A stark divide has emerged among market experts regarding the investment case for Procter & Gamble (P&G). The consumer goods behemoth finds itself at a critical juncture, with its upcoming quarterly results poised to validate one of two opposing financial outlooks.
Conflicting Ratings and Price Targets
On December 17, Jefferies analyst Kaumil Gajrawala upgraded his rating on P&G shares from “Hold” to “Buy.” In a significant move, he also raised his price target to $179 from $156. This new target implies a potential upside of approximately 24% from the recent trading level around $144. This bullish call is particularly notable as the stock has declined over 13% in 2025 and is hovering near its 52-week low.
In direct contrast, analysts at JP Morgan maintain a “Neutral” stance. Analyst Andrea Teixeira reduced the firm’s price target from $165 to $157, marking the second such downward revision in a matter of months. Teixeira cites persistent headwinds from weak consumer demand as a primary concern.
Underlying Market Pressures
The rationale for these divergent assessments lies in the company’s operational challenges. P&G’s Chief Financial Officer warned in December that U.S. sales across its product categories saw a “significant” decline in both volume and value during October and November. The company is facing intensified competitive pressure from the private-label brands of major retailers like Walmart, Target, and Costco, which are challenging P&G’s premium-priced offerings.
Additional financial strain comes from tariffs, which the company previously estimated would cost it $1 billion. Furthermore, a previously announced restructuring plan, which includes cutting 7,000 jobs (6.4% of its workforce) by mid-2027, is currently underway.
Should investors sell immediately? Or is it worth buying Procter & Gamble?
For the current quarter ending December 2025, the consensus analyst estimate for earnings per share stands at $1.88, unchanged from the prior-year period. Revenue is projected to rise 2.5% to $22.42 billion.
Upcoming Catalyst for Direction
All eyes are now on January 22, 2026, when P&G is scheduled to release its results for the second fiscal quarter. This event will provide crucial evidence to determine which analytical camp has correctly assessed the situation. The earnings release coincides with a leadership transition, as Shailesh Jejurikar takes over as the new Chief Executive Officer, potentially signaling a shift in strategic focus.
The broader analyst consensus currently sits at “Moderate Buy,” with an average price target of $175.58. However, individual targets reveal a wide spectrum of opinion, ranging from a low of $153 (Barclays) to a high of $209 (DA Davidson).
Trading at roughly 20 times expected earnings, P&G shares offer a dividend yield of nearly 3%. The central question for investors is whether the company’s current operational softness is a temporary setback or an indicator of more enduring margin challenges. The January report will be pivotal in providing an answer.
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