Cincinnati, OH – October 24, 2025 – The Procter & Gamble Company (NYSE: PG) has announced its financial results for the first quarter of fiscal year 2026, revealing a robust performance characterized by increased net sales, earnings, and strong cash flow generation. This report comes amidst a challenging consumer landscape and geopolitical uncertainties.

1. Financial Highlights

Net Sales: P&G reported net sales of $22.4 billion, a 3% increase from the same period last year. Organic sales, which exclude foreign exchange impacts and acquisitions, grew by 2%.

Earnings Per Share (EPS): Diluted net earnings per share rose by 21% to $1.95, significantly benefiting from reduced non-core restructuring charges compared to the previous year. Core earnings per share increased by 3% to $1.99.

Operating Cash Flow: The company generated $5.4 billion in operating cash flow, translating to an impressive 102% adjusted free cash flow productivity.

Net Earnings: Net earnings reached $4.8 billion, underscoring the company's strong financial health.

Shareholder Returns: P&G returned $3.8 billion to shareholders through $2.55 billion in dividends and $1.25 billion in share repurchases.

2. Segment Performance

Sales Growth by Category

Beauty: This segment saw organic sales growth of 6%, driven by innovation and pricing strategies, particularly in North America and Europe.

Grooming: Organic sales increased by 3%, benefitting from pricing and volume growth, though offset by unfavorable product mix.

Health Care: Organic sales modestly rose by 1%, with mixed results across Oral Care and Personal Health Care.

Fabric & Home Care: This segment remained flat, indicating stabilized performance amidst volume declines primarily in Europe.

Baby, Feminine & Family Care: Organic sales were unchanged, with slight increases in Baby Care offset by volume declines in Feminine Care.

3. Strategic Outlook

Jon Moeller, Chairman of the Board, President and Chief Executive Officer of P&G, commented, “Our organic sales growth, earnings, and cash results in the first quarter reflect strong execution of our integrated strategy. These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment.”

The company remains committed to its integrated growth strategy, focusing on a streamlined product portfolio in daily use categories, enhancing brand superiority, and increasing investments in innovation.

4. Fiscal Year 2026 Guidance

P&G has maintained its guidance for fiscal 2026, projecting all-in sales growth in the range of 1% to 5%, with organic sales growth expected to be in line to up 4%. The company anticipates a diluted net EPS growth of 3% to 9% and core EPS growth in the same range, reflecting a midpoint estimate of $6.96 per share, representing a 2% increase.

Cost and Currency Considerations

The company expects a commodity cost headwind of approximately $100 million after tax, alongside higher tariff costs projected at $400 million after tax. Despite these headwinds, favorable foreign exchange rates are anticipated to provide a tailwind of about $300 million after tax.

5. Conclusion

P&G's strong first-quarter results affirm its resilience in navigating economic challenges, showcasing a solid growth trajectory and operational efficiency. As the company continues to adapt to market dynamics, its commitment to innovation and shareholder returns remains steadfast. The upcoming quarters will be closely watched as P&G executes its strategic plans in an evolving consumer landscape.

Original press release