Procter & Gamble (PG) Stock at Two‑Year Lows: Restructuring, New CEO and 2026 Outlook Explained

Published: December 6, 2025 – Data as of market close December 5, 2025

Procter & Gamble Company (NYSE: PG) – often shortened to “P&G” or “The Procter & Gamble Co. stock” – has quietly turned into one of the most interesting stories in the usually sleepy world of consumer staples.

In the past week, the stock has slid to a two‑year low after management warned that U.S. sales are down “significantly,” even as the company delivered solid first‑quarter fiscal 2026 results, announced a sweeping 7,000‑job restructuring plan, and prepared for a CEO hand‑off on January 1, 2026. ^[1]

At the same time, analyst price targets still point to nearly 20–22% upside from here, while at least one valuation model argues the stock remains almost 20% overvalued. ^[2]

Key Takeaways for PG Stock on December 6, 2025

Share price near two‑year low: PG closed around $143.45 on December 5, 2025, versus a 52‑week range of roughly $142.5 to $180, and has delivered roughly –15% total return over the past year. ^[3]
Mixed signals: Q1 FY26 results showed modest 3% sales growth and strong cash generation, but management is signaling a more volatile and cautious U.S. consumer and warning that U.S. category sales fell sharply in October and likely remained weak in November. ^[4]
Strategic reset + leadership change: P&G is cutting 7,000 jobs, reshaping its portfolio, raising prices on about a quarter of its U.S. products to offset tariffs, and preparing to hand the CEO role from Jon Moeller to Shailesh Jejurikar on January 1, 2026. ^[5]

The result: investors are debating whether Procter & Gamble stock is now a rare blue‑chip buying opportunity or still a slow‑growth, fully‑priced “bond proxy” with headline risk.

PG Stock Today: Price, Valuation and Performance

As of the close on December 5, 2025, Procter & Gamble shares traded at about $143–144, down about 1.3% on the day and only slightly above their recent two‑year low. ^[6]

Key snapshot (trailing 12 months):

Market cap: ≈ $335 billion
Revenue (TTM): ≈ $84.9 billion
Net income (TTM): ≈ $16.5 billion
EPS (TTM): ≈ $6.85
P/E (TTM): about 21x
Forward P/E: around 20x
Dividend (annualized): ≈ $4.23 per share, a yield of roughly 2.9–3.0% at current prices. ^[7]

According to StockAnalysis and other aggregators, revenue in fiscal 2025 crept up only 0.3% year over year to roughly $84.3 billion, but earnings rose about 7–8% to $15.7–16.5 billion, reflecting strong margins and cost control rather than top‑line acceleration. ^[8]

Simply Wall St notes that while the stock is down double digits over the past year and has a roughly –15% one‑year total shareholder return, PG still trades at a premium multiple versus the global household‑products peer group (around 20–21x earnings vs an industry average in the high‑teens). ^[9]

Why PG Stock Just Hit a Two‑Year Low

The immediate trigger for the latest leg down was CFO Andre Schulten’s comments at the Morgan Stanley Global Consumer & Retail Conference on December 2, 2025.

According to a detailed recap from Investopedia, Schulten described: ^[10]

The U.S. business context as “more volatile, probably the most volatile we’ve seen in a long time.”
Category sales in which P&G competes being down “significantly” in both volume and value in October, with November not expected to be materially different.
A consumer that came into the quarter already “nervous and cautious.”

He also highlighted several one‑off and macro factors:

A port strike last year that led retailers to stockpile P&G products, now creating tough year‑over‑year comparisons.
A U.S. government shutdown and delays in SNAP (food‑assistance) benefits, which weighed on lower‑income consumers. ^[11]

P&G’s broad portfolio – from Tide and Gain detergents to Pampers, Gillette, Crest, and Oral‑B – makes it a bellwether for everyday consumer spending. The market interpreted the message as a sign that U.S. demand for essentials is wobbling, not just discretionary goods, sending PG shares down as much as 3% intraday and to their lowest level since late 2023 before they pared losses. ^[12]

These comments landed on top of already building concerns about tariffs, restructuring and soft guidance – turning a gradual drift lower into a sharper reset.

