The Revenue LinesWide moat

Procter & Gamble (PG) — moat facet

P&G's five segments earn between 17 and 22 cents on the dollar, and in fiscal 2026 all five earned less on higher sales.

P&G reports five segments, and they reconcile to its $87,032 million of fiscal 2026 net sales with a small Corporate line1. Fabric & Home Care sold $30,314 million; Baby, Feminine & Family Care $20,401 million; Beauty $16,023 million; Health Care $12,456 million; Grooming $6,918 million; and Corporate $919 million2. The chart in this app shows the five segments and Corporate for fiscal 2023 to fiscal 2026, and the bands add exactly to reported net sales.

Net sales by segment, FY2026 ($M)Fabric and Home Care 30,314 — 35%Baby, Feminine and Family Care 20,401 — 23%Beauty 16,023 — 18%Health Care 12,456 — 14%Grooming 6,918 — 8%Corporate 919 — 1%P&G Form 10-K FY2026, segment note; total $87,032M
Laundry and paper are nearly three-fifths.

The weights have shifted over a decade. Fabric & Home Care rose from 32% of net sales and 27% of net earnings in fiscal 2016 to 35% and 35% in fiscal 2026; Grooming fell from 11% and 15% to 8% and 9%; Baby, Feminine & Family Care from 28% and 26% to 24% and 24%34.

Profitability is close across the segments. Net margins in fiscal 2026 ranged from 16.7% in Beauty to 22.1% in Grooming, with Health Care and Baby, Feminine & Family Care at 19.3% and Fabric & Home Care at 18.6%5. Every one of those margins fell in fiscal 20266, and every segment's net earnings fell while every segment's sales rose7.

Growth runs roughly in reverse order of size. In fiscal 2026 Beauty's sales rose 7%, Grooming's and Health Care's 4%, Fabric & Home Care's 2% and Baby, Feminine & Family Care's 1%8. Organic growth was 5% in Beauty, 1% in Grooming, Health Care and Fabric & Home Care, and minus 1% in Baby, Feminine & Family Care9.

Below the segments sit eleven operating segments. In fiscal 2026 fabric care was 23% of net sales, home care 12%, baby care 9%, hair care 9%, family care 8%, grooming 8%, oral care 8%, feminine care 7%, personal health care 6%, personal care 6% and skin care 4%10. No single category is more than about a quarter of the company.

The lines describe a company whose biggest businesses grow slowest. The figure to follow is the number of segments whose net earnings rise; none did in fiscal 202611, and if fewer than three do in fiscal 2027, the decline will be structural rather than a year of reinvestment.

Moat trajectory: Holding steady

All five segments grew sales and lost net earnings in FY2026.

The number that tests this moat
Reported
Segments with falling net earnings, FY2026
5 of 5 (sales rose in all 5)

The breadth of the margin squeeze; fewer than three segments growing earnings in FY2027 would make it structural.

Source: P&G Form 10-K, FY2026 ↗
Dig deeper
DIG DEEPER 01
Beauty
Beauty is P&G's fastest-growing segment and its least profitable one, with its net margin down from 21.2% to 16.7% in three years.
DIG DEEPER 02
Grooming
Grooming earns 22 cents of every sales dollar, P&G's best margin, while selling fewer razors and taking price to grow.
DIG DEEPER 03
Health Care
Health Care grew sales 11% and earnings 13% in three years, the best record of any P&G segment, and is about to add Thorne.
DIG DEEPER 04
Fabric & Home Care
Fabric & Home Care earns more than a third of P&G's profit from laundry and cleaning, and P&G built almost all of it rather than bought it.
DIG DEEPER 05
Baby, Feminine & Family Care
Baby, Feminine & Family Care has sold about $20 billion a year for four years and needs more capital than any other P&G business to do it.
References
  1. ReportedP&G reports five segments, and they reconcile to its $87,032 million of fiscal 2026 net sales with a small Corporate line.
    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 ↗
  2. ReportedFabric & Home Care sold $30,314 million; Baby, Feminine & Family Care $20,401 million; Beauty $16,023 million; Health Care $12,456 million; Grooming $6,918 million; and Corporate $919 million.
    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 ↗
  3. ReportedFabric & Home Care rose from 32% of net sales and 27% of net earnings in fiscal 2016 to 35% and 35% in fiscal 2026; Grooming fell from 11% and 15% to 8% and 9%; Baby, Feminine & Family Care from 28% and 26% to 24% and 24%.
    Procter & Gamble Form 10-K for fiscal 2016 - the portfolio reduction to about 65 brands, the Duracell exchange with Berkshire Hathaway, segment shares and blade share. — FY2016 · publ. August 2016 · source ↗
  4. ReportedFabric & Home Care rose from 32% of net sales and 27% of net earnings in fiscal 2016 to 35% and 35% in fiscal 2026; Grooming fell from 11% and 15% to 8% and 9%; Baby, Feminine & Family Care from 28% and 26% to 24% and 24%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A and segment note: segment contents, operating segments and shares of net sales and net earnings. — FY2026 · publ. 4 August 2026 · source ↗
  5. ReportedNet margins in fiscal 2026 ranged from 16.7% in Beauty to 22.1% in Grooming, with Health Care and Baby, Feminine & Family Care at 19.3% and Fabric & Home Care at 18.6%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A and segment note: segment contents, operating segments and shares of net sales and net earnings. — FY2026 · publ. 4 August 2026 · source ↗
  6. ReportedEvery one of those margins fell in fiscal 2026, and every segment's net earnings fell while every segment's sales rose.
    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 ↗
  7. ReportedEvery one of those margins fell in fiscal 2026, and every segment's net earnings fell while every segment's sales rose.
    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 ↗
  8. ReportedIn fiscal 2026 Beauty's sales rose 7%, Grooming's and Health Care's 4%, Fabric & Home Care's 2% and Baby, Feminine & Family Care's 1%.
    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 ↗
  9. ReportedOrganic growth was 5% in Beauty, 1% in Grooming, Health Care and Fabric & Home Care, and minus 1% in Baby, Feminine & Family Care.
    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. ReportedIn fiscal 2026 fabric care was 23% of net sales, home care 12%, baby care 9%, hair care 9%, family care 8%, grooming 8%, oral care 8%, feminine care 7%, personal health care 6%, personal care 6% and skin care 4%.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 7 MD&A and segment note: segment contents, operating segments and shares of net sales and net earnings. — FY2026 · publ. 4 August 2026 · source ↗
  11. ReportedThe figure to follow is the number of segments whose net earnings rise; none did in fiscal 2026, and if fewer than three do in fiscal 2027, the decline will be structural rather than a year of reinvestment.
    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