Procter & Gamble (PG) Q1 2026 earnings

Procter & Gamble on Friday reported fiscal first-quarter earnings and income that beat analysts’ expectations, lifted by greater demand for its magnificence and grooming merchandise.

Regardless of greater prices from tariffs and what CEO Jon Moeller known as a “difficult shopper and geopolitical surroundings,” P&G reiterated its forecast for all-in gross sales and earnings for the fiscal 12 months, which started in July.

Shares of the corporate rose 4% in premarket buying and selling.

Here is what the corporate reported for the quarter ended Sept. 30 in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG:

• Earnings per share: $1.99 adjusted vs. $1.90 anticipated
• Income: $22.39 billion vs. $22.18 billion anticipated

P&G reported fiscal first-quarter web earnings attributable to the corporate of $4.75 billion, or $1.95 per share, up from $3.96 billion, or $1.61 per share, a 12 months earlier.

Excluding gadgets, together with prices related to incremental restructuring, the buyer big earned $1.99 per share.

Internet gross sales rose 3% to $22.39 billion. Natural gross sales, which strips out the influence of acquisitions, divestitures and overseas foreign money, elevated 2% within the quarter

Although income metrics had been greater, P&G’s quantity was flat in contrast with the year-ago interval. Quantity excludes pricing, which makes it a extra correct reflection of demand than gross sales. Like many shopper corporations, P&G has seen demand for a few of its merchandise fall as inflation-weary shoppers search out offers.

“The patron surroundings just isn’t nice, however steady,” CFO Andre Schulten stated on a name with media, including that consumers have behaved equally in the previous few quarters.

In the USA, the corporate’s largest market, consumption throughout P&G’s broad swath of merchandise has slowed “a bit bit,” in response to Schulten. Like Coca-Cola, P&G is seeing a bifurcation in how shoppers are buying, based mostly on their incomes, typically described as a “Okay-shaped” economic system.

Customers who’re much less money constrained are shopping for greater pack sizes from mass and on-line retailers, Schulten stated.

“That is their technique to search for worth,” he stated.

However U.S. shoppers dwelling paycheck to paycheck need to stretch their cash additional through the use of each bottle of detergent or shampoo to the final drop and exhausting their pantry stock earlier than looking for extra, in response to Schulten.

P&G reported Friday that quantity for each its well being care and material and residential care divisions, which incorporates Tide and Swiffer, fell 2% through the quarter.

The corporate’s child, female and household care phase reported flat quantity for the quarter. That division contains manufacturers like Pampers and Tampax.

P&G’s magnificence enterprise was a vibrant spot. The division, which incorporates manufacturers like Olay and SK-II, reported quantity development of 4% and total gross sales development of 6%.

And P&G’s grooming enterprise, which incorporates Gillette and Venus razors, noticed quantity rise 1% within the quarter for a gross sales improve of 5%.

For fiscal 2026, the corporate is now projecting that President Donald Trump’s tariffs will end in $400 million in after-tax prices, down from its prior outlook of $800 million. When P&G initially formulated its forecast, it had included retaliatory tariffs on Canada, which have since been rescinded. Consequently, the corporate is now planning to lift costs lower than anticipated, Moeller stated on CNBC’s “Squawk Field” on Friday morning.

Nonetheless, Trump stated on Thursday night that he’s terminating all commerce talks with Canada over a TV advert, which might imply greater prices forward for P&G.

P&G additionally reiterated its fiscal 2026 forecast of gross sales development between 1% and 5% and earnings per share within the vary of $6.83 to $7.09.