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Procter & Gamble (PG) explained: how it makes money, how it's doing, what protects it

A plain-English guide to the company behind Tide, Pampers and Gillette. See what it sells, where the money goes, who it competes with and what keeps shoppers coming back.

⚡What does Procter & Gamble do, in 30 seconds?

Procter & Gamble makes everyday household and personal products, with brands such as Tide, Pampers, Crest and Gillette 1. It sold $87.0bn ✓ in FY2026, the year to June 2026. Fabric and home care was the biggest part, at 35% ✓ of sales. P&G's products are sold in about 180 countries and territories 1.

Revenue, FY2026
$87.0bn✓
Profit, FY2026
$16.0bn✓
Sales growth, 4 quarters to 30 Sep 2026
3.5%✓
Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted), 30 Sep 2026
-$23.6bn✓
Headquarters
Cincinnati, Ohio 21
Founded
1837, by William Procter and James Gamble 4
Employees
About 104,000 at 30 June 2026 4
CEO
Shailesh Jejurikar, since 1 January 2026 2930
Factories
24 sites in 18 U.S. states and 72 sites in 31 other countries 21
Fiscal year ends
30 June 19

📱What does Procter & Gamble sell?

P&G reports five product segments 1. Here is what each one sells and who buys it.

🧺

Fabric and home care

Laundry detergents, additives and fabric enhancers such as Tide, Ariel, Downy and Gain, plus dish, surface and air care products such as Dawn, Cascade, Fairy, Febreze, Mr. Clean and Swiffer 1. This segment brought in $30.3bn ✓ in FY2026. P&G reports over 35% market share in fabric care in the markets where it competes 1. From the quarter to 30 September 2026, P&G also counts Habitat Care here, with its Spruce and Zevo pest and outdoor brands 3.

👥 Households. Across all its products, P&G sells through mass merchandisers, grocery stores, club stores and digital channels 4.

🍼

Baby, feminine and family care

Diapers and baby wipes (Pampers, Luvs), menstrual care and adult incontinence products (Always, Always Discreet, Tampax), and paper towels, tissues and toilet paper (Bounty, Charmin, Puffs) 1. This segment brought in $20.4bn ✓ in FY2026. P&G reports more than 30% global share in baby care and nearly 30% in feminine care 1. Its family care business is mostly North American 1.

👥 Parents, women and anyone who buys paper goods for the home.

🧴

Beauty

Hair care (Head & Shoulders, Herbal Essences, Pantene, Rejoice), deodorants and body cleansing (Native, Old Spice, Safeguard, Secret) and skin care (Olay, SK-II) 1. Beauty brought in $16.0bn ✓ in FY2026. P&G reports about 20% global share in retail hair care, where it is a global market leader 1. It describes SK-II as a super-premium brand with selling prices above the category average 5.

👥 Everyday shoppers, from people buying shampoo at the supermarket to buyers of premium skin care.

🦷

Health care

Oral care (Crest, Oral-B) and personal health care for digestion, pain relief, respiratory care, vitamins and supplements (Metamucil, Neurobion, Pepto-Bismol, Vicks) 1. Health care brought in $12.5bn ✓ in FY2026. P&G reports nearly 30% global share in oral care 1. On 1 October 2026 it completed its $3.9 billion cash purchase of Thorne, a premium wellness and supplement brand, which joins Personal Health Care 3.

👥 Families looking after their teeth and treating coughs, colds and upset stomachs.

🪒

Grooming

Blades and razors (Gillette, Venus), pre- and post-shave products, and appliances such as Braun electric shavers 1. Grooming brought in $6.9bn ✓ in FY2026. P&G reports more than 60% global share in blades and razors, primarily behind Gillette and Venus 1. It bought The Gillette Company in 2005 6.

👥 People who shave, buying razors and replacement blades.

📦

Other

P&G records certain incidental businesses in Corporate rather than in a product segment 5. Together these brought in $0.9bn ✓ in FY2026, or 1% ✓ of sales.

👥 No single customer group. These are sales outside the five product segments.

How the mix has shifted

Revenue mix by productFY2024Fabric and home care: $29.5bn (35%)Fabric and home care 35%Baby, feminine and family care: $20.3bn (24%)Baby, feminine and family care 24%Beauty: $15.2bn (18%)Beauty 18%Health care: $11.8bn (14%)Health care 14%Grooming: $6.7bn (8%)Grooming 8%Other: $0.6bn (1%)FY2025Fabric and home care: $29.6bn (35%)Fabric and home care 35%Baby, feminine and family care: $20.2bn (24%)Baby, feminine and family care 24%Beauty: $15.0bn (18%)Beauty 18%Health care: $12.0bn (14%)Health care 14%Grooming: $6.7bn (8%)Grooming 8%Other: $0.8bn (1%)FY2026Fabric and home care: $30.3bn (35%)Fabric and home care 35%Baby, feminine and family care: $20.4bn (23%)Baby, feminine and family care 23%Beauty: $16.0bn (18%)Beauty 18%Health care: $12.5bn (14%)Health care 14%Grooming: $6.9bn (8%)Grooming 8%Other: $0.9bn (1%)
Revenue mix by productFY24Fabric and home care: $29.5bn (35%)35%Baby, feminine and family care: $20.3bn (24%)24%Beauty: $15.2bn (18%)18%Health care: $11.8bn (14%)14%Grooming: $6.7bn (8%)Other: $0.6bn (1%)FY25Fabric and home care: $29.6bn (35%)35%Baby, feminine and family care: $20.2bn (24%)24%Beauty: $15.0bn (18%)18%Health care: $12.0bn (14%)14%Grooming: $6.7bn (8%)Other: $0.8bn (1%)FY26Fabric and home care: $30.3bn (35%)35%Baby, feminine and family care: $20.4bn (23%)23%Beauty: $16.0bn (18%)18%Health care: $12.5bn (14%)14%Grooming: $6.9bn (8%)Other: $0.9bn (1%)Fabric and home careBaby, feminine and family careBeautyHealth careGroomingOther
Share of revenue by business line, by fiscal year. Source: PROCTER & GAMBLE Co 10-K filed 2026-08-04.

