Procter & Gamble Shares Rise After Better Than Expected Results

Procter & Gamble PG shares edged higher on Friday after the company reported fiscal first-quarter results that beat expectations and reaffirmed full-year guidance despite ongoing tariff pressures. P&G posted net sales of $22.4 billion and net earnings of $4.8 billion for the quarter; diluted EPS was $1.95 and core EPS came in at $1.99.

Management maintained its fiscal 2026 guidance, forecasting all-in sales growth of 1%5% and organic sales to be roughly in-line to up 4%. Core EPS is expected to be in-line to up 4% (a core EPS range of $6.83 to $7.09). P&G said it now expects a commodity cost headwind of about $100 million after tax and tariff-related costs of about $400 million after tax for the year, together contributing to an estimated $0.19 per-share headwind.

The company also reported a deterioration in gross margin: reported gross margin declined roughly 70 basis points year-over-year, driven by unfavorable mix, reinvestments in products/brands and higher costs from tariffs and commodities, which offset productivity savings.

Investors reacted positively to the beat and the reaffirmed outlook: P&G shares rose roughly 1% in Friday trading following the release. Analysts noted that while tariffs remain a near-term headwind, P&G's pricing, productivity gains and brand strength underpin its ability to deliver within the guided ranges.