Procter & Gamble Posts Higher Profits on Strong Personal Care Sales and Recovery in China

Procter & Gamble (P&G) reported on Friday, October 24, that its quarterly profit rose, driven by strong personal care sales and an improved performance in China. The consumer goods giant also noted that the impact of tariffs is now expected to be smaller than previously anticipated.

The maker of Tide detergent, Pampers diapers, Head & Shoulders and Pantene shampoos, and Bounty paper towels saw sales growth across all five of its major product categories, with beauty and personal care posting the biggest gains.

Despite what it described as a “challenging consumer and geopolitical environment” marked by inflation and shifting trade policies, P&G delivered robust results.

For the quarter ending September 30, net profit climbed 20% to $4.8 billion, while revenue rose 3% to $22.4 billion.

The U.S.-based company had announced in June a plan to cut non-manufacturing positions in response to tariff pressures. It now expects total fiscal 2026 losses from those impacts to reach $500 million, half of its earlier forecast of $1 billion.

Chief Financial Officer Andre Schulten said the improved outlook reflects actions by the White House to exempt certain “natural materials and ingredients” — such as eucalyptus pulp and fibers — that are not grown domestically, from tariffs.

“What the government essentially did,” Schulten told analysts on a conference call, “was to grant broad exemptions within certain tariff frameworks for materials that cannot be cultivated in the United States. This is highly appreciated and quite meaningful.”

Schulten added that P&G’s plan to eliminate 7,000 non-manufacturing roles over two years remains on track. The goal, he said, is to “build smaller, better-equipped teams” capable of leveraging digital tools to “stay focused on consumers and brand building.”

In Greater China, P&G reported a 5% sales increase, marking significant progress after revising its operational and marketing strategies. Schulten described the performance as “very strong progress” while acknowledging the competitive landscape remains intense.

“I don’t think the path forward will be linear,” he said of the China market, “but I’m very pleased with the progress we’ve made.”