Procter & Gamble Reports Strong Sales for Q2 2025, Beats Targets With Rising Product Demand

Procter & Gamble released second-quarter earnings for fiscal year 2025, and the revenue figures surpassed analysts’ predictions. For the period that ended on Dec. 31, P&G reported revenue of $21.88 billion, while Wall Street predicted $21.54 billion.

Net income reached $4.63 billion, up from $3.47 billion last year. P&G reported earnings per share, or EPS, of $1.88, which beat the $1.40 earned per share in Q2 2024.

Despite weaker consumer demand and price hikes in the past few years, Procter & Gamble’s net sales climbed to $21.88 billion, a 2% increase year-over-year. The measure of overall volume, which does not include pricing stats, increased by 1%.

The largest uptick in volume, 4%, was P&G’s baby, feminine, and family care group. Popular brands like Puffs, Charmin, and Tampax led the growth. Yet, the baby category did drag the division down as demand for diaper brand Pampers waned.

Sales of P&G’s Gillette razors rose 2%, which the company credited innovation as the reason for the boost. Fabric and home care brands like Tide, Cascade, and Swiffer pushed the division’s volume up 1%. In the healthcare group, which includes products like Oral-B and Pepto Bismol, sales volume remained relatively level.

The beauty category saw a 1% decrease in volume during the quarter. Sales of P&G’s hair care products shrunk, particularly in China. Olay, the company’s skin care brand, also declined globally.

What’s Ahead for Procter & Gamble

On a recent earnings call, Procter & Gamble CEO Jon Moeller emphasized the company’s struggle to make headway in the Chinese market. “Dependable growth in China” will take some time, he explained.

Moeller also mentioned changes to how grocery stores are compensated for selling P&G products. Up until now, stores were paid on total P&G volume. That has now changed to a pay-by-category model, leaving stores with minimum goal requirements for each category before compensation is determined.

“That may not seem like a big deal,” Moeller said, per Seeking Alpha. “That’s a big deal. It changes behavior significantly.”

P&G has teased some new products likely to hit the market this year. A new, low-cost Oral-B electric toothbrush and a Zevo insect-repellent product will hit store shelves in 2025.

“We are investing in strong innovation to benefit from that stable consumer environment in the U.S.,” said CFO Andre Schulten, according to Reuters.

For its fiscal 2025 forecast, Procter & Gamble expects revenue to grow between 2% and 4%. Meanwhile, net EPS will fall in the $6.91 to $7.05 range.