Procter & Gamble Company (PG)

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals.

From 10-Q filed 2026-04-24 (period ending 2026-03-31).

Forward-Looking Statements

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including without limitation, in the following sections: “Management's Discussion and Analysis,” “Risk Factors” and "Notes 4 and 9 to the Consolidated Financial Statements." These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law.

Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, or pricing controls and tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war (such as the conflict in the Middle East), terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pensions and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business

Amounts in millions of dollars except per share amounts or as otherwise specified.

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partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from those projected herein is included in the section titled "Economic Conditions and Uncertainties" and the section titled "Risk Factors" (Part II, Item 1A) of this Form 10-Q.

Purpose, Approach and Non-GAAP Measures

The purpose of Management's Discussion and Analysis (MD&A) is to provide an understanding of Procter & Gamble's financial condition, results of operations and cash flows by focusing on changes in certain key measures from year to year. The MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and accompanying Notes.

The MD&A is organized in the following sections:

•Overview

•Recent Developments

•Summary of Results – Nine Months Ended March 31, 2026

•Economic Conditions and Uncertainties

•Results of Operations – Three and Nine Months Ended March 31, 2026

•Segment Results – Three and Nine Months Ended March 31, 2026

•Liquidity and Capital Resources

•Measures Not Defined by U.S. GAAP

Throughout the MD&A we refer to measures used by management to evaluate performance, including unit volume growth, net sales, net earnings, diluted net earnings per common share (diluted EPS) and operating cash flow. We also refer to a number of financial measures that are not defined under U.S. GAAP, consisting of organic sales growth, Core earnings per share (Core EPS), adjusted free cash flow and adjusted free cash flow productivity. The explanation at the end of the MD&A provides the definition of these non-GAAP measures, details on the use and the derivation of these measures, as well as reconciliations to the most directly comparable U.S. GAAP measure.

Management also uses certain market share and market consumption estimates to evaluate performance relative to competition despite some limitations on the availability and comparability of share and consumption information. References to market share and consumption in the MD&A are based on a combination of vendor-purchased traditional brick-and-mortar and online data in key markets as well as internal estimates. All market share references represent the percentage of sales of our products in dollar terms on a constant currency basis relative to all product sales in the category. The Company measures quarter and fiscal year to date market share through the most recent period for which market share data is available, which typically reflects a lag time of one or two months as compared to the end of the reporting period. Management also uses unit volume growth to evaluate drivers of changes in net sales. Organic volume growth reflects year-over-year changes in unit volume excluding the impacts of acquisitions and divestitures and certain one-time items, if applicable, and is used to explain changes in organic sales. In the presentation of data in tables or other charts, certain columns and rows may not add due to rounding.

OVERVIEW

P&G is a global leader in the fast-moving consumer goods industry, focused on providing branded consumer packaged goods of superior quality and value to our consumers around the world. Our products are sold in about 180 countries and territories, primarily through mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores),

16 The Procter & Gamble Company

high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to individual consumers. We have on-the-ground operations in about 70 countries.

Our market environment is highly competitive with global, regional and local competitors. In many of the markets and industry segments in which we sell our products, we compete against other branded products as well as retailers' private-label brands. Additionally, many of the product segments in which we compete are differentiated by price tiers (referred to as super-premium, premium, mid-tier and value-tier products). We believe we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position.

The table below lists our reportable segments, including the product categories and brand composition within each segment.

Reportable Segments	Product Categories (Sub-Categories)	Major Brands
Beauty	Hair Care (Conditioners, Shampoos, Styling Aids, Treatments)	Head & Shoulders, Herbal Essences, Pantene, Rejoice
	Personal Care (1) (Antiperspirants and Deodorants, Personal Cleansing)	Native, Old Spice, Safeguard, Secret
	Skin Care (1) (Facial Moisturizers, Cleaners and Treatments)	Olay, SK-II
Grooming	Grooming (Appliances, Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Grooming)	Braun, Gillette, Venus
Health Care	Oral Care (Toothbrushes, Toothpastes, Other Oral Care)	Crest, Oral-B
	Personal Health Care (Gastrointestinal, Pain Relief, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care)	Metamucil, Neurobion, Pepto-Bismol, Vicks
Fabric & Home Care	Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents)	Ariel, Downy, Gain, Tide
	Home Care (Air Care, Dish Care, P&G Professional, Surface Care)	Cascade, Dawn, Fairy, Febreze, Mr. Clean, Swiffer
Baby, Feminine & Family Care	Baby Care (Baby Wipes, Taped Diapers and Pants)	Luvs, Pampers
	Feminine Care (Adult Incontinence, Menstrual Care)	Always, Always Discreet, Tampax
	Family Care (Paper Towels, Tissues, Toilet Paper)	Bounty, Charmin, Puffs

