Core Insights - Procter & Gamble (P&G) exceeded Wall Street expectations for its fiscal first-quarter performance, with earnings of $4.75 billion or $1.95 per share, surpassing the anticipated $1.90 per share [1][2] - The company reported revenue of $22.39 billion, which also exceeded Wall Street's estimate of $22.15 billion, with a 6% increase in the beauty segment and a 5% rise in grooming sales [2] - P&G has revised its forecast for tariff-related costs in fiscal 2026 to $400 million after-tax, down from a previous estimate of $800 million [3] Financial Performance - For the three months ended September 30, P&G's earnings per share, excluding restructuring costs, were $1.99 [1] - The company anticipates full-year earnings between $6.83 and $7.09 per share, maintaining its sales growth guidance of 1% to 5% [6] - Analysts predict full-year earnings of $6.97 per share based on current projections [6] Tariff Impact - P&G previously announced a price increase on about 25% of its U.S. products due to higher costs associated with tariffs [4] - The company has been actively working to mitigate the impact of tariffs through various strategies, including shifting sourcing and changing product formulations [4] - The overall impact of tariffs on companies remains uncertain, particularly in light of recent trade negotiations and political developments [5]

Core Viewpoint - Procter & Gamble (P&G) has experienced a significant decline in stock performance compared to the S&P 500, raising questions about its ability to recover to previous highs [1][4]. Group 1: Stock Performance - P&G's stock reached an all-time closing high of $179.90 per share on December 2, 2024, but has since fallen over 13% from that peak [1]. - From December 2018 to November 2023, P&G shares outperformed the market, returning 83.4% compared to the S&P 500's 81.4% [2]. - A sharp decline in P&G's stock occurred in December 2023, which disrupted its historical performance despite a recovery in the following months [4]. Group 2: Historical Returns - On the day P&G hit its all-time high, its five-year total return was 65.7%, significantly trailing the S&P 500's total return of 110.3% [4]. - It is recommended to analyze multiple timeframes, including one-, five-, and ten-year returns, when assessing a stock's historical performance [5]. Group 3: Company Fundamentals - P&G's revenue is at an all-time high of $84.3 billion, with net income rising sharply to $16.1 billion [6]. - The company plans to cut 7,000 jobs and divest underperforming brands to focus on its major revenue-generating products [6]. - Potential risks to sales of P&G's higher-priced brands may arise in the event of a recession, which could be contributing to the stock's current struggles [6].