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The Earnings360 Team
Just For You Why Procter & Gamble Remains a Buy-and-Hold FavoriteWritten by Thomas Hughes. Published 10/27/2025. 
Key Points - Procter & Gamble is well-positioned to deliver market-beating total returns over the next two to five years.
- A low valuation, high yield, and outlook for sustained revenue and earnings growth underpin the outlook.
- Analysts and institutional trends suggest PG stock bottomed in Q3 2025 and is poised to move higher from there.
Procter & Gamble (NYSE: PG) is an appealing choice for long-term total returns: its stock price sits near the low end of its historical P/E range, its yield is toward the high end of its range, and its FQ1 2026 results reinforce an outlook for growth, strong cash flow, and continued capital returns. What are total returns? Total returns are an investor's net gain, including dividends and share price appreciation. As of late October, the stock yields about 2.75% and could appreciate 25% or more over the coming years. Future share-price gains should be supported by the company's high-quality business and steady growth, which together sustain a healthy balance sheet and robust capital returns, including share buybacks. Share repurchases are a key part of this outlook because they reduce the share count at a semi-aggressive pace each year and are unlikely to be suspended in the near term. The dividend is attractive, with a yield above 2.5%, and the outlook for increases is another tailwind. Procter & Gamble is a Dividend King with 70 consecutive years of dividend increases and appears to have the capacity to continue raising its payout for the foreseeable future (see analysis). Buybacks help offset the cost of dividend increases. The payout ratio remains reasonable at about 65%, roughly in line with peers, and consensus forecasts reported by MarketBeat call for a mid-single-digit EPS CAGR — slightly ahead of revenue growth and consistent with dividend-growth expectations. 
Procter & Gamble Rises After Posting Solid Results Procter & Gamble's FQ1 results were solid, outperforming on both the top and bottom lines with reported revenue growth of 3.0%. Gains were driven primarily by FX translation and pricing, but all segments contributed, and some delivered organic growth. Beauty and Grooming, in particular, produced organic growth, helping drive a 2% organic increase for the business. Margins were another positive area. While the company faced margin pressure, it mitigated much of that impact, leaving margins in better shape than many expected. The quarter produced $5.4 billion in operating cash flow, $4.8 billion in net earnings, and a 3% increase in adjusted EPS. Adjusted EPS of $1.99 beat consensus by a wide margin — suggesting the company's guidance may be conservative. Procter & Gamble reaffirmed its earnings guidance, with a midpoint slightly below consensus. Management expects some weakening in the coming quarters to offset the Q1 strength. That outlook, however, does not fully reflect signs of consumer resilience seen in P&G's results and in other consumer-focused companies' reports. Given these factors, a likely outcome is that Procter & Gamble will outperform near-term expectations and raise guidance later in the year. Institutional and Analyst Trends Align With a Bottom for PG Stock Price Analysts and institutional trends point to a bottom in the PG stock price. Analysts rate it a Moderate Buy and expect double-digit upside, while institutions have been net buyers. Institutions purchased roughly $2.50 of stock for every $1 they sold this year and now own about 65% of the shares outstanding, providing a substantial support base. If the stock reaches the consensus target, it would set the market on a path to new highs likely in 2026. The technical picture is constructive. PG jumped about 2.5% in premarket trading on Oct. 24, which helped confirm a bottom near $147. If the market follows through, PG should continue to rise and regain support at the moving-average cluster, potentially reaching $170 in early 2026 and all-time highs by mid-2026. If that follow-through does not materialize, PG is likely to remain rangebound near late-October levels until a stronger catalyst appears.
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