P&G's Diluted EPS Soars 17% in Q4 2025

The Procter & Gamble Company reported fourth quarter fiscal year 2025 net sales of $20.9 billion, marking a 2% increase compared to the prior year. Diluted net earnings per share for the quarter were $1.48, an impressive 17% surge versus the prior year. This financial performance indicates a mixed outcome relative to analyst estimates, with revenue slightly below the estimated $20,842,139,930, while diluted EPS of $1.48 surpassed the analyst estimate of $1.43.

Segment Performance

In the April-June 2025 quarter, the Beauty segment saw its organic sales increase by 1%, driven by innovation in Latin America and Europe, despite volume declines in North America and Greater China for Hair Care. Grooming segment organic sales also increased by 1%, primarily due to innovation-based pricing, though this was partially offset by a decline in appliance volume.

The Health Care segment experienced a 2% increase in organic sales, with Oral Care benefiting from product mix from premium innovation. Fabric and Home Care, along with Baby, Feminine and Family Care segments, each reported a 1% increase in organic sales. Fabric Care growth was notably driven by innovation in North America, while Family Care organic sales saw growth due to increased volume.

Productivity and Cost Management

Reported selling, general and administrative expense (SG&A) as a percentage of sales declined by 240 basis points versus the prior year, highlighting significant productivity savings. This reduction was driven by 320 basis points of productivity savings from lower marketing and overhead costs, and adjustments to variable compensation payouts.

Operating margin for the quarter increased by 190 basis points, primarily due to these productivity savings. Core operating margin, excluding non-core restructuring charges in the prior year, increased by 150 basis points, further emphasizing the Company's efficiency improvements.

Fiscal Year 2026 Outlook

For fiscal year 2026, The Procter & Gamble Company anticipates all-in sales growth in the range of 1% to 5%, with organic sales growth projected to be flat to up 4%. The Company forecasts diluted net earnings per share growth between 3% and 9% compared to fiscal 2025 GAAP EPS. Core earnings per share growth is expected to be flat to up 4%, equating to a range of $6.83 to $7.09 per share.

The outlook includes an estimated $200 million after-tax headwind from unfavorable commodity costs and approximately $250 million after-tax from higher net interest expense and core effective tax rate. Additionally, The Procter & Gamble Company anticipates roughly $1 billion before-tax in higher costs due to tariffs. However, a tailwind of approximately $300 million after-tax is expected from foreign exchange rates.