Procter & Gamble announced a below-projection annual earnings outlook and plans to increase prices on a quarter of its U.S. products due to higher costs from President Trump’s tariffs. The price hikes, in the mid-single digit percentages, will start next month and include improved product features.

P&G estimates tariffs will raise costs by about $1 billion in fiscal 2026. Consumer behavior has shifted towards value shopping, with customers being more selective and focusing on larger pack sizes and deals. The company believes price increases combined with product enhancements resonate with customers, citing success with Luvs baby care brand.

In the fiscal fourth quarter, P&G reported net income of $3.62 billion, or $1.48 per share, exceeding analysts’ expectations. Sales reached $20.89 billion, in line with predictions. For the current year, the company expects earnings per share between $6.83 to $7.09, lower than analyst forecasts, with sales projected to increase by 1% to 5%.

Read more at Yahoo Finance: P&G to increase prices in part due to tariffs as shoppers remain cautious and delay purchases