P&G's First Quarter Results Exceeded Expectations

Procter & Gamble Increased First Quarter Sales

Procter & Gamble managed to surpass Bloomberg estimates in net sales and earnings per share for the first quarter of the fiscal year. The consumer goods giant benefited from strong consumer demand despite an uncertain business environment.

The producer of the country’s established brands, Head & Shoulders shampoo and Crest toothpaste, announced that it expects approximately $400 million in after-tax costs within the 2026 fiscal year. This projection marks a significant decrease from the previous estimate of around $800 million in July.

U.S. President Donald Trump has made increasing tariffs a key policy goal during his tenure, and the uncertainty this has created has heightened concerns about consumer spending. Recently, investors have been closely focused on trade tensions between the world’s two largest economies and Trump’s announcement to end trade talks with Canada.

P&G previously noted that it raised prices to offset the effects of tariffs. However, these price hikes did not lead to a noticeable decline in volumes during the July-September period, with volumes remaining flat.

Organic sales in the beauty segment increased by 6% compared to a year ago. This growth was driven by volume increases in personal care products in North America and strong pricing. More modest gains in hair and skincare also supported this situation.

Net sales amounted to $22.4 billion, while Bloomberg forecasts were at $22.19 billion. Earnings per share rose by 3% to $1.99, compared to the estimates of $1.88.

CEO Jon Moeller stated, "These results keep us within our guidance ranges across all important financial metrics in a challenging consumer and geopolitical environment. We are investing more in innovation and demand creation to deliver value for consumers and drive category growth."

P&G shares rose at the opening of the U.S. stock market on Friday.