Financial Data and Key Metrics Changes - Organic sales growth was rounded up to 2%, with volume in line with the prior year, and pricing and mix each up 1% [4][8] - Core earnings per share (EPS) were $1.99, up 3% versus the prior year, with a currency-neutral basis also showing a 3% increase [8][9] - Core gross margin decreased by 50 basis points, while core operating margin remained equal to the prior year [9] Business Line Data and Key Metrics Changes - Skin and Personal Care led growth with high single-digit increases, while Hair Care, Grooming, Personal Health Care, Home Care, and Baby Care each grew low singles [4][5] - Oral Care and Feminine Care were in line with the prior year, while Fabric Care and Family Care were down low single digits [5] - The U.S. Fabric Care and Baby Care categories faced heightened competitive activity, impacting performance [40][41] Market Data and Key Metrics Changes - Organic sales in Greater China grew by 5%, with Pampers and SK II each growing double digits [7] - Latin America organic sales were up 7%, driven by strong growth across Mexico and Brazil [7] - Global aggregate market share decreased by 30 basis points, with 24 of the top 50 category country combinations holding or growing share [8][46] Company Strategy and Development Direction - The company is focusing on increased investment in its integrated growth strategy, emphasizing consumer-centric approaches [11][22] - Plans include driving superiority across all value tiers, retail channels, and consumer segments, with a strong innovation program [12][22] - The restructuring program aims to create a more agile organization, reducing up to 7,000 non-manufacturing roles to enhance efficiency [21][36] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging environment with heightened competitive activity in the U.S. and Europe, but remains confident in the strategy to drive market growth [10][22] - The company expects modest earnings growth over the balance of the year due to increased investments in innovation and competitiveness [25][26] - Guidance for fiscal 2026 includes organic sales growth of in line to plus 4%, with core EPS growth also in line to plus 4% [23][24] Other Important Information - The company returned $3.8 billion to shareholders this quarter, including $2.55 billion in dividends and $1.25 billion in share repurchases [9] - Adjusted free cash flow productivity was reported at 102%, indicating strong performance in cash generation [9] Q&A Session Summary Question: How is the restructuring being received internally? - Management indicated that the organization is adapting well to the restructuring, with clear plans in place for role reductions and organizational changes [33][34] Question: What is the competitive landscape in North America for Fabric Care and Baby Care? - Management acknowledged heightened competition in these categories, leading to increased promotional activity, but emphasized the importance of innovation and integrated superiority as the path forward [40][41] Question: What are the dynamics affecting global market share? - Management noted that while global market share is down 30 basis points, there are positive trends in absolute share in the U.S., with plans in place to drive growth [46][51] Question: What is the outlook for China and the changes made there? - Management expressed confidence in the progress made in China, highlighting strong growth in several categories due to effective interventions and innovation [60][64] Question: How is the company addressing consumer value and affordability? - Management clarified that value, defined as price over integrated performance, is central to their strategy, with continued innovation across all value tiers [68][70]