Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 3%, with volume down one point and pricing up one point for the quarter [3][4] - Core earnings per share (EPS) were $1.88, in line with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points compared to the previous year [5][6] - Adjusted free cash flow productivity was 88%, with $4.8 billion returned to shareholders, including $2.5 billion in dividends and $2.3 billion in share repurchases [6] Business Line Data and Key Metrics Changes - Seven out of ten product categories held or grew organic sales, with hair care growing mid-single digits and skin and personal care, personal health care, home care, and oral care each up low single digits [3][4] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [4] - Organic sales excluding family care were up 1% for the quarter [4] Market Data and Key Metrics Changes - Organic sales in North America were down 2%, with volume down three points, while European focus market organic sales were up 1% [4] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [4] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [5] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, with a commitment to integrated growth strategies [11][12] - The strategy includes a long-term reinvention of P&G to adapt to changing consumer preferences and market dynamics, emphasizing the importance of brand building and consumer engagement [12][15] - The company aims to leverage superior data, technology, and capabilities to create competitive advantages and drive market growth [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stronger growth in the second half of the fiscal year, despite a challenging start due to softer consumer markets and aggressive competition [22][25] - The company anticipates organic sales growth of in line to plus 4% for fiscal 2026, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management highlighted the need for continuous adaptation to the evolving retail landscape and consumer behavior, emphasizing the importance of innovation and execution quality [12][13] Other Important Information - The company is undergoing a restructuring program aimed at improving operational efficiency and focusing on higher growth segments [22][41] - There is an expectation of modestly higher interest expenses and a core effective tax rate in the range of 20%-21% for fiscal 2026 [23] Q&A Session Summary Question: What gives confidence in near-term acceleration? - Management noted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration [27][28] Question: What excites about the longer-term "reinvention" of P&G? - Management highlighted growth opportunities in changing media and retail landscapes, leveraging unique strengths and capabilities [32][33] Question: What are the most important priorities for driving better execution in the U.S.? - Key priorities include adjusting to the new media landscape, focusing on stronger core products, and enhancing consumer value across categories [46][49]