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Item 1. Financial Statements

2025-10-24 compared with 2025-04-24 · 111 added, 155 removed, 349 unchanged (43% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENTS OF EARNINGS

Three Months Ended March 31 Nine Months Ended March 31

Three Months Ended September 30

Amounts in millions except per share amounts 2025 2024

2 unchanged sentences

Selling, general and administrative expense 5,643 5,519

Indefinite-lived intangible asset impairment charge — — — 1,341

OPERATING INCOME 5,856 5,797

12 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31 Nine Months Ended March 31

Three Months Ended September 30

Amounts in millions 2025 2024

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CONSOLIDATED BALANCE SHEETS

Amounts in millions March 31, 2025 June 30, 2024

Amounts in millions September 30, 2025 June 30, 2025

CURRENT ASSETS

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Preferred stock 770 777

Common stock – shares issued – March 2025 4,009.2

Common stock – shares issued – September 2025 4,009.2

June 2025 4,009.2 4,009 4,009

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Three Months Ended March 31, 2025

Dollars in millions;

shares in thousands Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/(Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total Shareholders' Equity

Shares Amount

BALANCE DECEMBER 31, 2024 2,344,852 $ 4,009 $ 788 $ 68,283 ($ 707 ) ($ 11,637 ) ($ 137,112 ) $ 127,544 $ 275 $ 51,443

Net earnings 3,769 23 3,793

Other comprehensive income/(loss) 330 1 330

Dividends and dividend equivalents

($ 1.0065 per share):

Common ( 2,367 ) ( 2,367 )

Preferred ( 71 ) ( 71 )

Treasury stock purchases ( 7,966 ) ( 1,351 ) ( 1,351 )

Employee stock plans 6,836 331 384 715

Preferred stock conversions 820 ( 7 ) 1 6 —

ESOP debt impacts 35 44 79

Noncontrolling interest, net — ( 26 ) ( 26 )

BALANCE MARCH 31, 2025 2,344,542 $ 4,009 $ 781 $ 68,615 ($ 672 ) ($ 11,307 ) ($ 138,073 ) $ 128,919 $ 273 $ 52,545

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Dollars in millions;

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Noncontrolling interest, net — ( 16 ) ( 16 )

BALANCE MARCH 31, 2025 2,344,542 $ 4,009 $ 781 $ 68,615 ($ 672 ) ($ 11,307 ) ($ 138,073 ) $ 128,919 $ 273 $ 52,545

See accompanying Notes to Consolidated Financial Statements.

4 The Procter & Gamble Company

Three Months Ended March 31, 2024

Dollars in millions;

Shares Amount

BALANCE DECEMBER 31, 2023 2,353,021 $ 4,009 $ 809 $ 66,935 ($ 782 ) ($ 12,167 ) ($ 131,887 ) $ 121,617 $ 294 $ 48,829

Net earnings 3,754 27 3,781

Other comprehensive income/(loss) ( 203 ) ( 1 ) ( 204 )

Dividends and dividend equivalents

($ 0.9407 per share):

Common ( 2,221 ) ( 2,221 )

Preferred ( 69 ) ( 69 )

Treasury stock purchases ( 6,046 ) ( 977 ) ( 977 )

Employee stock plans 12,201 459 685 1,144

Preferred stock conversions 959 ( 8 ) 1 7 —

ESOP debt impacts 45 51 97

Noncontrolling interest, net — ( 46 ) ( 46 )

BALANCE MARCH 31, 2024 2,360,135 $ 4,009 $ 801 $ 67,395 ($ 737 ) ($ 12,370 ) ($ 132,172 ) $ 123,132 $ 275 $ 50,333

Nine Months Ended March 31, 2024

BALANCE SEPTEMBER 30, 2025 2,336,734 $ 4,009 $ 770 $ 68,917 ($ 637 ) ($ 12,156 ) ($ 139,845 ) $ 132,212 $ 281 $ 53,551

Three Months Ended September 30, 2024

Dollars in millions;

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Noncontrolling interest, net — — —

