Procter & Gamble Q1 Earnings Beat Driven by Beauty Product Demand, Plans 7,000 Job Cuts

Procter & Gamble reported better-than-expected first-quarter earnings with $1.99 per share, surpassing analyst estimates by 9 cents, driven mainly by strong sales in beauty and hair-care products. The company's revenue reached $22.39 billion, slightly above projections, while beauty segment volumes rose 4%, a significant improvement from the prior quarter's 1% increase. Despite challenges such as higher commodity costs and increased discounting to attract value-conscious shoppers, P&G managed to reduce its annual tariff cost forecast by half to $400 million after Canada lifted retaliatory duties, even as President Trump ended trade talks with Canada. The company is responding to competitive pressures by expanding affordable product options and plans to cut about 7,000 non-manufacturing jobs over two years, along with exiting certain markets like laundry bars in India and the Philippines. While overall volume was flat, segments like grooming and baby care showed mixed results, with continued strength in China and the beauty business standing out as a bright spot. P&G's shares rose approximately 3% following the earnings announcement, though the stock remains down about 9% year-to-date.