Procter & Gamble (PG) investors are bracing for the company's fiscal Q4 organic sales to fall short of Wall Street expectations, given uncertainty as to whether shipment growth in the quarter will mirror strong US consumption, UBS said in a Monday research note.

UBS expects Q4 organic sales growth to slow down relative to Q3 and is modeling organic growth of 1.4%, compared with Wall Street estimate of 1.7%, along with earnings per share of $1.37, according to the note.

Procter & Gamble's initial fiscal 2027 guidance will more or less embed similar assumptions to fiscal 2026, which have been in an uncertain, volatile environment, UBS said, adding that it expects organic sales growth of 3%, versus the Street view of 2.5%, with an earnings per share forecast of $6.98.

Additionally, the company's outlook is likely to be H2 weighted as input cost pressures will be heightened in the first half as cost increases could prove to be temporary, resulting in less mitigation versus a more prolonged inflationary backdrop, UBS said.

Procter & Gamble is scheduled to report its fiscal Q4 results on July 29.

UBS rated the company's shares as buy with a $172 price target.

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