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Item 2. Management’s Discussion and Analysis

2025-10-24 compared with 2025-04-24 · 193 added, 375 removed, 264 unchanged (68% of the section changed)

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Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward-looking statements may appear throughout this report, including without limitation, the following sections:

Forward-looking statements may appear throughout this report, including without limitation, in the following sections:

“Management's Discussion and Analysis,” “Risk Factors” and "Notes 4 and 9 to the Consolidated Financial Statements." These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions.

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Risks and uncertainties to which our forward-looking statements are subject include, without limitation:

(1) the ability to successfully manage global financial risks, including foreign currency fluctuations, currency exchange, pricing controls or tariffs;

(1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, or pricing controls and tariffs;

(2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments;

(3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, sanctions, tariffs or other trade controls;

(4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating;

(5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks;

(6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare;

(6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pensions and healthcare;

(7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products;

(8) the ability to manage and maintain key customer relationships;

(9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices or similar matters that may arise;

(10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners;

(11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such

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

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systems, networks and services and the data contained therein;

(11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein;

(12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns;

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(15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited;

(16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws and regulations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity and data protection, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates;

(16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates;

(17) the ability to manage changes in applicable tax laws and regulations;

and (18) the ability to successfully achieve our ambition of reducing our greenhouse gas emissions and delivering progress towards our environmental sustainability priorities.

and (18) the ability to continue delivering progress towards our environmental sustainability ambitions.

A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from those projected herein is included in the section titled "Economic Conditions and Uncertainties" and the section titled "Risk Factors" (Part II, Item 1A) of this Form 10-Q.

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The purpose of Management's Discussion and Analysis (MD&A) is to provide an understanding of Procter & Gamble's financial condition, results of operations and cash flows by focusing on changes in certain key measures from year to year.

The MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and accompanying Notes.

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

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MD&A is provided as a supplement to, and should be read in conjunction with, our Consolidated Financial Statements and accompanying Notes.

The MD&A is organized in the following sections:

• Summary of Results – Nine Months Ended March 31, 2025

• Summary of Results – Three Months Ended September 30, 2025

• Economic Conditions and Uncertainties

• Results of Operations – Three and Nine Months Ended March 31, 2025

• Segment Results – Three and Nine Months Ended March 31, 2025

• Results of Operations – Three Months Ended September 30, 2025

• Segment Results – Three Months Ended September 30, 2025

• Liquidity and Capital Resources

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Organic volume growth reflects year-over-year changes in unit volume excluding the impacts of acquisitions and divestitures and certain one-time items, if applicable, and is used to explain changes in organic sales.

Certain columns and rows may not add due to rounding.

In the presentation of data in tables or other charts, certain columns and rows may not add due to rounding.

P&G is a global leader in the fast-moving consumer goods industry, focused on providing branded consumer packaged goods of superior quality and value to our consumers around the world.

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In many of the markets and industry segments in which we sell our products, we compete against other branded products as well as retailers' private-label brands.

The Procter & Gamble Company 15

Additionally, many of the product segments in which we compete are differentiated by price tiers (referred to as super-premium, premium, mid-tier and value-tier products).

We believe we are well positioned in the industry segments and markets in which we operate, often holding a leadership or significant market share position.

The Procter & Gamble Company 15

The table below lists our reportable segments, including the product categories and brand composition within each segment.

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Throughout the MD&A, we reference business results by region, which are comprised of North America, Europe, Greater China, Latin America, Asia Pacific and India, Middle East and Africa (IMEA).

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three and nine months ended March 31, 2025:

Three Months Ended March 31, 2025 Nine Months Ended March 31, 2025

Net Sales Net Earnings Net Sales Net Earnings

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three months ended September 30, 2025:

Three Months Ended September 30, 2025

Net Sales Net Earnings

Beauty 19 % 19 %

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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.

Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included

Focused Portfolio, Supply Chain and Productivity Plan

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 a two-year period.

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

16 The Procter & Gamble Company

within Corporate for segment reporting.

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.

Consistent with our historical policies for ongoing restructuring-type activities, resulting charges were funded by and included within Corporate for segment reporting.

Restructuring charges above the normal ongoing level of restructuring costs are reported as non-core charges.

For more details on the restructuring program, refer to Note 11 to the Consolidated Financial Statements.

