P&G: beat, cost warning, AI push

Procter & Gamble beat Wall Street’s quarterly targets on April 24, but said higher input costs tied to the Middle East conflict will cut annual profit by about $150 million. (us.pg.com, usnews.com) The consumer-products company reported fiscal third-quarter net sales of $21.2 billion, up 7% from a year earlier, with organic sales up 3%. Diluted earnings per share rose to $1.63 from $1.54, and core earnings per share rose to $1.59 from $1.54. (us.pg.com) CNBC reported analysts had expected adjusted earnings per share of $1.56 and revenue of $20.5 billion, putting P&G ahead on both measures. P&G shares rose 4% in premarket trading after the results. (cnbc.com) Demand improved in categories where shoppers had been pulling back. Companywide volume rose 2%, the first volume increase in a year, while P&G’s beauty division posted 5% volume growth across personal care, skin care, and hair care. (cnbc.com, us.pg.com) That matters for a company that gets 18% of its sales from Beauty and 36% from Fabric & Home Care, according to its 2025 annual report. P&G has spent the past year trying to restore volume growth after price increases across staples such as detergent, diapers, and shampoo. (us.pg.com, cnbc.com) P&G kept its full-year outlook unchanged, guiding for sales growth of 1% to 5% and net earnings per share growth of 1% to 6%. Chief Executive Shailesh Jejurikar said the company would increase investment to “accelerate momentum with consumers” while holding its guidance range. (cnbc.com, us.pg.com) The cost warning shows how quickly that momentum can be squeezed. Reuters reported the company tied the projected $150 million annual profit hit to higher input costs linked to the Middle East conflict. (usnews.com, msn.com) At the same time, P&G is pushing deeper into in-house artificial intelligence tools. The Cincinnati Business Courier reported on April 23 that the company is building self-developed AI systems to meet employee demand and reshape marketing workflows. (bizjournals.com) That AI push is landing under a new chief executive. Jejurikar took over as P&G’s CEO on Jan. 1, 2026, after the company announced the succession plan in July 2025. (us.pg.com, pginvestor.com) So P&G’s latest quarter delivered two signals at once: shoppers are still buying more premium beauty products, and the company is still exposed to geopolitical costs. Its answer, for now, is to keep spending behind brands while building more of its own AI inside the business. (us.pg.com, bizjournals.com, usnews.com)