Procter & Gamble stock remains a ’safe’ bet ahead of earnings, UBS says

Published 17/10/2025, 15:20
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Investing.com - UBS maintained its Buy rating on Procter & Gamble (NYSE:PG) with a price target of $176.00 ahead of the company’s upcoming earnings report.

The consumer goods giant is scheduled to report its fiscal first-quarter 2026 earnings on Friday, October 24, before market open. UBS forecasts earnings per share of $1.90, which aligns with the current Visible Alpha consensus estimate. InvestingPro data reveals that 10 analysts have recently revised their earnings expectations downward for the upcoming period.

UBS noted that P&G’s first-quarter results will likely reflect "a dynamic and difficult operating environment" with underwhelming organic growth and muted profit growth, similar to trends affecting other companies in the sector.

Despite these challenges, UBS believes expectations have been lowered in recent weeks, with weaker performance already priced into the stock. The firm highlighted that P&G stands out as one of the few companies unlikely to make significant changes to its guidance.

UBS suggested P&G could be one of the "relatively ’safe’ places to be this earnings season," noting that simply meeting expectations and reiterating guidance "is going to be good enough" in the current environment, particularly for household and personal care companies and large-cap multinationals.

In other recent news, Procter & Gamble has announced several important developments. The company reported that its shareholders approved a new stock and incentive compensation plan during the annual meeting, authorizing the issuance of up to 175 million shares for various forms of equity compensation. Additionally, Procter & Gamble declared a quarterly dividend of $1.0568 per share, payable on November 17, 2025, to shareholders of record as of October 24, 2025. In a significant leadership change, Alexandra Keith, CEO of the Beauty division, announced her retirement effective February 20, 2026, after over 36 years with the company.

On the analyst front, TD Cowen lowered its price target for Procter & Gamble to $168, citing fiscal year 2026 challenges, including category slowdowns in developed markets and inventory issues. Meanwhile, UBS reiterated its Buy rating with a price target of $180, noting signs of progress in the company’s fourth-quarter performance despite initial guidance concerns. These developments highlight the ongoing strategic adjustments and market evaluations surrounding Procter & Gamble.

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