SUMMARY OF RESULTS – Nine Months Ended March 31, 2025

The following are highlights of results for the nine months ended March 31, 2025, versus the nine months ended March 31, 2024:

• Net sales were $63.4 billion, a decrease of $112 million versus the prior year period.

Net sales increased low single digits in Health Care, and decreased low single digits in Baby, Feminine & Family Care and Beauty.

Net sales in Grooming and Fabric & Home Care were unchanged.

Glad Joint Venture Agreement

The Company and The Clorox Company (Clorox) have jointly decided not to renew the Glad joint venture agreement.

Under the terms of the agreement, Clorox will purchase the Company’s minority interest in the venture at fair market value as of the agreement termination in January 2026.

Subject to market conditions and the parties' negotiations with respect to fair market value, the Company expects to receive cash proceeds of approximately $500 million and record an after-tax gain in the range of $250 to $300 million in the third quarter of the fiscal year ended June 30, 2026.

SUMMARY OF RESULTS – Three Months Ended September 30, 2025

The following are highlights of results for the three months ended September 30, 2025, versus the three months ended September 30, 2024:

• Net sales were $22.4 billion, an increase of $649 million, or 3%, versus the prior year period.

Net sales increased mid-single digits in Beauty and Grooming and low single digits in Health Care, Baby, Feminine & Family Care and Fabric & Home Care.

Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 2%.

Organic sales increased low single digits in Health Care, Grooming, Fabric & Home Care, Beauty and Baby, Feminine & Family Care.

• Net earnings were $12.4 billion, an increase of $609 million, or 5%, versus the prior year period due to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, partially offset by higher restructuring charges in the current year of $0.8 billion after tax related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina.

Organic sales increased mid-single digits in Beauty and low single digits in Grooming and Health Care.

Organic sales in Fabric & Home Care and Baby, Feminine & Family Care were unchanged.

• Net earnings were $4.8 billion, an increase of $794 million, or 20%, versus the prior year period due primarily to higher restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina in the prior year period.

• Net earnings attributable to Procter & Gamble were $4.8 billion, an increase of $791 million, or 20%, versus the prior year period.

• Diluted EPS increased 21% to $1.95 due to the increase in net earnings.

Core EPS, which excludes incremental restructuring charges and the prior year Gillette intangible asset impairment charge, increased 3% to $5.35.

Core EPS, which excludes incremental restructuring charges, increased 3% to $1.99.

• Operating cash flow was $5.4 billion.

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Tax Act, was $4.9 billion.

Adjusted free cash flow productivity, which is defined as adjusted free cash flow as a percentage of net earnings excluding a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina, was 80%.

Adjusted free cash flow productivity, which is defined as adjusted free cash flow as a percentage of net earnings, was 102%.

ECONOMIC CONDITIONS AND UNCERTAINTI ES

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As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies.

We are exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs (including any such tariffs between the U.S.

and China or the U.S.

and Canada), foreign exchange and interest rate changes.

These risks can negatively impact our net sales, net earnings and cash flows.

For example, we are exposed to risks due to the ongoing war between Russia and Ukraine.

Our Russia business accounted for less than 2% of consolidated net sales and net earnings in the fiscal year ended June 30, 2024 and less than 2% of net assets as of June 30, 2024.

Our Russia business accounted for 1% of consolidated net sales, net earnings and net assets as of June 30, 2025.

Foreign Exchange.

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Legal or regulatory requirements and sustainability initiatives may result in increased costs.

We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and general overhead and workforce optimization.

We strive to implement, achieve and sustain cost improvement plans, including supply chain optimization and

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general overhead and workforce optimization.

Increased pricing in response to certain inflationary or cost increases may also offset portions of the cost impacts;

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These include tax policy changes (both U.S.

and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on

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"Addressing the Challenges of the Digitalization of the Economy”.

and foreign), including those resulting from the current work being led by the OECD/G20 Inclusive Framework focused on "Addressing the Challenges of the Digitalization of the Economy”.

Government controls such as currency exchanges, pricing and import authorizations as well as government policies related to environmental and climate change matters and changes to international trade agreements, including tariffs, can also impact our financial performance.

For additional information on risk factors that could impact our business results, please refer to Risk Factors in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended June 30, 2025.

RESULTS OF OPERATIONS – Three Months Ended March 31, 2025

The following discussion provides a review of results for the three months ended March 31, 2025, versus the three months ended March 31, 2024.

