Procter & Gamble (PG) is expected to post about 2% organic sales growth for fiscal Q1 2027, supported by a rebound in the US, Enterprise markets and China, while rising costs could push full-year earnings per share toward the lower end of guidance, RBC Capital Markets said in a report Tuesday.

The firm expects US trends to improve from the prior quarter, when destocking and the timing of Amazon Prime Day created a "3 pt gap" between shipments and consumption.

The firm also expects further evidence of "global share stabilization," with US market-share trends improving sequentially, according to the report.

At the same time the cost outlook has "deteriorated modestly" since July, the firm said, citing higher oil prices, increased US transportation costs and "Canadian retaliatory tariffs."

The firm expects Procter & Gamble to maintain its fiscal 2027 organic sales growth guidance of 1% to 3% and EPS range of $6.89 to $7.11, while pointing toward the lower end of the earnings range, the report said.

RBC has an outperform rating on Procter & Gamble, with a price target of $166.

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