⚠ Short-Term Debt Up to $11.3 BillionLow threat

Procter & Gamble (PG) — threat to the moat

A third of P&G's debt now falls due within a year, and it expects $150 million more interest in fiscal 2027.

P&G's debt is shifting toward the short end. Debt due within one year rose from $7,191 million at June 2024 to $9,513 million at June 2025 and $11,296 million at June 202612, while long-term debt fell from $25,269 million to $22,842 million34.

Debt due within one year ($M)7,191June 20249,513June 202511,296June 2026P&G Forms 10-K FY2025 and FY2026, balance sheet
Up 57% in two years.

Short-term debt is cheap when rates are low and expensive to roll when they are not. P&G already expects $150 million of higher net interest in fiscal 20275, one piece of its $0.56-a-share headwind.

The company has the liquidity to manage it: $8.0 billion of undrawn facilities6 and top short-term ratings of P-1 and A-1+7. This is not a solvency question.

Suppliers fund part of the balance sheet as well. P&G's current liabilities exceeded its current assets by $12.5 billion at 30 June 20268, a structure that works while credit is cheap and ratings are high. Rising short-term debt adds to the part of that gap that must be refinanced rather than paid from trade terms.

It is a cost question. If short-term debt keeps rising toward half of total debt while rates stay high, interest will take a growing bite out of earnings that are growing 0% to 3%9. The interest line in the fiscal 2027 results is where to check.

References
  1. ReportedDebt due within one year rose from $7,191 million at June 2024 to $9,513 million at June 2025 and $11,296 million at June 2026, while long-term debt fell from $25,269 million to $22,842 million.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  2. ReportedDebt due within one year rose from $7,191 million at June 2024 to $9,513 million at June 2025 and $11,296 million at June 2026, while long-term debt fell from $25,269 million to $22,842 million.
    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. ReportedDebt due within one year rose from $7,191 million at June 2024 to $9,513 million at June 2025 and $11,296 million at June 2026, while long-term debt fell from $25,269 million to $22,842 million.
    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 ↗
  4. ReportedDebt due within one year rose from $7,191 million at June 2024 to $9,513 million at June 2025 and $11,296 million at June 2026, while long-term debt fell from $25,269 million to $22,842 million.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  5. ReportedP&G already expects $150 million of higher net interest in fiscal 2027, one piece of its $0.56-a-share headwind.
    Procter & Gamble fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1, with fiscal 2027 guidance - fiscal 2027 guidance. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  6. ReportedThe company has the liquidity to manage it: $8.0 billion of undrawn facilities and top short-term ratings of P-1 and A-1+.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  7. ReportedThe company has the liquidity to manage it: $8.0 billion of undrawn facilities and top short-term ratings of P-1 and A-1+.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1A risk factors, Item 5 market information and performance graph, and critical accounting estimates (Gillette brand). — FY2026 · publ. 4 August 2026 · source ↗
  8. ReportedP&G's current liabilities exceeded its current assets by $12.5 billion at 30 June 2026, a structure that works while credit is cheap and ratings are high.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  9. ReportedIf short-term debt keeps rising toward half of total debt while rates stay high, interest will take a growing bite out of earnings that are growing 0% to 3%.
    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 ↗
Sources
Generated September 26, 2026