The Procter & Gamble Company (PG) Income Statement

30Y historyFree accessUpdated daily

Revenue growth has been stable at ~1.5% annually, but gross margin contracted 390 basis points from peak to 48.5% in 2026Q4, driving operating margin down to 18.6% from 26.7% a year earlier.

Annual statement

PG Income Statement

The Procter & Gamble Company (PG) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	Jun'26	Jun'25	Jun'24	Jun'23	Jun'22	Jun'21	Jun'20	Jun'19	Jun'18	Jun'17	Jun'16	Jun'15	Jun'14	Jun'13	Jun'12	Jun'11	Jun'10	Jun'09	Jun'08	Jun'07	Jun'06	Jun'05	Jun'04	Jun'03	Jun'02	Jun'01	Jun'00	Jun'99	Jun'98	Jun'97

Sales/Revenue	87.03B	84.28B	84.04B	82.01B	80.19B	76.12B	70.95B	67.68B	66.83B	65.06B	65.3B	70.75B	74.4B	80.12B	82.01B	81.1B	77.57B	76.69B	81.75B	76.48B	68.22B	56.74B	51.41B	43.38B	40.24B	39.24B	39.95B	38.13B	37.15B	35.76B
Revenue Growth %	3.26%	0.29%	2.48%	2.27%	5.35%	7.28%	4.83%	1.27%	2.73%	-0.37%	-7.7%	-4.91%	-7.13%	-2.3%	1.11%	4.56%	1.14%	-6.18%	6.89%	12.1%	20.23%	10.38%	18.51%	7.8%	2.53%	-1.77%	4.79%	2.61%	3.89%	1.36%
Cost of Goods Sold	43.36B	41.16B	40.85B	42.76B	42.16B	37.11B	35.25B	34.77B	34.43B	32.64B	32.91B	37.06B	39.03B	39.99B	41.41B	39.86B	37.04B	38.69B	39.54B	36.69B	33.13B	27.87B	25.14B	22.14B	20.99B	22.1B	21.51B	21.03B	21.06B	20.51B
COGS % of Revenue	49.82%	48.84%	48.61%	52.14%	52.57%	48.75%	49.68%	51.37%	51.52%	50.17%	50.4%	52.38%	52.46%	49.92%	50.5%	49.15%	47.75%	50.45%	48.36%	47.97%	48.55%	49.12%	48.91%	51.04%	52.16%	56.32%	53.85%	55.15%	56.69%	57.35%
Gross Profit	43.67B	43.12B	43.19B	39.25B	38.03B	39.01B	35.7B	32.92B	32.4B	32.42B	32.39B	33.69B	35.37B	40.13B	40.59B	41.24B	40.52B	38B	42.21B	39.79B	35.1B	28.87B	26.26B	21.24B	19.25B	17.14B	18.44B	17.1B	16.09B	15.25B
Gross Margin %	50.18%	51.16%	51.39%	47.86%	47.43%	51.25%	50.32%	48.63%	48.48%	49.83%	49.6%	47.62%	47.54%	50.08%	49.5%	50.85%	52.25%	49.55%	51.64%	52.03%	51.45%	50.88%	51.09%	48.96%	47.84%	43.68%	46.15%	44.85%	43.31%	42.65%
Gross Profit Growth %	1.27%	-0.16%	10.05%	3.2%	-2.51%	9.27%	8.46%	1.59%	-0.06%	0.09%	-3.87%	-4.74%	-11.85%	-1.16%	-1.58%	1.78%	6.63%	-9.97%	6.09%	13.37%	21.57%	9.92%	23.68%	10.32%	12.29%	-7.02%	7.83%	6.26%	5.48%	5.04%
Operating Expenses	23.92B	22.67B	24.65B	21.11B	20.22B	21.02B	19.99B	27.43B	19.04B	18.65B	18.95B	22.64B	21.46B	26.31B	27.56B	25.75B	24.79B	22.63B	25.29B	24.34B	21.85B	18.4B	16.88B	13.38B	12.57B	12.41B	12.48B	10.85B	10.04B	9.77B
OpEx % of Revenue	27.49%	26.9%	29.33%	25.74%	25.21%	27.62%	28.18%	40.53%	28.48%	28.67%	29.02%	32.01%	28.84%	32.84%	33.61%	31.75%	31.96%	29.51%	30.94%	31.83%	32.02%	32.43%	32.84%	30.85%	31.24%	31.61%	31.25%	28.45%	27.01%	27.31%
Selling, General & Admin	23.92B	22.67B	23.3B	21.11B	20.22B	21.02B	19.99B	19.08B	19.04B	18.65B	18.95B	20.62B	21.46B	26B	25.98B	25.75B	24.79B	22.63B	25.57B	24.34B	21.85B	18.4B	16.88B	13.38B	12.57B	12.41B	12.48B	10.85B	10.04B	9.77B
