Procter & Gamble slips after Evercore ISI downgrades and warns on Amazon headwind

Evercore ISI lowered its rating on Procter & Gamble Company (NYSE:PG) to In Line from Outperform ahead of the consumer product giant’s FQ4 earnings report in a little more than two weeks.

The firm expects Procter & Gamble (NYSE:PG) to issue guidance for 1% to 3% organic sales growth for F2026, including ~50 basis points of attrition from portfolio rationalization, not divestitures. The organic sales guidance is seen as being at risk of falling below the consensus mark of 2.4%.

“Expect a F2026 outlook with a low but broad range of scenarios to be discussed on July 29 in conjunction with the 4Q release. Macro pressures are transient, and unlike prior downturns, Procter’s portfolio now extends into mid-tier flanker brands in its price-sensitive categories, offering alternatives to pressured consumers,” highlighted analyst Robert Ottenstein.

Ottenstein said a concern with P&G (PG) is with adverse shifts in retail channels that challenge Procter’s growth potential. Notably, in the U.S., Amazon (AMZN) now accounts for 50% of all HPC growth, which was noted to create a two-point growth gap or one point globally relative to Procter’s (PG) core retailers, mainly Walmart (WMT) and Costco (COST), where the firm remains competitively advantaged given scale and product superiority. It was also highlighted that a parallel shift to pure online in China compounds macroeconomic pressures and could delay a turnaround.

Shares of Procter & Gamble (PG) fell 0.8% in premarket trading on Monday.