⚠ Health Care Sold Two Percent LessModerate threat

Procter & Gamble (PG) — threat to the moat

Health Care grew sales 4% in fiscal 2026 while selling 2% less.

Health Care's fiscal 2026 sales rose 4%, and none of it came from selling more. Volume fell 2%, currency added 3 points, price 2 and mix 11. Organic sales rose just 1%2, and in the June 2026 quarter they fell 1%3.

Health Care net sales drivers, FY2026 (points)Currency+3Price+2Mix+1Volume-2P&G Form 10-K FY2026; net sales growth +4%
Growth without selling more.

The segment holds two franchises, oral care and personal health care4. The 10-K attributes volume losses to competitive activity in North American and Greater China oral care5.

A health brand is supposed to be the stickiest product in a shopping basket: people buy the toothpaste their dentist recommends and the cold remedy they trust. Falling volume says some of that loyalty is being tested.

This is the third year of falling volume, not the first. Health Care volume fell 1% in fiscal 2024 and 1% in fiscal 2025 before the 2% fall in fiscal 2026678. For three years the segment has grown by charging more and by mix, and each year the volume loss has been a little larger.

The test is volume in fiscal 2027. A second year of decline above 1% would mean price increases are losing customers, and Health Care's net margin, 19.3% in fiscal 2026 after falling 100 basis points9, would have further to fall.

References
  1. ReportedVolume fell 2%, currency added 3 points, price 2 and mix 1.
    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 ↗
  2. ReportedOrganic sales rose just 1%, and in the June 2026 quarter they fell 1%.
    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 ↗
  3. ReportedOrganic sales rose just 1%, and in the June 2026 quarter they fell 1%.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - quarterly and fiscal-year headline results and cash flow. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  4. ReportedThe segment holds two franchises, oral care and personal health care.
    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 ↗
  5. ReportedThe 10-K attributes volume losses to competitive activity in North American and Greater China oral care.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A: market shares and competitive activity by category. — FY2026 · publ. 4 August 2026 · source ↗
  6. ReportedHealth Care volume fell 1% in fiscal 2024 and 1% in fiscal 2025 before the 2% fall 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 ↗
  7. ReportedHealth Care volume fell 1% in fiscal 2024 and 1% in fiscal 2025 before the 2% fall 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 ↗
  8. ReportedHealth Care volume fell 1% in fiscal 2024 and 1% in fiscal 2025 before the 2% fall 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 ↗
  9. ReportedA second year of decline above 1% would mean price increases are losing customers, and Health Care's net margin, 19.3% in fiscal 2026 after falling 100 basis points, would have further to fall.
    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 ↗
Sources
Generated September 26, 2026