P&G Stock Reaction Expected To Stay Muted After Mixed Q2

Core Viewpoint - Procter & Gamble Company reported a modest earnings beat for the second quarter, with adjusted earnings per share of $1.88, surpassing the Street's estimate of $1.86, while revenue fell slightly short of expectations at $22.21 billion compared to the consensus forecast of $22.28 billion [1][2]. Financial Performance - The company lowered its fiscal 2026 GAAP earnings guidance, adjusting its EPS outlook to a range of $6.58 to $6.90 from a previous range of $6.71 to $7.09, which is below the consensus estimate of $6.91 [2]. - Bank of America Securities analyst Peter Galbo maintained a Buy rating on the stock with a price target of $170, citing margin strength as a key driver for the earnings upside [3]. - P&G reiterated its full-year organic sales and adjusted earnings outlook, suggesting an acceleration in the second half of the fiscal year [4]. Segment Performance - By segment, results were largely in line with expectations, with strength in Health Care offsetting weaker performance in Grooming. Skin Care exceeded forecasts due to a premium mix and pricing strength, particularly in Greater China [6]. Market Reaction - Procter & Gamble shares rose by 3.78% to $149.39 following the earnings report, although the market reaction is expected to remain muted due to the largely in-line quarter [6].