🧴 Procter & Gamble reported better than expected results, but tariffs and high costs create uncertainty!
Consumer goods giant Procter & Gamble $PG pleased markets with quarterly numbers that beat Wall Street expectations . Net profit rose year-over-year by 15 %and sales up 2 %. The company continues to generate strong cash flow and return capital to shareholders.

However, the outlook for the fiscal year 2026 is considerably more cautious, mainly due to $1 billion loss due to new tariffs and other cost structure pressures.

✅ 4Q results in a nutshell:
Earnings per share (EPS): $1.48 vs. $1.42 expected

Revenue: $20.89 billion vs. $20.82 billion expected

Organic revenue growth: +2%

Net profit: USD 3.62 billion (USD 3.14 billion last year)

Strong performance in cosmetics, slight decline in healthcare

⚠️ Outlook for FY 2026: Losses due to tariffs and duties
For the next fiscal year, the company expects:

Earnings per share: $6.83-$7.09 ($6.99 expected)

Revenue growth: +1 to +5%

🔍 Main negative impacts:
200 mil. USD 200 million: tariffs on goods from China

200 million. USD 200: tariffs from Canada

600 million. USD 600 million: duties from other regions

According to CFO Andre Schulten will be P&G will have to raise prices on about a quarter of its products to offset some of the impact. Consumers are picky and very price sensitive, and this poses a significant risk.

🔄 P&G's strategic steps:
CEO Jon Moeller is leaving, to be replaced by Shailesh Jejurikar, COO. Moeller will move into the role of executive chairman.

Job cuts, supply chain adjustments, portfolio streamlining.

The most important goal is to maintain pricing power but not lose customers.

The company's shares have depreciated by more than 10% since the beginning of the year!

What do you think of the company? Can it withstand the current market pressures?