SG&A % of Revenue	27.49%	26.9%	27.73%	25.74%	25.21%	27.62%	28.18%	28.2%	28.48%	28.67%	29.02%	29.14%	28.84%	32.45%	31.69%	31.75%	31.96%	29.51%	31.29%	31.83%	32.02%	32.43%	32.84%	30.85%	31.24%	31.61%	31.25%	28.45%	27.01%	27.31%
Research & Development	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	1.34B	0	0	0	0	8.35B	0	0	0	2.03B	0	308M	1.58B	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Operating Income	19.75B	20.45B	18.55B	18.13B	17.81B	17.99B	15.71B	5.49B	13.36B	13.77B	13.44B	11.05B	13.91B	13.82B	13.04B	15.49B	15.73B	16.66B	16.92B	15.45B	13.25B	10.47B	9.38B	7.85B	6.68B	4.74B	5.95B	6.25B	6.05B	5.49B
Operating Margin %	22.69%	24.26%	22.07%	22.11%	22.21%	23.63%	22.14%	8.11%	19.99%	21.16%	20.58%	15.62%	18.7%	17.25%	15.9%	19.11%	20.28%	21.73%	20.7%	20.2%	19.42%	18.45%	18.25%	18.1%	16.6%	12.07%	14.9%	16.4%	16.3%	15.35%
Operating Income Growth %	-3.44%	10.28%	2.27%	1.8%	-0.96%	14.52%	186.24%	-58.94%	-2.93%	2.42%	21.65%	-20.57%	0.67%	6%	-15.88%	-1.51%	-5.58%	-1.54%	9.53%	16.61%	26.55%	11.59%	19.47%	17.6%	41.01%	-20.46%	-4.78%	3.27%	10.33%	13.98%
EBITDA	21.25B	23.3B	21.44B	20.85B	20.62B	20.72B	18.72B	8.31B	16.2B	16.59B	16.52B	14.18B	17.05B	16.8B	16.24B	18.33B	18.84B	19.74B	20.09B	18.58B	15.88B	12.35B	11.12B	9.56B	8.37B	7.01B	8.14B	8.4B	7.65B	6.97B
EBITDA Margin %	24.42%	27.64%	25.51%	25.42%	25.71%	27.22%	26.38%	12.28%	24.24%	25.49%	25.3%	20.05%	22.92%	20.97%	19.8%	22.6%	24.29%	25.74%	24.57%	24.3%	23.27%	21.77%	21.62%	22.03%	20.8%	17.85%	20.39%	22.04%	20.6%	19.5%
EBITDA Growth %	-8.77%	8.66%	2.84%	1.11%	-0.49%	10.7%	125.23%	-48.69%	-2.35%	0.41%	16.47%	-16.82%	1.5%	3.45%	-11.42%	-2.69%	-4.58%	-1.72%	8.12%	17.03%	28.52%	11.14%	16.31%	14.16%	19.47%	-13.97%	-3.05%	9.77%	9.72%	12.99%
D&A (Non-Cash Add-back)	0	2.85B	2.9B	2.71B	2.81B	2.73B	3.01B	2.82B	2.83B	2.82B	3.08B	3.13B	3.14B	2.98B	3.2B	2.84B	3.11B	3.08B	3.17B	3.13B	2.63B	1.88B	1.73B	1.7B	1.69B	2.27B	2.19B	2.15B	1.6B	1.49B
EBIT	21.25B	21.07B	19.69B	19.11B	18.43B	18.12B	16.3B	6.58B	13.83B	13.72B	13.95B	11.64B	14.22B	14.85B	13.3B	15.83B	15.81B	15.77B	17.1B	15.45B	13.25B	10.47B	9.38B	7.85B	6.68B	4.74B	5.95B	6.25B	6.05B	5.49B
Net Interest Income	-447M	-438M	-452M	-449M	-388M	-457M	-310M	-289M	-259M	-294M	-397M	-477M	-610M	-579M	-692M	-769M	-946M	-1.36B	-1.47B	0	0	0	0	0	0	0	0	0	0	0
Interest Income	430M	469M	473M	307M	51M	45M	155M	220M	247M	171M	182M	149M	99M	87M	77M	62M	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Interest Expense	877M	907M	925M	756M	439M	502M	465M	509M	506M	465M	579M	626M	709M	667M	769M	831M	946M	1.36B	1.47B	0	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	629M	-284M	216M	219M	182M	-371M	128M	582M	-37M	-509M	-72M	-37M	-401M	362M	-507M	-498M	-864M	-2.25B	-1.29B	-740M	-836M	-488M	-477M	-323M	-295M	-120M	-418M	-415M	-347M	-239M
Pretax Income	20.38B	20.17B	18.76B	18.35B	18B	17.61B	15.83B	6.07B	13.33B	13.26B	13.37B	11.01B	13.51B	14.18B	12.53B	15B	14.87B	14.41B	15.63B	14.71B	12.41B	9.98B	8.9B	7.53B	6.38B	4.62B	5.54B	5.84B	5.71B	5.25B
