Summary
Procter & Gamble reported its fiscal second-quarter results, showcasing modest revenue growth driven by price increases and favorable foreign exchange, partially offset by a slight decline in unit volume. While overall net sales saw a 1% increase year-over-year for the quarter and 2% for the six-month period, profitability faced pressure. Operating income and net earnings declined for the three-month period, impacted by unfavorable product mix, increased restructuring costs, and higher marketing spend. For the six-month period, net earnings saw a 5% increase driven by a significant favorable swing in "Other non-operating income/(expense), net," largely due to the prior year's substantial restructuring charges related to the liquidation of operations in Argentina. Despite the earnings increase, the company continues to navigate cost pressures, including tariffs and commodity costs, while investing in marketing and productivity initiatives. The company reaffirmed its expectation to reduce outstanding shares by approximately $5 billion in fiscal year 2026.
Financial Highlights
53 data points| Revenue | $22.21B |
| Cost of Revenue | $10.83B |
| Gross Profit | $11.37B |
| SG&A Expenses | $6.01B |
| Operating Income | $5.37B |
| Net Income | $4.32B |
| EPS (Basic) | $1.82 |
| EPS (Diluted) | $1.78 |
| Shares Outstanding (Basic) | 2.34B |
| Shares Outstanding (Diluted) | 2.42B |
Key Highlights
- 1Net sales increased by 1% to $22.2 billion for the three months ended December 31, 2025, and by 2% to $44.6 billion for the six months ended December 31, 2025.
- 2Diluted EPS decreased by 5% to $1.78 for the three-month period but increased by 7% to $3.73 for the six-month period, with Core EPS showing a 2% increase for the six-month period.
- 3Gross margin declined in both periods due to unfavorable product mix, increased restructuring costs, and product/packaging investments, partially offset by manufacturing productivity savings and higher pricing.
- 4Selling, general, and administrative (SG&A) expenses as a percentage of net sales increased, primarily due to higher marketing spending and overhead costs.
- 5The company incurred $369 million in restructuring charges for the three months and $584 million for the six months ended December 31, 2025, related to its portfolio and productivity plan.
- 6Operating cash flow for the six-month period was $10.4 billion, and adjusted free cash flow was $8.7 billion, with productivity at 95%.
- 7The company repurchased approximately 15.5 million shares for $2.2 billion during the three-month period and expects to reduce outstanding shares by approximately $5 billion in fiscal year 2026.