Restructuring: 7,000 Job Cuts, Portfolio Exits and Tariff Pressures

Back in June 2025, Reuters reported that P&G will cut about 7,000 jobs over the next two years, roughly 6% of its global workforce, as part of a broad restructuring plan. ^[13]

Key elements of that plan:

Workforce: About 15% of P&G’s non‑manufacturing roles are being eliminated, simplifying the organization by “making roles broader” and “teams smaller,” according to executives. ^[14]
Portfolio: The company plans to exit selected categories and brands in certain markets – including potential divestitures – in order to focus capital and marketing on its strongest global franchises. ^[15]
Tariffs: Management has flagged an estimated $600 million before‑tax hit in fiscal 2026 from U.S. trade tariffs, with the trade environment described as “unpredictable.” ^[16]
Restructuring charges: P&G expects $1–1.6 billion in pre‑tax charges over the two‑year period. ^[17]

To offset tariffs and other cost pressures, the company is also raising prices:

An Associated Press report notes that P&G plans to lift prices on about 25% of its U.S. product portfolio, with mid‑single‑digit percentage increases on average, partially to cover roughly $1 billion in additional pre‑tax costs. ^[18]

These actions are classic “defensive staple” moves: shrink bureaucracy, prune low‑return brands, raise prices selectively, and lean heavier on premium innovation. But executing thousands of job cuts and numerous exits without harming brand equity or market share is a non‑trivial operational challenge.

Q1 FY26 Results: Solid Fundamentals, Conservative Guidance

Against that backdrop, the first quarter of fiscal 2026 (July–September 2025) was, on paper, a solid one.

According to the company’s October 24 earnings release: ^[19]

Net sales:$22.4 billion, up 3% year over year.
Organic sales: Up 2%, with pricing and mix each contributing 1 point; volume overall was flat.
Diluted EPS (GAAP):$1.95, up 21%, largely because the prior year included heavy restructuring charges.
Core EPS:$1.99, up 3% year over year.
Cash flow: Operating cash flow of $5.4 billion and net earnings of $4.8 billion for the quarter.
Free cash flow productivity: A remarkable 102%, meaning free cash flow slightly exceeded net income.
Cash returns: P&G returned $3.8 billion to shareholders, split between $2.55 billion in dividends and $1.25 billion in buybacks.

Segment performance was mixed but generally positive: Beauty and Grooming delivered mid‑single‑digit to high‑single‑digit organic growth, while Fabric & Home Care and Baby, Feminine & Family Care were essentially flat as volume softness offset price/mix. ^[20]

For the full fiscal 2026 year, P&G kept its guidance unchanged:

All‑in sales growth:+1% to +5%.
Organic sales growth:0% to +4%.
Diluted EPS growth:+3% to +9% vs. fiscal 2025 diluted EPS of $6.51.
Core EPS growth:0% to +4%, implying a range of about $6.83–$7.09 with a midpoint around $6.96 (roughly 2% growth). ^[21]

Management still expects:

$10 billion in dividends and about $5 billion of share repurchases in fiscal 2026.
Adjusted free cash flow productivity of 85–90%. ^[22]

So while the market is now fixated on the near‑term consumption slowdown in the U.S., the actual numbers show a company grinding out low‑single‑digit growth with very strong cash generation and continued aggressive capital return.

Leadership Transition: Shailesh Jejurikar to Become CEO in 2026

Another major piece of the PG story is leadership change at the top.

On July 28, 2025, P&G announced that Shailesh Jejurikar, currently Chief Operating Officer, will become President and Chief Executive Officer effective January 1, 2026. Current CEO Jon Moeller will transition to Executive Chairman, leading the board and advising on strategy. ^[23]

Jejurikar:

Joined P&G in 1989 and has held senior roles across Fabric & Home Care, Health & Beauty, and P&G’s Enterprise Markets, spanning North America, Europe, Asia and Latin America. ^[24]
Has been part of the company’s global leadership team since 2014 and helped drive the current strategy of focusing on a smaller set of “daily‑use” categories where performance justifies premium pricing. ^[25]

Reuters characterized the change as a “surprise move” but consistent with P&G’s tradition of promoting long‑time insiders to the top job, and noted that it coincides with the restructuring program and ongoing tariff pressures. ^[26]

Net‑net, investors are not expecting a radical strategic pivot on January 1. Instead, Jejurikar is widely seen as a continuity candidate who will push deeper into:

Premium innovation (e.g., higher‑end SKUs in Beauty, Fabric and Home Care).
Productivity and automation in the supply chain.
Portfolio focus and category leadership in core brands like Tide, Pampers, Gillette, Crest and Olay. ^[27]

Dividend, Cash Returns and “Dividend King” Status

For income‑focused investors, P&G’s dividend record is one of its main attractions.

