Overview
- Net sales rose 1% to $22.21 billion, slightly below estimates, while adjusted EPS came in at $1.88 to top forecasts as organic sales were flat and prices increased about 1%.
- Overall volumes fell 1%, with beauty the only category to grow volumes (about 3%) on strength from hair and personal care brands like Pantene and Olay, as baby, feminine and family care weakened.
- Core gross margin declined for a fifth consecutive quarter, pressured by tariffs and investments in more affordable pack sizes, and U.S. sales were hurt by a government shutdown that delayed food assistance payments.
- P&G unveiled a multi‑year productivity and restructuring program that includes about 7,000 non‑manufacturing role reductions, and it cut GAAP EPS growth guidance to 1%–6% due to higher restructuring charges while maintaining core earnings and sales targets.
- Management characterized the period as the softest quarter of the year and said sales should improve over the next six months, as shares ticked higher and several analysts raised price targets following the report.