BALANCE MARCH 31, 2024 2,360,135 $ 4,009 $ 801 $ 67,395 ($ 737 ) ($ 12,370 ) ($ 132,172 ) $ 123,132 $ 275 $ 50,333

BALANCE SEPTEMBER 30, 2024 2,355,042 $ 4,009 $ 791 $ 68,102 ($ 707 ) ($ 10,893 ) ($ 134,823 ) $ 125,361 $ 300 $ 52,141

See accompanying Notes to Consolidated Financial Statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended March 31

Three Months Ended September 30

Amounts in millions 2025 2024

6 unchanged sentences

Loss/(gain) on sale of assets ( 3 ) 794

Indefinite-lived intangible asset impairment charge — 1,341

Change in accounts receivable ( 305 ) ( 134 )

Change in inventories ( 303 ) ( 188 )

Change in accounts payable and accrued and other liabilities ( 1,666 ) 56

Change in other operating assets and liabilities ( 1,125 ) ( 1,196 )

Change in accounts payable 648 90

Other ( 344 ) ( 1,264 )

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Net additions/(reductions) to other short-term debt 2,108 ( 444 )

Additions to long-term debt 995 1,598

Reductions in long-term debt ( 3 ) ( 70 )

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CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 11,171 $ 12,156

(1) Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation.

These reclassifications had no effect on the previously reported Total Operating Activities.

See accompanying Notes to Consolidated Financial Statements.

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New Accounting Pronouncements and Policies

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2023-07, “Segment Reporting:

Improvements to Reportable Segment Disclosures”.

This guidance requires disclosure of incremental segment information on an annual and interim basis.

This amendment is effective for our fiscal year ending June 30, 2025 and our interim periods within the fiscal year ending June 30, 2026.

The guidance will require additional disclosures in the Segment Information footnote, but will not have a material impact on our Consolidated Financial Statements.

In December 2023, the FASB issued ASU No.

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2023-09, “Income Taxes:

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This amendment is effective for our fiscal year ending June 30, 2026.

We are currently assessing the impact of this guidance on our disclosures.

This guidance will require additional disclosures in the Income Tax footnote but will not have a material impact on our Consolidated Financial Statements.

In November 2024, the FASB issued ASU No.

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We are currently assessing the impact of this guidance on our disclosures.

In September 2025, the FASB issued ASU No.

2025-06, “Intangibles—Goodwill and Other—Internal-Use Software:

Targeted Improvements to the Accounting for Internal-Use Software”.

This guidance amends the accounting for and disclosure of software costs.

This amendment is effective for our fiscal year ending June 30, 2029 and the interim periods within that fiscal year.

We are currently assessing the impact of this guidance on our Consolidated Financial Statements.

No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our Consolidated Financial Statements.

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% of Net sales by operating segment (1)

Three Months Ended March 31 Nine Months Ended March 31

2025 2024 2025 2024

Three Months Ended September 30

Fabric Care 23 % 23 %

Home Care 12 % 13 %

Hair Care 10 % 9 %

Baby Care 9 % 9 %

Family Care 8 % 8 %

Hair Care 9 % 9 % 9 % 9 %

Grooming 8 % 8 %

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Personal Care 6 % 6 %

6 % 5 % 6 % 5 %

Skin Care 3 % 3 %

3 % 4 % 3 % 4 %

Total 100 % 100 %

(1) % of Net sales by operating segment excludes sales recorded in Corporate.

(2) Effective July 1, 2024, the Beauty reportable business segment separated Skin and Personal Care into individual operating segments, Skin Care and Personal Care.

This transition included separation of the management team, strategic decision-making, innovation plans, financial targets, budgets and management reporting.

