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Proctor & Gamble (PG) is moving higher after reporting its Q1 (Sep) results this morning. The consumer products giant beat EPS expectations, with the upside a bit higher than the previous 5 quarters, while revenue grew 3% yr/yr to $22.39 bln, in line with expectations. The company also reaffirmed its FY26 guidance of core EPS growth of 0-4% (about $6.83-7.09) and revenue growth of 1-5% (about $85.14-88.52 bln).

• Strength was broad-based across 8 of 10 categories, led by high-single-digit growth in Skin and Personal Care, while Fabric and Family Care lagged amid heavier promotions and softer demand in U.S. and Europe.
• China and Latin America were bright spots, up 5% and 7% organically. North America grew 1%, though category consumption decelerated through the quarter; Europe was flat.
• Management described the environment as challenging but stable and lowered its expected tariff impact to about $400 mln, helped by supply chain and pricing adjustments.
• Consumers remain focused on value, with higher-income shoppers buying larger pack sizes, while lower-income consumers continue to stretch usage and delay replenishment.
• P&G is countering competitive pressures with innovation and perceived value, highlighting Tide's largest liquid upgrade in 20 years, the Tide Evo rollout, and refreshed Pampers lines.
• Q2 is expected to be the softest quarter due to last year's port-strike order spikes, with stronger growth in the back half and modest EPS gains as investments in innovation and competitiveness increase.

Briefing.com Analyst Insight

This wasn't a blowout quarter, but P&G delivered a steady start to FY26, reflecting consistent execution in a still-tough environment. Volumes held steady rather than growing, and management spoke more about competitive pressures this quarter, emphasizing a focus on defending share through innovation and brand strength. The reaffirmed outlook and lower tariff burden add confidence in steady progress, though investors will watch how the competitive environment and innovation impact performance through the rest of the year.