Procter & Gamble's stock jumps as easing of tariff effects leads to earnings beat

By James Rogers

Consumer-goods giant Procter & Gamble has lowered its estimate for tariff costs in fiscal 2026, while keeping its profit outlook intact

Consumer-goods giant Procter & Gamble reported first-fiscal-quarter results early Friday.

Procter & Gamble Co., the company behind household brands including Pampers, Gillette, Crest and Tide reported first-fiscal-quarter results that topped Wall Street's expectations early Friday as the company shrugged off a challenging consumer environment.

The consumer-goods conglomerate (PG), which like many companies has been wrestling with tariff uncertainty, lowered its estimate for the cost impact of tariffs.

The stock rallied 3.5% in recent premarket trading. Through Thursday, the stock had gained 2.5% since it closed at a 22-month low of $147.42 on Oct. 15.

For the first quarter of its fiscal year, a period ending Sept. 30, Procter & Gamble's revenue rose 3% from the same period a year before to $22.39 billion, above the FactSet consensus estimate of $22.18 billion.

By segment, beauty revenue rose 6% year-over-year to $4.14 billion, while grooming rose 5% to $1.82 billion. Fabric and home-care sales rose 1% to $7.79 billion. Sales in the baby, feminine and family-care category rose 1% to $5.17 billion. Healthcare revenue was $3.22 billion, up 2% from the prior year's quarter.

Net income rose 20% to $4.75 billion, while earnings per share rose 21% to $1.95 from $1.61.

Core earnings per share, which excludes nonrecurring items, rose 3% to $1.99 from $1.93, topping the FactSet consensus of $1.90.

"These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment," said Procter & Gamble Chief Executive Jon Moeller, according to a company statement.

Procter & Gamble maintained its fiscal 2026 guidance for sales growth of 1% to 5% and core earnings-per-share growth of flat to up 4%, versus fiscal 2025 core earnings per share of $6.83. This equates to a range $6.83 to $7.09 per share, with a midpoint of $6.96, or an increase of 2%.

The company now expects a commodity-cost headwind in fiscal 2026 of approximately $100 million after tax and higher costs from tariffs of approximately $400 million after tax for fiscal 2026. Procter & Gamble's prior outlook included around $1 billion before tax, or approximately $800 million after tax, in higher costs from tariffs.

-James Rogers

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10-24-25 0816ET