The following is a summary of reportable segment results:

Three Months Ended March 31 Nine Months Ended March 31

Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss) Net Sales Earnings/(Loss) Before Income Taxes Net Earnings/(Loss)

Beauty 2025 $ 3,490 $ 684 $ 539 $ 11,231 $ 2,746 $ 2,158

2024 3,550 753 587 11,496 3,114 2,426

Grooming 2025 1,505 404 321 4,980 1,493 1,206

2024 1,539 379 303 4,997 1,450 1,165

Health Care 2025 2,880 734 569 9,277 2,662 2,068

2024 2,873 687 525 9,119 2,508 1,933

Fabric & Home Care 2025 6,948 1,642 1,285 22,233 5,709 4,473

2024 7,169 1,692 1,301 22,230 5,741 4,446

Baby, Feminine & Family Care 2025 4,755 1,150 880 15,155 3,997 3,065

2024 4,936 1,299 997 15,268 4,144 3,174

Corporate 2025 198 48 200 520 ( 961 ) ( 531 )

Three Months Ended September 30, 2025

Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company

Net sales $ 4,143 $ 1,817 $ 3,220 $ 7,793 $ 5,171 $ 242 $ 22,386

Cost of products sold ( 1,625 ) ( 743 ) ( 1,344 ) ( 4,144 ) ( 2,770 ) ( 261 ) ( 10,887 )

Selling, general and administrative expense ( 1,387 ) ( 489 ) ( 945 ) ( 1,607 ) ( 955 ) ( 260 ) ( 5,643 )

Other segment items (1)

— — 6 — — 172 178

Total Company 2025 $ 19,776 $ 4,661 $ 3,793 $ 63,395 $ 15,646 $ 12,439

Earnings/(loss) before income taxes 1,132 585 937 2,042 1,446 ( 108 ) 6,034

Net earnings/(loss) $ 879 $ 463 $ 718 $ 1,579 $ 1,105 $ 36 $ 4,781

Other segment information

Depreciation and amortization $ 102 $ 79 $ 106 $ 185 $ 207 $ 82 $ 761

Capital expenditures $ 74 $ 132 $ 109 $ 283 $ 274 $ 328 $ 1,200

(1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense).

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 7

Three Months Ended September 30, 2024

Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company

Net sales $ 3,892 $ 1,723 $ 3,147 $ 7,710 $ 5,102 $ 163 $ 21,737

Cost of products sold ( 1,493 ) ( 706 ) ( 1,259 ) ( 4,005 ) ( 2,730 ) ( 228 ) ( 10,421 )

Selling, general and administrative expense ( 1,332 ) ( 495 ) ( 935 ) ( 1,628 ) ( 989 ) ( 140 ) ( 5,519 )

Other segment items (1)

— — — — — ( 657 ) ( 657 )

Earnings/(loss) before income taxes 1,067 522 953 2,077 1,383 ( 862 ) 5,140

Net earnings/(loss) $ 840 $ 426 $ 741 $ 1,621 $ 1,066 $ ( 707 ) $ 3,987

Other segment information

Depreciation and amortization $ 99 $ 83 $ 97 $ 179 $ 204 $ 67 $ 728

Capital expenditures $ 48 $ 94 $ 82 $ 204 $ 198 $ 366 $ 993

(1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense).

Corporate includes non-operating losses comprised primarily of a non-cash charge of $ 752 for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

The Chief Operating Decision Maker (CODM) does not use assets by segment to evaluate performance or allocate resources.

Therefore, we do not disclose assets by segment.

Goodwill and Intangible Assets

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Translation and other ( 1 ) ( 3 ) ( 2 ) ( 1 ) — ( 7 )

Goodwill at March 31, 2025 $ 13,796 $ 12,679 $ 7,670 $ 1,816 $ 4,516 $ 40,476

Goodwill increased from June 30, 2024, primarily due to currency translation.

Amounts in millions of dollars except per share amounts or as otherwise specified.

8 The Procter & Gamble Company

Identifiable intangible assets at March 31, 2025, were comprised of:

GOODWILL AT SEPTEMBER 30, 2025 $ 14,228 $ 12,990 $ 7,939 $ 1,847 $ 4,640 $ 41,643

Goodwill decreased from June 30, 2025, primarily due to currency translation.

