Procter & Gamble earnings top Wall Street expectations

Procter & Gamble’s fiscal first-quarter performance managed to top Wall Street's view and the consumer products maker now foresees less of an impact from tariffs for fiscal 2026.

Shares of the maker of products such as Crest toothpaste, Tide detergent and Charmin toilet paper rose about 1 percent in morning trading Friday. The company also is a major employer in Iowa City, where it recently received state financial incentives to help add a new production line.

For the three months ended Sept. 30, P&G earned $4.75 billion, or $1.95 per share. Removing restructuring costs, earnings were $1.99 per share.

That handily beat the $1.90 per share analysts surveyed by Zacks Investment Research were expecting.

Revenue totaled $22.39 billion, topping Wall Street's estimate of $22.15 billion. Sales climbed 6 percent for the beauty segment, which includes Head & Shoulders, Pantene and Olay. Grooming sales, featuring Braun and Gillette, rose 5 percent.

The Cincinnati-based company is now expecting tariffs leading to $400 million in after-tax costs for fiscal 2026. That's down from a prior forecast of $800 million in after-tax costs.

In July P&G said that it would raise prices on about a quarter of its products in the U.S. in part due to higher costs from President Donald Trump’s tariffs. The company also said it would offer improved features in the products. That announcement came three months after P&G said that it was doing whatever it could to reduce higher costs from Trump’s expansive tariffs, from shifting sourcing to changing formulation to avoid duties.

Looking ahead, P&G still anticipates fiscal full-year earnings between $6.83 and $7.09 per share. The company also kept its guidance for sales growth of 1 percent to 5 percent.

Analysts polled by FactSet predict full-year earnings of $6.97 per share.