Procter & Gamble (P&G) announced strong quarterly results that surpassed Wall Street expectations, alongside a challenging fiscal outlook for 2026 due to rising tariffs. In a statement released by CEO Jon Moeller, he noted that the company managed to grow both sales and profits in fiscal 2025, while returning significant cash to shareholders despite a “dynamic, difficult and volatile environment.”
In an important transition, Shailesh Jejurikar, the current chief operating officer, will succeed Moeller as CEO starting January 1, 2026, when Moeller will take on the role of executive chairman.
For fiscal year 2026, P&G is forecasting sales growth between 1% and 5%, with earnings per share projected in the range of $6.83 to $7.09. This new guidance accounts for anticipated headwinds resulting from tariffs introduced during the Trump administration, which are expected to cost the company about 39 cents per share and contribute significantly to a 6% drag on core earnings growth. Additionally, factors such as unfavorable commodity costs and a higher net interest expense are impacting the company’s outlook.
The company’s latest financial results for the fiscal fourth quarter revealed a net income of $3.62 billion—or $1.48 per share—increased from $3.14 billion or $1.27 per share a year prior. Net sales reached $20.89 billion, marking a 2% rise. Organic sales, which exclude the effects of acquisitions and foreign currency fluctuations, also grew by 2%.
P&G had previously adjusted its fiscal 2025 outlook in April, responding to uncertainties in consumer behavior and the financial impact of tariffs. CFO Andre Schulten indicated that tariffs could hinder annual growth by $1 billion to $1.5 billion. Furthermore, analysts at JPMorgan and Evercore downgraded P&G’s stock earlier this month due to concerns about soft organic sales and a potential decline in market share amidst the rise of online retailing, particularly on platforms like Amazon. As a result, the company’s stock has dropped approximately 6% year to date.
Despite these challenges, the company remains resilient, showcasing strong performance in a competitive landscape while navigating external pressures. The leadership change could also signal a strategic pivot aimed at addressing ongoing market dynamics and driving future growth.