P&G Defies Inflation: Shoppers Still Paying Up for Tide and Gillette

Procter & Gamble PG just reminded Wall Street that pricing power still matters. The consumer-goods titan posted 2% organic revenue growth for the quarter ended September 30, surpassing expectations as shoppers kept reaching for its Gillette razors and Secret deodorants despite higher prices. Both volume and sales came in stronger than forecast in the beauty and grooming divisions, more than offsetting softer results in baby and family care. The earnings beat pushed shares up about 2% in premarket trading on Friday, offering a brief lift to a stock that's down roughly 9% this year versus the S&P 500's 15% gain.

The quarter could be read as validation of P&G's premium-product playbookconvincing consumers that a pricier detergent or deodorant can still be a better deal if it performs better. The company's message with Tide, for instance, leans into long-term value rather than sticker price. That framing appears to be resonating, even as household budgets remain under strain. P&G's results hint that consumer resilience, coupled with strategic pricing discipline, could be keeping the company one step ahead of rivals facing volume erosion.

But management isn't coasting. P&G is moving ahead with plans to cut about 15% of its corporate workforce over two years and bring in a new CEO as it sharpens its efficiency drive. The group also expects a smaller hit from tariffs and raw-material costsnow estimating $400 million after tax, down from $800 million earlier. For investors, the latest quarter may suggest that P&G's mix of strong brands, margin focus, and measured cost control could still anchor steady performance in a volatile consumer landscape.