01—Abstract
Summary
Summary of the 10-K filed August 4, 2025. Cited figures are marked; the original filing is the authoritative source.
The Procter & Gamble Company (PG) reported fiscal year 2025 revenues of $84.3 billiona, a slight increase of 0.3% year-over-year, driven primarily by a 1% increase in pricing, which was mostly offset by a 1% unfavorable foreign exchange impact.
Organic sales grew by 2%, indicating underlying demand strength across its diverse portfolio. The company demonstrated improved profitability with a 10% increase in operating income, reaching $20.5 billionb, and a 7% rise in net earnings to $16.1 billion. This improvement was largely attributed to reduced selling, general, and administrative (SG&A) costs, including a 50 basis point reduction in marketing spending as a percentage of net sales, and the absence of a significant intangible asset impairment charge recorded in the prior year.
Despite challenges in certain segments like Beauty, which saw a 2% net sales decline and an 8% drop in net earnings due to unfavorable product mix and a decline in the SK-II brand, other segments like Health Care and Fabric & Home Care showed resilience. Health Care net sales grew 2% with an 8% increase in net earnings, while Fabric & Home Care net sales were stable with a 3% increase in net earnings. The company maintained a strong financial position, generating $17.8 billionc in operating cash flow, though this was a 10% decrease year-over-year.
Adjusted free cash flow stood at $14.6 billiond, with an 87% productivity rate. P&G reaffirmed its commitment to shareholder returns, continuing its long history of dividend payments and increases, and repurchased $6.5 billion in shares during the fiscal year.
02—Key points
Key Highlights
- Procter & Gamble reported fiscal year 2025 net sales of $84.3 billion, a modest increase of 0.3% compared to the prior year, with organic sales growing by 2%.
- Operating income increased by 10% to $20.5 billion, and net earnings rose by 7% to $16.1 billion, indicating improved profitability and operational efficiency.
- The company executed a portfolio and productivity plan, announcing potential restructuring costs of $1.5 to $2.0 billion over two years, including a reduction of up to 7,000 non-manufacturing overhead personnel.
- Beauty segment net sales decreased by 2%, impacted by a decline in the SK-II brand and unfavorable product mix, though Personal Care saw strong growth.
- Health Care and Fabric & Home Care segments demonstrated stable performance, with net sales flat to slightly up and net earnings showing positive growth.
- Shareholder returns remained a priority, with $6.5 billion in share repurchases during FY2025 and a continued commitment to dividend payments.
- The company noted a $1.3 billion impairment charge on the Gillette intangible asset in the prior fiscal year, which benefited the current year's operating income comparison.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Procter & Gamble Co kept $0.19.
- Revenue$84.28B100.0%
- Cost of revenue−$41.16B48.8%
- Gross profit$43.12B51.2%
- Operating costs−$22.67B26.9%
- Operating income$20.45B24.3%
- Interest, other & tax−$4.48B5.3%
- Net income$15.97B19.0%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 4, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $84.28B$84.04B | +0.3% |
| Cost of Revenue | $41.16B$40.85B | +0.8% |
| Gross Profit | $43.12B$43.19B | −0.2% |
| R&D Expenses | $2.10B$2.00B | +5.0% |
| SG&A Expenses | $22.67B$23.30B | −2.7% |
| Operating Income | $20.45B$18.55B | +10.3% |
| Net Income | $15.97B$14.88B | +7.4% |
| EPS (Basic) | $6.67$6.18 | +7.9% |
| EPS (Diluted) | $6.51$6.02 | +8.1% |
| Shares Outstanding (Basic) | 2.35B2.36B | −0.4% |
| Shares Outstanding (Diluted) | 2.45B2.47B | −0.7% |
05—Questions
Frequently Asked Questions
What was Procter & Gamble's financial performance in fiscal year 2025?
In fiscal year 2025, Procter & Gamble reported net sales of $84.3 billion, a slight increase of 0.3% year-over-year. Organic sales grew by 2%. Operating income increased by 10% to $20.5 billion, and net earnings rose by 7% to $16.1 billion, driven by improved profitability and cost management, including reduced SG&A expenses.
How did P&G's major segments perform in fiscal year 2025?
Performance varied by segment. The Beauty segment experienced a 2% net sales decrease, primarily due to the SK-II brand and unfavorable mix, though Personal Care within Beauty showed high single-digit organic sales growth. Health Care net sales grew 2% with an 8% increase in net earnings. Fabric & Home Care net sales were unchanged, but net earnings grew 3%. Baby, Feminine & Family Care net sales were flat with unchanged net earnings.
What significant restructuring or strategic initiatives did P&G announce?
Procter & Gamble announced a new portfolio and productivity plan in June 2025. This plan aims to streamline its portfolio and organization, expecting restructuring costs of $1.5 to $2.0 billion over two years, including a workforce reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal year 2027.
How is P&G managing its shareholder returns and capital allocation?
The company continues its commitment to shareholder returns. In fiscal year 2025, P&G repurchased $6.5 billion of its stock and has a long history of consistent dividend payments and increases. The company aims for a long-term growth algorithm of organic sales growth above market rates, mid-to-high single-digit Core EPS growth, and adjusted free cash flow productivity of 90% or greater.
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