Pretax Margin %	23.41%	23.93%	22.32%	22.38%	22.44%	23.14%	22.32%	8.97%	19.94%	20.38%	20.47%	15.56%	18.16%	17.7%	15.28%	18.49%	19.17%	18.79%	19.12%	19.23%	18.2%	17.59%	17.32%	17.36%	15.86%	11.76%	13.86%	15.31%	15.36%	14.68%
Income Tax	4.23B	4.1B	3.79B	3.62B	3.2B	3.26B	2.73B	2.1B	3.46B	3.06B	3.34B	2.73B	2.85B	3.23B	3.38B	3.3B	4.02B	3.73B	3.83B	4.37B	3.73B	3.06B	2.75B	2.34B	2.03B	1.69B	1.99B	2.08B	1.93B	1.83B
Effective Tax Rate %	20.77%	20.34%	20.19%	19.7%	17.79%	18.52%	17.25%	34.65%	26%	23.1%	25%	24.75%	21.1%	22.75%	26.96%	22%	27.02%	25.9%	24.53%	29.71%	30.04%	30.64%	30.87%	31.13%	31.82%	36.7%	36.02%	35.54%	33.78%	34.94%
Net Income	16.05B	15.97B	14.88B	14.65B	14.74B	14.31B	13.03B	3.9B	9.75B	15.33B	10.51B	7.04B	11.64B	11.31B	10.76B	11.8B	12.74B	11.43B	12.07B	10.34B	8.68B	6.92B	6.16B	5.19B	4.35B	2.92B	3.54B	3.76B	3.78B	3.42B
Net Margin %	18.44%	18.95%	17.7%	17.87%	18.38%	18.79%	18.36%	5.76%	14.59%	23.56%	16.09%	9.95%	15.65%	14.12%	13.12%	14.55%	16.42%	14.9%	14.77%	13.52%	12.73%	12.2%	11.97%	11.96%	10.82%	7.45%	8.87%	9.87%	10.17%	9.55%
Net Income Growth %	0.45%	7.36%	1.54%	-0.6%	3.05%	9.82%	234.28%	-60.03%	-36.38%	45.85%	49.35%	-39.57%	2.93%	5.17%	-8.82%	-7.37%	11.47%	-5.38%	16.78%	19.07%	25.44%	12.46%	18.7%	19.16%	48.94%	-17.5%	-5.87%	-0.45%	10.69%	12.11%
Net Income (Continuing)	16.14B	16.07B	14.97B	14.74B	14.79B	14.35B	13.1B	3.97B	9.86B	10.19B	10.03B	8.29B	10.66B	10.95B	9.15B	11.7B	10.85B	10.68B	11.8B	10.34B	8.68B	6.92B	6.16B	5.19B	4.35B	2.92B	3.54B	3.76B	3.78B	3.42B
Discontinued Operations	0	0	0	0	0	0	0	0	0	5.22B	577M	-1.14B	1.13B	101M	1.75B	229M	2B	2.76B	277M	0	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	272M	272M	288M	265M	276M	357M	385M	590M	594M	642M	631M	762M	645M	596M	361M	324M	283M	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	6.62	6.51	6.02	5.90	5.81	5.50	4.96	1.43	3.67	5.59	3.69	2.44	4.01	3.86	3.66	3.93	4.11	4.26	3.64	3.04	2.64	2.53	2.20	1.70	1.55	1.03	1.30	1.37	1.18	1.10
EPS Growth %	1.69%	8.14%	2.03%	1.55%	5.64%	10.89%	246.85%	-61.04%	-34.35%	51.49%	51.23%	-39.15%	3.89%	5.46%	-6.87%	-4.38%	-3.52%	17.03%	19.74%	15.15%	4.35%	15%	29.41%	9.68%	50.49%	-20.77%	-5.11%	16.1%	7.27%	12.24%
EPS (Basic)	6.75	6.67	6.18	6.07	6.00	5.69	5.13	1.45	3.75	5.80	3.80	2.50	4.19	4.04	3.82	4.12	4.32	4.49	3.86	3.22	2.79	2.70	2.34	1.80	1.63	1.08	1.36	1.43	1.25	1.18
Diluted Shares Outstanding	2.42B	2.45B	2.47B	2.48B	2.54B	2.6B	2.63B	2.54B	2.66B	2.74B	2.84B	2.88B	2.9B	2.93B	2.94B	3B	3.1B	3.15B	3.32B	3.4B	3.29B	2.74B	2.79B	2.8B	2.81B	2.81B	2.72B	2.75B	3.12B	3.01B
Basic Shares Outstanding	2.42B	2.45B	2.36B	2.37B	2.46B	2.51B	2.54B	2.5B	2.53B	2.6B	2.77B	2.81B	2.78B	2.8B	2.82B	2.8B	2.95B	2.99B	3.08B	3.16B	3.05B	2.52B	2.58B	2.59B	2.59B	2.6B	2.61B	2.63B	2.94B	2.81B
Dividend Payout Ratio	63.77%	61.8%	62.58%	61.41%	59.49%	57.76%	59.79%	192.4%	74.97%	47.21%	70.77%	103.57%	59.36%	57.63%	57.08%	48.89%	42.85%	44.15%	37.09%	39.15%	40.94%	37.48%	41.24%	43.31%	48.14%	66.5%	50.71%	43.21%	38.68%	38.92%