Recent developments:

In July 2025 and again at its October 2025 board meeting, P&G declared a quarterly dividend of $1.0568 per share on common stock (and equivalent ESOP preferred shares). ^[28]
That equates to about $4.23 per share annually, implying a dividend yield near 3% at current prices. ^[29]
The company has paid a dividend for 135 consecutive years and increased it for 69 straight years, placing it firmly in “Dividend King” territory. ^[30]

From its latest annual reporting, P&G notes that it returned over $16 billion to shareholders in the most recent full fiscal year – nearly $10 billion in dividends and about $6.5 billion in share repurchases – after increasing the dividend by 5%. ^[31]

For investors who care more about steady income and defensive characteristics than rapid growth, that combination of yield, longevity and buybacks is a key part of the investment case.

Analyst Ratings and PG Stock Forecasts into 2026

Despite the recent sell‑off and macro headwinds, Wall Street’s stance on PG remains broadly constructive – with some important caveats.

Consensus Price Targets

Different aggregators paint a consistent picture:

StockAnalysis: Average 12‑month target of about $174.43, implying roughly 21–22% upside from the latest price; consensus rating: “Buy.” ^[32]
MarketBeat: 21 analysts with an average target around $171.5, high $209, low $153, indicating about 19–20% upside from ~$143. ^[33]
TipRanks: Over the last three months, PG has received roughly 19 Buy and 14 Hold ratings, with no Sell ratings. The average target is around $169.4. ^[34]
Quiver Quantitative: Median price target over the last six months sits near $172, with recent targets ranging from $153 (Barclays) to $177 (BNP Paribas). ^[35]

Taken together, the typical 12‑month target cluster is around $169–175, about 19–22% above current levels.

Valuation Disagreements

Not everyone agrees PG is attractive at today’s price:

Simply Wall St’s narrative‑driven DCF model pegs “fair value” around $119.81, roughly 19–20% below the current share price, and labels PG about “20% overvalued”, reflecting modest long‑term growth assumptions (2–4% annual free‑cash‑flow growth). ^[36]
Bearish analysts on platforms like Seeking Alpha argue that while P&G is a cash‑rich, high‑margin business, its growth outlook is too modest to justify a 20x+ earnings multiple, calling the stock an “overvalued cash cow” and rating it a sell. ^[37]

Investors therefore face a classic trade‑off: paying a quality premium for a very durable franchise versus demanding a larger discount given slow growth and mounting macro uncertainty.

Litigation and Regulatory Risk: Kid’s Crest Lawsuit

A smaller – but notable – risk factor is emerging in P&G’s oral‑care business.

On November 3, 2025, Reuters reported that a U.S. federal judge ruled P&G must face a consumer lawsuit over its Kid’s Crest toothpaste packaging. ^[38]

The core allegations:

Packaging shows a full strip of toothpaste on a brush alongside the American Dental Association (ADA) seal, while public‑health guidance recommends only a smear or dab for young children to limit fluoride ingestion.
Plaintiffs argue the imagery misleads parents into thinking children can safely use more than is recommended, allegedly violating state consumer‑protection laws.
P&G had sought dismissal, arguing federal law preempts the claims and that its label instructions are clear; the judge disagreed at this stage, allowing the case to proceed. ^[39]

The case is one of several similar suits targeting fluoride‑based children’s oral‑care packaging, and the Texas Attorney General has opened civil investigations into P&G and Colgate over related marketing practices. Colgate has already agreed to modify its packaging; P&G has not yet announced changes. ^[40]

Financially, this is unlikely to be a thesis‑breaking event by itself, but it adds to headline risk at a time when investors are already wary of consumer‑protection scrutiny and brand‑safety issues.

