Procter & Gamble Exceeds Q1 Earnings Expectations Amid Demand Shifts
Cincinnati, Friday, 24 October 2025.
Procter & Gamble’s Q1 2026 earnings surpassed forecasts, driven by beauty and grooming segments, despite demand challenges in other areas due to inflation and consumer shifts.
Earnings Performance and Analyst Expectations
Procter & Gamble Co. (NYSE: PG) reported its fiscal first-quarter 2026 earnings on October 24, 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $1.99, compared to the anticipated $1.90, and posted revenues of $22.39 billion, exceeding the forecasted $22.18 billion [1]. This performance was bolstered by the strong demand in the beauty and grooming segments [1].
Segment Analysis: Beauty and Grooming Lead
The beauty segment, including brands like Olay and SK-II, exhibited a 4% growth in volume and a 6% increase in sales, demonstrating its robust performance in the current economic climate [1]. The grooming segment, featuring Gillette and Venus, also contributed positively with a 1% rise in volume and a 5% increase in sales [1]. These segments have shown resilience despite challenges in other areas.
Challenges in Other Segments
While beauty and grooming thrived, P&G faced volume declines in its health care and fabric and home care divisions, each experiencing a 2% drop during the quarter [1]. The baby, feminine, and family care segment reported flat volume, indicating potential areas of concern amid inflationary pressures and changing consumer behaviors [1].
Market and Economic Context
Procter & Gamble’s performance occurs in a complex economic landscape marked by inflation and shifting consumer preferences. CEO Jon Moeller highlighted the ‘challenging consumer and geopolitical environment’ as factors influencing demand [1]. Despite these hurdles, P&G maintained its forecast for all-in sales and earnings for the fiscal year [1].