Three Months Ended March 31

RESULTS OF OPERATIONS – Three Months Ended September 30, 2025

The following discussion provides a review of results for the three months ended September 30, 2025, versus the three months ended September 30, 2024.

Three Months Ended September 30

Amounts in millions, except per share amounts 2025 2024 % Chg

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Core net earnings per common share 1.99 1.93 3%

Three Months Ended March 31

Three Months Ended September 30

COMPARISONS AS A PERCENTAGE OF NET SALES 2025 2024 Basis Pt Chg

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Net earnings attributable to Procter & Gamble 21.2 % 18.2 % 300

Net sales for the quarter decreased 2% to $19.8 billion.

The decrease in net sales was due to unfavorable foreign exchange of 2% and unit volume decline of 1%, partially offset by higher pricing of 1%.

Mix had a neutral impact on net sales.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 1% and organic volume was unchanged.

Net sales for the quarter increased 3% to $22.4 billion.

The increase in net sales was due to higher pricing of 1%, favorable mix of 1% and favorable foreign exchange of 1%.

Volume had a neutral impact on net sales.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2%.

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The following table summarizes key drivers of the change in net sales by reportable segment:

Net Sales Change Drivers 2025 vs.

2024 (Three Months Ended March 31) (1)

2024 (Three Months Ended September 30) (1)

Volume with Acquisitions & Divestitures Volume Excluding Acquisitions & Divestitures Foreign Exchange Price Mix Other (2)

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• 70 basis points of product and packaging investments,

18 The Procter & Gamble Company

• 30 basis points of higher commodity costs and

• 60 basis points of higher costs from tariffs,

• 20 basis points of unfavorable foreign exchange impacts,

• 20 basis points of higher restructuring costs and

• 10 basis points of higher commodity costs.

These impacts were partially offset by:

• 160 basis points of manufacturing productivity savings and

• 30 basis points of increase due to higher pricing.

Total SG&A spending decreased 6% to $5.5 billion versus the prior year period due to decreased marketing spending and overhead costs.

SG&A as a percentage of net sales decreased 120 basis points to 27.9% due to decreases in marketing spending and overhead costs as a percentage of net sales.

• 140 basis points of manufacturing productivity savings,

• 50 basis points of increase due to higher pricing and

• 20 basis points of other items and rounding.

Total SG&A spending increased 2% to $5.6 billion versus the prior year period due to increased marketing spending and overhead costs.

SG&A as a percentage of net sales decreased 20 basis points to 25.2% due to a decrease in marketing spending as a percentage of net sales.

Marketing spending as a percentage of net sales decreased 20 basis points due to productivity savings.

Overhead costs as a percentage of net sales decreased 70 basis points as wage inflation and foreign exchange headwinds were more than offset by productivity savings, which includes adjustments to expected variable compensation payouts.

Other operating expenses as a percentage of net sales decreased 20 basis points due to favorable foreign exchange impacts.

Overhead costs as a percentage of net sales were unchanged as wage inflation and foreign exchange headwinds were offset by productivity savings.

Other operating expenses as a percentage of net sales were unchanged.

Productivity-driven cost savings delivered 90 basis points of benefit to SG&A as a percentage of net sales.

Operating income increased $98 million, or 2%, to $4.6 billion and operating margin increased 90 basis points to 23.0% versus the prior year period primarily due to decreased marketing spending and overhead costs, partially offset by the decrease in gross margin, the components of which are described above.

Operating income increased $59 million, or 1%, to $5.9 billion and operating margin decreased 50 basis points to 26.2% versus the prior year period due to the decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales, the components of which are described above.

Non-Operating Expenses and Income

Interest expense was $197 million for the quarter, a decrease of $41 million versus the prior year period.

Interest income was $111 million for the quarter, an increase of $7 million versus the prior year period.

Other non-operating income/(expense) was $210 million, which is a decrease of $50 million versus the prior year period due to gains from the sale of minor brands in the prior year.

The effective income tax rate for the three months ended March 31, 2025, was 18.6%, compared to 17.7% for the three months ended March 31, 2024.

The increase in the effective tax rate was primarily driven by lower excess tax benefits of share-based compensation.

Net earnings were unchanged at $3.8 billion versus the prior year period due primarily to the increase in operating income, partially offset by the decrease in other non-operating income and the increase in the effective tax rate.

Foreign exchange had a negative impact of approximately $75 million on net earnings for the quarter, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S.

Net earnings attributable to Procter & Gamble were unchanged at $3.8 billion for the quarter.

