Procter & Gamble (P&G) exceeded Wall Street expectations in Q3 FY2025, fueled by resilient demand for its beauty and hair care products. Despite macroeconomic headwinds, organic sales rose 1% and core EPS reached $1.54. The company reaffirmed its cash return guidance while adjusting full-year forecasts amid global volatility.
Procter & Gamble (NYSE: PG) reported stronger-than-expected results for the third quarter of fiscal year 2025, driven by robust consumer demand in its beauty and hair care segments. Net sales came in at $19.8 billion, down 2% year-over-year, but organic sales—which exclude currency and portfolio changes—rose 1%, signaling underlying strength.
The company posted net earnings of $3.8 billion and core earnings per share of $1.54, both up 1% from the previous year. Despite economic uncertainties and cautious consumer behavior, P&G’s premium product lines and pricing strategy helped offset volume pressures.
Key Highlights:
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Notable Update on Segment Performance: Beauty and hair care categories led the growth, reflecting strong brand loyalty and pricing resilience.
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Major Takeaway on Profitability: Core EPS rose to $1.54, beating analyst expectations and demonstrating disciplined cost control.
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Cash Flow Strength: Operating cash flow stood at $3.7 billion, with adjusted free cash flow productivity at 75%.
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Guidance Adjustment: P&G revised its FY25 outlook to 2% organic sales growth and 2–4% EPS growth, citing macro volatility and tariff pressures.
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Investor Confidence: The company maintained its cash return guidance, reinforcing its commitment to shareholder value.
Sources: Procter & Gamble Q3 FY2025 Earnings Release, Reuters, Yahoo Finance Earnings Call Transcript.