Fiscal Year 2026 Guidance

P&G expects fiscal year 2026 all-in sales growth in the range of one to five percent versus the prior year. This includes a one percent benefit from the net impacts of foreign exchange rates and acquisitions and divestitures. The Company expects organic sales growth in the range of flat to up four percent versus prior year. Included in organic sales is a growth headwind of 30 to 50 basis points from brand and product form discontinuations.

P&G expects fiscal 2026 diluted net earnings per share growth in the range of 3% to 9% versus fiscal 2025 GAAP EPS of $6.51. GAAP EPS includes an expected gain from the exit of the Glad Joint Venture with Clorox in the range of $0.10 to $0.13 per share and non-core restructuring charges of $0.12 to $0.25 per share. P&G expects its fiscal 2026 core earnings per share growth in the range of flat to up four percent versus fiscal 2025 core EPS of $6.83. This outlook equates to a range of $6.83 to $7.09 per share, with a mid-point estimate of $6.96, or an increase of 2%.

The Company estimates a headwind of around $200 million after-tax from unfavorable commodity costs and a net headwind of roughly $250 million after-tax from modestly higher net interest expense and its core effective tax rate. In addition, the Company's outlook includes around $1 billion dollars before-tax, or approximately $800 million after-tax, in higher costs from tariffs. The Company said it expects a tailwind from foreign exchange rates of approximately $300 million dollars after-tax. Combined, the net of these impacts equates to a headwind of $0.39 per share for fiscal 2026, or a six percent drag on core EPS growth.

The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.

P&G said it expects a core effective tax rate to be in the range of 20% to 21% in fiscal 2026, at the mid-point of the range, approximately one point higher than the fiscal 2025 level.

Capital spending is estimated to be in the range of four to five percent of fiscal 2026 net sales.

P&G said it expects adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal 2026.