increased volumes and innovation-led pricing in North America and Europe. Personal care outperformed, achieving high single-digit growth thanks to strong innovation-fueled volume gains, favorable geographic mix and pricing contributions.
Skin care also recorded high single-digit growth, benefiting from a premium product mix and higher volumes, though results were partially offset by merchandising investments, particularly in greater China.
By contrast, the grooming segment saw more modest progress, with net sales up 7% and organic sales up 1% for the period. Pricing gains—led by North America and Europe—helped support results, but were partly offset by declines in volume, signaling softer demand dynamics in the category.
Procter & Gamble has reaffirmed its fiscal 2026 outlook, maintaining expectations for all-in sales growth of 1% to 5% year-over-year, with organic sales projected to range from flat to up 4%. Foreign exchange and portfolio changes are المتوقع to provide a modest one-point boost to reported sales.
On profitability, the company continues to forecast diluted net earnings per share growth of 1% to 6% from a fiscal 2025 base of $6.51, while core EPS is expected to range from flat to up 4%, translating to $6.83 to $7.09 per share. However, P&G signaled that results will likely land at the lower end of this range as cost pressures mount.
The company is facing notable headwinds, including approximately $150 million in after-tax commodity costs and an estimated $400 million impact from tariffs. Additional pressures from higher interest expense and tax rates are expected to contribute to a combined headwind of about $250 million after tax. While foreign exchange is projected to provide a $200 million tailwind, the net effect of these factors equates to a $0.25 per share drag on earnings. In response, P&G is increasing investment in innovation and demand creation to sustain consumer momentum.
Operationally, P&G expects its core effective tax rate to remain between 20% and 21%, with capital expenditures projected at 4% to 5% of net sales. The company also anticipates adjusted free cash flow productivity of 85% to 90%, alongside shareholder returns of roughly $10 billion in dividends and $5 billion in share repurchases during fiscal 2026.
“We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions,” said Shailesh Jejurikar, president and CEO. “We’re increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year. We continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy. We are confident in the progress we’re making and excited about the longer-term opportunity to leverage P&G’s strengths and unique capabilities to create the CPG company of the future.”
