Procter & Gamble Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did PG Beat Earnings? Q4 2025 Results
Procter & Gamble closed out fiscal 2025 on a steady note, posting Q4 earnings that cleared Wall Street's expectations on both the top and bottom lines. Core EPS of $1.48 edged past the $1.42 consensus by 4.23%, while net sales of $20.89 billion rose 1.7% year over year and came in just ahead of the $20.82 billion estimate. The quarter's most compelling story was margin expansion: operating margin widened 190 basis points to 20.8%, driven by 560 basis points of gross productivity savings that more than absorbed headwinds from commodity costs, tariffs, and product reinvestments — a dynamic that has defined <a href="https://247wallst.com/investing/2026/02/12/pg-rallies-under-new-ceo-but-lags-rivals-faces-tariff-challenges/">P&G's recent trajectory</a>. The company is simultaneously adapting its supply chain to blunt tariff exposure, a challenge that weighs heavily on its fiscal 2026 outlook, where management guided for core EPS of $6.83 to $7.09 — flat to up 4% — while absorbing roughly $0.39 per share in combined headwinds from tariffs, commodities, and financing costs.
- Higher pricing contributed one point of organic sales growth in Q4
- Favorable mix contributed one point of organic sales growth in Q4
- 560 basis points of gross productivity savings in Q4 operating margin
- SG&A declined 240 basis points as a percentage of sales driven by 320 basis points of productivity savings
- Innovation-driven growth in Fabric Care in North America
- Innovation-based pricing in Grooming segment
- Premium innovation driving product mix improvement in Oral Care
“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment.”
P&G CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, P&G expects all-in sales growth of 1% to 5%, including a 1% benefit from the net impacts of foreign exchange and acquisitions/divestitures. Organic sales growth is projected at flat to up 4%, with a 30 to 50 basis point headwind from brand and product form discontinuations. Diluted EPS growth is expected in the range of 3% to 9% versus FY2025 GAAP EPS of $6.51, including an expected gain of $0.10 to $0.13 per share from the exit of the Glad Joint Venture with Clorox and non-core restructuring charges of $0.12 to $0.25 per share. Core EPS is expected to grow flat to 4% versus FY2025 core EPS of $6.83, equating to a range of $6.83 to $7.09 with a midpoint of $6.96. The company anticipates ~$200 million after-tax headwind from commodity costs, ~$250 million net headwind from higher interest expense and tax rate, ~$1 billion before-tax (~$800 million after-tax) in higher tariff costs, partially offset by ~$300 million after-tax FX tailwind, totaling a $0.39 per share or 6% drag on core EPS growth. Core effective tax rate is expected at 20%-21%. Capital spending is estimated at 4%-5% of net sales. Adjusted free cash flow productivity is expected at 85%-90%. The company plans ~$10 billion in dividends and ~$5 billion in share repurchases.
PG YoY Financials
PG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.