(1) Effective July 1, 2024, the Beauty reportable business segment separated Skin and Personal Care into individual operating segments, Skin Care and Personal Care. This transition included separation of the management team, strategic decision-making, innovation plans, financial targets, budgets and management reporting.

Throughout the MD&A, we reference business results by region, which are comprised of North America, Europe, Greater China, Latin America, Asia Pacific and India, Middle East and Africa (IMEA).

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three and nine months ended March 31, 2026:

	Three Months Ended March 31, 2026				Nine Months Ended March 31, 2026
	Net Sales		Net Earnings		Net Sales		Net Earnings
Beauty	18	%	15	%	18	%	17	%
Grooming	8	%	9	%	8	%	9	%
Health Care	15	%	15	%	15	%	16	%
Fabric & Home Care	35	%	35	%	35	%	34	%
Baby, Feminine & Family Care	24	%	26	%	24	%	24	%
Total Company	100	%	100	%	100	%	100	%

RECENT DEVELOPMENTS

Limited Market Portfolio Restructuring

In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded incremental restructuring charges of approximately $0.8 billion after tax, comprised primarily of non-cash charges for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss). The total incremental restructuring charges incurred under the

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program beginning in the three-month period ended December 31, 2023, through the three-month period ended September 30, 2024, were approximately $1.2 billion after tax.

Focused Portfolio, Supply Chain and Productivity Plan

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period. The Company expects to incur over half of the costs under this plan by the end of fiscal 2026, with the remainder incurred in fiscal 2027. The restructuring activities will be executed across the Sector Business Units as well as the Enterprise Markets, Corporate Functions and Global Business Services. These restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027.

Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting. Restructuring charges above the normal ongoing level of restructuring costs are reported as non-core charges. For more details on the restructuring program, refer to Note 11 to the Consolidated Financial Statements.

Glad Joint Venture Agreement

In January 2026, the Glad joint venture agreement between the Company and The Clorox Company (Clorox) expired. Under the terms of the agreement, Clorox purchased the Company’s minority interest in the venture at fair market value, for $476 million. This transaction was accounted for as a dissolution of the Glad joint venture business and the Company recorded an after-tax gain of $261 million.

U.S. Tariffs

On February 20, 2026, the U.S. Supreme Court ruled that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. The Company previously paid approximately $200 million in IEEPA tariffs that may be recoverable. The Company has not yet recognized any recovery in its consolidated financial statements.

SUMMARY OF RESULTS – Nine Months Ended March 31, 2026

The following are highlights of results for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025:

•Net sales were $65.8 billion, an increase of $2.4 billion, or 4%, versus the prior year period. Net sales increased high single digits in Beauty, mid-single digits in Grooming and Health Care, and low single digits in Fabric & Home Care and Baby, Feminine & Family Care. Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 2% versus the prior year period. Organic sales increased mid-single digits in Beauty, low single digits in Health Care, Grooming and Fabric & Home Care and were unchanged in Baby, Feminine & Family Care.

•Net earnings were $13.1 billion, an increase of $624 million, or 5%, versus the prior year period due to higher restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina, in the prior year period.

•Net earnings attributable to Procter & Gamble were $13.0 billion, an increase of $643 million, or 5%, versus the prior year period.

•Diluted EPS increased 7% to $5.36 due to the increase in net earnings. Core EPS, which excludes the gain from the dissolution of the Glad joint venture business and incremental restructuring charges, increased 2% to $5.46.

•Operating cash flow was $14.4 billion. Adjusted free cash flow, which is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act, was $11.7 billion. Adjusted free cash flow productivity, which is defined as adjusted free cash flow as a percentage of net earnings excluding the gain from the dissolution of the Glad joint venture business, was 92%.

ECONOMIC CONDITIONS AND UNCERTAINTIES

Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 21% of our net sales in fiscal 2025. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs, foreign exchange, the availability and cost of materials and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the conflict in the Middle East and the ongoing war between Russia and Ukraine. Our Russia business accounted for 1% of consolidated net sales, net earnings and net assets as of June 30, 2025.

Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the

18 The Procter & Gamble Company

functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the U.S. dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.

Commodities and Supply Chain. Our costs are subject to fluctuations due to changes in commodity and input material prices, transportation costs, inflationary impacts and productivity efforts. We have significant exposures to certain commodities and input materials, in particular certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects our costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. Legal or regulatory requirements and sustainability initiatives may result in increased costs. We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization. Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts; however, such price increases may negatively impact product consumption. If we are unable to manage cost impacts through pricing actions and consistent productivity improvements, it may negatively impact our net sales, net earnings and cash flows.

Government Policies. We are exposed to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows. These include tax policy changes (both U.S. and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy”. Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements, including tariffs, can also impact our financial performance.

For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2025.

RESULTS OF OPERATIONS – Three Months Ended March 31, 2026

The following discussion provides a review of results for the three months ended March 31, 2026, versus the three months ended March 31, 2025.

	Three Months Ended March 31
Amounts in millions, except per share amounts	2026			2025			% Chg
Net sales	$	21,235		$	19,776		7%
Operating income	4,576			4,558			—%
Earnings before income taxes	4,989			4,661			7%
Net earnings	3,951			3,793			4%
Net earnings attributable to Procter & Gamble	3,932			3,769			4%
Diluted net earnings per common share	1.63			1.54			6%
Core net earnings per common share	1.59			1.54			3%
	Three Months Ended March 31
COMPARISONS AS A PERCENTAGE OF NET SALES	2026			2025			Basis Pt Chg
Gross margin	49.5		%	51.0		%	(150)
Selling, general & administrative expense	28.0		%	27.9		%	10
Operating income	21.5		%	23.0		%	(150)
Earnings before income taxes	23.5		%	23.6		%	(10)
Net earnings	18.6		%	19.2		%	(60)
Net earnings attributable to Procter & Gamble	18.5		%	19.1		%	(60)

Net Sales

Net sales for the quarter increased 7% to $21.2 billion. The increase in net sales was due to favorable foreign exchange of 4%, a unit volume increase of 2% and higher pricing of 1%. Mix was unchanged. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3%.

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The following table summarizes key drivers of the change in net sales by reportable segment:

	Net Sales Change Drivers 2026 vs. 2025 (Three Months Ended March 31) (1)
	Volume with Acquisitions & Divestitures		Volume Excluding Acquisitions & Divestitures		Foreign Exchange		Price		Mix		Other (2)		Net Sales Growth
Beauty	5	%	5	%	4	%	1	%	1	%	—	%	11	%
Grooming	(2)	%	(2)	%	6	%	3	%	—	%	—	%	7	%
Health Care	(2)	%	(2)	%	5	%	2	%	1	%	1	%	7	%
Fabric & Home Care	2	%	2	%	4	%	1	%	—	%	—	%	7	%
Baby, Feminine & Family Care	3	%	3	%	3	%	—	%	—	%	—	%	6	%
Total Company	2	%	2	%	4	%	1	%	—	%	—	%	7	%

(1)Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.

(2)Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.

Operating Costs

Gross margin decreased 150 basis points to 49.5% of net sales for the quarter. The decrease in gross margin was due to:

•180 basis points of decline from unfavorable product mix,

•100 basis points of product and packaging investments,

•50 basis points of higher restructuring costs,

•50 basis points of higher costs from tariffs,

•20 basis points of other items and rounding and

•10 basis points of higher commodity costs.

These impacts were partially offset by:

•210 basis points of manufacturing productivity savings and

•50 basis points of increase due to higher pricing.

Total SG&A spending increased 7% to $5.9 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 10 basis points to 28.0% due primarily to an increase in marketing spending as a percentage of net sales, partially offset by a decrease in overhead costs as a percentage of net sales and a decrease in other operating expenses as a percentage of net sales. Marketing spending as a percentage of net sales increased 20 basis points as the positive scale impacts of the net sales increase and productivity savings were more than offset by an increase in marketing spending. Overhead costs as a percentage of net sales decreased 10 basis points driven by productivity savings and the positive scale impacts of the net sales increase, partially offset by wage inflation, adjustments to expected variable compensation payouts and restructuring spending. Other operating expenses as a percentage of net sales decreased 10 basis points. Productivity-driven cost savings delivered 120 basis points of benefit to SG&A as a percentage of net sales.

Operating income was unchanged at $4.6 billion as the increase in net sales was offset by a decrease in gross margin and an increase in SG&A spending, the components of which are described above. Operating margin decreased 150 basis points to 21.5% versus the prior year period due primarily to the decrease in gross margin and increase in restructuring charges in the current year.

Non-Operating Expenses and Income

Interest expense was $223 million for the quarter, an increase of $6 million versus the prior year period. Interest income was $100 million for the quarter, a decrease of $11 million versus the prior year period. Other non-operating income/(expense), net was $537 million, which is an increase of $327 million versus the prior year period due primarily to the gain from the dissolution of the Glad joint venture business in the current year.

Income Taxes

The effective income tax rate for the three months ended March 31, 2026, was 20.8%, compared to 18.6% for the three months ended March 31, 2025. The increase in the effective tax rate was primarily driven by a 100 basis-point increase due to discrete impacts related to uncertain tax positions, lower excess tax benefits of share-based compensation in the current year and unfavorable geographic mix impacts.

20 The Procter & Gamble Company

Net Earnings

Net earnings were $4.0 billion, an increase of $158 million, or 4%, versus the prior year period due to the increase in other non-operating income/(expense), net, partially offset by the increase in income taxes, the details of which are described above. Foreign exchange had a positive impact of approximately $101 million on net earnings for the quarter, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble were $3.9 billion, an increase of $163 million, or 4%, for the quarter. Diluted EPS increased 6% to $1.63 versus the prior year period. Core EPS, which represents diluted EPS excluding the gain from the dissolution of the Glad joint venture business and charges for incremental restructuring, increased 3% to $1.59.

RESULTS OF OPERATIONS – Nine Months Ended March 31, 2026

The following discussion provides a review of results for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025.

	Nine Months Ended March 31
Amounts in millions, except per share amounts	2026			2025			% Chg
Net sales	$	65,828		$	63,395		4%
Operating income	15,798			16,096			(2)%
Earnings before income taxes	16,444			15,646			5%
Net earnings	13,063			12,439			5%
Net earnings attributable to Procter & Gamble	13,002			12,359			5%
Diluted net earnings per common share	5.36			5.03			7%
Core net earnings per common share	5.46			5.35			2%
	Nine Months Ended March 31
COMPARISONS AS A PERCENTAGE OF NET SALES	2026			2025			Basis Pt Chg
Gross margin	50.7		%	51.8		%	(110)
Selling, general & administrative expense	26.7		%	26.4		%	30
Operating income	24.0		%	25.4		%	(140)
Earnings before income taxes	25.0		%	24.7		%	30
Net earnings	19.8		%	19.6		%	20
Net earnings attributable to Procter & Gamble	19.8		%	19.5		%	30

Net Sales

Net sales for the period increased 4% to $65.8 billion driven by a 2% increase from favorable foreign exchange and a 1% increase from higher pricing. Volume and mix were unchanged. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2%.

The following table summarizes key drivers of the change in net sales by reportable segment:

	Net Sales Change Drivers 2026 vs. 2025 (Nine Months Ended March 31) (1)
	Volume with Acquisitions & Divestitures		Volume Excluding Acquisitions & Divestitures		Foreign Exchange		Price		Mix		Other (2)		Net Sales Growth
Beauty	4	%	4	%	2	%	2	%	(1)	%	—	%	7	%
Grooming	(1)	%	(1)	%	4	%	3	%	(1)	%	—	%	5	%
Health Care	(1)	%	(1)	%	3	%	1	%	2	%	—	%	5	%
Fabric & Home Care	—	%	—	%	2	%	1	%	—	%	—	%	3	%
Baby, Feminine & Family Care	(1)	%	(1)	%	2	%	—	%	—	%	—	%	1	%
Total Company	—	%	—	%	2	%	1	%	—	%	1	%	4	%

(1)Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.

(2)Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.

Operating Costs

Gross margin decreased 110 basis points to 50.7% of net sales for the period. The decrease in gross margin was due to:

•120 basis points of decline from unfavorable product mix,

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•70 basis points of product and packaging investments,

•60 basis points of higher tariff costs,

•50 basis points of higher restructuring costs,

•20 basis points of other items and rounding,

•10 basis points of unfavorable foreign exchange impacts and

•10 basis points of higher commodity costs.

These impacts were partially offset by:

•180 basis points of manufacturing productivity savings and

•50 basis points of increase due to higher pricing.

Total SG&A spending increased 5% to $17.6 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 30 basis points to 26.7% due primarily to an increase in marketing spending as a percentage of net sales and an increase in overhead costs as a percentage of net sales, partially offset by a decrease in other operating expenses as a percentage of net sales. Marketing spending as a percentage of net sales increased 20 basis points as the positive scale impacts of the net sales increase and productivity savings were more than offset by an increase in marketing spending. Overhead costs as a percentage of net sales increased 10 basis points as wage inflation and restructuring spending were partially offset by productivity savings and the positive scale impacts of the net sales increase. Other operating expenses as a percentage of net sales decreased 10 basis points. Productivity-driven cost savings delivered 100 basis points of benefit to SG&A as a percentage of net sales.

Operating income decreased $298 million, or 2%, to $15.8 billion as the increase in net sales was more than offset by a decrease in gross margin and increase in SG&A spending, the components of which are described above. Operating margin decreased 140 basis points to 24.0% versus the prior year period due primarily to the decrease in gross margin and increase in restructuring charges in the current year.

Non-Operating Expenses and Income

Interest expense was $641 million for the period, a decrease of $54 million versus the prior year period. Interest income was $322 million for the period, a decrease of $43 million versus the prior year period. Other non-operating income/(expense), net, was $964 million, which is an increase of $1.1 billion versus the prior year period primarily due to the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the prior year period and the gain from the dissolution of the Glad joint venture business in the current year period.

Income Taxes

The effective income tax rate for the nine months ended March 31, 2026, was 20.6%, compared to 20.5% for the nine months ended March 31, 2025. The increase in the effective tax rate was primarily driven by a 100 basis-point increase due to lower excess tax benefits of share-based compensation in the current year, partially offset by the prior year charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

Net Earnings

Net earnings increased $624 million, or 5%, to $13.1 billion, as the increase in other non-operating income/(expense), net, the components of which are described above, were partially offset by the decrease in operating income. Foreign exchange had a positive impact of approximately $185 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble increased $643 million, or 5%, to $13.0 billion for the period. Diluted EPS increased 7% to $5.36 versus the prior year period due to the increase in net earnings. Core EPS, which represents diluted EPS excluding the charges for incremental restructuring and the gain from the dissolution of the Glad joint venture business, increased 2% to $5.46.

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SEGMENT RESULTS – Three and Nine Months Ended March 31, 2026

The following discussion provides a review of results by reportable business segment. Analysis of the results for the three and nine months ended March 31, 2026, is provided based on a comparison to the three and nine months ended March 31, 2025. The primary financial measures used to evaluate segment performance are net sales and net earnings. The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and nine months ended March 31, 2026, versus the comparable prior year period (dollar amounts in millions):

	Three Months Ended March 31, 2026
	Net Sales		% Change Versus Year Ago		Earnings/(Loss) Before Income Taxes		% Change Versus Year Ago		Net Earnings/(Loss)		% Change Versus Year Ago
Beauty	$	3,866	11	%	$	761	11	%	$	579	7	%
Grooming	1,608

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Next expected filings

~2026-08-03 10-K expected by 2026-09-24 (in 94 days)
~2026-10-25 10-Q expected by 2026-11-13 (in 177 days)
~2027-01-24 10-Q expected by 2027-02-12 (in 268 days)
~2027-04-25 10-Q expected by 2027-05-14 (in 359 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-04-24 8-K Earnings Release; Financial Statements and Exhibits
2026-04-24 10-Q Quarterly Report
2026-01-23 10-Q Quarterly Report
2026-01-22 8-K Earnings Release; Financial Statements and Exhibits
2025-12-15 8-K Officer/Director Change
2025-11-04 8-K Other Events; Financial Statements and Exhibits
2025-11-03 8-K Other Events; Financial Statements and Exhibits
2025-10-24 10-Q Quarterly Report
2025-10-24 8-K Earnings Release; Financial Statements and Exhibits
2025-10-16 8-K Officer/Director Change; Shareholder Vote Results; Financial Statements and Exhibits
2025-08-14 8-K Officer/Director Change
2025-08-04 10-K Annual Report
2025-07-29 8-K Earnings Release; Financial Statements and Exhibits
2025-07-28 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-06-09 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits

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