P&G Q1 sales reach $23.3bn as beauty and hair care rise

By Priya Raman

P&G generated US$23.3 billion in first-quarter sales for fiscal 2027, up 4% from a year earlier, while organic sales also rose 4%.

Organic sales exclude the effects of foreign exchange, acquisitions and divestitures. Both reported and organic measures therefore grew at the same rate, with no gap between them.

Shailesh Jejurikar, Chairman of the Board, President and CEO, said: “Our solid sales, earnings and cash results in the first quarter reflect sharpened execution of our integrated strategy.”

Jejurikar’s assessment matched the category results: beauty, hair care, personal care and grooming all delivered organic growth. The group entered the year with momentum across those businesses.

What drove the beauty and hair care results?

P&G’s beauty segment, which includes Olay and Herbal Essences, posted 5% organic sales growth against 2026.

Hair care rose mid-single digits. P&G attributed the gain to innovation-based pricing in North America and Latin America, a favourable product mix and higher unit volume.

For professionals, the three-part driver matters more than the rounded category headline. P&G named no individual hair-care products or formulations, but it did identify innovation-based pricing, a favourable mix and higher unit volume. The detail gives buyers a cleaner read: the company reported rising unit volume alongside pricing and mix effects, so the result did not rely on pricing alone.

Personal care also rose mid-single digits. P&G attributed the performance to volume growth in Greater China and Europe, plus a favourable product mix.

Grooming delivered 5% organic growth year on year. Innovation-based pricing drove the increase, primarily in North America.

Put side by side, beauty and grooming each posted 5%, while hair care and personal care rose mid-single digits. P&G did not disclose dollar sales or brand-level contributions for those percentages, so the figures do not support conclusions about individual products.

For professionals, the defensible read is the driver mix: higher unit volume, innovation-based pricing and favourable mix for hair care; volume and mix for personal care; and innovation-based pricing for grooming.

How has fiscal 2027 guidance changed?

P&G’s fiscal 2027 guidance now reads:

• All-in sales growth: 2%-4% versus the prior year. P&G updated this range, which reflects its acquisition of supplement brand Thorne as of 1 October 2026.
• Organic sales growth: 1%-3% versus the prior year, an outlook P&G maintained.

Both ranges span two percentage points, while the all-in ceiling sits one point above the organic ceiling. P&G says the all-in range reflects Thorne; its organic measure excludes foreign exchange, acquisitions and divestitures.

“While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth and free cash flow productivity for the fiscal year,” Jejurikar said.

Jejurikar’s statement names three company-level financial measures in the fiscal-year outlook: organic sales growth, core earnings per share growth and free cash flow productivity. P&G published no new numerical targets for core EPS or free cash flow productivity in this update, instead saying the strong start keeps it within its existing ranges.

Jejurikar also said P&G remains committed to putting the consumer first and delivering “superior products at a superior value.” He added that the company is confident in the near term and excited about the future.

Separately, P&G bought “clean” digestive health brand Wonderbelly for an undisclosed sum in January 2026. The company said the acquisition reinforced its commitment to providing a diverse range of health solutions while addressing evolving consumer preferences.

The next test is whether P&G can hold its 1%-3% organic growth range while pricing, mix and volume continue to support the portfolio amid the geopolitical and economic challenges Jejurikar expects.