Procter & Gamble Downgraded by Evercore ISI Ahead of Q4 Earnings Report

Procter & Gamble's stock price has slipped after Evercore ISI downgraded the company to In Line from Outperform, citing a headwind from Amazon. The firm expects P&G's FQ4 earnings report in two weeks to be impacted by the online retail giant's growing market share.

Procter & Gamble (PG) has seen its stock price slip after Evercore ISI downgraded the company to an "In Line" rating from "Outperform." The downgrade was primarily due to concerns about the consumer goods giant's growing challenge from Amazon (AMZN), the world's fastest-growing retailer in the household and personal care (HPC) market [1].

Analyst Robert Ottenstein at Evercore ISI highlighted that Amazon now accounts for 50% of all HPC growth in the U.S., creating a significant gap in growth compared to Procter & Gamble's core retailers, such as Walmart (WMT) and Costco (COST) [1]. This shift towards online retail is a structural issue that Procter & Gamble is finding difficult to address in the short term, given its complex product portfolio and limited presence in high-growth online segments [2].

Evercore ISI expects Procter & Gamble to report organic sales growth of just 1-3% for fiscal 2026, below the Street's consensus of 2.4% [2]. The firm also trimmed its EPS forecast to $6.90 from $7.00, reflecting the challenges posed by the shift towards digital retail and macroeconomic pressures [2]. The company's share on Amazon is about a third of what it enjoys with Walmart and Costco, indicating a significant gap in market share [2].

The downgrade comes as Amazon's stock has been performing strongly, with Morgan Stanley raising its price target to $300 from $250 and reiterating its overweight rating [3]. The firm's earnings estimates have been re-raised due to a more constructive macro landscape with lower tariffs, which is expected to drive growth for Amazon [3].

Procter & Gamble's upcoming FQ4 earnings report on July 29 is expected to provide more insights into the company's ability to navigate these challenges. The stock has shed 6% this year, reflecting investor concerns about the company's ability to maintain growth in the face of increasing competition from online retailers [1].

References:
[1] https://www.cnbc.com/2025/07/14/evercore-isi-downgrades-this-consumer-goods-giant-as-it-loses-market-share-on-amazon.html
[2] https://www.investing.com/news/stock-market-news/evercore-cuts-procter--gamble-rating-on-weak-amazon-positioning-slowing-sales-4133975
[3] https://www.cnbc.com/2025/07/11/lower-tariffs-can-help-amazon-rally-another-35percent-morgan-stanley-says.html