# Procter & Gamble Stock Q3 2026: Volume Grows, Margins Shrink
> Procter & Gamble stock Q3 2026: sales up 4% to $23.3bn on 2.4% volume growth, core EPS $2.00, gross margin down 160bp, guidance kept and Thorne bought.

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## Facts
- Ticker: PG
- QSILabs fair value: $97.18 USD
- Price: $161.57 (as of 2026-10-30)
- As of: Q3 2026 results (fiscal Q1 2027, quarter ended 2026-09-30); price as of 2026-10-30 close
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/procter-gamble-stock-q3-2026-earnings-margins-thorne/

## Short answer
Procter & Gamble stock Q3 2026 results, for the July to September quarter that P&G calls the first quarter of fiscal 2027, showed a company selling more but keeping less of each dollar. Net sales rose 4% to $23.3bn, organic sales also rose 4% on 2.4% higher volume, and core EPS rose 1% to $2.00. Gross margin fell 160 basis points to 49.8% as commodity costs and product reinvestment ate the gains, and P&G kept its full-year guidance unchanged. Our discounted cash flow model puts The Procter & Gamble Company at $97.18 per share, about 40% below the $161.57 close on 30 October 2026. P&G is a steady business. The share price assumes a much lower cost of capital than we use.

## Key takeaways
- Valuation: QSILabs values The Procter & Gamble Company (NYSE: PG) at $97.18 per share as of results for the quarter ended 30 September 2026, against a $161.57 close on 30 October 2026, about 40% below the market price. Our sensitivity range is about $81-120 a share.
- Q3 2026 results: net sales were $23,276m in the quarter ended 30 September 2026, up 4.0% from $22,386m; operating income was $5,937m, up 1%; diluted EPS was $1.97, up 1%, and core EPS $2.00, up 1%. Currency-neutral core EPS was unchanged.
- Volume: organic volume grew 2.4%. Fabric & Home Care volume rose 4.3% and Baby, Feminine & Family Care 2.3%, while Health Care volume fell 2.9%.
- Margins: gross margin fell to 49.8% from 51.4% and operating margin to 25.5% from 26.2%. Commodities cost 140 basis points of core gross margin and product reinvestment another 140.
- Guidance kept: P&G still expects fiscal 2027 organic sales growth of 1-3% and core EPS of $6.89-7.11, a $7.00 midpoint; all-in sales growth is now 2-4% including Thorne.
- Cash and returns: operating cash flow was $5.8bn and free cash flow $4.4bn in the quarter; P&G returned $3.9bn and plans more than $10bn of dividends and about $5bn of buybacks in fiscal 2027. The quarterly dividend of $1.0885 is a 2.7% yield at $161.57.

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