Where the customers are

A little over half of P&G's sales come from outside the United States, at 52% ✓ in FY2026. The United States made up the other 48% ✓. Greater China, the United Kingdom, Canada, Japan and Germany together made up about 21% of net sales in fiscal 2026 5.

Revenue by regionOutside the US$45.3bn 52% of salesUnited States$41.7bn 48% of sales
Revenue by regionOutside the US$45.3bn 52%United States$41.7bn 48%
Revenue by region, FY2026. Source: PROCTER & GAMBLE Co 10-K filed 2026-08-04.

💸How does Procter & Gamble make money?

Follow the money: what customers pay for, what it costs to make, and what is left as profit.

Money map FY2026: how revenue turns into profitFabric and home care → Revenue: $30.3bnBaby, feminine and family care → Revenue: $20.4bnBeauty → Revenue: $16.0bnHealth care → Revenue: $12.5bnGrooming → Revenue: $6.9bnOther → Revenue: $0.9bnRevenue → Gross profit: $43.7bnRevenue → Cost of sales: $43.4bnGross profit → Operating profit: $19.7bnGross profit → R&D: $2.1bnGross profit → Selling & admin: $21.8bnOperating profit → Net income: $15.5bnOperating profit → Income tax: $4.2bnOther income → Net income: $0.5bnFabric and home care$30.3bn · 35%Baby, feminine and family care$20.4bn · 23%Beauty$16.0bn · 18%Health care$12.5bn · 14%Grooming$6.9bn · 8%Other$0.9bn · 1%Revenue$87.0bnGross profit$43.7bn · 50%Cost of sales$43.4bn · 50%Operating profit$19.7bn · 23%R&D$2.1bn · 2%Selling & admin$21.8bn · 25%Net income$16.0bn · 18%Income tax$4.2bn · 5%Other income$0.5bn · 1%
Money map FY2026: how revenue turns into profitFabric and home care: $30.3bnBaby, feminine and family care: $20.4bnBeauty: $16.0bnHealth care: $12.5bnGrooming: $6.9bnOther: $0.9bnFabric and home care$30.3bn · 35%Baby, feminine and family care$20.4bn · 23%Beauty$16.0bn · 18%Health care$12.5bn · 14%Grooming$6.9bn · 8%Other$0.9bn · 1%Revenue: $87.0bnRevenue$87.0bn · 100%Gross profit: $43.7bnCost of sales: $43.4bnGross profit$43.7bn · 50%Cost of sales$43.4bn · 50%Operating profit: $19.7bnR&D: $2.1bnSelling & admin: $21.8bnOperating profit$19.7bn · 23%R&D$2.1bn · 2%Selling & admin$21.8bn · 25%Net income: $16.0bnIncome tax: $4.2bnNet income$16.0bn · 18%Income tax$4.2bn · 5%
Money map (a Sankey diagram): band widths are to scale. Hover a band for the amount. Source: PROCTER & GAMBLE Co 10-K filings.

P&G sold $87.0bn ✓ of products in FY2026. Making those products cost $43.4bn ✓. What is left is gross profit, the money kept after paying for what was sold. That came to $43.7bn ✓.

Next come the costs of running the company. Research and development took $2.1bn ✓, and selling, marketing and admin, not counting research, took $21.8bn ✓. What remains is operating profit, the profit from the main business, which was $19.7bn ✓. Other income added $0.5bn ✓, and tax took $4.2bn ✓. That left net income of $16.0bn ✓. Put simply, out of every hundred dollars of sales, P&G kept about $19 ✓ as profit.

Out of every $100 customers paid in FY2026 (the year to Jun 2026)…

Making the products and services $50Research and development $2Selling and admin $25Income tax $5Profit kept $19Interest, investment gains and other income, added on top +$1

Interest, investment gains and other income added +$1 for every $100 of sales, so the slices above add up to a little more than $100.

💡
P&G spends far more on advertising than on research. In fiscal 2026 it spent $10.2 billion on advertising and $2.1 billion on research and development 19. Marketing spending also rose by 80 basis points as a share of net sales that year 5.

⏱️ Procter & Gamble by the clock

Spread the FY2026 totals evenly over its 365 days and you get this. Source: PROCTER & GAMBLE Co 10-K [7].

🛒
$238m
in sales every day
⏱️
$509
of profit every second
🔬
$5.8m
on research every day
🎁
$42m
handed to shareholders every day

📈How is Procter & Gamble doing?

P&G is growing slowly and is still very profitable. Compared with FY2025, the year to June 2025, sales rose 3.3% ✓ to $87.0bn ✓. Foreign exchange added 2% and pricing added 1%, while unit volume and mix were unchanged, and organic sales rose 1% 5. Operating margin was 22.7% ✓, down 160 basis points, mainly from a lower gross margin and higher marketing spending 5. Net income was $16.0bn ✓, which includes an after-tax gain of $261 million on the end of the Glad venture 6. P&G also recorded before-tax restructuring charges of $1.2 billion in fiscal 2026 3. Free cash flow was $15.1bn ✓.

