Procter & Gamble Surpasses Earnings Predictions, Yet Forecasts $1B Tariff Impact
Procter & Gamble announced a robust fourth-quarter earnings report on Tuesday, surpassing analyst predictions. The earnings per share stood at $1.48, outperforming the estimated $1.42. Revenue figures touched $20.89 billion, slightly exceeding the projected $20.81 billion. Despite the strong performance, the consumer goods behemoth cautioned investors about potential challenges ahead due to escalating trade tensions.
The company forecasts that tariffs will result in a $1 billion pretax impact in fiscal 2026, compelling P&G to roll out mid-single-digit price hikes on approximately 25% of its product range starting in August. CEO Jon Moeller underscored the company’s resilience, stating, “We grew sales and profit in fiscal 2025 and returned high levels of cash to shareholders in a dynamic, difficult, and volatile environment.”
The tariff impact is expected to be distributed as follows:
- $200 million from Chinese imports,
- $200 million from Canadian tariffs on US-shipped goods, and
- $600 million from the rest of the world.
P&G has already communicated these price increases to major retailers, including Walmart and Target. In addition, the company announced a significant restructuring plan that involves 7,000 job cuts over two years to enhance competitiveness.
Source: CNBC