Key Metrics

Growth RegimeStable

ProfitabilityStable

Balance SheetAdequate

Cash FlowStable

Top Statement Risk

Margin compression from cost inflation

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

Stable Top-Line, Underlying Volume Concerns

Revenue growth averaged roughly 1.5% over the past year, with the latest quarter showing 1.5% growth, suggesting a stable but sluggish trajectory. According to recent financial statements, PG's revenue growth remains muted, indicating limited pricing power or volume gains.

The 10-quarter revenue trend shows a narrow band between $19.8B and $22.4B, with no quarter exceeding 7.4% growth. The most recent quarter (2026Q4) grew 1.5% YoY, consistent with the prior year's average, implying that the company is maintaining share but not accelerating. The lack of meaningful acceleration suggests that volume growth is offset by price declines or mix shifts, and the company may be relying on cost savings to protect margins rather than driving top-line expansion.

Gross Margin Resilience Amid Cost Pressures

Gross margin has remained relatively stable around 50%, with the latest quarter at 48.5%, down from 51.4% in 2026Q1. As reported in PG's income statements, gross margin has contracted by roughly 300 basis points from peak, suggesting input cost inflation is eroding pricing power.

The gross margin trend shows a peak of 52.4% in 2025Q2, followed by a gradual decline to 48.5% in 2026Q4. This 390 basis point contraction indicates that commodity costs (pulp, resin, chemicals) are rising faster than PG's ability to raise prices, or that trade promotions are increasing. The company's gross margin remains above peers like KMB (35.6%) but below CL (60.1%), reflecting its premium positioning but also its exposure to commodity inputs. Investors should monitor whether PG can restore margins through productivity programs or further price increases.

Operating Leverage Fading as Costs Outpace Sales

Operating margin has declined from 26.7% in 2025Q1 to 18.6% in 2026Q4, a drop of over 800 basis points. Based on reported figures, SG&A has remained relatively flat, but gross margin compression has directly hit operating income, indicating that PG is losing operating leverage.

The operating margin trend shows a clear deterioration, with the latest quarter at 18.6%, the lowest in the 10-quarter period. SG&A as a percentage of revenue has actually decreased slightly (from 29.5% in 2025Q1 to 29.7% in 2026Q4), but the gross margin decline has overwhelmed any SG&A efficiency. This suggests that PG's fixed-cost base is not scaling with revenue, and the company is unable to offset input cost inflation with volume growth. The operating income decline from $5.9B in 2026Q1 to $4.0B in 2026Q4 highlights the severity of the margin squeeze.

