Procter & Gamble filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q1 2027 was $87.92 billion, which rose 3.5% on the year before. That growth rate was up 0.3 percentage points on the rate a quarter earlier.

Profitability

The business is profitable. The trailing gross margin was 49.8%. The trailing operating margin was 22.6%, down 1.6 percentage points from a year earlier. The trailing net margin was 18.2%. Net income over the twelve months was $16.03 billion, which fell 4.4% on the year before.

Where the cash went

The cash flow statement shows growth. Operating cash flow over the twelve months was $19.91 billion, up 5.2% on the year before. Alongside that, capital spending was $4.58 billion, or 5.2% of revenue. Free cash flow, operating cash flow less capital spending, was $15.34 billion, up 2.7% on the year before. Free cash flow was 17.4% of revenue (the free-cash-flow margin), down 0.1 percentage points from a year earlier.

Shares outstanding

The average diluted share count fell 1.3% over the year.

Against its own history

Set against the company’s own record: today’s free-cash-flow margin of 17.4% is higher than 61% of the company’s own past quarterly readings, which have ranged from 11.1% to 21.9%. Meanwhile, today’s operating margin of 22.6% is higher than 81% of the company’s own past quarterly readings, which have ranged from 8.1% to 24.3%. Today’s twelve-month revenue growth rate of 3.5% is higher than 72% of the company’s own past quarterly readings, which have ranged from −13.4% to 7.3%.

Guidance

The company has given an outlook. The company kept its fiscal 2027 guidance for core earnings per share (adjusted): $6.89 to $7.11. Over the same period, the company gave its fiscal 2027 guidance for core effective tax rate (adjusted): 20% to 21%. The company kept its fiscal 2027 guidance for free cash flow productivity (adjusted): 85% to 90%.

What it means for our valuation

These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 27.7%, and 5 percentage points higher would raise it by 36.3%. Meanwhile, a free-cash-flow margin 1 percentage point lower would lower it by 6.0%.

Next to watch

The next filing will show whether the trends above continue, slow or reverse.