Core Insights - Procter & Gamble's Q4 FY2025 performance exceeded expectations, driven by price increases and product mix optimization, but the company anticipates significant profit impacts from tariffs in FY2026, estimating an additional cost of $1 billion [1][2][3] Financial Performance - The company reported a net sales increase of 2% to $20.89 billion, surpassing market expectations of $20.8 billion, with organic sales also growing by 2% after excluding foreign exchange, acquisitions, and divestitures [2] - Net profit reached $3.62 billion, with earnings per share at $1.48, higher than the previous year's $3.14 billion or $1.27 per share, and also exceeding market forecasts [2] Pricing Strategy - Procter & Gamble's personal care segment saw a price increase of 4%, with sales growth attributed to an innovation-based pricing strategy [2][3] - The company is focusing on enhancing productivity, sourcing adjustments, and formula improvements to mitigate rising costs, while also raising prices on products that cannot source local raw materials [3] Tariff Impact - The company expects tariffs to result in approximately $1 billion in additional costs for FY2026, with an after-tax impact of about $800 million, which exceeds 1% of the company's net sales of $84.3 billion for the fiscal year ending June [3] - CFO Andre Schulten previously indicated that tariffs could impact Procter & Gamble's growth by $1 billion to $1.5 billion annually due to increased costs for imported goods and raw materials [3] Market Reaction - Following the earnings report, Procter & Gamble's stock rose nearly 1% in pre-market trading, although the stock has declined approximately 6% year-to-date [3] - Analysts from JPMorgan and Evercore have downgraded their ratings on the company, citing concerns over organic sales weakness and market share loss on platforms like Amazon [3]