How did P&G's revenue and expenses shift in Q2 2025?

Procter & Gamble (P&G) experienced a decline in revenue and certain expense categories in Q2 2025 compared to the previous year, reflecting challenges in maintaining sales momentum amid shifting consumer behaviors and increased competitive pressures.

1. **Revenue Shift**:
- P&G's revenue for Q2 2025 was $19.8 billion, marking a 2.1% decrease from the $20.42 billion reported in Q2 2024.
- This decline missed analyst estimates, which had forecasted revenue at $20.42 billion for the quarter.
2. **Expense Shifts**:
- Cost of Sales: Specific figures for cost of sales in Q2 2025 are not available. However, the overall cost structure was influenced by increased raw material costs due to inflationary pressures and the impact of tariffs on certain products.
- R&D Expenses: The company continued to invest in research and development, but specific expenditure figures are not provided.
- SG&A Expenses: Similar to R&D, the details of SG&A expenses in Q2 2025 are not available. Nevertheless, the company's overall selling, general, and administrative expenses were affected by strategic initiatives to adjust sourcing strategies and product formulations, aimed at mitigating the impact of rising costs and tariffs.
3. **Profitability Impact**:
- Despite the revenue decline, P&G's net income for Q2 2025 was $3.77 billion, representing a 2.3% increase from the previous year's $3.75 billion.
- The profit margin remained stable at 19%, which was in line with the previous year's performance.
4. **Market Conditions and Strategic Responses**:
- The softening demand environment and consumers' shift towards discount retailers and larger pack sizes contributed to the revenue decline.
- To counteract the impact of tariffs and inflation, P&G plans to raise prices in the next fiscal year and is adjusting its sourcing and product formulations.
- The company's organic sales increased by 1%, with positive contributions from certain segments such as Beauty and Grooming.

In conclusion, P&G faced a challenging quarter with revenue declining slightly and expenses likely adjusting in response to inflationary pressures and strategic initiatives to counteract the effects of tariffs. Despite these challenges, the company maintained profitability and cash flow generation, supported by its diversified portfolio and strategic responses to market shifts.