Plus Four, Plus One, Plus OneNarrow moat

Procter & Gamble (PG) — moat facet

P&G added 4% to sales through price in fiscal 2024 and only 1% in each year since, with volume flat throughout.

The simplest way to see what happened to P&G's pricing power is to read the price column of its sales tables. Price added 4% to net sales in fiscal 2024, 1% in fiscal 2025 and 1% in fiscal 2026123. Volume contributed nothing in any of the three years456.

Price contribution to P&G net sales growth (%)+4%FY2024+1%FY2025+1%FY2026P&G Forms 10-K FY2024-FY2026, net sales drivers
The price lever has gone quiet.

The fiscal 2024 figure was the tail of a period when P&G, like every consumer company, passed on higher costs. It could do so because its brands lead their categories and retailers could not easily replace them. The drop to 1% is what happens when costs stop rising and the argument for raising prices goes with them.

Pricing still helps the margin. In the fiscal 2026 gross margin bridge, pricing added 40 basis points7. But mix cost 120 basis points, product and package investments 70, restructuring 60 and net tariffs 308, and gross margin fell 100 basis points to 50.2%9.

The segment detail shows where price still works. Grooming and Health Care each took 2% of price in fiscal 2026, Beauty and Fabric & Home Care 1%, and Baby, Feminine & Family Care nothing10. Grooming took 8% in fiscal 202411, the largest price rise any segment took in those three years.

The longer organic series shows how unusual the recent years were. Organic sales grew 5% in fiscal 2019 and 6% in each of fiscal 2020 and fiscal 2021, before the 7% years12. Growth of 5% to 7% was the norm for five years; 1% is the lowest in the series P&G publishes.

A consumer company whose price contribution is 1% and whose volume is flat is growing at about the rate of inflation. That is the definition of a moat at rest. The verdict would turn negative if price went to zero or below while volume stayed flat, because then the brands would be neither gaining customers nor charging more to the ones they have. The fiscal 2026 figure, plus 1%13, is the one to beat.

Moat trajectory: Narrowing

Price +4% (FY2024), +1% (FY2025), +1% (FY2026); volume 0% each year.

The number that tests this moat
Reported
Price contribution to net sales, FY2026
+1% (volume 0%)

What the brands can still charge; zero or negative with flat volume would mean pricing power has gone.

Source: P&G Form 10-K, FY2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
Pricing Added Only 40 Basis Points
Price added just 40 basis points to P&G's gross margin in fiscal 2026, against 120 lost to mix alone.
References
  1. ReportedPrice added 4% to net sales in fiscal 2024, 1% in fiscal 2025 and 1% in fiscal 2026.
    Procter & Gamble Form 10-K for fiscal 2024 - net sales drivers by segment for fiscal 2024 (price +4%) and top-ten customer share. — FY2024 · publ. August 2024 · source ↗
  2. ReportedPrice added 4% to net sales in fiscal 2024, 1% in fiscal 2025 and 1% in fiscal 2026.
    Procter & Gamble Form 10-K for fiscal 2025 - segment results for fiscal 2023, net sales drivers, Walmart share, top-ten customers and debt at June 2024 and 2025. — FY2025 · publ. August 2025 · source ↗
  3. ReportedPrice added 4% to net sales in fiscal 2024, 1% in fiscal 2025 and 1% in fiscal 2026.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  4. ReportedVolume contributed nothing in any of the three years.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  5. ReportedVolume contributed nothing in any of the three years.
    Procter & Gamble Form 10-K for fiscal 2025 - segment results for fiscal 2023, net sales drivers, Walmart share, top-ten customers and debt at June 2024 and 2025. — FY2025 · publ. August 2025 · source ↗
  6. ReportedVolume contributed nothing in any of the three years.
    Procter & Gamble Form 10-K for fiscal 2024 - net sales drivers by segment for fiscal 2024 (price +4%) and top-ten customer share. — FY2024 · publ. August 2024 · source ↗
  7. ReportedIn the fiscal 2026 gross margin bridge, pricing added 40 basis points.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  8. ReportedBut mix cost 120 basis points, product and package investments 70, restructuring 60 and net tariffs 30, and gross margin fell 100 basis points to 50.2%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  9. ReportedBut mix cost 120 basis points, product and package investments 70, restructuring 60 and net tariffs 30, and gross margin fell 100 basis points to 50.2%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  10. ReportedGrooming and Health Care each took 2% of price in fiscal 2026, Beauty and Fabric & Home Care 1%, and Baby, Feminine & Family Care nothing.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: net sales drivers, organic sales and gross margin bridge. — FY2026 · publ. 4 August 2026 · source ↗
  11. ReportedGrooming took 8% in fiscal 2024, the largest price rise any segment took in those three years.
    Procter & Gamble Form 10-K for fiscal 2024 - net sales drivers by segment for fiscal 2024 (price +4%) and top-ten customer share. — FY2024 · publ. August 2024 · source ↗
  12. ReportedOrganic sales grew 5% in fiscal 2019 and 6% in each of fiscal 2020 and fiscal 2021, before the 7% years.
    Procter & Gamble fourth-quarter fiscal 2026 earnings slides, Form 8-K exhibit 99.1 - organic sales and core EPS history, share results and fiscal 2027 guidance assumptions. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  13. ReportedThe fiscal 2026 figure, plus 1%, is the one to beat.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
Sources
Generated September 26, 2026