PG | Q2 2025

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Overview

• Non-GAAP EPS of $1.88 beats by $0.02.

• Revenue of $21.9B (+2.1% Y/Y) beats by $310M.

Takeaways

Procter & Gamble (PG) had a solid second quarter in 2025, proving to investors—yet again—that it’s one of the most reliable companies in the consumer staples sector.

Organic sales grew by 3%, with volume adding two points and product mix contributing one. PG also managed to grow in nine out of ten product categories, which speaks to the strength of its brands.

Family Care was the standout with double-digit growth, while Home Care and Skin and Personal Care saw mid-single-digit growth. Categories like Hair Care, Oral Care, and Feminine Care all grew in the low single digits, leaving Baby Care as the only segment to decline slightly.

Regionally, North America continues to climb, delivering 4% organic sales growth driven entirely by volume. Fun fact: North America has been consistently growing by 3% to 4% every quarter for the past year and a half.

Europe also posted strong results, with organic sales up 4% thanks to solid volume growth.

Other regions, like Latin America and parts of Europe outside the focus markets, grew modestly. However, Asia, the Middle East, and Africa declined slightly.

Greater China remains a tough spot, with organic sales down 3%, but that’s still a big improvement over last quarter’s 15% drop. And SK-II, their premium skincare brand, grew 5% in China, which is a good sign they’re starting to regain some ground there.

On the earnings side, PG reported core earnings per share of $1.88, up 2% from the same time last year. Adjusting for currency fluctuations, that number would have been up 3%.

The company also returned $4.9 billion to shareholders this quarter through dividends and buybacks—and the company plans to continue raising the dividend into the future.

Looking ahead, PG is sticking with its full-year forecast of 3% to 5% organic sales growth and core EPS growth of 5% to 7%.

The company is also planning to return $16 to $17 billion to shareholders this year. It’s good to know that rewarding shareholders remains a top priority.

One thing that stood out on the call was how much PG is leaning on innovation to stay ahead of the competition. They highlighted several new or improved products that are driving growth, like Charmin Smooth Tear toilet paper (which they’re calling the biggest toilet paper innovation in 100 years), Dawn Powerwash, and the Swiffer PowerMop.

During the Q&A, there were some interesting insights about how consumers seem to be holding up. CFO Andre Schulten described consumer behavior as stable, especially in PG’s categories, which are mostly essentials.

In Europe, inflation has come down to about 2%, making the environment more predictable. In the U.S., the picture is a bit more volatile—October saw strong sales driven by hurricane prep and port strikes, followed by a dip in November, and then a rebound in December.

There was also a question about mergers and acquisitions, and CEO Jon Moeller reiterated that M&A isn’t a big part of their growth strategy. With PG holding top market positions in most categories, they can’t really make big acquisitions without facing regulatory challenges.

However, in more fragmented areas like personal healthcare and specialty beauty, there could be opportunities if the right asset becomes available at the right price.

Overall, Procter & Gamble continues to deliver steady, dependable growth, even in a challenging environment. Their track record of consistent organic sales and earnings growth speaks for itself, and their dedication to innovation and market leadership keeps them firing on all cylinders.

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