Procter & Gamble Q4 Earnings Beat Expectations, Raises Guidance for Fiscal 2026

Procter & Gamble (PG) reported Q4 2025 earnings with core EPS of $1.48, beating the estimate of $1.42. Revenue reached $20.9 billion, a 2% YoY increase. The company expects core EPS to range from $6.83 to $7.09 and revenue to increase between 1% and 5% in Fiscal 2026. PG stock was up 0.77% in pre-market trading on Tuesday.

Procter & Gamble (PG) reported its fourth quarter and fiscal year 2025 results, demonstrating resilience in a challenging environment. The company's core EPS of $1.48 exceeded analyst estimates of $1.42, while revenue reached $20.9 billion, marking a 2% year-over-year (YoY) increase. This performance was driven by a 2% increase in organic sales, which excludes the impacts of foreign exchange and acquisitions.

For the full fiscal year 2025, P&G reported net sales of $84.3 billion, a flat result compared to the prior year, with organic sales increasing by 2%. The company's diluted EPS grew by 8%, reaching $6.51, while core EPS increased by 4% to $6.83. Operating cash flow was $17.8 billion, and net earnings totaled $16.1 billion. The company generated strong adjusted free cash flow productivity of 87%.

P&G's stock was up 0.77% in pre-market trading on Tuesday following the announcement. The company expects core EPS to range from $6.83 to $7.09 and revenue to increase between 1% and 5% in fiscal 2026. This outlook is based on a one percent benefit from net impacts of foreign exchange rates and acquisitions and divestitures, with organic sales growth expected to be flat to up four percent.

The company's strong performance was supported by higher pricing and favorable mix impacts, which contributed to a one percent increase in sales growth. Volume and foreign exchange had a neutral impact on sales growth for the quarter. P&G's reported gross margin decreased by 50 basis points versus the prior year, driven by unfavorable product mix and higher commodity costs, partially offset by productivity savings.

P&G's Chairman, President, and CEO Jon Moeller commented, "We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult, and volatile environment. We've put in place strong plans to continue to deliver for all stakeholders in the current environment."

References:
[1] https://us.pg.com/newsroom/news-releases/PG-Announces-Fourth-Quarter-and-Fiscal-Year-2025-Results