Is The Procter & Gamble Stock Halal?
The Procter & Gamble Company · PG · NYSE
The Procter & Gamble Company (PG) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 10.6% of market cap and cash plus interest-bearing securities 3.5% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETF HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Procter & Gamble is one of the cleanest large-cap names for halal investors. It is a consumer-staples manufacturer — its business is making and selling everyday branded goods such as Tide detergent, Pampers diapers, Gillette razors, Crest toothpaste, and Pantene shampoo. Selling permissible consumer products raises no business-activity concern, the stock is held by the Wahed FTSE USA Shariah ETF (HLAL), and it sits in many Islamic equity indices.
The financial ratios are comfortably inside AAOIFI limits. P&G carries modest interest-bearing debt relative to its market capitalization, holds little excess interest-bearing cash, and earns only a small amount of interest income — about 0.6% of revenue on our screen, matching the 0.58% independently reported by HalalScreener. All three ratios sit well under their thresholds, which is why screeners including Zoya, Musaffa, and HalalScreener (which grades it an A) all classify the stock as compliant.
One point that often confuses investors: some P&G cosmetic products may contain alcohol or animal-derived ingredients. That does not make the stock impermissible — Shariah equity screening looks at the company's business activity and revenue sources, not the formulation of individual end products. The practical takeaway: P&G passes both screens cleanly. Check the data-as-of date on this page since ratios move over time, and purify the small proportional share of any dividends attributable to incidental interest income.
Business Activity Screen
Procter & Gamble is a global consumer-staples company that manufactures and sells branded personal-care, hygiene, grooming, and household-cleaning products — brands such as Tide, Pampers, Gillette, Crest, and Pantene. Manufacturing and selling everyday consumer goods is a permissible business activity.
Core consumer-goods revenue raises no business-screen issues. The one review point is interest income earned on corporate cash — roughly 0.6% of revenue on our screen (HalalScreener independently reports 0.58%), well below the 5% AAOIFI threshold; the standard treatment is to purify the proportional share of dividends attributable to it. Note that while some cosmetic products may contain alcohol or animal-derived ingredients, Shariah equity screening assesses the company's business activity and revenue sources, not individual product formulations, so this does not affect the stock's compliance. No alcohol, gambling, tobacco, or interest-based lending business lines are disclosed.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 10.6% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.5% | < 30% | Pass |
| Impermissible income / total revenueInterest/investment income $469.0M on $84.28B revenue = 0.6% (FMP as-reported XBRL, investmentincomeinterest). Verify no other impermissible revenue segments in 10-K. | 0.6% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How The Procter & Gamble screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 10.6% | 3.5% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 10.6% | 3.5% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 28.8% | 9.6% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Wahed FTSE USA Shariah ETF (HLAL)
Held in HLAL as of 2026-06-13 — passed the FTSE Shariah screen applied by the fund.
Source →Zoya
Classifies PG as Shariah-compliant under its AAOIFI-based methodology, reviewed at least quarterly.
Source →Musaffa
Classified HALAL as of May 2026 based on AAOIFI business-activity and financial-ratio screens (report source: 2026 Q3).
Source →HalalScreener
Rates PG Halal with an A grade (89/100) under AAOIFI Standard 21; reports debt/market-cap 7.4%, interest-bearing deposits 2.8%, and prohibited income 0.58% — all well within limits.
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether The Procter & Gamble Company is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
Product structures and Shariah-compliance oversight vary by provider. Before applying:
- Verify halal compliance directly with the provider.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- PG latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- The Procter & Gamble Company 10-K filings (SEC EDGAR)
- HLAL (Wahed FTSE USA Shariah ETF) holdings — Procter & Gamble held (Jun 2026)
- Zoya — PG Shariah compliance status (compliant)
- Musaffa — PG Shariah status (HALAL, May 2026)
- HalalScreener — PG Halal, A grade (AAOIFI Standard 21)
- HalalWallet Methodology
- Editorial Policy
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Editorial Team, HalalWallet
Independent halal finance research
Reviewed quarterly and updated for major content changes.