Procter & Gamble reported fiscal fourth-quarter 2025 net sales of $20.9 billion, a 2% increase year-over-year, with organic sales also up 2%. For the full fiscal year 2025, net sales were $84.3 billion, unchanged from the prior year, while organic sales grew 2%. Diluted EPS for FY25 was $6.51, up 8%, and core EPS was $6.83, up 4%.
The company generated $17.8 billion in operating cash flow for FY25, with an adjusted free cash flow productivity of 87%. P&G returned over $16 billion to shareholders in fiscal 2025, including $9.9 billion in dividends and $6.5 billion in share repurchases, marking its 69th consecutive year of dividend increases.
For fiscal year 2026, P&G issued guidance projecting all-in sales growth of 1% to 5% and organic sales growth of flat to 4%. Core EPS growth is guided at flat to 4% versus FY25's $6.83, translating to a range of $6.83 to $7.09 per share. This outlook includes a substantial $1 billion before-tax impact from tariffs, equating to approximately $800 million after-tax or a $0.39 per share headwind to core EPS growth.
Other anticipated headwinds for FY26 include $200 million after-tax from unfavorable commodity costs and a net $250 million after-tax from higher net interest expense and a higher core effective tax rate (20-21%). These are partially offset by a projected $300 million after-tax foreign exchange tailwind. P&G plans to return approximately $15 billion to shareholders in FY26, with $10 billion in dividends and $5 billion in share repurchases.
CFO Andre Schulten noted that mid-single-digit price increases would affect about a quarter of P&G's items in Q1 FY26 due to tariffs and innovation. He emphasized that while P&G has invested significantly in U.S. manufacturing, some ingredients and materials still require imports, necessitating price adjustments to offset tariff costs.
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