What caused PG's EPS surprise in Q2 2025?

Procter & Gamble's (PG) EPS surprise in Q2 2025 can be attributed to several key factors:

1. **Revenue Growth**: PG experienced a 2.1% year-over-year increase in revenue, reaching $21.88 billion. This growth was driven by a 3% rise in organic sales, which reflects strong performance across various categories.
2. **Volume Growth**: The company saw a 1% year-over-year increase in volumes, marking a return to positive growth. Key segments such as Beauty, Grooming, and Health Care saw organic sales increases, with notable drivers including strong demand for Gillette products and growth in North America.
3. **Pricing and Geographic Mix**: PG's organic sales rose due to volume growth and favorable geographic mix, despite a neutral impact from pricing. This indicates that the company's focus on product superiority and productivity is paying off.
4. **Cost Management**: PG managed to improve profit margins, with a profit margin of 21% in Q2 2025, up from 16% in the same quarter of the previous year. This was primarily driven by lower expenses.

In summary, PG's EPS surprise in Q2 2025 was likely a result of strong revenue growth, volume increases, effective cost management, and a favorable geographic mix. These factors combined to deliver better-than-expected earnings and contributed to the company's financial success in the quarter.