New York, Jan 28, 2026, 3:02 PM EST — Regular session
- Procter & Gamble shares dropped roughly 1% in afternoon trading, following a wider slump across consumer staples.
- TD Cowen downgraded P&G to “Hold,” citing a sluggish recovery driven by weakening pricing power and increased promotions.
- P&G spotlights a Wonderbelly buy and a fresh Crest toothpaste rollout, but rate shifts steal the spotlight.
Procter & Gamble shares dropped almost 1% Wednesday afternoon, slipping alongside broader consumer staples weakness and a new brokerage downgrade weighing on the stock. It hit a low of $146.88 before settling down 1.0% at $146.89.
The pullback is significant since P&G is a textbook “defensive” stock — known for steady demand, strong brands, and consistent cash payouts. Investors tend to favor it when growth wobbles. But as Treasury yields climb, these dividend-focused shares often lose some shine, with bonds providing tougher competition.
The timing coincides with a fierce debate over pricing power and how fast consumers shift to cheaper options when discounts pop up. For P&G, this strikes at the core — diapers, detergent, and paper products.
TD Cowen cut its rating on the Tide and Pampers maker to “Hold” from “Buy,” but raised the price target to $156. The firm now expects the recovery to be slower than anticipated, with muted pricing and a heavier reliance on promotions. It projects roughly 2% “organic” sales growth—excluding currency effects and acquisitions—for fiscal years 2026 and 2027. TD Cowen also noted recent share losses and intensified promotional activity in several categories. (Investing)
The company is pushing to expand its health segment amid efforts to boost growth in its main aisles. On Jan. 26, P&G announced in a blog post that Wonderbelly — a “free-from” digestive wellness brand — has been added to its Personal Health Care lineup, joining names like Metamucil and Pepto-Bismol. “Bringing Wonderbelly into the PHC digestive wellness portfolio complements our existing brands,” said Phil McWaters, senior vice president at P&G Personal Health Care. (Procter & Gamble)
Crest, a major player in P&G’s oral-care lineup, launched a new “Clean Breath” toothpaste this week. The product targets odor-causing bacteria and is designed for daily use. “We know consumers are frustrated by having to continually fight against bad breath,” said Dr. Svetlana Farrell, Oral Care, North America at Procter & Gamble, in the company’s announcement. (Business Wire)
A regulatory filing provided fresh insight for investors. According to a Form 4, Chief Brand Officer Marc S. Pritchard exercised options and offloaded 95,903 shares, with the transaction logged at a weighted average price near $151.15 each. (SEC)
Tariffs continue to weigh on margins and pricing strategies. Reuters reported this week that P&G has bumped prices in the U.S. by about 2% to 2.5% to counter tariff expenses and sluggish sales, while posting its fifth consecutive quarterly margin decline. “Most consumers are still mad about the level of current prices and won’t take kindly to further hikes,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management. (Reuters)
The macro environment offered little relief. On Wednesday, the Federal Reserve kept rates unchanged and highlighted “elevated” inflation in its latest policy update, putting bond yields under the spotlight for sectors reliant on steady cash flow and dividends. (Reuters)
In the consumer sector, investors are weighing “resilient demand” against “more discounting.” Kimberly-Clark, a key competitor in diapers and tissues, posted better-than-expected profits just a day earlier, driven by cost reductions and steady essentials demand — highlighting how execution and price/mix currently play a crucial role in staples. (Reuters)
The downside risk for P&G is well-known: if promotions ramp up to hold shelf space and volume, margins could shrink fast—especially if tariff expenses or other input costs remain high. A weaker consumer, especially among price-conscious families, would only make that squeeze tougher.
Traders will be eyeing broader market moves after hours, with Microsoft and Meta set to report earnings Wednesday. Alphabet and Amazon follow next week. They’ll also watch whether staples can maintain prices without sacrificing much volume. (Reuters)