EPS Volatility Raises Quality Questions

EPS has swung from $1.95 in 2026Q1 to $1.26 in 2026Q4, a 35% decline, while net income fell from $4.8B to $3.0B. According to the income statement data, the latest quarter's EPS miss of $0.46 versus consensus suggests potential one-time charges or tax anomalies that warrant scrutiny.

The earnings quality appears strained, as the EPS decline is much steeper than the revenue decline, indicating that the bottom line is more sensitive to cost and tax items. The effective tax rate appears to have fluctuated, with net margin dropping from 21.2% in 2026Q1 to 14.1% in 2026Q4, a 710 basis point swing. Stock-based compensation has been relatively stable at around $130M per quarter, so it is not the primary driver. The large EPS miss in the latest quarter, despite management maintaining guidance, suggests that the shortfall may be due to non-operating items or a conservative outlook, but the magnitude of the miss raises concerns about the predictability of earnings.

COGS Inflation Outpacing Revenue Growth

COGS has risen from $9.9B in 2024Q3 to $10.9B in 2026Q4, a 10% increase, while revenue grew only 5% over the same period. As reported in PG's financial statements, the cost of goods sold is growing faster than sales, indicating that input costs are a primary margin headwind.

The cost structure is heavily weighted toward COGS, which represents roughly 51% of revenue. The COGS increase of $1.0B over the period, while revenue increased only $1.0B, implies that PG is absorbing cost inflation without passing it fully to consumers. SG&A has remained relatively flat, suggesting that management is controlling overhead, but the COGS pressure is the main driver of margin compression. The company's productivity programs may be offsetting some of these costs, but the data suggests that they are not sufficient to maintain historical margins.

2026Q4 Marks a Margin Inflection Point

The most significant inflection occurred in 2026Q4, where gross margin fell to 48.5% and operating margin to 18.6%, the lowest levels in the 10-quarter period. Based on the income statement data, this quarter represents a clear deterioration from the prior year's stability, suggesting a structural shift in cost dynamics.

The 2026Q4 results show a sharp drop in profitability across all margin lines, with net margin at 14.1%, down from 18.7% in the prior quarter. This inflection appears to be driven by a combination of rising COGS and a slight increase in SG&A, while revenue growth remained modest. The EPS miss of $0.46 versus consensus indicates that the market did not anticipate this margin compression, and the maintained guidance suggests management believes it is temporary. However, the persistence of cost pressures across multiple quarters may indicate a more lasting impact on PG's earnings power.

Margin Compression Could Persist

The bear case centers on PG's inability to pass on cost inflation, as evidenced by the 390 basis point gross margin decline from peak. According to recent income statements, the company's pricing power may be weakening, and volume growth remains elusive, suggesting that margins could stay depressed.

Short-sellers would highlight that PG's revenue growth has been stagnant, while COGS has risen, indicating that the company is losing pricing power to private labels and discounters. The gross margin of 48.5% is still high, but the trend is concerning, and if commodity costs remain elevated, PG may need to increase prices further, risking volume loss. The operating margin decline to 18.6% is below the peer average of CL (21.3%), and if this persists, PG's premium valuation could be challenged. The maintained guidance may be overly optimistic, and investors should monitor whether the company can restore margins through cost savings or if the current level is the new normal.

PG — Frequently Asked Questions

Quick answers to the most common questions about buying PG stock.

What was The Procter & Gamble Company's (PG) revenue in 2026?

For fiscal year 2026, The Procter & Gamble Company (PG) reported total revenue of $87.03B. This represents a 143.4% increase compared to $35.76B in 1997.

Is The Procter & Gamble Company (PG) profitable?

The Procter & Gamble Company (PG) is profitable, generating $16.05B in net income for the fiscal year ending 2026 with a net profit margin of 18.4%.

What is The Procter & Gamble Company's operating profit margin?

The Procter & Gamble Company (PG) reported an operating income of $19.75B, resulting in an operating profit margin of 22.7%. This margin reflects the operational efficiency of the business before interest and taxes.

What is The Procter & Gamble Company's gross profit and gross margin?

The Procter & Gamble Company (PG) generated $43.67B in gross profit for the year, representing a gross profit margin of 50.2%. This demonstrates the company's core pricing power and production efficiency.