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P&G Beats Q3 Forecasts as Beauty Drives First Volume Gain in a Year

Higher oil prices tied to the Middle East conflict now threaten near-term margins.

Overview

  • Procter & Gamble, reporting Friday, posted 7% sales growth to $21.24 billion as unit volume rose 2%, topping Wall Street estimates.
  • Beauty led the rebound with about 5% volume growth from higher-priced hair and skin care launches in North America and Europe.
  • Management kept full-year guidance and flagged about a $150 million after-tax hit in fiscal 2026 from Middle East-related fuel, feedstock and shipping costs.
  • Currency-neutral gross margin fell roughly 100 basis points due to tariffs, product mix and reinvestment, and the company has begun applying for tariff refunds after a Supreme Court ruling with timing still uncertain.
  • P&G returned $3.2 billion to shareholders this quarter and raised its dividend by 3%, marking the 70th straight annual increase.