Procter & Gamble Cuts Outlook, Flags Trump Tariff Hit Of Up To $1.5B – Stock Falls On Q3 Earnings Miss

P&G CFO Andre Schulten said the company will focus on pricing, productivity, and innovation in the near term to counter the impact of President Donald Trump’s recent tariffs.

Procter & Gamble (P&G) (PG) shares dropped as much as 4.5% in Thursday morning trade after the consumer products giant lowered its full-year outlook and reported third-quarter results that missed Wall Street expectations.

The company, which owns household staples including Tide, Bounty, and Pampers, posted earnings of $1.54 per share, marginally surpassing the $1.53 consensus estimate, according to Koyfin data. 

Revenue declined 2% to $19.8 billion, falling short of analysts’ $20.1 billion forecast.

P&G cut its guidance for both sales and core earnings per share for the fiscal year, which ends this quarter. The company now expects flat annual sales, down from its prior estimate of 2% to 4% growth, and lowered its core earnings per share (EPS) forecast to a range of $6.72 to $6.82, from $6.91 to $7.05.

CFO Andre Schulten stated that President Donald Trump’s new tariffs would reduce growth by $1 billion to $1.5 billion annually, noting that the company will focus on pricing, productivity, and innovation in the near term. 

In the long term, P&G may consider reformulating its products or adjusting its sourcing strategies to address these issues.

Schulten cited macroeconomic uncertainty and political tensions for a pullback in consumer spending during the final two months of the quarter. 

“A more nervous consumer” is emerging, he said, particularly amid global trade friction and “nationalistic rhetoric.” However, he clarified that P&G hasn’t observed significant shifts in consumer behavior in Canada, Europe, or China.

By segment, P&G’s baby, feminine, and family care unit posted a 2% volume decline – the steepest across the company’s portfolio. Oral care and home products each fell 1% in volume, while beauty remained flat. Grooming was the only division to post growth, with volume rising by 1%.

In China, P&G’s second-largest market, organic sales dropped 2%. Volume was flat in North America and rose slightly in Europe. Schulten said the recovery in China “won’t be a straight line.”

P&G’s stock is down over 5.5% year-to-date and has slipped more than 1% over the past 12 months.

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