Identifiable intangible assets at September 30, 2025, were comprised of:

Gross Carrying Amount Accumulated Amortization

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The intangible assets with indefinite lives primarily consist of brands.

The amortization expense of determinable-lived intangible assets for the three months ended March 31, 2025 and 2024, was $ 78 and $ 83 , respectively.

For the nine months ended March 31, 2025 and 2024, amortization expense was $ 241 and $ 255 , respectively.

The amortization expense of determinable-lived intangible assets for the three months ended September 30, 2025 and 2024, was $ 79 and $ 83 , respectively.

Goodwill and indefinite-lived intangible assets are not amortized but are tested at least annually for impairment.

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Other than our Gillette indefinite-lived intangible asset, our goodwill reporting units and indefinite-lived intangible assets have fair values that significantly exceed their underlying carrying values.

As previously disclosed, the carrying value of the Gillette indefinite-lived intangible asset was impaired during the fiscal year ended June 30, 2024.

The impairment charge arose due to a higher discount rate, weakening of several currencies relative to the U.S.

dollar and the impact of a new restructuring program focused primarily in certain Enterprise Markets, including Argentina and Nigeria.

Following the impairment charge, the carrying value of the Gillette indefinite-lived intangible asset was equivalent to the estimated fair value as of December 31, 2023.

Based on our impairment testing performed during the three months ended December 31, 2024, the Gillette indefinite-lived intangible asset's fair value exceeds its carrying value by greater than 10 %.

As of March 31, 2025, the carrying value of the Gillette indefinite-lived intangible asset was $ 12.8 billion.

Adverse changes in the business or in the macroeconomic environment, including foreign currency devaluation, increasing global inflation, or market contraction from an economic recession, could reduce the underlying cash flows used to estimate the fair value of the Gillette indefinite-lived intangible asset and trigger a further impairment charge.

The most significant assumptions utilized in the determination of the estimated fair value of the Gillette indefinite-lived intangible asset are the net sales growth rates (including residual growth rates), discount rate and royalty rates.

As of September 30, 2025, the carrying value of the Gillette indefinite-lived intangible asset was $ 12.8 billion.

Amounts in millions of dollars except per share amounts or as otherwise specified.

Net sales growth rates could be negatively impacted by reductions or changes in demand for our Gillette products, which may be caused by, among other things:

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In addition, relative global and country/regional macroeconomic factors could result in additional and prolonged devaluation of other countries' currencies relative to the U.S.

The residual growth rates represent the expected rate at which the Gillette brand is expected to grow beyond the shorter-term business planning period.

The residual growth rates utilized in our fair value estimates are consistent with the brand operating plans and approximate expected long-term category market growth rates.

The residual growth rate represent the expected rate at which the Gillette brand is expected to grow beyond the shorter-term business planning period.

The residual growth rate utilized in our fair value estimates is consistent with the brand operating plans and approximate expected long-term category market growth rates.

The residual growth rate depends on overall market growth rates, the competitive environment, inflation, relative currency exchange rates and business activities that impact market share.

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dollar or an increased competitive environment.

The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure.

The discount rate is based on a weighted average cost of capital that is likely to be expected by a market participant, including consideration of both debt and equity components of the capital structure.

Our discount rate may be impacted by adverse changes in the macroeconomic environment, volatility in the equity and debt markets or other country specific factors, such as further devaluation of currencies against the U.S.

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The table below provides, in isolation, the estimated fair value impacts related to a 25 basis-point increase in the discount rate, a 25 basis-point decrease in our short-term and residual growth rates or a 50 basis-point decrease in our royalty rate.

Amounts in millions of dollars except per share amounts or as otherwise specified.

Approximate Percent Change in Estimated Fair Value

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The diluted shares include the dilutive effect of stock options and other share-based awards based on the treasury stock method and the assumed conversion of preferred stock.

