How Major Restructuring and CEO Change At Procter & Gamble (PG) Has Changed Its Investment Story

• Earlier this month, Procter & Gamble announced a major restructuring plan to cut 7,000 jobs by mid-2027, primarily targeting nonmanufacturing roles outside its global factories, and disclosed that Shailesh Jejurikar will become CEO in January 2026.
• This shift comes as P&G aims to streamline operations in response to sluggish sales growth, with leadership changes signaling a renewed focus on cost savings and organizational agility.
• We will explore how this extensive workforce reduction and leadership transition could reshape Procter & Gamble’s future investment outlook.

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Procter & Gamble Investment Narrative Recap

To be a shareholder in Procter & Gamble right now, you need to believe in the resilience of its global brands and the company’s ability to drive earnings through cost savings and innovation, even as core markets show volatility. The recently announced restructuring, cutting 7,000 nonmanufacturing jobs and new executive leadership, may help address near-term cost pressures, but the most important short term catalyst remains P&G’s ability to stabilize organic sales growth in key markets, while the largest risk continues to be lingering consumer and retailer volatility. At this point, the personnel changes do not materially impact that core risk in the short term.

One recent announcement that stands out amid this context is P&G’s 2026 earnings guidance, which forecasts diluted net EPS growth of 3-9%, factoring in expected restructuring charges. This guidance reflects cautious optimism and the company’s ongoing focus on productivity improvements, a clear attempt to position itself for margin expansion and offset muted revenue growth expectations. In the near term, investors will be closely watching whether operational savings can meaningfully boost profit margins, particularly as broader economic uncertainty persists.

On the other hand, investors should also be aware that volatile consumer confidence in the US and Europe continues to pose...

Read the full narrative on Procter & Gamble (it's free!)

Procter & Gamble's narrative projects $92.8 billion revenue and $17.8 billion earnings by 2028. This requires 3.3% yearly revenue growth and a $2.1 billion earnings increase from $15.7 billion today.

Uncover how Procter & Gamble's forecasts yield a $170.95 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Twenty private investors in the Simply Wall St Community estimate P&G's fair value between US$119.81 and US$190.28 per share. Amid these varied outlooks, the company's ongoing efforts to sustain profit growth despite unstable consumer demand could shape performance beyond traditional forecasts, so consider reviewing further viewpoints before making up your mind.

Explore 20 other fair value estimates on Procter & Gamble - why the stock might be worth as much as 20% more than the current price!

Build Your Own Procter & Gamble Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Procter & Gamble research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Procter & Gamble research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Procter & Gamble's overall financial health at a glance.

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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.

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