Procter & Gamble on Thursday reported mixed quarterly results as demand for its Gillette razors and Pampers diapers fell.
The company also tweaked its earnings outlook for fiscal 2026. P&G now expects net earnings per share growth in the range of 1% to 6%, down from its prior forecast of 3% to 9%. The company attributed the change to higher restructuring charges. It reiterated its outlook for sales growth.
Shares of the company fell about 1% in premarket trading.
Here's what P&G reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $1.88 adjusted vs. $1.86 expected
- Revenue: $22.21 billion vs. $22.28 billion expected
P&G reported fiscal second-quarter net income attributable to the company of $4.32 billion, or $1.78 per share, down from $4.63 billion, or $1.88 per share, a year earlier.
Excluding items such as restructuring costs, the company earned $1.88 per share.
Net sales rose 1% to $22.21 billion. Organic sales, which strips out foreign currency, acquisitions and divestitures, were flat for the quarter.
P&G's volume fell 1%, as three out of its five product categories reported shrinking volume. The metric excludes pricing, which makes it a more accurate reflection of demand than sales. Like many consumer companies, P&G has seen demand for some of its products fall as inflation-weary consumers hunt for deals.
The company's baby, feminine and family care segment saw the steepest decline in demand, with volume falling 5% in the quarter. The company said demand for its family care products, which includes Bounty paper towels, Puffs tissues and Charmin toilet paper, fell the most as it faced tough comparisons to the year-ago period.
P&G's grooming business, which includes Gillette and Venus razors, reported a 2% drop in volume.
The company's health-care segment saw volume fall 1% in the quarter. The division includes Oral-B, Vicks and Pepto-Bismol.
P&G's fabric and home care business, which includes brands like Febreze and Tide, reported that volume was unchanged from the year-ago period.
The company's beauty segment was the only division to report volume growth. It saw volume rise 3%, fueled by stronger demand for its hair care products.