Procter & Gamble reports strong Q1 sales despite rising commodity costs

Procter & Gamble (P&G) reported first-quarter fiscal 2027 results that exceeded analyst expectations, driven by a 4% increase in organic sales and a 2.4% rise in volume. Total revenue reached $23.28 billion, supported by strong performance in the beauty category, which grew 6.4%, and the home care segment.

Despite the robust sales, the company raised its annual cost outlook, now expecting raw materials, energy, and transportation expenses to reduce fiscal 2027 profit by approximately $1.4 billion. Chief Financial Officer Andre Schulten attributed these increased headwinds to geopolitical tensions and higher oil prices, noting that the estimate assumes a Brent crude price of $100 per barrel.

Following the acquisition of the supplement brand Thorne, P&G raised its full-year revenue growth forecast to a range of 2% to 4%. The company maintained its organic sales growth guidance of 1% to 3% and core earnings per share projections between $6.89 and $7.11.