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 9

Net earnings per common share were calculated as follows:

CONSOLIDATED AMOUNTS Three Months Ended March 31 Nine Months Ended March 31

2025 2024 2025 2024

Net earnings $ 3,793 $ 3,781 $ 12,439 $ 11,830

Net earnings attributable to noncontrolling interests 23 27 80 88

Net earnings attributable to P&G 3,769 3,754 12,359 11,742

CONSOLIDATED AMOUNTS Three Months Ended September 30

Net earnings attributable to P&G (Diluted) 4,750 3,959

Preferred dividends 73 72

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Add effect of dilutive securities:

Convertible preferred shares (1)

70.7 73.3 71.3 73.9

Stock options and other unvested equity awards (1)

31.9 38.1 34.9 38.4

Convertible preferred shares (2)

Diluted weighted average common shares outstanding 2,436.8 2,466.0

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Diluted $ 1.95 $ 1.61

(1) For the three months ended September 30, 2025 and 2024, the weighted average of stock options that were antidilutive and not included in the diluted net earnings per share calculation were 11 million and 1 million, respectively.

(2) An overview of preferred shares can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

(2) Excludes approximately 8 million and 6 million for the three months ended March 31, 2025 and 2024 respectively, and 6 million for the nine months ended March 31, 2025 and 2024 respectively, of weighted average stock options outstanding because the exercise price of these options was greater than their average market value or their effect was antidilutive.

Share-Based Compensation and Postretirement Benefits

The following table provides a summary of our share-based compensation expense and postretirement benefit impacts:

Three Months Ended March 31 Nine Months Ended March 31

2025 2024 2025 2024

Three Months Ended September 30

Share-based compensation expense $ 121 $ 105

1 unchanged sentence

Net periodic benefit (credit) for other retiree benefits ( 153 ) ( 180 )

Amounts in millions of dollars except per share amounts or as otherwise specified.

10 The Procter & Gamble Company

Risk Management Activities and Fair Value Measurements

As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices.

There have been no significant changes in our risk management policies or activities during the nine months ended March 31, 2025.

There have been no significant changes in our risk management policies or activities during the three months ended September 30, 2025.

The Company has not changed its valuation techniques used in measuring the fair value of any financial assets and liabilities during the period.

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Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented.

Except for the impairment of the Gillette indefinite-lived intangible asset discussed in Note 4, there were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during the nine months ended March 31, 2025 or during the fiscal year ended June 30, 2024.

Cash equivalents were $ 7.9 billion and $ 8.0 billion as of March 31, 2025 and June 30, 2024, respectively, and are classified as Level 1 within the fair value hierarchy.

There were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during the periods presented.

Cash equivalents were $ 9.9 billion and $ 8.3 billion as of September 30, 2025 and June 30, 2025, respectively, and are classified as Level 1 within the fair value hierarchy.

The Company had no other material investments in debt or equity securities during the periods presented.

The fair value of long-term debt was $ 27.9 billion and $ 27.7 billion as of March 31, 2025 and June 30, 2024, respectively.

This includes the current portion of long-term debt instruments ($ 4.7 billion and $ 3.8 billion as of March 31, 2025 and June 30, 2024, respectively).

The fair value of long-term debt was $ 29.6 billion and $ 29.5 billion as of September 30, 2025 and June 30, 2025, respectively.

This includes the current portion of long-term debt instruments ($ 6.0 billion and $ 5.3 billion as of September 30, 2025 and June 30, 2025, respectively).

Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value.

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Fair values are generally estimated based on quoted market prices for identical or similar instruments.

Amounts in millions of dollars except per share amounts or as otherwise specified.

10 The Procter & Gamble Company

Disclosures about Financial Instruments

The notional amounts and fair values of financial instruments used in hedging transactions as of March 31, 2025 and June 30, 2024, are as follows:

The notional amounts and fair values of financial instruments used in hedging transactions as of September 30, 2025 and June 30, 2025, are as follows:

Notional Amount Fair Value Asset Fair Value (Liability)

March 31, 2025 June 30, 2024 March 31, 2025 June 30, 2024 March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025 September 30, 2025 June 30, 2025 September 30, 2025 June 30, 2025

DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS

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The fair value of the interest rate derivative asset/(liability) directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation.

