NEW YORK, Jan 22, 2026, 17:24 (EST) — Trading after hours.
- Procter & Gamble shares rose roughly 2.7% in after-hours trading as investors weighed the latest quarterly results
- Revenue missed expectations slightly, yet the company maintained its core profit and sales growth forecasts
- Attention turns to U.S. volumes, tariff expenses, and the Fed meeting scheduled for next week
Procter & Gamble shares climbed roughly 2.7% to $149.93 in after-hours trading Thursday, following its fiscal second-quarter report. The maker of Tide and Pampers maintained key elements of its full-year guidance. P&G reported net sales up 1% at $22.2 billion, with core earnings per share steady at $1.88. Organic sales came in flat. (P&G Investor Relations)
P&G’s latest results are closely watched as a key indicator of everyday U.S. spending. Investors want to see if volumes bounce back now that price hikes are easing. The company reported revenue of $22.21 billion, slightly missing estimates of $22.28 billion. However, core EPS came in at $1.88, beating the $1.86 forecast, according to LSEG data. “The consumer is making choices driven by cost,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management, highlighting ongoing pressure in staples like detergent and paper. (Reuters)
Thursday’s rally doesn’t end the debate. P&G is still working to prove it can boost unit volumes in its largest market without sacrificing too much on price—a delicate balance that quickly turns sour if customers continue trading down.
During its earnings call, the company stuck to its fiscal 2026 forecast, expecting net sales to rise between 1% and 5%, with organic sales growth—excluding currency effects and M&A—projected from 0% to 4%. Core EPS growth was held steady at 0% to 4%. However, it raised its full EPS growth outlook, which factors in restructuring and other charges, to a range of 1% to 6%. The company also highlighted an after-tax tariff drag of roughly $0.4 billion. (Q4 Capital Solutions)
Pricing rose 1% during the quarter, but a 1% decline in volumes wiped out those gains. Beauty and health care showed strength, while grooming, home care, and baby care lagged, Investing.com reported. (Investing.com UK)
P&G leaned heavily on cash returns to back up its full-year outlook. The company reported $5.0 billion in operating cash flow for the quarter, handing back $4.8 billion to shareholders. That included $2.5 billion in dividends and $2.3 billion spent on share buybacks. (Q4 Capital Solutions)
On Thursday, a regulatory filing revealed that P&G provided the slide deck from its earnings call in compliance with Regulation FD, designed to prevent selective disclosure. (SEC)
The risks are clear. If affordability issues continue driving shoppers to smaller packs or cheaper options in key categories, the company might need to rely more on promotions. That could tighten margins, even if productivity gains materialize.
Investors are watching rates closely ahead of the Federal Reserve’s policy meeting set for Jan. 27-28. This event could shift sentiment around consumer staples, often seen as “defensive” plays. (Federal Reserve)
P&G now faces a clear challenge: can the stock maintain its post-earnings gain when the regular session opens Friday? Investors will also watch to see if management’s pledge of stronger performance in the second half begins to reflect in U.S. volume growth, not just price hikes.
