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Procter & Gamble Fiscal Third-Quarter Results Top Street Views; Maintains Full-Year Outlook

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Procter & Gamble (PG) reported stronger-than-expected fiscal third-quarter results on Friday, while the consumer goods giant reiterated its full-year outlook.

The maker of Crest toothpaste and Pampers diapers posted adjusted earnings of $1.59 a share for the quarter ended March, up from $1.54 the year before, topping the FactSet-polled consensus for $1.56. Sales rose 7% to $21.24 billion, ahead of the Street's view for $20.53 billion.

The stock increased 3% in the most recent premarket activity.

"We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions," Chief Executive Shailesh Jejurikar said in a statement. "We're increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year."

Procter & Gamble continues to project adjusted EPS to be in a range of $6.83 to $7.09 for fiscal 2026, while the Street is looking for $6.93. It also maintained its full-year sales growth guidance of 1% to 5% and organic revenue forecast of in line to up 4% year over year.

On a net basis, per-share earnings are still pegged to grow by 1% to 6% for the ongoing fiscal year.

Procter & Gamble recorded overall gains of 1% in price in the third quarter, while volume advanced 2%. Foreign exchange was a tailwind of 4% to the topline. On an organic basis, which excludes foreign-exchange impact, sales were up 3% while volume inclined 2%.

Sales in the fabric and homecare, grooming and healthcare segments rose 7% each on an annual basis in the quarter. The beauty segment recorded an 11% jump in revenue to $3.87 billion, while sales in the baby, feminine and family care business moved 6% higher to $5.06 billion.

Core gross margin declined by 100 basis points versus the prior-year period, amid unfavorable mix, reinvestments and higher costs from tariffs, among other factors, the company said.

"We continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy," according to Jejurikar. "We are confident in the progress we're making and excited about the longer-term opportunity."

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