The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $ 2.8 billion and $ 2.7 billion as of March 31, 2025 and June 30, 2024, respectively.

The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $ 3.1 billion as of September 30, 2025 and June 30, 2025.

In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges.

The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $ 10.9 billion and $ 11.9 billion as of March 31, 2025 and June 30, 2024, respectively.

The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $ 11.2 billion as of September 30, 2025 and June 30, 2025.

The increase in notional balance of the derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market.

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If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements.

The aggregate fair value of the instruments covered by these contractual features that are in a liability position was $ 269 and $ 307 as of March 31, 2025 and June 30, 2024, respectively.

The aggregate fair value of the instruments covered by these contractual features that are in a liability position was $ 772 and $ 1.1 billion as of September 30, 2025 and June 30, 2025, respectively.

The Company has not been required to post collateral as a result of these contractual features.

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 11

Before tax gains and losses on our financial instruments in hedging relationships are categorized as follows:

Amount of Gain/(Loss) Recognized in OCI on Derivatives

Three Months Ended March 31 Nine Months Ended March 31

2025 2024 2025 2024

Three Months Ended September 30

DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2)

Foreign currency interest rate contracts $ 14 $ ( 501 )

(1) For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $ 60 and $ 53 for the three months ended March 31, 2025 and 2024, respectively.

The amount of gain excluded from effectiveness testing was $ 167 and $ 182 for the nine months ended March 31, 2025 and 2024, respectively.

(1) For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $ 71 and $ 50 for the three months ended September 30, 2025 and 2024, respectively.

(2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges.

The amount of gain/(loss) recognized in Accumulated other comprehensive income (AOCI) for such instruments was $( 436 ) and $ 262 for the three months ended March 31, 2025 and 2024, respectively.

The amount of gain/(loss) recognized in AOCI for such instruments was $( 221 ) and $ 102 for the nine months ended March 31, 2025 and 2024, respectively.

The amount of gain/(loss) recognized in Accumulated other comprehensive income (AOCI) for such instruments was $ 30 and $( 611 ) for the three months ended September 30, 2025 and 2024, respectively.

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 11

Amount of Gain/(Loss) Recognized in Earnings

Three Months Ended March 31 Nine Months Ended March 31

2025 2024 2025 2024

Three Months Ended September 30

DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS

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Foreign currency contracts $ ( 6 ) $ 126

The gains/(losses) on the derivatives in fair value hedging relationships are fully offset by the mark-to-market impact of the related exposure.

The gains on the derivatives in fair value hedging relationships are fully offset by the mark-to-market impact of the related exposure.

These are both recognized in Interest expense.

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OCI attributable to noncontrolling interests, net of tax — — ( 6 ) ( 6 )

Balance at March 31, 2025, net of tax $ 13 $ 574 $ ( 11,894 ) $ ( 11,307 )

The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings:

BALANCE AT SEPTEMBER 30, 2025, NET OF TAX $ 7 $ ( 774 ) $ ( 11,389 ) $ ( 12,156 )

Foreign currency translation includes financial statement translation and changes in fair value of net investment hedges (see Note 7).

Postretirement benefit plan amounts are reclassified from AOCI into Other non-operating income/(expense), net and included in the computation of net periodic postretirement costs.

• Foreign currency translation amounts are reclassified from AOCI into Other non-operating income/(expense), net.

These amounts relate to accumulated foreign currency translation losses recognized due to the substantial liquidation of operations in Argentina recorded in the period ended September 30, 2024.

Commitments and Contingencies

We are subject, from time to time, to certain legal proceedings and claims arising out of our business, which cover a wide range of matters, including antitrust and trade regulation, product liability, advertising, contracts, environmental, patent and trademark

Amounts in millions of dollars except per share amounts or as otherwise specified.

12 The Procter & Gamble Company

matters, labor and employment matters and tax.

While considerable uncertainty exists, in the opinion of management and our counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows.

