Procter & Gamble Reports Strong Q4 2025 Earnings Amid Tariff Challenges

Procter & Gamble Co. (NYSE: PG) announced its fourth-quarter earnings for fiscal year 2025 on July 29, 2025, revealing results that exceeded Wall Street expectations, despite introducing guidance for fiscal year 2026 that includes a projected $1 billion financial impact due to tariffs.

The Cincinnati-based consumer goods giant reported a net income of $3.62 billion, or $1.48 per share, for the quarter ending June 30, 2025. This marks an increase from $3.14 billion, or $1.27 per share, in the same period the previous year. Revenue for the quarter was reported at $20.89 billion, up 2% from $20.82 billion anticipated by analysts, according to estimates compiled by LSEG. Organic sales, which exclude acquisitions and foreign currency fluctuations, also rose by 2%.

CEO Jon Moeller stated, "We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult and volatile environment" in a news release concerning the financial results. This announcement came just one day after P&G revealed that Shailesh Jejurikar, its current Chief Operating Officer, would replace Moeller as President and CEO effective January 1, 2026. Moeller is set to transition to the role of Executive Chairman on the same date.

Looking ahead, P&G projects fiscal year 2026 sales growth to range between 1% and 5%. The company estimates earnings per share in the range of $6.83 to $7.09, which factors in an expected headwind of approximately 39 cents per share attributed to the impact of tariffs implemented during the previous administration, unfavorable commodity costs, and increased net interest expenses. This guidance indicates a potential 6% drag on core earnings per share growth. In comparison, Wall Street analysts had previously forecasted a revenue growth of 3.1% and earnings per share of $6.99 for the upcoming fiscal year.

The anticipated financial strain from tariffs is significant, as CFO Andre Schulten noted in April that the resulting costs could diminish P&G's growth by an estimated $1 billion to $1.5 billion annually. This projection aligns with the company's earlier guidance, where Moeller highlighted that price hikes associated with tariffs would commence during fiscal 2026.

Recent market responses have shown concern regarding P&G's performance. Both JPMorgan and Evercore downgraded the stock earlier this month, citing concerns over soft organic sales growth and potential share losses to Amazon amid a growing trend toward online retail. As of the latest reports, P&G’s stock has seen a decline of approximately 6% year-to-date.

P&G's strong performance in Q4 2025, characterized by robust earnings and sales growth, contrasts sharply with the challenges posed by external economic factors such as tariffs and shifting consumer behaviors. Moving forward, how the company navigates these complexities will be critical to sustaining its growth trajectory and maintaining investor confidence in a competitive marketplace.