Core Insights - Procter & Gamble reported first-quarter net sales of $22.39 billion, exceeding the estimate of $22.19 billion [1] - The company's gross margin for the first quarter was 51.4%, slightly below the estimated 51.5% [1] - Core earnings per share for the first quarter were $1.99, surpassing the estimate of $1.88 [1] Segment Performance - The Baby, Feminine & Family Care segment reported zero percent organic sales growth, below the estimate of +1.17% [1] - The Health Care segment achieved organic sales growth of +1%, which was lower than the estimated +1.97% [1]

Procter & Gamble reports better-than-expected sales for its latest quarter as consumers brushed off price increases https://t.co/WDLKz49NJj ...

Core Insights - Procter & Gamble reported sales growth in the first quarter and anticipates a milder impact from tariffs in the current fiscal year [1] Group 1 - The company experienced an increase in sales during the first quarter [1] - Procter & Gamble expects the effect of tariffs to be less severe compared to previous years [1]

Core Insights - Procter & Gamble reported fiscal first-quarter earnings and revenue that exceeded analysts' expectations, driven by increased demand for beauty and grooming products [1][2] - The company anticipates higher costs due to tariffs in fiscal 2026, which began this month, but maintains its sales and earnings forecast for the fiscal year [2] - P&G's net income for the quarter ended September 30 was $4.75 billion, or $1.95 per share, compared to $3.96 billion, or $1.61 per share, a year earlier [2][3] Financial Performance - Adjusted earnings per share were $1.99, surpassing the expected $1.90 [4] - Net sales increased by 3% to $22.39 billion, exceeding the expected $22.18 billion [4] - Organic sales, excluding acquisitions, divestitures, and foreign currency impacts, rose by 2% during the quarter [3]

Core Insights - Procter & Gamble (PG) exceeded Wall Street expectations for first-quarter revenue and profit, driven by strong demand for beauty and hair-care products despite economic uncertainties [1][5] - The company reduced its annual tariff cost estimate to approximately $400 million after tax, down from $800 million, following Canada lifting retaliatory tariffs on U.S. goods [1] Financial Performance - PG's quarterly revenue increased by 3% to $22.39 billion, surpassing estimates of 2% growth to $22.17 billion [5] - Core earnings per share reached $1.99, beating estimates by 9 cents, as higher prices helped mitigate tariff pressures [5] Market Trends - Sales volumes in the beauty segment rose by 4% in the three months ending September, compared to a 1% increase in the previous quarter [3] - Overall volumes across PG remained flat, although there was an increase in China [2][3] Competitive Landscape - PG's results are consistent with those of competitors like Unilever, which reported double-digit sales growth from beauty brands in the U.S. [2]

Financial Performance - Net sales for the first quarter of fiscal year 2026 were $22.4 billion, a 3% increase compared to the prior year, with organic sales up 2%[1][5] - Diluted EPS increased by 21% to $1.95, while core EPS rose 3% to $1.99[1][7] - Net sales for the three months ended September 30, 2025, were $22,386 million, a 3% increase compared to $21,737 million in the same period last year[25] - Gross profit increased to $11,499 million, reflecting a 2% growth from $11,316 million year-over-year[25] - Net earnings attributable to Procter & Gamble rose to $4,750 million, marking a 20% increase from $3,959 million in the prior year[25] - Basic net earnings per common share increased by 21% to $2.00, up from $1.65 in the same quarter last year[25] - Organic sales growth for the total company was 2% for the period of July to September 2025, with a net sales growth of 3%[48] Cash Flow and Shareholder Returns - Operating cash flow was $5.4 billion, with net earnings of $4.8 billion for the quarter, and adjusted free cash flow productivity at 102%[2] - The company returned $3.8 billion to shareholders through $2.55 billion in dividends and $1.25 billion in share repurchases[2] - Adjusted free cash flow for the three months ended September 30, 2025, was $4,896 million, calculated from operating cash flow of $5,408 million minus capital spending of $1,200 million and tax payments of $688 million[50] - Adjusted free cash flow productivity was 102%, indicating the company's ability to generate cash relative to net earnings of $4,781 million[51] Guidance and Expectations - P&G maintained its fiscal 2026 sales growth guidance in the range of 1% to 5%, with organic sales growth expected to be in-line to up 4%[11][12] - The company estimates organic sales growth for FY 2026 to be between 0% to 4%[48] - Diluted EPS growth for FY 2026 is estimated to be between 3% to 9%, with an impact of incremental non-core items reducing this by 3% to 5%[49] Costs and Expenses - The company anticipates a commodity cost headwind of approximately $100 million and higher tariff costs of about $400 million for fiscal 2026[14] - Selling, general and administrative expenses as a percentage of net sales decreased to 24.9%, down by 0.3%[44] - Reported gross margin decreased by 70 basis points, while core gross margin decreased by 50 basis points compared to the prior year[8] Investment and Innovation - The company is increasing investment in innovation and demand creation to enhance consumer value and drive category growth[4] - Capital spending is estimated to be 4% to 5% of fiscal 2026 net sales, with expected dividends around $10 billion and share repurchases of approximately $5 billion[17] Tax and Liabilities - P&G's core effective tax rate is expected to be in the range of 20% to 21% for fiscal 2026[16] - The effective tax rate decreased to 20.8% from 22.4% year-over-year[25] - Total current assets increased to $27,118 million, up from $25,392 million as of June 30, 2025[31] - Total liabilities increased to $74,048 million from $72,946 million as of June 30, 2025[31] Other Financial Metrics - Cash and cash equivalents at the end of the period were $11,171 million, compared to $9,556 million at the beginning of the period[29] - The company reported a total operating activities cash flow of $5,408 million, up from $4,302 million in the previous year[29] - Gross margin for the three months ended September 30, 2025, was 51.5%, a slight increase of 0.1% from the previous period[44] - Operating income for the same period was $5,972 million, resulting in an operating margin of 26.7%, up by 0.5%[44] - Net earnings attributable to Procter & Gamble for the three months ended September 30, 2025, were $4,850 million, with diluted net earnings per share at $1.99[44] - Currency-neutral core operating margin increased by 0.4% to 27.1%[44]

