Analysts Have Made A Financial Statement On The Procter & Gamble Company’s (NYSE:PG) Second-Quarter Report

It’s been a good week for The Procter & Gamble Company (NYSE:PG) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.4% to US$149. Revenues of US$22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.78, missing estimates by 2.6%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week’s earnings report, Procter & Gamble’s 21 analysts are forecasting 2026 revenues to be US$86.7b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$6.82, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$86.8b and earnings per share (EPS) of US$6.92 in 2026. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

Check out our latest analysis for Procter & Gamble

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$167. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Procter & Gamble analyst has a price target of US$186 per share, while the most pessimistic values it at US$148. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It’s clear from the latest estimates that Procter & Gamble’s rate of growth is expected to accelerate meaningfully, with the forecast 3.4% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.6% annually. Procter & Gamble is expected to grow at about the same rate as its industry, so it’s not clear that we can draw any conclusions from its growth relative to competitors.

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Procter & Gamble going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we’ve spotted 1 warning sign for Procter & Gamble you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.