Sentiment, Insider Activity and Institutional Flows

QuiverQuant’s monitoring of social media and capital‑flows data provides an interesting sentiment layer: ^[41]

Social chatter: Posts on X (formerly Twitter) have focused on two themes: strong Q1 FY26 earnings and the recent share‑price drop. Some investors see the current level as a buying opportunity in a reliable defensive name, while others worry that institutional selling signals deeper skepticism.
Insider trading: Over the last six months, P&G insiders have executed 25 open‑market stock trades, all on the sell side, with no open‑market purchases. Sales have come from top executives including CEO Jon Moeller, COO (soon‑to‑be CEO) Shailesh Jejurikar, CFO Andre Schulten and several business‑unit CEOs. Many of these are tied to vesting restricted stock units (RSUs) and related tax‑withholding, rather than discretionary selling.
- A recent Form 4 filing shows CFO Schulten disposing of shares at about $144.35 per share to cover RSU tax obligations while still holding over 53,000 shares directly and nearly 7,000 indirectly through retirement plans. ^[42]
Institutional investors: QuiverQuant data shows 1,658 institutions increasing PG positions and 2,082 reducing them in their latest filings. Significant moves include one large fund fully exiting its PG stake while others – including BlackRock and UBS – added millions of shares. Institutional ownership remains around 70% of the float. ^[43]

This pattern – RSU‑driven insider selling plus mixed institutional flows – is typical for a mega‑cap staple but reinforces the idea that PG is not a deep‑value contrarian favorite right now; it’s a crowded defensive stock going through a rough patch.

Long‑Term Growth Outlook: Slow but Steady

Beyond the next few quarters, external models and analyst projections suggest slow but dependable growth:

A recent Yahoo Finance analysis cites projections for P&G to reach about $92.8 billion in revenue and $17.8 billion in earnings by 2028, implying roughly 3.3% annual revenue growth and modest EPS gains. ^[44]
P&G’s own fiscal 2026 guidance calls for low‑single‑digit organic sales and EPS growth, and management continues to emphasize reinvestment into innovation, marketing and productivity rather than aggressive expansion. ^[45]

In other words, the company appears positioned for incremental, inflation‑like growth rather than breakout expansion – a reality that underpins both the bullish “reliable compounder” narrative and the bearish “overpriced slow‑grower” view.

Investment View: Who PG Stock May (and May Not) Suit Right Now

Nothing here is investment advice, but the current setup for Procter & Gamble stock on December 6, 2025, looks roughly like this:

Appealing to:

Income investors and dividend‑growth buyers who value a near‑3% yield, a 69‑year dividend‑increase streak, and management explicitly targeting ~$10 billion in annual dividends plus buybacks. ^[46]
Defensive, long‑term investors who want exposure to global consumer staples with deep brand moats and pricing power and can tolerate low‑single‑digit growth. ^[47]
Those who believe the recent two‑year low and macro scare are temporary, and that the stock will eventually gravitate toward the cluster of analyst price targets in the high‑$160s to mid‑$170s. ^[48]

Less attractive for:

Growth‑oriented investors seeking double‑digit top‑line and EPS expansion; P&G’s own guidance and external forecasts imply mid‑single‑digit or lower growth rates. ^[49]
Valuation‑sensitive buyers who agree with models that see PG as ~20% overvalued and prefer to wait for a larger discount to intrinsic value or sector peers. ^[50]
Traders worried about near‑term volatility around tariffs, U.S. consumption data, restructuring execution and ongoing litigation, especially given how much impact a single conference appearance had on the stock this week. ^[51]

Bottom Line

As of December 6, 2025, The Procter & Gamble Company stock (PG) sits at the crossroads of:

Very strong cash flows and shareholder returns,
Low but steady underlying growth,
Near‑term macro and tariff headwinds, and
A once‑in‑a‑decade leadership transition plus a major restructuring program.

For investors who see the current weakness as a cyclical wobble rather than a structural break, PG at a two‑year low may be a chance to accumulate a high‑quality dividend compounder at a slightly better price. For others, the combination of slow growth, ongoing restructuring and persistent valuation premium may justify patience.

Either way, Procter & Gamble has moved from “background defensive” to front‑page case study in how a mega‑cap staple navigates a volatile consumer economy, rising tariffs and generational leadership change.