Procter & Gamble: The Outlook Is Worrying (Rating Downgrade)

Procter & Gamble's Q4 showed sluggish top-line growth but resilient business activity, with organic sales up just 2% year-over-year. Profitability improved through operating margin gains, driving healthy EPS growth, but future guidance signals a slowdown to 2% EPS growth in FY2026. Valuation remains unattractive, with the forward P/E still at a significant premium to the sector despite recent contraction and weak growth outlook.