Procter & Gamble (PG) beat Wall Street expectations in its fiscal Q4, reporting earnings of $1.48 per share, helped by favorable "below-the-line items" and lower-than-expected selling, general and administrative costs, UBS Securities said in a report emailed Wednesday.

"Bears continue to focus on weaker category growth/market share performance and do not view the updated guidance as conservative," the note said.

Conversely, "bulls" believe that the current weaker category growth is cyclical, not structural. They point to P&G's innovation pipeline and strong track record as indicators for improved market share. Additionally, they anticipate that productivity improvements will bolster the bottom line and allow for continued reinvestment, the note said.

P&G expects flat to 4% core EPS growth in FY26, or $6.83 to $7.09, driven by 0% to 4% organic sales growth and a 1% to 5% rise in net sales. The outlook factors in headwinds from $800 million in tariffs, higher commodity and interest costs and brand discontinuations, partially offset by a $300 million foreign exchange tailwind, UBS said.

UBS currently models $6.97 in EPS for the fiscal year, near the midpoint of company guidance. The investment firm maintained a buy rating on the company with a price target of $180.

Shares of the company declined 1.2% in recent Wednesday trading.

Price: 154.80, Change: -1.81, Percent Change: -1.16