Core Insights - Procter & Gamble exceeded Wall Street expectations for first-quarter revenue and profit, driven by strong demand for beauty and hair-care products despite higher prices and a broader economic slowdown [1] Financial Performance - The company reported first-quarter revenue that surpassed analyst forecasts, indicating robust sales performance in its beauty and hair-care segments [1] - Profit margins were positively impacted by the increased demand for premium products, showcasing the company's ability to navigate pricing pressures [1] Market Trends - The demand for beauty and hair-care products remains strong, suggesting a resilient consumer preference in these categories even amid economic challenges [1] - The broader slowdown in the economy has not significantly affected Procter & Gamble's performance, highlighting the company's market positioning and product appeal [1]

Core Insights - Procter & Gamble (P&G) reported a net sales increase of 3% year-over-year for the first quarter of fiscal year 2026, reaching $22.4 billion, with organic sales growth of 2% [1][4] - Diluted earnings per share (EPS) rose by 21% to $1.95, while core EPS increased by 3% to $1.99 [1][6] - The company maintained its fiscal year guidance for sales and EPS growth, expecting organic sales growth to be in line with or up to 4% [11][12] Financial Performance - Operating cash flow for the quarter was $5.4 billion, with net earnings of $4.8 billion [2] - Adjusted free cash flow productivity was reported at 102%, indicating strong cash generation relative to net earnings [2] - P&G returned $3.8 billion to shareholders through dividends of $2.55 billion and share repurchases of $1.25 billion [2] Segment Performance - The Beauty segment saw organic sales growth of 6%, driven by innovation and pricing strategies [8] - Grooming segment organic sales increased by 3%, while Health Care segment organic sales rose by 1% [8] - Fabric & Home Care segment organic sales remained unchanged, and Baby, Feminine & Family Care segment organic sales also showed no growth [8] Cost and Margin Analysis - Reported gross margin decreased by 70 basis points year-over-year, with core gross margin down by 50 basis points [7][10] - Selling, general and administrative (SG&A) expenses as a percentage of sales declined by 20 basis points, reflecting improved productivity [9] - The operating margin decreased by 50 basis points, while core operating margin remained unchanged [10] Guidance and Outlook - P&G maintained its fiscal 2026 sales growth guidance in the range of 1% to 5%, with a net tailwind from foreign exchange expected to contribute approximately 1% [11] - The company anticipates diluted net EPS growth of 3% to 9% for fiscal 2026, with core EPS growth expected to be in line with or up to 4% [12] - P&G expects commodity cost headwinds of approximately $100 million and tariff-related costs of about $400 million for fiscal 2026 [13]

Group 1 - U.S. stock futures are trading higher, indicating potential investor interest in various stocks [1] - Procter & Gamble Co. is expected to report quarterly earnings of $1.90 per share on revenue of $22.17 billion [2] - Intel Corp. reported third-quarter revenue of $13.65 billion, exceeding analyst estimates of $13.14 billion, with adjusted earnings of 23 cents per share [2] - General Dynamics Corp. is anticipated to post quarterly earnings of $3.70 per share on revenue of $12.57 billion [2] - Deckers Outdoor Corp. reported second-quarter earnings with fiscal GAAP EPS expected between $6.30 and $6.39, and revenue of $5.35 billion [2] - Booz Allen Hamilton Holding Corp. is expected to report quarterly earnings of $1.51 per share on revenue of $2.99 billion [2] Group 2 - Procter & Gamble shares rose 0.8% to $153.49 in after-hours trading [2] - Intel shares gained 7.7% to $41.10 in after-hours trading [2] - General Dynamics shares rose 1% to $345.00 in after-hours trading [2] - Deckers Outdoor shares fell 12.3% to $89.91 in after-hours trading [2] - Booz Allen Hamilton shares slipped 0.3% to $100.00 in after-hours trading [2]

Core Viewpoint - Procter & Gamble (PG) is experiencing fluctuations in its consensus price target, reflecting changes in analyst expectations and company performance [1][2][5] Price Target Analysis - The average price target for PG decreased from $168.25 in the previous quarter to $164.5, indicating a downward trend in analyst expectations [2][5] - Deutsche Bank has set a price target of $177, suggesting a more optimistic outlook compared to the average [2] Earnings and Performance Outlook - PG is set to release its first-quarter earnings on October 24, with expectations on the lower side due to recent performance [3] - The company is actively working on cost reduction and revamping its cost base, which may enhance long-term performance [3][5] Market Position and Growth Potential - PG has underperformed relative to the S&P 500 and its staple peers, but there is potential for recovery and above-average market growth [4][5] - Despite expected declines in Q1 earnings, PG's strategic initiatives and earnings reports are crucial for assessing future performance [4][5]