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, resulting in flat mix for the quarter [4][6] - Core earnings per share (EPS) were $1.88, consistent with the prior year, while core gross margin decreased by 50 basis points and operating margin fell by 70 basis points [6][7] - 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 [7] Business Line Data and Key Metrics Changes - Seven out of ten product categories either 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 [4][5] - Baby care and family care were down low singles, with family care specifically down approximately 10% due to base period dynamics [5] - Organic sales excluding family care were up 1% for the quarter [5] 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% [5][6] - Greater China organic sales grew 3%, driven by Pampers and SK2, each up mid-teens or more [5] - Latin America organic sales were up 8%, with solid growth across Mexico, Brazil, and other smaller markets [6] Company Strategy and Development Direction - The company is focused on strong innovations supported by sharper consumer communication and retail execution, particularly in Greater China and Mexico [8][10] - A commitment to an integrated growth strategy is emphasized, aiming to deliver significant growth and value creation [11][12] - The company is undergoing a longer-term reinvention to adapt to changing consumer preferences and market dynamics, leveraging data and technology for competitive advantage [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging start to the fiscal year due to softer consumer markets and aggressive competition but expects stronger results in the second half [22] - The company maintains its fiscal year 2026 guidance for organic sales growth in line to plus 4%, with expectations for improved performance in the U.S. as interventions take hold [22][23] - Management is confident in the near-term performance improvements driven by ongoing innovations and execution changes [20][34] Other Important Information - The company is focused on leveraging insights and capabilities to drive growth in high-potential segments, particularly in e-commerce and premium product offerings [67][68] - A restructuring program is in place to enhance operational efficiency and productivity, with expectations for growth without significant additional investments [53][54] Q&A Session Questions and Answers Question: Confidence in near-term acceleration and fundamental improvement - Management highlighted strong growth outside the U.S., particularly in Latin America and Europe, as evidence of underlying acceleration, with expectations for improved U.S. results as base period headwinds diminish [30][32] Question: Excitement about the longer-term "reinvention" of P&G - Management expressed enthusiasm about leveraging shifts in the media and retail landscape, along with the company's strengths in consumer understanding and innovation capabilities [36][37] Question: Category segment improvements and timeline for operational enhancements - Management indicated that improvements are expected across various categories, with a timeline of 12 to 18 months for full integration of operational enhancements [46][47] Question: Investment levels and balance between restructuring and growth - Management clarified that significant investments have already been made in technology and infrastructure, with future capital expenditures focused on capacity building rather than major new investments [51][53] Question: Priorities for driving better execution and organic sales growth in the U.S. - Management emphasized the need to adjust brand building plans to reflect changes in media consumption, innovate with a focus on core products, and enhance consumer value across categories [60][61]

Deckers - Deckers shares are under heavy pressure, down approximately 14% following earnings results, adding to a 50% decline earlier this year [1] - The company reported EPS of $1.82 and revenue of $1.43 billion, both better than expected, but provided weaker guidance for 2026 sales at $5.35 billion [1] - Direct-to-consumer sales for Uggs declined by about 10%, while Hoka gained market share, indicating mixed performance [1] - The company anticipates $150 million in unmitigated expenses from tariffs, which is a headwind for the stock [1] Newmont Mining - Newmont Mining's stock is lower despite a significant earnings beat, with adjusted EPS at $1.71 and revenue up 20% to $5.5 billion [1] - The company warned of a dip in Q4 free cash flow due to construction spending in Peru and severance payments accrued in Q3 [1] - The correlation to gold prices has impacted stock performance, with a recent pullback in gold prices affecting investor sentiment [1] Procter & Gamble - Procter & Gamble shares rose by 2.25% after reporting better-than-expected earnings, driven by strong performance in beauty and grooming segments [1][2] - Beauty revenue reached $22.39 billion, with organic sales increasing and beauty sales up 6%, attributed to brands like Olay and SK2 [1] - The CFO noted a stable but challenging consumer environment, with higher-income shoppers trading up while lower-income consumers are more price-sensitive [2]

Core Insights - Proctor and Gamble reported first quarter earnings for 2026, with earnings of $1.99 per share, surpassing estimates of $1.90, and revenue of $22.4 billion, exceeding estimates of $22.2 billion [1] - The company affirmed its full-year guidance, indicating stability in its financial outlook despite flat volumes compared to the previous year and a 1% increase in pricing [1][5] Financial Performance - This marks the 40th consecutive quarter of organic sales growth for Proctor and Gamble, with eight out of ten categories maintaining or growing sales during the quarter [3] - The company is on track for its 10th consecutive year of earnings per share growth, with six out of seven regions also holding or growing sales [3] Market Environment and Challenges - Proctor and Gamble has managed to navigate tariff pressures effectively, with the anticipated headwind from tariffs reduced from $800 million to $400 million, and commodity cost pressures also halved from $200 million to $100 million [9][10] - The company noted improvements in the tariff environment, particularly due to the reduction of retaliatory tariffs in Canada and favorable policies regarding ingredient imports [7][8] Regional Performance - In China, Proctor and Gamble experienced a 6% sales increase in mainland China and a 5% increase in greater China, including Taiwan and Hong Kong, with notable growth in categories such as baby diapers and SK2 [14][15]