Divergent Analyst Views Cloud Procter & Gamble’s Earnings Outlook

As Procter & Gamble prepares to release its quarterly results, a stark divide has emerged among market experts regarding the consumer staples giant's trajectory. The core debate centers on whether the company is experiencing a temporary growth deceleration or facing a more persistent slowdown. Against this backdrop, P&G continues to pursue brand-building initiatives, including a newly announced Olympic partnership.

All eyes are on Thursday, January 22, 2026, when Procter & Gamble is scheduled to announce its Q2 FY2026 results before the market opens. Current Wall Street consensus estimates project earnings per share of approximately $1.87, with revenue anticipated in the range of $22.2 to $22.3 billion. The market will scrutinize whether management reaffirms, narrows, or adjusts its full-year guidance for organic sales and profit growth. Of equal importance will be any commentary on the tangible impact of commodity costs, tariffs, and retail competition on profit margins.

A Clash of Research Perspectives

Two prominent research firms have issued conflicting assessments ahead of the earnings release.

UBS reiterated its Buy rating on P&G shares on Friday, maintaining a price target of $161. The bank anticipates the upcoming report will show only moderate growth, with management potentially trimming the upper end of its annual forecast. Nevertheless, UBS analysts see a "credible path" to improved organic growth in the second half of fiscal 2026. Their optimism is rooted in the expectation that the sector is gradually moving past a phase of weaker demand and inventory reductions at retailers, presenting a favorable long-term opportunity.

In contrast, analysts at Zacks Investment Research adopted a much more cautious stance on the same day, assigning the stock a Zacks Rank #4 (Sell). This rating is primarily driven by recent trends in earnings estimate revisions. Over the past 60 days, three analysts have lowered their profit forecasts for the current quarter, with no upward revisions to offset them. Consequently, the consensus EPS estimate has drifted slightly lower to $1.87.

Should investors sell immediately? Or is it worth buying Procter & Gamble?

Recent Performance and Lingering Headwinds

The stock currently trades at $144.63, positioned comfortably above both its 50-day and 200-day moving averages following a gain of roughly 15% over the previous 30 days.

P&G's last quarterly report, released on October 24, 2025, exceeded market expectations with EPS of $1.99 and revenue of $22.39 billion. At that time, management reaffirmed its FY2026 outlook, calling for organic sales growth of 0% to 4% and a similar increase in adjusted EPS. However, the operating environment has not eased since then. Persistent challenges including elevated commodity expenses, tariffs, and intense retail competition continue to pressure the business. Zacks points to the downward estimate revisions as evidence of a less favorable risk-reward profile for the stock in the near term.

Marketing Push for the 2026 Winter Games

Separate from the analyst debate, Procter & Gamble announced a new marketing initiative. Its brand, First Aid Beauty, has been named the official skincare partner of Team USA for the Milano Cortina 2026 Olympic and Paralympic Winter Games. This marks the brand's first major activation under P&G's Winter Games sponsorship umbrella and will be supported by a dedicated campaign. The move underscores the company's ongoing strategy of leveraging global sporting events to enhance brand equity and reach, though the direct revenue impact of such partnerships remains difficult to quantify.

The Central Question for Investors

The prevailing uncertainty boils down to a single question: Is the recent softness in sales a transient phase or a sign of more enduring pressure? The forthcoming earnings data will provide at least a partial answer, determining whether the constructive scenario outlined by UBS or the more cautious narrative from Zacks gains the upper hand in shaping investor sentiment.