Procter & Gamble Company
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
Did PG Beat Earnings? Q3 2025 Results
Procter & Gamble delivered a mixed fiscal third quarter, posting earnings that edged past Wall Street expectations even as revenue fell short of estimates. The consumer goods giant earned $1.54 per share, topping the $1.5258 consensus by 0.93%, but net sales slid 2.1% year-over-year to $19.78 billion — roughly $370 million below the $20.15 billion analysts had forecast. A 2% foreign exchange headwind was the primary culprit behind the revenue shortfall, though underlying organic sales grew 1% on the strength of pricing gains. Operating margin expanded 90 basis points to 23.0%, driven by 280 basis points of gross productivity savings, helping offset commodity cost pressures and unfavorable mix. Looking ahead, P&G narrowed its core EPS guidance to $6.72–$6.82 for fiscal 2025 while lowering its all-in sales outlook to approximately flat versus the prior year, a revision CEO Jon Moeller attributed to volatile market conditions — including <a href="https://247wallst.com/investing/2026/02/12/pg-rallies-under-new-ceo-but-lags-rivals-faces-tariff-challenges/">mounting tariff headwinds</a> that have complicated supply chain planning across the consumer staples sector.
- Organic sales growth of 1% driven by higher pricing with neutral volume and mix
- Health Care organic sales led segments with 4% growth
- Grooming organic sales increased 3% behind volume growth and higher pricing
- Personal Care organic sales increased high single digits on innovation-driven volume
- 280 basis points of gross productivity savings drove operating margin expansion of 90 basis points
- SG&A declined 120 basis points as percentage of sales driven by productivity savings and variable compensation adjustments
- Foreign exchange was a 2% headwind to net sales
- Currency-neutral core EPS grew 3%
“We delivered modest organic sales and EPS growth this quarter in a challenging and volatile consumer and geopolitical environment. We're making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete. We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We're maintaining investments in superior innovation across price tiers to improve value for consumers and drive category growth.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
P&G updated its fiscal 2025 guidance, now expecting all-in sales to be approximately in-line with the prior year and organic sales growth of approximately 2%. Diluted net EPS growth is expected to be 6%–8% versus fiscal 2024 GAAP EPS of $6.02. Core EPS is expected to be $6.72–$6.82, representing 2%–4% growth versus fiscal 2024 core EPS of $6.59. The company expects commodity cost headwinds of approximately $200 million after tax and foreign exchange headwinds of approximately $200 million after tax, collectively a $0.16 per share headwind. A modest headwind from net interest income/expense and non-repeat of prior year minor brand divestiture benefits add roughly $0.04 in core EPS headwinds. Capital spending is estimated at 4%–5% of net sales. P&G continues to expect adjusted free cash flow productivity of 90%, approximately $10 billion in dividends, and $6–$7 billion in share repurchases for fiscal 2025.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.