The Procter & Gamble $PG Company PG has been navigating uneven performance in its Baby Care business, particularly in the United States, where market share trends have lagged the company’s expectations. While the segment has been a relatively weak spot, management believes the challenges are highly localized and do not reflect a broader deterioration in category fundamentals. PG is investing in product upgrades, improved consumer communication and trial-building initiatives to restore momentum, reinforcing confidence that Baby Care can become a growth contributor rather than a drag over time.
In third-quarter fiscal 2026, PG reported organic sales growth of more than 3%, with volume up 2 points and pricing contributing 1 point. Core EPS increased 3% to $1.59. Management noted that Baby Care is gaining share in five of seven regions, with Greater China delivering 19% growth despite a declining birth-rate environment. The United States remains the largest region not currently gaining share, prompting targeted interventions. Globally, Baby Care was among the categories posting low-single-digit organic growth, while North America organic sales rose 4% and global market share improved in 26 of PG’s top 50 category-country combinations.
Although U.S. Baby Care remains a near-term pressure point, the segment is not materially weighing on PG’s overall growth trajectory. The company’s diversified portfolio, broad-based geographic strength and consistent innovation pipeline continue to support healthy top-line momentum. With management expressing strong confidence in its turnaround plan and willingness to invest aggressively where opportunities exist, Baby Care appears more like a fixable execution issue than a structural concern for PG’s long-term growth story.
Innovation Drives Resilience at CHD and CL
Both Church & Dwight $CHD CHD and Colgate $CL-Palmolive CL are using innovation, premium products and strong brand portfolios to offset category-specific pressures and sustain growth momentum.
Church & Dwight is also working to strengthen its baby and household products portfolio through innovation and targeted investments. The company’s Baby Care business, led by the WaterWipes and Hero brands, has faced a competitive environment, but Church & Dwight continues to focus on premium positioning, marketing support and distribution gains to drive growth. Its diversified portfolio, which includes Arm & Hammer, OxiClean and Trojan, helps offset temporary softness in any single category and supports steady revenue and earnings expansion.
Colgate is leveraging innovation and brand investment to navigate category-specific pressures while sustaining overall growth. The company has demonstrated a similar strategy of using premium product launches, disciplined pricing and productivity initiatives to protect margins and market share. Strength in oral care, personal care and pet nutrition, particularly through the Hill’s segment, continues to provide Colgate with balanced growth and resilience even when certain categories face slower demand.
PG’s Price Performance, Valuation & Estimates
Procter & Gamble’s shares have lost around 3.1% in the past six months compared with the industry’s 2.8% decline.
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From a valuation standpoint, PG trades at a forward price-to-earnings ratio of 20.3X compared with the industry’s average of 17.9X.
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The Zacks Consensus Estimate for PG’s fiscal 2026 and 2027 EPS indicates year-over-year growth of 1.2% and 2.6%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved downward in the past seven days.
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Procter & Gamble currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
Colgate-Palmolive Company (CL): Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD): Free Stock Analysis Report