The Procter & Gamble Company
US household and personal care group (brands include Tide, Pampers, Gillette and Olay). Net sales grew 3.3% while operating profit fell 3.4%, so operating margin eased to 22.7% from 24.3%. Dividends and buybacks together were 101% of free cash flow.
Net sales
$87.03bn
▲ +3.3% vs FY25
Operating profit
$19.75bn
▼ −3.4% vs FY25
Operating margin
22.7%
▼ from 24.3% in FY25
Cash returned to shareholders
$15.26bn
incl. $5.03bn of buybacks
Total across four areas
28/ 40
Calculated from P&G's published numbers using fixed thresholds. Not a rating. The previous window (FY21–FY25) scored 26/40.
The score describes how the business has been run and funded, area by area. A higher or lower score is a point of comparison between companies, not a statement that one is better than another.
The two-point rise from 26 comes entirely from Liquidity, where FY26 cash conversion (99%) replaced FY25's 87%. Two results sit close to a band edge: cash conversion (99% against a 100% top band) and the working-capital change (+1.1 pts against a 1.0 boundary); each would add a point if it crossed. Every threshold is public in the scoring rubric.
Operations
Is the business making more from what it sells?
What drives the score
Operating margin 22.7% in FY26 against 22.2% in FY22 (+0.5 pts); net sales grew 2.1% a year.
Comment
Margin was broadly flat over the window: 22.2% in FY22, 22.1% in FY23, a peak of 24.3% in FY25, then 22.7% as operating costs rose 5.5% against gross profit up 1.3%. Growth is modest in US dollars; management reports FY26 organic sales up 1%, all from pricing.
Liquidity
Does profit turn into cash?
What drives the score
Cash conversion 99% of operating profit in FY26; net working capital is -2.4% of sales (negative: suppliers fund more than stock and receivables).
Comment
Conversion improved from 94% in FY22 to 99% (87% in FY25), measured after cash interest and tax. Net working capital moved from −$2.8bn to −$2.1bn, which the rule reads as a small rise in cash tied up. Inventory days rose from 59 to 69.
Solvency
How comfortable is the debt?
What drives the score
Net debt (borrowings and leases less cash) 1.27× operating profit; interest cover 22.5×. One trend deduction applies.
Comment
Debt is $35.0bn against $9.9bn of cash, steady at about 1.2×–1.5× operating profit since FY21. One point is deducted because interest cover fell from 40.6× to 22.5× as net interest expense roughly doubled ($439m to $877m); cover is still high.
Qualitative
Are the habits and disclosures consistent?
What drives the score
All five yes/no rules passed (2 points each). The largest segment, Fabric & Home Care, is 35% of sales, below the 50% limit.
Comment
The dividend per share rose every year ($3.52 to $4.26) and free cash flow covered dividends every year. The audit opinion on the FY26 10-K (Deloitte, 4 August 2026) is unmodified and no prior-year figures were restated. The dividend test excludes buybacks, which add a further $5.0bn in FY26.
Net sales
$87,032m
up 14% since FY21
Operating profit
$19,748m
up 10% since FY21
Operating margin
22.7%
peak 24.3% in FY25
Operating cash flow
$19,556m
up 10% in FY26
Free cash flow
$15,147m
up 8% in FY26
Dividends + buybacks
$15,260m
101% of FCF (FY25: 117%)
Net debt (incl. leases)
$25,083m
1.27× operating profit
Inventory days
69 days
59 in FY21
P&G reports five segments. Fabric & Home Care, the largest, is 35% of net sales (a rounded percentage from the 10-K). The make-up of the other segments changed between filings, so only this one is tracked. Management reports FY26 Beauty growing mid-single digits, Health Care, Grooming and Fabric & Home Care low single digits, and Baby, Feminine & Family Care declining low single digits.
Operations
▼ Margin off its peakLiquidity
■ Steady, cash conversion upSolvency
■ Steady, cover lowerP&G is a very large, cash-generative business with stable but slow-growing sales (2.7% a year in US dollars since FY21) and an operating margin that has moved within a narrow band (22.1%–24.3%). FY26 was a softer year for operating profit, while EPS rose 1.7%.
In FY26 the company paid $10.23bn of dividends and $5.03bn of buybacks, about equal to the $15.15bn of free cash flow it generated. Its debt of $35.0bn is carried alongside $9.9bn of cash. Whether that suits a given portfolio is a question of individual goals and risk appetite, which this scorecard does not address.
This scorecard presents a descriptive summary of The Procter & Gamble Company's published financial results for FY2021–FY2026 (years to 30 June, US GAAP, US dollars). FY26 figures are from the audited Form 10-K filed on 4 August 2026; the first-quarter FY27 results of 22 October 2026 are mentioned for context only. The business health score is a description of the business based on fixed, published thresholds; it is not a rating, and a higher or lower score does not mean one company is better than another. It does not constitute financial, investment or tax advice, a recommendation to buy, hold or sell any security, or a valuation or price target. Clearview Financial (Pty) Ltd is not a licensed financial services provider.
Holdings: the author holds no shares in Procter & Gamble.
Source: Procter & Gamble Form 10-K filings and earnings releases, FY2021–FY2026 · sec.gov · us.pg.com
The full report walks through every year of Procter & Gamble's published results: revenue, margins, segments, cash flow, balance sheet and the share price.
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