Procter & Gamble beats estimates but warns tariffs will start to weigh on earnings
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Procter & Gamble reported quarterly results that beat Wall Street's expectations, but introduced 2026 guidance that included a $1 billion hit due to tariffs.
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July 29, 2025
11:42 AM
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What's particularly noteworthy is In this articlePG your favorite stocksCREATE FREE ACCOUNTIn this photo illustration, cter and Gamble ducts Pepto Bismol and Charmin toilet paper are displayed on June 05, 2025 in San Anselmo, California
However, Justin Sullivan | Getty Imagescter & Gamble on Tuesday reported quarterly results that beat Wall Street's expectations, but introduced fiscal year 2026 guidance that included a $1 billion hit due to higher costs from tariffs
On the other hand, "We grew sales and fit in fiscal 2025 and returned high levels of cash to owners in a dynamic, difficult and volatile environment," said CEO Jon Moeller in a news release
Additionally, Meanwhile, The company's results come just one day after P&G announced Shailesh Jejurikar, its chief operating officer, would replace Moeller as the chief executive, effective Jan, in this volatile climate
Furthermore, Moeller will transition to the role of executive chairman on that date
Moreover, In contrast, The consumer ducts giant, which owns brands such as Tide and Charmin, expects fiscal year 2026 sales growth of between 1% and 5% and earnings per in the range of $6
The company said that factors in an estimated headwind 39 cents per for fiscal 2026, or a 6% drag on core earnings per growth, related to President Donald Trump's tariffs, unfavorable commodity costs, higher net interest expense and its core effective tax rate
Wall Street analysts were expecting 2026 revenue growth of 3. 1% and earnings per of $6
On the other hand, 99, according to LSEG (something worth watching)
Nevertheless, Here's what cter & Gamble reported for its fiscal fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per : $1
Moreover, 42 expectedRevenue: $20. 89 billion vs. 82 billion expectedP&G reported fiscal fourth-quarter net income of $3
Moreover, 62 billion, or $1
However, 48 per, up from $3. 14 billion, or $1. 27 per, a year earlier
Net sales rose 2% to $20. 89 billion
Organic sales, which strip out acquisitions, divestitures and foreign currency, also rose 2% (noteworthy indeed), in this volatile climate
Nevertheless, Additionally, The fiscal 2026 guidance comes after P&G trimmed its outlook in April for the rest of the company's fiscal 2025 year, citing consumer uncertainty and tariffs
Moreover, Moeller said at the time that price hikes tied to tariffs would occur during the company's fiscal 2026 year, which began this month
CFO Andre Schulten also said in April that tariffs would hurt P&G's growth by a range of $1 billion to $1. 5 billion per year
Both JPMorgan and Evercore downgraded PG earlier this month (quite telling)
However, The former predicted soft organic sales and the latter pointed to losses within Amazon as a concern amid a growing shift toward online retail
The company's stock is down 6% year to date, given current economic conditions.
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