The Procter & Gamble Company (NYSE:PG) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Explore Procter & Gamble's Fair Values from the Community and select yours

The Procter & Gamble Company (NYSE:PG) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to US$151 in the week after its latest annual results. It was a credible result overall, with revenues of US$84b and statutory earnings per share of US$6.51 both in line with analyst estimates, showing that Procter & Gamble is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Procter & Gamble's 21 analysts is for revenues of US$87.1b in 2026. This reflects a satisfactory 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 3.7% to US$6.95. Before this earnings report, the analysts had been forecasting revenues of US$86.8b and earnings per share (EPS) of US$6.98 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

There were no changes to revenue or earnings estimates or the price target of US$171, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Procter & Gamble analyst has a price target of US$186 per share, while the most pessimistic values it at US$140. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Procter & Gamble'shistorical trends, as the 3.3% annualised revenue growth to the end of 2026 is roughly in line with the 3.3% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 2.7% per year. So although Procter & Gamble is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$171, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Procter & Gamble. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Procter & Gamble analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Procter & Gamble that you need to take into consideration.

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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.