The Procter & Gamble Company delivered a solid QQ2 2026 performance with revenue of $22.208 billion, up 2.17% year over year, underscoring ongoing demand resilience in a broad portfolio of essential consumer brands. Gross profit reached $11.374 billion, yielding a gross margin of 51.22%, while operating income of $5.366 billion produced a 24.16% operating margin. Net income of $4.331 billion translated to an EPS of $1.82 (diluted $1.78), up about 10% on a YoY basis, yet operating profit declined 7.43% year over year due to mix effects and persistent input-cost headwinds, leading to a softer QoQ margin trajectory in the quarter.
Cash generation remained a strong anchor for capital allocation, with operating cash flow of $4.972 billion and free cash flow of $3.805 billion. The company deployed capital toward a combination of shareholder-friendly actions, including $2.278 billion in share repurchases and $2.544 billion in dividends, contributing to a net cash outflow from financing activities of approximately $4.089 billion. Balance sheet health remains robust, with total assets of $127.3 billion, total liabilities of $73.97 billion, and stockholders’ equity of $53.32 billion. Net debt stood at about $25.81 billion, reflecting a disciplined approach to leverage while maintaining ample liquidity (cash and equivalents of $10.83 billion).
Looking ahead, P&G continues to emphasize pricing discipline, portfolio optimization, and cost efficiencies to defend margins in a competitive, low-to-moderate growth consumer landscape. The key macro risks to monitor include commodity and input-cost volatility, currency movements, and evolving consumer demand patterns. The firm’s durable cash flow, strong brand equity, and aggressive but balanced capital-allocation strategy position it as a high-quality compounder within the Consumer Defensive space, albeit with continued margin pressure to manage.