Sales grew faster in the first quarter of fiscal 2027. In the quarter to 30 September 2026, net sales were $23.3 billion, up 4.0% from a year earlier, and organic volume rose 2.4% 2226. All 10 product categories and all 6 regions grew organic sales in that quarter 26. Reported gross margin fell 160 basis points, and operating margin fell 70 basis points 22. Over the four quarters to 30 September 2026, sales were $87.9bn ✓, up 3.5% ✓ on the four quarters before.

Over the long run, growth has been modest. From FY2016, the year to June 2016, to FY2026, sales grew 2.9% ✓ a year on average, and they rose in 9 ✓ of those 10 ✓ years. FY2016 sales of $65.3bn ✓ already left out two businesses P&G reports as discontinued: Duracell and the beauty brands sold to Coty 2728. In between, in fiscal 2019, P&G bought Merck KGaA's over-the-counter health business, which had about $1 billion of sales in its year to December 2017 32. One year stands out for profit. Operating margin fell to 8.1% ✓ in FY2019, when P&G took non-cash impairment charges of $8.3 billion before tax on Shave Care goodwill and Gillette intangible assets 32.

📝 The report card

P&G does best on steadiness, profit and cash, and its growth and borrowings are its weakest marks. Every company is graded on the same fixed scale, so an A means the same thing on every page. The strip shows where Procter & Gamble (orange) and its 4 peers land; further right is better.

D

Growth

Sales growth per year, last 3 fiscal years
2.0% · peer median 0.6%
#3 of 5 in the peer group
A ≥ 15.0%B ≥ 10.0%C ≥ 5.0%D ≥ 0.0%F below 0.0%

P&G's sales grew 2.0% ✓ a year over its last three fiscal years, which earns a D ✓. Colgate-Palmolive grew 4.3% ✓ a year over its own latest three fiscal years, also a D ✓.

Why this measure? (higher is better)

Growing sales is the engine of a business. Mature giants rarely grow fast, so 5% a year already earns a C.

B

Profitability

Operating margin, last 3 years combined
23.0% · peer median 15.0%
#1 of 5 in the peer group
A ≥ 30.0%B ≥ 20.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, P&G kept 23.0% ✓ of sales as operating profit, above the 20% bar for a B ✓. That is ahead of Colgate-Palmolive at 19.3% ✓ and Church & Dwight at 16.2% ✓.

Why this measure? (higher is better)

Operating margin is the share of each sales dollar left after running the business. Software and platforms often clear 30%; hardware makers usually sit below 10%.

B

Cash generation

Free cash flow as a share of sales, last 3 years combined
17.9% · peer median 14.8%
#1 of 5 in the peer group
A ≥ 20.0%B ≥ 15.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, P&G turned 17.9% ✓ of sales into free cash flow, a B ✓. Colgate-Palmolive was close at 17.1% ✓, and Clorox was well behind at 7.9% ✓.

Why this measure? (higher is better)

Free cash flow is the cash left after paying for factories, data centres and equipment. It funds dividends, buybacks and new bets.

D

Balance sheet

Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted) as a share of a year's sales
-27.8% · peer median -35.9%
#1 of 5 in the peer group
A ≥ 20.0%B ≥ 5.0%C ≥ -10.0%D ≥ -30.0%F below -30.0%

P&G has more borrowings than cash. Net cash is cash and investments minus borrowings, with leases and stakes in other companies not counted. It was -27.8% ✓ of a year's sales at the end of FY2026, a D ✓. In dollars, net cash was -$24.2bn ✓ at that date and -$23.6bn ✓ at 30 September 2026. After that, P&G closed a $4.0 billion note offering on 30 October 2026 and a 3.25 billion euro note offering on 3 November 2026 1213.

Why this measure? (higher is better)

More cash than debt gives a company room to ride out bad years. Some debt is normal; a lot of it makes a company fragile.

A

Steadiness

How much yearly sales growth swings (standard deviation, up to 10 years)
2.4% · peer median 3.6%
#2 of 5 in the peer group
A ≤ 5.0%B ≤ 8.0%C ≤ 12.0%D ≤ 18.0%F above 18.0%

P&G's yearly sales growth swings only a little, with a standard deviation of 2.4% ✓, which earns an A ✓. Growth ranged from -0.4% ✓ in FY2017 to 7.3% ✓ in FY2021.

Why this measure? (lower is better)

Steady growers are easier to plan around. Big swings mean sales depend on product cycles, the economy or one-off events.

🧑‍🏫 How the grades work
  1. Same scale for everyone. Each measure has fixed cut-offs (shown under each strip). Clear the A line and you get an A, whatever your peers do.
  2. Three years together. Profitability and cash generation add up the last three fiscal years before dividing, so one unusual year counts for less than it would on its own (a year much bigger than the others still weighs most).
  3. Peers for context. The rank shows how Procter & Gamble compares with the group. Companies within 0.1 percentage point share a rank.
  4. Same source. Every company's figures come from its own latest annual report (10-K), so fiscal years end in different months.
  5. Judgement, openly stated. The cut-offs are QuantVantage.ai's view of what good looks like for a large, established company. They are not a forecast or a recommendation.

