Procter & Gamble down 14% but raises dividend, keeps buy rating amid mixed Q2 and inflation pressures

Procter & Gamble's stock has fallen 14% since February due to inflation, tariffs, and geopolitical tensions. Despite mixed Q2 results and declining margins, management reaffirmed its 2026 guidance and increased the dividend, showing confidence in future growth. The company's strong balance sheet supports ongoing buybacks and dividends, though near-term growth may be limited and volatility could continue. Upcoming Q3 earnings are crucial; further weakness might lead to guidance cuts and lower stock prices, while improvements could push shares toward $150–$155 by year-end.