Procter & Gamble issued an earnings outlook that fell short of Wall Street expectations and announced that it will be raising prices on roughly a quarter of its U.S. products beginning next month. The increases, expected to be in the mid-single-digit range, are being driven in part by the added costs from President Donald Trump’s tariffs. Alongside the price hikes, the company said that it will enhance product features in an effort to make the increases more acceptable to consumers. These announcements came as the Cincinnati-based company also revealed a leadership change, naming Chief Operating Officer Shailesh Jejurikar as the successor to Jon Moeller as president and CEO effective January 1, 2026, with Moeller transitioning to the role of executive chairman.
Chief Financial Officer Andre Schulten said that tariffs are projected to add around $1 billion in pre-tax costs during fiscal 2026, forcing the company to adjust its pricing despite efforts to mitigate the impact through supply chain shifts and reformulation strategies. Schulten also noted a shift in consumer behavior as shoppers grow more cautious, buying in bulk, delaying purchases, and searching for better deals. Still, he argued that price increases paired with product improvements can help maintain customer loyalty, pointing to Luvs diapers as an example where such a strategy resulted in market share growth. For the quarter ending June 30, P&G reported net income of $3.62 billion, or $1.48 per share, up from $3.14 billion, or $1.27 per share, the previous year. Sales rose to $20.89 billion, compared with $20.53 billion last year, aligning with analysts’ expectations. Looking ahead, the company forecasts earnings per share between $6.83 and $7.09 for the year, falling short of analyst estimates of $7.23, with revenue expected to grow between 1% and 5%.