Procter & Gamble has released its financial results for Q4 FY 2025, reflecting a mix of achievements and challenges.
Q4 FY 2025 Results
Procter & Gamble reported a two percent increase in net sales for Q4 FY 2025, reaching $20.9 billion. This performance slightly surpassed the market’s expectation of $20.8 billion. The diluted earnings per share (EPS) for the quarter stood at $1.48, which is above the anticipated EPS of $1.43. This positive outcome was driven by a combination of higher pricing and a favorable product mix, each contributing to a one percent increase in sales growth. Comparing Q4 FY 2025 to the same period in 2024, P&G saw a significant 17 percent increase in diluted EPS, attributed primarily to the absence of restructuring charges that impacted the previous year’s results.
FY 2026 Forecasts
Looking ahead, P&G expects all-in sales growth to range from one to five percent for FY 2026, with anticipated organic sales growth between flat and four percent. This guidance considers a headwind from brand and product form discontinuations, which could impact growth by 30 to 50 basis points. For FY 2026, P&G projects diluted net earnings per share growth between three and nine percent, compared to the FY 2025 GAAP EPS of $6.51. The company also expects core EPS to grow between flat and four percent.
P&G's Financial Strategy
The company plans to continue its focus on cost management and productivity enhancements. Capital spending is estimated to be four to five percent of net sales, while adjusted free cash flow productivity is expected to range from 85 to 90 percent. P&G anticipates paying around $10 billion in dividends and repurchasing approximately $5 billion of common shares.
P&G's financial results reflect investment management and adaptation to market conditions, which may positively impact its future development.
