P&G cuts outlook, citing “challenging and volatile” conditions

Consumer goods giant Procter & Gamble slashed its sales outlook in response to a volatile economic landscape.

The maker of Tide detergent and Pepto-Bismol now expects organic sales growth of 2% year over year for its fiscal year, which ends in June. That’s down from its January forecast, when it predicted that figure would rise by 3% to 5%. P&G also said it expects annual earnings per share to hit between $6.72 to $6.82, below the $6.87 analysts had penciled in.

Shares were recently down 1.2% premarket.

For the first three months of 2025, the company reported earnings per share of $1.54, higher than the $1.52 analysts polled by FactSet expected, but sales of $19.7 billion, less than the $20.1 billion analysts had hoped for. “We delivered modest organic sales and EPS growth this quarter in a challenging and volatile consumer and geopolitical environment,” P&G CEO Jon Moeller said in a statement.

Moeller said on CNBC Thursday morning that P&G is not directly impacted by tariffs because it tends to manufacture near the product’s final destination. Still, price increases are likely. “Tariffs are inherently inflationary,” Moeller said.