Procter & Gamble raises sales outlook to 2-4% on Thorne acquisition

Procter & Gamble (PG) reported fiscal first-quarter net income of $4.73 billion, or $1.97 per share, and net sales of $23.3 billion on Thursday, surpassing analyst expectations as demand for laundry and home care products strengthened. The company raised its fiscal 2027 sales growth outlook to a range of 2% to 4% from the previous 1% to 3%, a revision attributed to the recent acquisition of vitamin company Thorne, which closed on October 1. CEO Shailesh Jejurikar stated in a release that the company remains on track to meet its guidance despite ongoing geopolitical and economic challenges.

Excluding restructuring costs and other items, P&G earned $2 per share. The reported net income was slightly down from $4.75 billion, or $1.95 per share, in the same quarter of the prior year. Net sales increased by 4% year over year. Shares of the company rose more than 2% in premarket trading following the announcement.

Volume growth of 2.4% marked a strong start for the new fiscal year, contrasting with the single quarter of volume growth recorded in fiscal 2026. Executives have noted that consumers have become more value-conscious, leading to habits such as using every last drop of shampoo or laundry detergent and a shift toward value packs. This volume performance was driven primarily by the fabric and home care division, which includes brands like Tide and Febreze and saw volume rise 4.3%. The baby, feminine and family care segment and the beauty business both reported volume growth of more than 2%.

Other divisions showed mixed results. The grooming division, which includes Gillette and Venus razors, experienced a volume shrinkage of 0.4%. The health care business was the portfolio laggard, with volume falling 2.9% due to shrinking demand for oral health care products like Crest toothpaste and personal health care items like Pepto-Bismol. P&G reiterated its fiscal 2027 forecast for core earnings per share in a range of $6.89 to $7.11.