Diluted EPS increased 1% to $1.54 versus the prior year period.

RESULTS OF OPERATIONS – Nine Months Ended March 31, 2025

The following discussion provides a review of results for the nine months ended March 31, 2025, versus the nine months ended March 31, 2024.

Nine Months Ended March 31

Amounts in millions, except per share amounts 2025

Net sales $ 63,395 $ 63,507 —%

Operating income 16,096 14,660 10%

Earnings before income taxes 15,646 14,891 5%

Net earnings 12,439 11,830 5%

Net earnings attributable to Procter & Gamble 12,359 11,742 5%

Diluted net earnings per common share 5.03 4.75 6%

Core net earnings per common share 5.35 5.19 3%

Nine Months Ended March 31

COMPARISONS AS A PERCENTAGE OF NET SALES 2025

Gross margin 51.8 % 52.0 % (20)

Selling, general & administrative expense 26.4 % 26.8 % (40)

Operating income 25.4 % 23.1 % 230

Earnings before income taxes 24.7 % 23.4 % 130

Net earnings 19.6 % 18.6 % 100

Net earnings attributable to Procter & Gamble 19.5 % 18.5 % 100

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Net sales for the period were $63.4 billion, a $112 million decline versus the prior year period as a 1% decline from unfavorable foreign exchange was partially offset by a 1% increase from higher pricing.

Volume and mix were unchanged.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% and organic volume increased 1%.

The following table summarizes key drivers of the change in net sales by reportable segment:

Net Sales Change Drivers 2025 vs.

2024 (Nine Months Ended March 31) (1)

Volume with Acquisitions & Divestitures Volume Excluding Acquisitions & Divestitures Foreign Exchange Price Mix Other (2)

Net Sales Growth

Beauty (1) % 1 % (1) % 2 % (2) % — % (2) %

Grooming 3 % 3 % (2) % 1 % (1) % (1) % — %

Health Care (1) % — % (1) % 1 % 3 % — % 2 %

Fabric & Home Care — % 1 % (1) % — % 1 % — % — %

Baby, Feminine & Family Care — % 1 % (1) % — % — % — % (1) %

Total Company — % 1 % (1) % 1 % — % — % — %

(1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.

(2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.

Operating Costs

Gross margin decreased 20 basis points to 51.8% of net sales for the period.

The decrease in gross margin was due to:

• 100 basis points of decline from unfavorable product mix,

• 40 basis points of product and packaging investments,

• 30 basis points of higher commodity costs,

• 20 basis points of higher transportation services and other costs and

• 10 basis points of unfavorable foreign exchange impacts.

These impacts were partially offset by:

• 160 basis points of manufacturing productivity savings and

• 20 basis points of increase due to higher pricing.

Total SG&A spending decreased 1% to $16.8 billion versus the prior year period due to higher foreign exchange transactional charges in the prior year period and decreased overhead costs.

SG&A as a percentage of net sales decreased 40 basis points to 26.4% due primarily to a decrease in other operating expenses as a percentage of sales.

Marketing spending as a percentage of net sales increased 10 basis points as the increase in marketing spending was partially offset by productivity savings.

Overhead costs as a percentage of net sales were unchanged as wage inflation was offset by productivity savings, which includes adjustments to expected variable compensation payouts.

Other operating expenses as a percentage of net sales decreased 40 basis points primarily driven by favorable foreign exchange impacts.

Productivity-driven cost savings delivered 100 basis points of benefit to SG&A as a percentage of net sales.

Operating income increased $1.4 billion, or 10%, to $16.1 billion and operating margin increased 230 basis points to 25.4% versus the prior year period due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year.

Non-Operating Expenses and Income

Interest expense was $695 million for the period, a decrease of $10 million versus the prior year period.

Interest income was $365 million for the period, a decrease of $1 million versus the prior year period.

Other non-operating income/(expense) was $(120) million, which is a decrease of $690 million versus the prior year period primarily due to the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the period ended September 30, 2024.

The effective income tax rate for the nine months ended March 31, 2025, was 20.5%, compared to 20.6% for the nine months ended March 31, 2024.

The decrease in the effective tax rate was primarily driven by higher excess tax benefits of share-based compensation, favorable geographic mix impacts and decreases from discrete impacts related to uncertain tax positions, partially offset by a 100 basis-point increase due primarily to the charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

Interest income was $108 million for the quarter, a decrease of $27 million versus the prior year period.

