Procter & Gamble has reported a solid start to its 2026 financial year, posting a three per cent rise in net sales to $22.4 billion (€20.6 billion) for the July-September quarter, driven by pricing and mix improvements across several categories.
However, the maker of brands such as Febreze, Fairy and Ariel noted that its Fabric and Home Care division - which includes many of its aerosol and surface-care products - saw flat organic growth, as softer European demand and changing consumer behaviour offset gains from price rises in North America.
P&G has been under mounting pressure to reformulate and decarbonise its aerosol portfolio amid tightening environmental regulation and shifting retailer policies. Aerosol propellants, traditionally reliant on hydrocarbons, have come under scrutiny for their carbon footprint and potential air-quality impacts.
In recent years, the company has pledged to phase down fossil-fuel-based propellants and explore alternatives such as compressed air and nitrogen. These changes have coincided with a broader category slowdown, as consumers increasingly favour pump sprays, concentrated liquids and solid formats.
Despite the Home Care softness, P&G’s Beauty and Grooming segments posted healthy organic gains of six and three per cent respectively, buoyed by innovation and premiumisation. Net earnings rose 20 per cent to $4.8 billion (€4.4 billion), while diluted earnings per share increased to $1.95 (€1.79), up 21 per cent year on year.
Chief executive Jon Moeller said P&G’s performance “reflects strong execution of our integrated strategy” and reaffirmed the group’s full-year guidance for organic sales growth of up to four per cent and core earnings per share of $6.83–$7.09 (€6.28–€6.52).
The company expects higher tariffs and commodity costs to add roughly $500 million (€460 million) in after-tax headwinds this fiscal year, but said it remains on track to invest more in innovation and sustainability - including new low-impact packaging and propellant technologies for its household-care brands.
P&G reports steady Q1 growth but Home Care faces aerosol headwinds
