Procter & Gamble beat Wall Street’s expectations in quarterly results, but predicts a $1 billion hit in fiscal year 2026 due to tariffs. CEO Jon Moeller highlighted sales growth and cash returns to shareholders in a challenging environment. The company plans mid-single-digit price increases on a quarter of its products in 2026 to offset tariff costs.

CFO Andre Schulten outlined the $1 billion tariff impact, with $200 million from China, $200 million from Canada, and $600 million from the rest of the world. P&G will pass on some costs through price hikes. The company expects 2026 sales growth of 1-5% and earnings per share of $6.83 to $7.09, factoring in various headwinds.

P&G reported fourth-quarter earnings per share of $1.48, exceeding Wall Street’s $1.42 estimate. Net sales rose 2% to $20.89 billion, with organic sales also increasing by 2%. The United States and China are the company’s top markets. P&G’s health care division saw a 2% volume decline, while beauty had a 1% increase.

The fiscal 2026 guidance follows a previous outlook trim in April due to consumer uncertainty and tariffs. P&G plans to hike prices in fiscal 2026 to offset tariff impacts. JPMorgan and Evercore downgraded P&G earlier in the month, citing concerns over organic sales and market share losses on Amazon.

In June, P&G announced a restructuring plan to improve cost structure and competitiveness, including cutting 7,000 non-manufacturing roles over two years. The company’s shares are down about 6% year-to-date. Shailesh Jejurikar will succeed Jon Moeller as CEO on January 1, with Moeller transitioning to executive chairman.

Read more at CNBC: Procter & Gamble (PG) Q4 2025 earnings