Bank of America Securities (BofA) has increased its target price for Procter & Gamble (NYSE:PG) by one dollar to $171, retaining its Buy recommendation after the consumer goods giant reported its second-quarter 2026 financial results. The company’s organic sales remained flat during the quarter, aligning with consensus expectations.
BofA commented that the reaffirmation of Procter & Gamble’s full-year guidance spurred a positive market response, especially since the stock had lagged behind its household and personal care sector peers, as well as other global multinational corporations. According to data from InvestingPro, Procter & Gamble generated trailing twelve-month revenues of $85.26 billion, with a robust gross profit margin of 51.12%, underscoring its significant position within the Household Products sector.
The analyst team at BofA anticipates an acceleration in organic sales growth during the second half of fiscal 2026, potentially reaching between 2% and 3%, buoyed by easier year-over-year comparisons and sequential improvements in consumer spending trends across North America. These projections align with InvestingPro’s forecasted 3% revenue growth for the full fiscal year. Despite these optimistic expectations, investors should consider Procter & Gamble’s relatively elevated price-to-earnings ratio of 21.65 in relation to its near-term earnings growth.
Key growth catalysts identified include a turnaround in underperforming U.S. categories such as baby and family care, sustained strength in personal care segments, and ongoing contributions from Latin American and Greater China markets, particularly in the skincare product lines. Operational efficiency remains a strength for Procter & Gamble, reflected in a 31% return on equity and 20% return on invested capital over the past twelve months.
BofA projects these combined growth drivers, alongside restructuring benefits, to support earnings per share growth at the lower end of a mid-single to high-single digit range by fiscal 2026’s end, specifically modeling a 6% increase in Q4 earnings per share.
Meanwhile, Procter & Gamble's fiscal second-quarter earnings slightly exceeded per-share expectations but fell short on revenue. The company reported earnings per share of $1.88, surpassing the consensus estimate of $1.86, while revenue was $22.2 billion, slightly below the anticipated $22.34 billion. Despite this partial miss, the stock price remained relatively stable during pre-market trading.
Complementing BofA’s outlook, JPMorgan upgraded Procter & Gamble’s stock from Neutral to Overweight, raising its price target from $157 to $165. JPMorgan analyst Andrea Teixeira highlighted the company’s capacity to accelerate organic sales growth and enhance profit margins over the medium term, reflecting investor confidence in Procter & Gamble's future trajectory.
In summary, the combination of consistent financial metrics, improving sales outlook in key segments, and efficiency gains has convinced multiple brokerage firms to adopt positive stances on Procter & Gamble’s prospects in 2026.