Procter & Gamble reported adjusted earnings per share of $1.88 for its fiscal second quarter, exceeding the consensus forecast by two cents. Revenue totaled $22.21 billion, a 1.5 percent increase year-over-year, though it fell slightly short of the consensus estimate of $22.36 billion. Organic sales, which strip out foreign-exchange and portfolio changes, were unchanged, reflecting a one-percent unit volume decline offset by a one-percent price gain. The net margin expanded to 19.74 percent, up 20 basis points from the prior year, driven by gross productivity savings and pricing actions that more than offset unfavorable mix and higher tariff costs.

The company announced a quarterly dividend of $1.0568 per share, representing a 2.8 percent yield on the current share count and an annualized payout of $4.23 per share. The dividend payout ratio stands at 61.75 percent of core earnings. During the quarter, Procter & Gamble repurchased $2.3 billion of common shares, bringing year-to-date buybacks to $3.8 billion. Operating cash flow reached $5.0 billion, with adjusted free cash flow productivity at 88 percent of net earnings.

Core gross margin contracted by 30 basis points on a currency-neutral basis as 50 basis points of pricing benefits and 160 basis points of productivity savings were offset by 120 basis points of unfavorable mix, 60 basis points of product reinvestments and 60 basis points of higher tariff costs. Selling, general and administrative expenses rose by 40 basis points on a currency-neutral basis, reflecting reinvestments in brand building partially offset by 110 basis points of cost savings. Beauty and Health Care segments delivered organic sales growth of 4 percent and 3 percent respectively, while Baby, Feminine & Family Care declined 4 percent as volume weakness in North America outweighed mid-single-digit pricing gains.

Procter & Gamble maintained its organic sales growth guidance of flat to 4 percent for fiscal 2026 and kept its full-year core earnings per share outlook at $6.83 to $7.09. The company lowered its GAAP earnings per share range to $6.58–$6.90, reflecting higher non-core restructuring charges. Management expects commodity cost impacts to be neutral for the year, foreign-exchange to contribute approximately one percentage point to sales growth and tariffs to remain a $400 million headwind after tax. Capital expenditure is forecast at 4–5 percent of net sales, and adjusted free cash flow productivity is expected to be 85–90 percent, supporting $10 billion of dividend payments and $5 billion of share repurchases.