11 years at a glance

Revenue
$87.0bn
FY2026
Revenue by fiscal yearFY2016: $65.3bnFY2017: $65.1bnFY2018: $66.8bnFY2019: $67.7bnFY2020: $71.0bnFY2021: $76.1bnFY2022: $80.2bnFY2023: $82.0bnFY2024: $84.0bnFY2025: $84.3bnFY2026: $87.0bnFY2016FY2026
Operating margin
22.7%
FY2026
Operating marginFY2016FY2026
Free cash flow
$15.1bn
FY2026
Free cash flow by fiscal yearFY2016: $12.1bnFY2017: $9.4bnFY2018: $11.2bnFY2019: $11.9bnFY2020: $14.3bnFY2021: $15.6bnFY2022: $13.6bnFY2023: $13.8bnFY2024: $16.5bnFY2025: $14.0bnFY2026: $15.1bnFY2016FY2026
Net cash
-$24.2bn
end of FY2026
Net cash by fiscal yearFY2016: -$16.3bnFY2017: -$16.5bnFY2018: -$19.4bnFY2019: -$19.8bnFY2020: -$18.5bnFY2021: -$21.7bnFY2022: -$24.3bnFY2023: -$26.4bnFY2024: -$23.0bnFY2025: -$25.0bnFY2026: -$24.2bnFY2016FY2026

Where the cash goes

Over the 11 fiscal years from FY2016 to FY2026, P&G handed back more cash than its free cash flow. It spent $166.2bn ✓ on buybacks and dividends, against $147.5bn ✓ of free cash flow. In FY2026 alone, payouts equalled 101% ✓ of free cash flow. P&G has paid a dividend for 136 consecutive years and increased it for 70 consecutive years 2425.

Free cash flow vs cash returned to shareholders$0bn$10bn$20bnFY2017 free cash flow $9.4bnFY2017 buybacks + dividends $12.4bnFY17FY2018 free cash flow $11.2bnFY2018 buybacks + dividends $14.3bnFY18FY2019 free cash flow $11.9bnFY2019 buybacks + dividends $12.5bnFY19FY2020 free cash flow $14.3bnFY2020 buybacks + dividends $15.2bnFY20FY2021 free cash flow $15.6bnFY2021 buybacks + dividends $19.3bnFY21FY2022 free cash flow $13.6bnFY2022 buybacks + dividends $18.8bnFY22FY2023 free cash flow $13.8bnFY2023 buybacks + dividends $16.4bnFY23FY2024 free cash flow $16.5bnFY2024 buybacks + dividends $14.3bnFY24FY2025 free cash flow $14.0bnFY2025 buybacks + dividends $16.4bnFY25FY2026 free cash flow $15.1bnFY2026 buybacks + dividends $15.3bnFY26
Free cash flow vs cash returned to shareholders$0bn$10bn$20bnFY2021 free cash flow $15.6bnFY2021 buybacks + dividends $19.3bnFY21FY2022 free cash flow $13.6bnFY2022 buybacks + dividends $18.8bnFY22FY2023 free cash flow $13.8bnFY2023 buybacks + dividends $16.4bnFY23FY2024 free cash flow $16.5bnFY2024 buybacks + dividends $14.3bnFY24FY2025 free cash flow $14.0bnFY2025 buybacks + dividends $16.4bnFY25FY2026 free cash flow $15.1bnFY2026 buybacks + dividends $15.3bnFY26
■ Free cash flow   ■ Buybacks + dividends. Source: PROCTER & GAMBLE Co 10-K filings.

🧮Ratios 101: what are Procter & Gamble's key financial ratios?

Ratios shrink P&G's big numbers into easy comparisons, and they show a company with strong margins and a large base of assets. A ratio divides one number by another so companies of any size can be compared. Each card shows the formula with Procter & Gamble's real FY2026 numbers, the peer median and the trend.

💰 Profitability: how much of each sale is kept?

Higher is better

Gross margin

50.2%
Gross profit$43.7bn$87.0bnSales=50.2%

What is left from each sale after paying to make the product or deliver the service.

👉 P&G keeps 50.2% ✓ of sales as gross profit, above the 43.5% ✓ peer median. Colgate-Palmolive keeps more, at 60.1% ✓.

📏 Rule of thumb: Above 40% usually signals pricing power or a big software or services mix.

Peer median 43.5% (4 peers)FY2016 49.6%
Gross margin by fiscal yearFY2016FY2026
Higher is better

Operating margin

22.7%
Operating profit$19.7bn$87.0bnSales=22.7%

What is left after also paying for research, marketing and running the company.

👉 P&G's 22.7% ✓ is well above the 15.3% ✓ peer median.

📏 Rule of thumb: Above 20% is strong for a large company.

Peer median 15.3% (4 peers)FY2016 20.6%
Operating margin by fiscal yearFY2016FY2026
Higher is better

Net margin

18.4%
Net income$16.0bn$87.0bnSales=18.4%

The bottom line: profit after interest and taxes, per dollar of sales.

👉 P&G keeps 18.4% ✓ of sales as final profit, above the 11.2% ✓ peer median.

📏 Rule of thumb: Above 15% is strong; one-off tax items can move it in a single year.

Peer median 11.2% (4 peers)FY2016 16.1%
Net margin by fiscal yearFY2016FY2026
It depends

Return on equity (ROE)

29.5%
Net income$16.0bn$54.3bnShareholders' equity=29.5%

Profit earned for each dollar that shareholders have left in the company.

👉 P&G's ROE is 29.5% ✓, far below the 393.4% ✓ peer median. That median is high because several peers have very little shareholders' equity compared with their profit, such as Clorox at 652.2% ✓.

📏 Rule of thumb: Around 15% or more is good, but buybacks shrink equity and can make ROE look huge.

Peer median 393.4% (4 peers)FY2016 18.1%
Return on equity (ROE) by fiscal yearFY2016FY2026

⚙️ Efficiency: how hard do the assets work?

Higher is better

Return on assets (ROA)

12.7%
Net income$16.0bn$126.5bnTotal assets=12.7%

Profit earned from everything the company owns, however it was paid for.

👉 P&G earns 12.7% ✓ on everything it owns, above the 10.0% ✓ peer median.

📏 Rule of thumb: Above 10% is strong; banks and factories usually earn less.

Peer median 10.0% (4 peers)FY2016 8.3%
Return on assets (ROA) by fiscal yearFY2016FY2026
Higher is better

Asset turnover

0.7x
Sales$87.0bn$126.5bnTotal assets=0.7x

Dollars of sales squeezed out of each dollar of assets.

👉 P&G's sales are 0.7x ✓ the value of everything it owns, below the 0.9x ✓ peer median.

📏 Rule of thumb: Retailers often top 2x; asset-heavy businesses can sit below 0.5x.

Peer median 0.9x (4 peers)FY2016 0.5x
Asset turnover by fiscal yearFY2016FY2026
Lower is better

Inventory days

69 days
Inventory$8.2bn$43.4bnCost of sales× 365=69 days

How many days of products sit in warehouses before they are sold.

👉 P&G holds 69 ✓ days of stock, a little more than the peer median of 65 ✓ days.

📏 Rule of thumb: Fewer days means less cash tied up and less risk of products going stale.

Peer median 65 days (4 peers)FY2016 52 days
Inventory days by fiscal yearFY2016FY2026

🛟 Safety: could it survive a bad year?

It depends

Current ratio

0.7x
Current assets$26.2bn$38.7bnCurrent liabilities=0.7x

Can short-term assets (cash, money owed by customers, stock) pay the bills due within a year?

👉 P&G's 0.7x ✓ means its short-term assets do not cover its bills: it had $26.2bn ✓ of current assets against $38.7bn ✓ of bills due within a year. The peer median is 0.8x ✓.

📏 Rule of thumb: Above 1.0x is the classic comfort line, but cash-rich giants can run below it on purpose.

Peer median 0.8x (4 peers)FY2016 1.1x
Current ratio by fiscal yearFY2016FY2026
Lower is better

Debt to equity

0.6x
Total debt$34.1bn$54.3bnShareholders' equity=0.6x

How much the company has borrowed for each dollar shareholders have in it.

👉 P&G's 0.6x ✓ is far below the 30.5x ✓ peer median, which is high because some peers have very little equity, such as Clorox at 56.3x ✓.

📏 Rule of thumb: Below 1.0x is conservative. Like ROE, it can rise when buybacks shrink equity, even if debt has not changed.

Peer median 30.5x (4 peers)FY2016 0.5x
Debt to equity by fiscal yearFY2016FY2026
Higher is better

Interest cover

22.5x
Operating profit$19.7bn$0.9bnInterest expense=22.5x

How many times over operating profit could pay the year's interest bill.

👉 Operating profit could pay P&G's interest bill 22.5x ✓ over, well above the 10.3x ✓ peer median.

📏 Rule of thumb: Above 5x is comfortable; below 2x is a warning sign.

Peer median 10.3x (4 peers)FY2016 23.2x
Interest cover by fiscal yearFY2016FY2026

💵 Cash and owners: where does the money end up?

Higher is better

Cash conversion

0.9x
Free cash flow$15.1bn$16.0bnNet income=0.9x

Does reported profit turn into real cash? Free cash flow is operating cash minus capital spending.

👉 P&G turns profit into cash at 0.9x ✓, below the 1.1x ✓ peer median. P&G's adjusted free cash flow was 100% of net earnings excluding the Glad gain in fiscal 2026 5.

📏 Rule of thumb: Near or above 1.0x means profits are backed by cash.

Peer median 1.1x (4 peers)FY2016 1.2x
Cash conversion by fiscal yearFY2016FY2026
It depends

R&D intensity

2.4%
R&D$2.1bn$87.0bnSales=2.4%

How much of each sales dollar goes into inventing future products.

👉 P&G spends 2.4% ✓ of sales on R&D, a little above the 1.9% ✓ peer median.

📏 Rule of thumb: Tech companies often spend 10% to 20%; more is not always better if it does not pay off.

Peer median 1.9% (4 peers)FY2016 2.9%
R&D intensity by fiscal yearFY2016FY2026
Lower is better

Stock pay

0.6%
Share-based pay$0.5bn$87.0bnSales=0.6%

Pay given to staff in shares instead of cash. It is a real cost to owners because it adds shares.

👉 Stock pay is 0.6% ✓ of sales, a little below the 0.8% ✓ peer median.

📏 Rule of thumb: Under 5% of sales is modest for a tech company.

Peer median 0.8% (4 peers)FY2016 0.5%
Stock pay by fiscal yearFY2016FY2026
It depends

Shareholder payout

95.1%
Dividends + buybacks$15.3bn$16.0bnNet income=95.1%

How much of the year's profit was handed back to owners.

👉 P&G returned 95.1% ✓ of FY2026 profit, against a peer median of 144.2% ✓.

📏 Rule of thumb: Above 100% means it returned more than it earned, using cash savings or debt.

Peer median 144.2% (4 peers)FY2016 108.9%
Shareholder payout by fiscal yearFY2016FY2026

Ratios use fiscal-year-end balance sheet values. Inputs are shown rounded, so dividing them can differ from the result in the last digit. A peer median leaves out peers that do not report the inputs, or where the ratio means nothing (for example, negative shareholders' equity). Rules of thumb are general guides from QuantVantage.ai, not hard limits. No share-price ratios (like price-to-earnings) are shown on this page.

🥊Who are Procter & Gamble's competitors?

P&G meets a different rival in each aisle. Colgate-Palmolive sells toothpaste and toothbrushes against Crest and Oral-B 114. Kimberly-Clark sells diapers, feminine care products and paper tissue and towels 115. Clorox sells home cleaning products and laundry additives 116. Church & Dwight sells laundry detergent and names P&G among its competitors 117.

Peer map: growth vs profitability, bubble size = revenue-5%0%5%0%10%20%Sales growth per year, 3 years →Operating margin →Procter & Gamble: revenue $87.0bn, growth 2.0%/yr, operating margin 22.7%PGColgate-Palmolive: revenue $20.4bn, growth 4.3%/yr, operating margin 16.2%CLKimberly-Clark: revenue $16.4bn, growth -6.6%/yr, operating margin 14.3%KMBClorox: revenue $6.7bn, growth -3.1%/yr, operating margin 13.7%CLXChurch & Dwight: revenue $6.2bn, growth 4.9%/yr, operating margin 17.4%CHD
Peer map: growth vs profitability, bubble size = revenue-5%0%5%0%10%20%Sales growth per year, 3 years →Operating margin →Procter & Gamble: revenue $87.0bn, growth 2.0%/yr, operating margin 22.7%PGColgate-Palmolive: revenue $20.4bn, growth 4.3%/yr, operating margin 16.2%CLKimberly-Clark: revenue $16.4bn, growth -6.6%/yr, operating margin 14.3%KMBClorox: revenue $6.7bn, growth -3.1%/yr, operating margin 13.7%CLXChurch & Dwight: revenue $6.2bn, growth 4.9%/yr, operating margin 17.4%CHD
Peer map from each company's latest 10-K. Bubble size = revenue. Source: SEC filings [7] [8] [18] [10] [9].
CompanyWhere they competeRevenueGrowth/yr (3y)Op. marginFCF margin
Procter & Gamble (PG, FY2026 to Jun 2026)Laundry, home cleaning, diapers, paper goods, beauty, oral care and shaving$87.0bn2.0%22.7%17.4%
Colgate-Palmolive (CL, FY2025)Toothpaste and toothbrushes 114$20.4bn4.3%16.2%17.8%
Kimberly-Clark (KMB, FY2025)Diapers, feminine care products, and paper tissue and towels 115$16.4bn-6.6%14.3%10.0%
Clorox (CLX, FY2026 to Jun 2026)Home cleaning and laundry additives; the two shared the Glad business until the venture expired on 31 January 2026 116$6.7bn-3.1%13.7%6.0%
Church & Dwight (CHD, FY2025)Laundry detergent: Tide, Ariel and Gain against Arm & Hammer, OxiClean and Xtra 117$6.2bn4.9%17.4%17.6%

In many of its markets, P&G also competes against retailers' own private-label brands 1. It lists online shopping, fragmented media, easier competitive entry into certain categories and the growth of hard discounters among the pressures on its business 20.

🧭Procter & Gamble SWOT: strengths, weaknesses, opportunities and threats

💪 Strengths

  • P&G reports more than 60% global share in blades and razors, primarily behind Gillette and Venus 1.
  • Over the last three years combined, P&G kept 23.0% ✓ of sales as operating profit, a B ✓.
  • Yearly sales growth swings only a little, with a standard deviation of 2.4% ✓, an A ✓.
  • P&G has increased its dividend for 70 consecutive years 2425.

🩹 Weaknesses

  • Unit volume was unchanged in fiscal 2026, while pricing added 1% to net sales 5.
  • Walmart and its affiliates were about 16% of net sales in each of fiscal 2024, 2025 and 2026 419.
  • In fiscal 2026 P&G's global share fell 0.3 points in Beauty, 0.4 in Grooming and 0.2 in Baby, Feminine & Family Care 5.
  • Oral care organic sales in Greater China fell by a mid-teens percentage in fiscal 2026 5.

🚀 Opportunities

  • Thorne, a premium brand in vitamins, minerals and supplements, joins a Personal Health Care business that already sells them 31.
  • P&G's global share rose 0.4 points in Health Care in fiscal 2026 5.
  • In the quarter to 30 September 2026, organic volume rose 2.4% 2226, and all 6 regions grew organic sales 26.
  • P&G says social media, streaming, AI-based search and retailers' own media platforms are changing how consumers engage with brands 1.

⚠️ Threats

  • For fiscal 2027, P&G expects an after-tax headwind of about $1.4 billion from commodities 22.
  • P&G says the Gillette intangible asset could be impaired by adverse changes such as currency devaluation or a change in grooming habits 23.
  • P&G says more concentration among its retail customers, or more buying alliances, could create significant cost and margin pressure 20.
  • Operations outside the United States generate more than 50% of annual net sales, which exposes sales and earnings to currency moves 20.

🏰Does Procter & Gamble have a moat?

Narrow moatP&G reports large shares in many daily-use categories 1 and spends heavily on advertising 19. But it cites competitive activity for volume declines in some categories 5, and private-label brands compete in many of its markets 1.
Brand 4/5
Why 4?

P&G reports more than 60% global share in blades and razors 1, and over 35% in fabric care in the markets where it competes 1. It reports more than 30% global share in baby care 1, about 20% in retail hair care 1 and nearly 30% in oral care 1. It spent $10.2 billion on advertising in fiscal 2026 19. P&G says many of its brands have worldwide recognition 20. In many of its markets, P&G also competes against retailers' private-label brands 1.

Switching costs 1/5
Why 1?

P&G attributes fiscal 2026 North American volume declines in hair care and home care, and volume declines in family care, to competitive activity 5. It says it would suffer if a key retailer cut inventory or shelf space for its products in favor of rivals, private label or generic goods 20. It also lists easier competitive entry into certain categories among its pressures 20.

Network effects 1/5
Why 1?

P&G sells most of its products through retail customers to individual consumers of daily-use goods 204. Its products do not rely on a network of users.

Cost advantages and scale 4/5
Why 4?

P&G owns 24 manufacturing sites in 18 U.S. states and 72 in 31 other countries 21, and its products are sold in about 180 countries and territories 1. Manufacturing productivity savings added 180 basis points to gross margin in fiscal 2026 5. P&G says it generally gets scale-related benefits on overhead costs 5. Its core operating margin included 250 basis points of gross productivity savings in the quarter to 30 September 2026 22.

Intangibles (patents, licences, regulation) 3/5
Why 3?

P&G owns or has rights to patents and trademarks across its businesses, and its patents cover features including product formulation and manufacturing processes 4. It spent $2.1 billion on research and development in fiscal 2026 19. It carried $19.5 billion of indefinite-lived intangible assets, primarily brands, at 30 September 2026 3. The Gillette asset was carried at $12.8 billion at 30 June 2026 23.

A moat is what keeps rivals from taking a company's customers and profits. Scores are QuantVantage.ai's judgement (5 = strongest), set with the same rubric on every explainer (orange is Procter & Gamble; grey dots are peers).

🔭What should you watch next?

Fiscal 2027, the year to June 2027

Sales guidance

P&G guides to all-in sales growth of 2% to 4% and organic sales growth of 1% to 3% 22. That includes a 30 to 50 basis point headwind from brand, product form and go-to-market discontinuations 22.

Fiscal 2027, the year to June 2027

Commodity and other cost headwinds

P&G expects after-tax headwinds of about $1.4 billion from commodities, $300 million from higher net interest expense, $150 million from lower non-operating income and $50 million from foreign exchange 22.

Quarter ending 31 December 2026

Thorne's first results

P&G will report Thorne's results starting that quarter, and it also expects to finalize the purchase price allocation then 3.

Quarter ending 31 December 2026

Gillette impairment test

P&G runs its annual goodwill and intangible test in the quarter ending 31 December. The Gillette asset, carried at $12.8 billion, passed its last test by more than 10%, and P&G calls it susceptible to impairment risk 323.

By the end of fiscal 2027

Restructuring plan

P&G expects to finish its roughly $2.0 billion plan, including up to 7,000 non-manufacturing overhead role reductions, by the end of fiscal 2027 3.

Fiscal 2027, the year to June 2027

Cash returns and spending

P&G expects to pay over $10 billion in dividends and make about $5 billion of direct share repurchases 22. It expects capital spending of 4.5% to 5.5% of net sales 22.

📚Learn the words

Revenue (sales)All the money a company takes in from customers before paying any costs.
Gross marginThe share of each sales dollar left after paying to make the product. Higher means each sale is more profitable.
Operating profitProfit from the main business after paying for products, research, marketing and admin, but before interest and tax.
Net incomeThe profit left at the very end, after every cost and tax has been paid.
Free cash flowThe cash a business has left after running itself and buying equipment. It can be used for dividends, buybacks or saving.
Organic salesSales growth with the effects of currency moves, acquisitions and divestitures taken out.
Basis pointOne hundredth of a percentage point. Companies use it to describe small changes in margins.
Private labelA store's own brand of a product, sold beside brands from companies like P&G.
ImpairmentAn accounting charge that cuts the value of an asset on the books when it is worth less than the company carried it at.
Fiscal yearA company's own 12-month accounting year. P&G's ends on 30 June, so FY2026 ended in June 2026.
Economic moatA lasting advantage, like a strong brand or low costs, that keeps rivals from taking a company's customers.
RatioOne number divided by another, such as profit divided by sales. Ratios let you compare companies of very different sizes.

❓Frequently asked questions about Procter & Gamble

How does P&G make money?

P&G makes money by selling everyday household and personal products, mostly through retailers 204. In FY2026, fabric and home care brought in $30.3bn ✓ and baby, feminine and family care $20.4bn ✓.

Which brands does P&G own?

P&G's brands include Tide, Pampers, Bounty, Head & Shoulders, Crest and Gillette 1.

Does P&G still own Duracell?

No, P&G sold its Duracell batteries business to Berkshire Hathaway in February 2016 27. It also completed the sale of 41 beauty brands to Coty on 1 October 2016 28.

Is P&G's revenue still growing?

Yes, though slowly. Sales rose 3.3% ✓ in FY2026, after 0.3% ✓ in FY2025. In fiscal 2026, foreign exchange added 2% and organic sales rose 1% 5.

Who are P&G's competitors?

P&G's rivals include Colgate-Palmolive in toothpaste, Kimberly-Clark in diapers and paper products, Clorox in home cleaning and Church & Dwight in laundry detergent 114151617. It also competes with retailers' private-label brands in many markets 1.

How much does P&G spend on advertising?

P&G spent $10.2 billion on advertising in fiscal 2026, up from $9.2 billion in fiscal 2025 19.

Who is P&G's CEO?

Shailesh Jejurikar became President and CEO on 1 January 2026, succeeding Jon Moeller 2930. He also became Chairman of the Board on 1 August 2026 2930.

Does P&G pay a dividend?

Yes. P&G has paid a dividend for 136 consecutive years and raised it for 70 consecutive years 2425. It paid $10.2bn ✓ in dividends in FY2026.

🎮Play: higher or lower, then test yourself

Higher or lower · round 1 of 6

Figures come from each company's latest annual report (10-K); fiscal years end in different months. Sources: [7] [8] [18] [10] [9].

Score: 0

🧠 Test yourself

5 quick questions. Score: 0 / 5

1. About how much of P&G's sales came from fabric and home care in FY2026?

Fabric and home care made up 35% ✓ of P&G's sales in FY2026.

2. Who bought Duracell from P&G?

P&G sold its Duracell batteries business to Berkshire Hathaway in February 2016 27.

3. In what year was the business behind P&G founded?

William Procter and James Gamble founded the business in Cincinnati in 1837 4.

4. For how many years in a row has P&G raised its dividend?

P&G has increased its dividend for 70 consecutive years, and it has paid one for 136 consecutive years 2425.

5. Which customer made up about 16% of P&G's net sales in fiscal 2026?

Walmart and its affiliates accounted for about 16% of P&G's net sales in fiscal 2026 419.

🔎Sources and method

Every figure comes from a source listed here or is calculated from those sources (marked ✓). Company financials come from the reports each company files with the SEC (10-K annual and 10-Q quarterly reports). Peer grades rank the same measures across the company and its peers. This page contains no share-price data and no valuation.

  1. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — MD&A overview: segments, brands, market shares, strategy, countries (accessed 2026-11-08)
  2. Procter & Gamble (PG) Form 10-K for fiscal year 2026, filed 2026-08-04 — revenue and cost of sales by product, segment and geography (accessed 2026-11-04)
  3. Procter & Gamble Form 10-Q for the quarter ended September 30, 2026 — Segment realignment, restructuring plan, intangible assets, Thorne acquisition (accessed 2026-11-08)
  4. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Item 1: history, business model, customers, materials, trademarks and patents, competition, employees (accessed 2026-11-08)
  5. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — MD&A results: net sales drivers, margins, segment results, cash flow, international markets (accessed 2026-11-08)
  6. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — MD&A recent developments: portfolio restructuring, Gillette impairment, productivity plan, Glad, tariffs (accessed 2026-11-08)
  7. SEC EDGAR companyfacts: Procter & Gamble (PG) — annual 10-K facts (accessed 2026-11-04)
  8. SEC EDGAR companyfacts: COLGATE PALMOLIVE CO (CL) — annual 10-K facts (accessed 2026-11-04)
  9. SEC EDGAR companyfacts: CHURCH & DWIGHT CO INC /DE/ (CHD) — annual 10-K facts (accessed 2026-11-04)
  10. SEC EDGAR companyfacts: CLOROX CO /DE/ (CLX) — annual 10-K facts (accessed 2026-11-04)
  11. SEC EDGAR companyfacts: Procter & Gamble (PG) — balance sheet at 2026-09-30 (accessed 2026-11-04)
  12. Procter & Gamble Form 8-K, October 30, 2026 — U.S. dollar notes offering (accessed 2026-11-08)
  13. Procter & Gamble Form 8-K, November 3, 2026 — Euro notes offering (accessed 2026-11-08)
  14. Colgate-Palmolive Form 10-K for 2025 — Oral care brands and global toothpaste and manual toothbrush shares (accessed 2026-11-08)
  15. Kimberly-Clark Form 10-K for 2025 — Product categories and brands (accessed 2026-11-08)
  16. Clorox Form 10-K for fiscal year 2026 — Segments and brands, Glad venture expiry (accessed 2026-11-08)
  17. Church & Dwight Form 10-K for 2025 — Laundry brands and named competitors (accessed 2026-11-08)
  18. SEC EDGAR companyfacts: KIMBERLY CLARK CORP (KMB) — annual 10-K facts (accessed 2026-11-04)
  19. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Notes 1 and 2: research, advertising, segment percentages, major customer, fiscal year (accessed 2026-11-08)
  20. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Item 1A risk factors: competition, retail customers, brands and reputation, costs (accessed 2026-11-08)
  21. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Item 2 properties: manufacturing sites and headquarters (accessed 2026-11-08)
  22. P&G fiscal year 2027 first quarter results, news release (8-K exhibit 99.1, October 22, 2026) — Quarter results, margin drivers, fiscal 2027 guidance (accessed 2026-11-08)
  23. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Critical accounting estimates: Gillette intangible asset (accessed 2026-11-08)
  24. Procter & Gamble Form 10-K for fiscal year 2026 (year ended June 30, 2026) — Item 5: dividend history, share repurchase plan, shareowners and listing (accessed 2026-11-08)
  25. P&G declares quarterly dividend, news release (8-K exhibit, October 13, 2026) — Quarterly dividend, dividend record, annual meeting (accessed 2026-11-08)
  26. P&G Q1 fiscal 2027 results slides (8-K exhibit 99.1, October 22, 2026) — Organic sales drivers and market share summary (accessed 2026-11-08)
  27. Procter & Gamble Form 10-K for fiscal year 2016 (year ended June 30, 2016) — Brand portfolio plan, Batteries and Pet Care divestitures, fiscal 2015 net sales as recast (accessed 2026-11-08)
  28. Procter & Gamble Form 10-K for fiscal year 2017 (year ended June 30, 2017) — Beauty Brands divestiture to Coty, Venezuela deconsolidation, fiscal 2016 net sales (accessed 2026-11-08)
  29. Shailesh Jejurikar elected P&G President and CEO, news release (8-K exhibit, July 28, 2025) — CEO succession effective January 1, 2026 (accessed 2026-11-08)
  30. Shailesh Jejurikar appointed Chairman of P&G Board, news release (8-K exhibit, July 29, 2026) — Chairman appointment and Jon Moeller retirement (accessed 2026-11-08)
  31. SEC EDGAR companyfacts: Procter & Gamble (PG) — quarterly 10-Q/10-K facts (accessed 2026-11-04)
  32. Procter & Gamble Form 10-K for fiscal year 2019 (year ended June 30, 2019) — Merck consumer health acquisition, PGT Healthcare dissolution, Shave Care impairment, pension accounting change (accessed 2026-11-08)