American giant Procter & Gamble (P&G) reported lower-than-expected results for the second quarter of its fiscal year on Thursday, January 22, amid a challenging consumer environment, leading it to lower some of its financial targets.

Beauty and skincare drive growth

For the October–December period, the household and personal care products maker — whose portfolio includes Gillette, Ariel, Pampers, and Head & Shoulders — generated USD 22.2 billion in revenue, a 1% year-on-year increase. This is slightly less than expected by a consensus of analysts surveyed by Bloomberg.

Revenue was flat year-over-year on an organic growth basis, with a decline in sales volume (-1%) partially offset by higher prices, particularly in North America, P&G explained.

The group continued to record solid growth in its beauty and skincare segments, with both categories posting a 5% year-over-year increase. By contrast, sales in the baby products segment declined by 3%.

Falling income

Net income for the period declined to USD 4.3 billion, down 7%, reflecting charges associated with the restructuring plan announced in mid-2025 amid the beginning of the trade war. Earnings per share totaled USD 1.78, a 5% year-over-year decrease, and also came in below market expectations.

The United States closed 2025 with year-over-year inflation of 2.7%. While price pressures have stopped accelerating, inflation remains elevated, continuing to weigh on American households through higher food and electricity costs.

“Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, (…) in a challenging consumer and geopolitical environment,” says Shailesh Jejurikar, President and Chief Executive Officer.

He anticipates “stronger results in the second half of the fiscal year.”

For fiscal year 2025/26, P&G maintained its forecast for organic revenue growth of 1% to 5% and reaffirmed its adjusted earnings per share guidance of USD 6.83 to USD 7.09. However, the company lowered its earnings growth outlook, now expecting earnings per share to rise by 1% to 6% this year, compared with its previous projection of 3% to 9%.