Procter & Gamble shares rose 3% on Friday after the consumer products giant behind Tide and dozens of brands reported top and bottom line beats, while reiterating guidance. P & G was able to do this despite increased commodity prices due to the Iran war. Sales in the company’s fiscal 2026 third quarter, ended March 31, increased 7% year over year to $21.2 billion, outpacing the $20.5 billion expected by analysts, according to data provider LSEG. Adjusted earnings per share (EPS) , which excludes a 4-cent per share benefit from the dissolution of the Glad joint venture business, came in at $1.59, representing a 3% year-over-year increase. That was ahead of the $1.56 estimate compiled by LSEG. Bottom line A solid quarter from Procter & Gamble, with better-than-expected sales in all product categories and organic growth realized in all geographic operating regions, including a 3% organic increase in Greater China, despite what remains a challenging consumer environment. The results again demonstrated that as long as P & G can innovate and provide a best-in-class product , it can use pricing power, when and where needed, to protect profits, no matter the economic environment. P & G products may not always be the cheapest, but they are almost always a leader when it comes to value, something consumers clearly understand. Importantly, the company’s overall 3% organic growth for the quarter was the result of a 1% increase in price and 2% increase in volume. That means demand didn’t wane in the face of higher prices, and that growth was not entirely the result of price actions taken by the company. While raising prices is one way to drive sales growth, it’s not the most sustainable way. The increase in volume indicates that consumers acknowledge that even with the higher prices, P & G products still represent a solid value. PG YTD mountain Procter & Gamble YTD While the detrimental effects of higher energy prices will hit everyone, Procter & Gamble is once again proving that innovation, operational excellence, and — perhaps most importantly — scale can still result in relative winners. “Challenging markets, like the ones we compete in today, are an opportunity for P & G to step out from the pack and to lead,” CFO Andre Schulten said on the post-earnings conference call. The solid quarter and maintained guidance further underscore why we continue to advise Club members to hold on to PG stock. That’s especially true when considering the risks posed by heightened geopolitical tensions. With Friday’s release, management did say that higher energy prices due to the Mideast conflict stand to negatively impact fiscal 2027 profitability. However, P & G might be a winner either way. Should the war resolve quickly and energy prices recede, then management’s fiscal 2027 outlook on costs would likely prove to be conservative. On the other hand, should things get worse, investors will value P & G for the resilient nature of its products, pricing power, and…
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