Procter & Gamble’s fourth quarter results were met with a positive market reaction, reflecting management’s focus on product innovation and regional execution in the face of challenging market dynamics. CEO Shailesh Jejurikar cited targeted interventions in categories such as baby care in China and fabric care in Mexico, emphasizing the impact of consumer-driven innovation and sharper brand communication. While organic sales were flat and volumes declined slightly, management highlighted that outside the U.S., most regions experienced growth or acceleration, attributing this to the effectiveness of localized strategies and investments made earlier in the year.
Is now the time to buy PG? Find out in our full research report (it’s free for active Edge members).
Procter & Gamble (PG) Q4 CY2025 Highlights:
- Revenue: $22.21 billion vs analyst estimates of $22.29 billion (1.5% year-on-year growth, in line)
- Adjusted EPS: $1.88 vs analyst estimates of $1.86 (1.2% beat)
- Adjusted EBITDA: $6.71 billion vs analyst estimates of $6.46 billion (30.2% margin, 3.9% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.96 at the midpoint
- Operating Margin: 26.3%, in line with the same quarter last year
- Organic Revenue was flat year on year
- Sales Volumes fell 1% year on year (1% in the same quarter last year)
- Market Capitalization: $342.4 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Procter & Gamble’s Q4 Earnings Call
- Lauren Lieberman (Barclays): Asked about confidence in near-term acceleration and the distinction between base effects and fundamental improvement. CFO Andre Schulten pointed to strong international execution and the replication of these interventions in the U.S. as key drivers.
- Steve Powers (Deutsche Bank): Inquired about the timing for realizing benefits from operational enhancements and reinvention initiatives. CEO Shailesh Jejurikar estimated a 12- to 18-month timeframe for even integration across the portfolio, with some regions advancing faster.
- Chris Carey (Wells Fargo): Questioned the costs of ongoing restructuring and investment initiatives. Schulten clarified that major technology and data investments are complete, and future spending will focus on scaling existing platforms rather than significant new outlays.
- Dara Mohsenian (Morgan Stanley): Sought clarity on changes in U.S. strategy and execution priorities. Jejurikar emphasized adapting brand-building to the fragmented media landscape, prioritizing core innovation, and strengthening consumer value propositions.
- Filippo Falorni (Citi): Asked about margin trajectory in the second half and where intervention costs would appear. Schulten declined to give specific margin guidance, stating outcomes will depend on the level of investment needed to drive growth, especially in product and media.
Catalysts in Upcoming Quarters
In the coming quarters, our team will closely monitor (1) the effectiveness of new product launches and brand campaigns in driving U.S. market share recovery, (2) the pace of digital and supply chain integration to support operational efficiency and innovation, and (3) the ability of productivity gains to fund reinvestment without eroding margins. We will also be watching for signs of volume-driven growth and improved household penetration as key markers of sustained performance.
Procter & Gamble currently trades at $147.37, in line with $146.06 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
The Best Stocks for High-Quality Investors
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
