P&G holds guidance as restructuring charges mask $22B sales quarter

Procter & Gamble (NYSE:PG) maintained its full-year outlook Thursday despite a slight earnings dip, as the consumer giant leans into a massive $2 billion global restructuring to combat rising tariffs and a "bifurcated" consumer landscape.

The Cincinnati-based maker of Tide and Pampers reported second-quarter net sales of $22.2 billion, a 1% increase that narrowly missed the analyst consensus of $22.34 billion.

Organic sales remained flat, a stark contrast to the 40 consecutive quarters of growth the company celebrated just months ago.

GAAP diluted earnings per share fell 5% to $1.78, primarily due to incremental non-core restructuring charges.

However, core earnings per share—which strip out these items—held steady at $1.88, beating the $1.86 Wall Street estimate.

Under the new leadership of CEO Shailesh Jejurikar, who took the helm on January 1, P&G is accelerating a strategic overhaul that includes cutting up to 7,000 non-manufacturing roles by 2027.

The company is grappling with a $1 billion pretax headwind from commodities and new global tariffs, leading it to exit low-margin businesses like laundry bars in the Philippines and shift to distribution-only models in volatile markets like Pakistan and Argentina.

Despite the flat organic volume, P&G continues to prioritize shareholder returns, deploying $4.8 billion in the quarter through dividends and buybacks.

Management also maintained its fiscal 2026 core EPS growth guidance of in-line to up 4%, signaling confidence that productivity savings will eventually offset the current "challenging geopolitical environment."