Procter & Gamble’s third quarter results were marked by steady organic revenue gains and a modest beat on profit expectations, but with operating margins under pressure from increased investment and competitive activity. Management attributed the quarter’s performance to broad-based growth led by Skin & Personal Care, ongoing innovation across brands like Tide and Pampers, and continued portfolio optimization. CFO Andre Schulten highlighted, “This marks 40 consecutive quarters of organic sales growth and keeps us on track for the tenth consecutive year of core EPS growth.” The company noted that growth was supported by both price and product mix improvements, despite market share softness and intensified promotions in key categories.
Is now the time to buy PG? Find out in our full research report (it’s free for active Edge members).
Procter & Gamble (PG) Q3 CY2025 Highlights:
- Revenue: $22.39 billion vs analyst estimates of $22.17 billion (3% year-on-year growth, 1% beat)
- Adjusted EPS: $1.99 vs analyst estimates of $1.90 (4.9% beat)
- Adjusted EBITDA: $6.98 billion vs analyst estimates of $6.50 billion (31.2% margin, 7.3% beat)
- Management reiterated its full-year Adjusted EPS guidance of $6.96 at the midpoint
- Operating Margin: 27.6%, in line with the same quarter last year
- Organic Revenue rose 2% year on year
- Market Capitalization: $349.5 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 Q3 Earnings Call
- Dara Mohsenian (Morgan Stanley) asked about the internal reception and competitive impact of the restructuring program. CFO Andre Schulten said the program is on track and aims to create a more agile, consumer-focused organization, emphasizing the long-term benefits for growth and efficiency.
- Peter Galbo (Bank of America) inquired about heightened competitive activity in North America’s Fabric Care and Baby Care categories. Schulten acknowledged increased promotions and stressed that innovation, rather than price cuts, would drive sustainable share recovery.
- Lauren Lieberman (Barclays) questioned declining global market share and the specific areas of weakness. Schulten explained that intensified promotional activity has affected results in the U.S. and Europe, but sequential share trends are improving and innovation is expected to restore growth.
- Filippo Falorni (Citi) sought clarity on reduced commodity and tariff headwinds and their impact on spending. Schulten said cost relief is partly offset by more investment in marketing and innovation, as sustaining competitive advantage requires continued reinvestment.
- Peter Grom (UBS) asked about the outlook for North American demand and the impact of port strike comparisons on Q2 growth. Schulten projected category growth to remain muted in the near term, with stronger performance expected in the second half of the year.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts will closely monitor (1) progress on executing the restructuring program and realizing planned cost savings, (2) the impact of new product launches—especially in Laundry, Baby Care, and Personal Care—on market share and category growth, and (3) the ability to navigate competitive pressures in North America and Europe without sacrificing profitability. The pace and breadth of recovery in China and Latin America will also be key indicators of global momentum.
Procter & Gamble currently trades at $148.71, down from $152.24 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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