Procter & Gamble (P&G) announced July 29 that it plans to raise prices on 25% of its U.S. products, starting this month, to offset an estimated $1 billion in tariff-related costs.
The company also plans a two-year restructuring, including a reduction in non-manufacturing overhead personnel of up to 7,000 by the end of fiscal 2027.
P&G, known for household products including Bounty, Charmin, and Dawn, reported profits of $3.6 billion for the quarter ending June 30, up 15% from the prior year. Revenues rose 2% to $20.9 billion.
“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareholders in a dynamic, difficult and volatile environment,” said P&G CEO Jon Moeller.
P&G announced Monday that Moeller will transition to executive chairman, with Chief Operating Officer Shailesh Jejurikar set to take over as CEO on January 1, 2026.
Shoppers are more selective
P&G Chief Financial Officer Andre Schulten described shoppers as “more selective” and value-driven.
On a call with analysts, Schulten said $200 million of the U.S. tariff impact comes from Chinese imports, $200 million from Canada, and $600 million from other countries.
P&G executives said forecasts could change if U.S. trade deals reduce tariffs, but noted it’s too early to adjust estimates due to uncertainty around recent agreements and potential new tariffs.
The company plans to raise prices on 25% of its U.S. products, causing 2-2.5% inflation across its portfolio, said Schulten.
Financial outlook for 2026
P&G projects a 1-5% increase in net sales in fiscal 2026. The outlook reflects cautious optimism as the company manages tariffs, leadership changes, and restructuring costs.
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