Procter & Gamble released mixed quarterly results on Wednesday, with weaker product demand causing sales to fall short of analysts' expectations. The company's shares dropped more than 3% in pre-market trading.

Here is how Procter & Gamble's fourth-quarter financial results compared to Wall Street's estimates, based on an LSEG survey of analysts: Adjusted earnings per share came in at $1.43, beating the $1.41 forecast, while revenue totaled $21.2 billion, falling short of the $21.38 billion projection.

Net income attributable to the company for the fourth fiscal quarter was $3.04 billion, or $1.26 per share, down from $3.62 billion, or $1.48 per share, in the same period last year. Excluding restructuring costs, transaction gains, and other items, the company reported adjusted earnings per share of $1.43. Net sales increased by 2% to $21.2 billion.

Organic revenue, which strips out the effects of acquisitions, divestitures, and currency fluctuations, was flat compared to the same period a year ago, as overall sales volumes for Procter & Gamble's product portfolio remained unchanged. The company only managed to achieve volume growth in one quarter throughout the entire 2026 fiscal year.

Like many other consumer goods companies, Procter & Gamble has seen demand for its products weaken as consumers become more price-conscious, switching to cheaper private-label alternatives or using less shampoo and laundry detergent to save money.

In the fourth fiscal quarter, Procter & Gamble's beauty business segment was the top performer, with sales volume rising 3%. This segment includes Pantene shampoo, as well as Olay and SK-II skincare products. The fabric and home care segment was the only other reporting division to achieve volume growth, which includes Tide detergent and Swiffer, posting a 1% increase in volume for the quarter.

Procter & Gamble's baby, feminine, and family care segment, along with its grooming business, both saw a 1% decline in volume. The healthcare segment was the worst performer this quarter. This division, which includes Oral-B and Vicks, experienced a 3% contraction in volume due to a drop in oral care product sales.

Looking ahead to the next fiscal year, the company does not anticipate a significant rebound in product demand. For the 2027 fiscal year, Procter & Gamble expects core earnings per share to be between $6.89 and $7.11. The company also forecasts total sales to increase by 1% to 3% from the prior year. Wall Street's projections for the 2027 fiscal year are earnings per share of $7.04 and revenue growth of 2.7%.

Procter & Gamble currently estimates that rising costs for raw materials, energy, and transportation will create an after-tax headwind of approximately $1 billion. Combined with higher expected net interest expenses, lower non-operating income, and unfavorable currency exchange rates, the company projects that earnings per share for the 2027 fiscal year will be reduced by 8%, or about 56 cents.

On Wednesday, Procter & Gamble also announced that CEO Shailesh Jejurikar will take on the additional role of board chairman effective August 1, succeeding former CEO Jon Moeller.