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Based on information currently available, we anticipate over the next 12-month period, audit activity could be completed related to uncertain tax positions in multiple jurisdictions for which we have accrued liabilities of approximately $ 132 , including interest and penalties.

Amounts in millions of dollars except per share amounts or as otherwise specified.

12 The Procter & Gamble Company

Additional information on the Commitments and Contingencies of the Company can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

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All outstanding amounts related to suppliers participating in SCF are recorded within Accounts payable in our Consolidated Balance Sheets, and the associated payments are included in operating activities within our Consolidated Statements of Cash Flows.

The amount due to suppliers participating in SCF and included in Accounts payable was approximately $ 5.6 billion as of March 31, 2025 and June 30, 2024.

The amount due to suppliers participating in SCF and included in Accounts payable was approximately $ 5.9 billion as of September 30, 2025 and $ 5.8 billion as of June 30, 2025.

Restructuring Program

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Consistent with our historical policies for restructuring-type activities, the restructuring program charges will be funded by and included within Corporate for management and segment reporting.

In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions.

During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded approximately $ 0.8 billion after tax of incremental charges, comprised primarily of non-cash charges for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss).

The total incremental restructuring charges incurred under the program beginning in the three-month period ended December 31, 2023, through the three-month period ended September 30, 2024, were approximately $ 1.2 billion after tax.

For the three months ended March 31, 2025, the Company incurred total before tax charges of $ 55 including $ 23 in Costs of products sold, $ 26 in SG&A and $ 6 in Other non-operating income/(expense).

For the nine months ended March 31, 2025, the Company incurred charges of $ 987 including $ 91 in Costs of products sold, $ 105 in SG&A and $ 791 in Other non-operating income/(expense).

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 13

The following table presents restructuring activity for the nine months ended March 31, 2025:

Separation Costs Asset-Related Costs Other Costs Total

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness.

The Company expects to incur approximately $ 1.5 to $ 2.0 billion in before-tax restructuring costs over two years .

The Company expects to incur half of the costs under this plan by the end of fiscal 2026, with the remainder incurred in fiscal 2027.

The restructuring activities will be executed across the Sector Business Units as well as the Enterprise Markets, Corporate Functions and Global Business Services.

These restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027.

In addition, the plan includes brand and market exits as well as the optimization of the supply chain and other manufacturing processes.

Costs incurred under the plan will consist primarily of costs to separate employees and asset-related costs to exit facilities.

The Company will also incur other types of costs outlined below as a direct result of the plan.

For the three months ended September 30, 2025, the Company incurred total before tax charges of $ 215 including $ 100 in Costs of products sold, $ 106 in SG&A and $ 9 in Other non-operating income/(expense), net.

The following table presents restructuring activity for the three months ended September 30, 2025:

Separations Asset Related Costs Other Total

RESERVE JUNE 30, 2025 $ 120 $ — $ 69 $ 189

Costs incurred for the six months ended December 31, 2024 41 39 853 933

Costs incurred for the three months ended March 31, 2025 27 8 19 55

Costs incurred for the nine months ended March 31, 2025 68 47 872 987

Costs paid/settled for the nine months ended March 31, 2025 ( 126 ) ( 47 ) ( 842 ) ( 1,016 )

RESERVE MARCH 31, 2025 $ 75 $ — $ 62 $ 138

Costs incurred for the three months ended September 30, 2025 124 27 65 215

Costs paid/settled for the three months ended September 30, 2025 ( 62 ) ( 27 ) ( 42 ) ( 131 )

RESERVE SEPTEMBER 30, 2025 $ 182 $ — $ 91 $ 273

Separation Costs

5 unchanged sentences

Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period.

Amounts in millions of dollars except per share amounts or as otherwise specified.

The Procter & Gamble Company 13

Other restructuring-type charges are incurred as a direct result of the restructuring plan.

Such charges include accumulated foreign currency translation losses, asset removal and termination of contracts.

Such charges include asset removal and termination of contracts related to supply chain redesign.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements