Procter & Gamble's beauty business continued to outpace the broader company in the fourth quarter of fiscal 2026, while grooming delivered more modest growth as the consumer goods giant navigated a challenging macroeconomic environment marked by cautious spending and rising input costs. (Scroll down for results.)
- Compare/contrast: Unilever Lifts 2026 Outlook as Beauty Powers Strong First-Half Growth
Simultaneously, Shailesh Jejurikar has been appointed chairman of Procter & Gamble's board of directors, effective August 1, while continuing in his role as president and CEO, completing the company's planned leadership transition. He succeeds Jon Moeller, who will retire from the board on July 31 and leave the company on August 14 after a 38-year career that included serving as CEO, COO and CFO. A P&G veteran since 1989, Jejurikar has held senior leadership positions across categories, functions and global markets, and the appointment further consolidates the company's leadership following his elevation to CEO earlier this year.
For the quarter ended June 30, P&G reported net sales of $21.2 billion, up 2% year over year, while organic sales were flat. Diluted earnings per share declined 15% to $1.26, reflecting higher selling, general and administrative expenses and lower gross margins. Core EPS fell 3% to $1.43.
Beauty remained the company's strongest personal care category. Quarterly beauty sales increased 6% to $3.98 billion, driven by 3% organic sales growth, supported by higher volume and favorable pricing. The segment includes brands such as Olay, SK-II, Pantene and Head & Shoulders.
By comparison, Grooming generated $1.70 billion in quarterly sales, up 1%, while organic sales were essentially flat as pricing gains offset lower volumes. The category, led by Gillette and Braun, reflected softer consumer demand that also weighed on the company's outlook.
For the full fiscal year, Beauty delivered one of P&G's strongest performances, with sales climbing 7% to $16.0 billion, while Grooming increased 4% to $6.9 billion. Across the company, fiscal 2026 net sales rose 3% and organic sales increased 1%, with nine of P&G's 10 product categories maintaining or growing organic sales during the year.
Jejurikar described fiscal 2026 as "a year of foundation building," saying the company continued to invest in innovation and productivity despite geopolitical and economic volatility. Looking ahead, P&G expects fiscal 2027 net sales growth of 1% to 3% and anticipates continued pressure from elevated commodity, energy and transportation costs, which it estimates could reduce profits by approximately $1 billion.
The results reinforce a broader trend across the beauty industry: premium beauty categories continue to show resilience through innovation and value-added products, while grooming and other everyday personal care segments face a more cautious consumer environment, particularly as shoppers trade down amid persistent inflationary pressures.
