Procter & Gamble 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% in morning trading Friday.
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 calling for.
Revenue totaled $22.39 billion, topping Wall Street’s estimate of $22.15 billion. Sales climbed 6% for the beauty segment, which includes Head & Shoulders, Pantene and Olay. Grooming sales, featuring Braun and Gillette, rose 5%.
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.
The impact of tariffs on many companies remains in flux. Late Thursday President Donald Trump announced he’s ending “all trade negotiations” with Canada because of a television ad opposing U.S. tariffs that he said misstated the facts and called “egregious behavior” aimed at influencing U.S. court decisions. More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian ($2.7 billion U.S.) worth of goods and services cross the border daily.
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% to 5%.
Analysts polled by FactSet predict full-year earnings of $6.97 per share.
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