Procter & Gamble beats estimates but warns tariffs will start to weigh on earnings

• Procter & 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.
• The company's results come just one day after P&G announced Shailesh Jejurikar, its chief operating officer, would replace Jon Moeller as president and CEO, effective Jan. 1.

Procter & 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.

“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment,” said CEO Jon Moeller in a news release.

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. 1. Moeller will transition to the role of executive chairman on that date.

The consumer products giant, which owns brands such as Tide and Charmin, expects fiscal year 2026 sales growth of between 1% and 5% and earnings per share in the range of $6.83 to $7.09. The company said that factors in an estimated headwind 39 cents per share for fiscal 2026, or a 6% drag on core earnings per share growth, related to President Donald Trump'stariffs, 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 share of $6.99, according to LSEG.

Here's what Procter & Gamble reported for its fiscal fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share:$1.48 vs. $1.42 expected
• Revenue:$20.89 billion vs. $20.82 billion expected

P&G reported fiscal fourth-quarter net income of $3.62 billion, or $1.48 per share, up from $3.14 billion, or $1.27 per share, a year earlier.

Net sales rose 2% to $20.89 billion. Organic sales, which strip out acquisitions, divestitures and foreign currency, also rose 2%.

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. 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. The former predicted soft organic sales and the latter pointed to share losses within Amazon as a concern amid a growing shift toward online retail.