Other non-operating income/(expense) was $268 million, which is an increase of $822 million versus the prior year period due primarily to a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina in the prior year period.

The effective income tax rate for the three months ended September 30, 2025, was 20.8%, compared to 22.4% for the three months ended September 30, 2024.

The decrease in the effective tax rate was primarily driven by the prior year charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina of 300 basis points and discrete impacts related to uncertain tax positions, partially offset by a 200 basis-point increase due to lower excess tax benefits of share-based compensation in the current year.

Net earnings were $4.8 billion, an increase of $794 million, or 20%, versus the prior year period due to the increase in operating income, the increase in other non-operating income and the decrease in the effective tax rate.

Foreign exchange had a negative impact of approximately $4 million on net earnings for the quarter, including both transactional and translational impacts from

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Net earnings increased $609 million, or 5%, to $12.4 billion, as the increase in operating income, the components of which are described above, were partially offset by the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the period ended September 30, 2024.

Foreign exchange had a negative impact of approximately $58 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S.

Net earnings attributable to Procter & Gamble increased $617 million, or 5%, to $12.4 billion for the period.

Diluted EPS increased 6% to $5.03 versus the prior year period due to the increase in net earnings.

Core EPS, which represents diluted EPS excluding charges for incremental restructuring and the impairment of the Gillette intangible asset, increased 3% to $5.35.

SEGMENT RESULTS – Three and Nine Months Ended March 31, 2025

converting earnings from foreign subsidiaries to U.S.

Net earnings attributable to Procter & Gamble were $4.8 billion, an increase of $791 million, or 20%, for the quarter.

Diluted EPS increased 21% to $1.95 versus the prior year period.

SEGMENT RESULTS – Three Months Ended September 30, 2025

The following discussion provides a review of results by reportable business segment.

Analysis of the results for the three and nine months ended March 31, 2025, is provided based on a comparison to the three and nine months ended March 31, 2024.

Analysis of the results for the three months ended September 30, 2025, is provided based on a comparison to the three months ended September 30, 2024.

The primary financial measures used to evaluate segment performance are net sales and net earnings.

The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and nine months ended March 31, 2025, versus the comparable prior year period (dollar amounts in millions):

Three Months Ended March 31, 2025

Net Sales % Change Versus Year Ago Earnings/(Loss) Before Income Taxes % Change Versus Year Ago Net Earnings/(Loss) % Change Versus Year Ago

Beauty $ 3,490 (2) % $ 684 (9) % $ 539 (8) %

Grooming 1,505 (2) % 404 7 % 321 6 %

Health Care 2,880 — % 734 7 % 569 8 %

Fabric & Home Care 6,948 (3) % 1,642 (3) % 1,285 (1) %

Baby, Feminine & Family Care 4,755 (4) % 1,150 (11) % 880 (12) %

Corporate 198 N/A 48 N/A 200 N/A

Total Company $ 19,776 (2) % $ 4,661 2 % $ 3,793 — %

Nine Months Ended March 31, 2025

Net Sales % Change Versus Year Ago Earnings/(Loss) Before Income Taxes % Change Versus Year Ago Net Earnings/(Loss) % Change Versus Year Ago

The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three months ended September 30, 2025, versus the comparable prior year period (dollar amounts in millions):

Three Months Ended September 30, 2025

Net Sales % Change Versus Year Ago Earnings/(Loss) Before Income Taxes % Change Versus Year Ago Net Earnings % Change Versus Year Ago

Beauty $ 4,143 6 % $ 1,132 6 % $ 879 5 %

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Total Company $ 22,386 3 % $ 6,034 17 % $ 4,781 20 %

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Beauty net sales decreased 2% to $3.5 billion, as unfavorable foreign exchange of 3% and unfavorable geographic mix of 2% were partially offset by positive impacts of higher pricing of 3%.

Unit volume was unchanged.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2% and organic volume increased 1%.

Three months ended September 30, 2025, compared with three months ended September 30, 2024

Beauty net sales increased 6% to $4.1 billion, as a unit volume increase of 4%, the positive impacts of pricing of 2% and favorable foreign exchange of 1% were partially offset by unfavorable product mix of 1%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 6%.

Global market share of the Beauty segment decreased 0.5 points.

• Hair Care net sales decreased mid-single digits.

Negative impacts of unfavorable foreign exchange, divestitures and a unit volume decrease were partially offset by positive impacts of favorable product mix and higher pricing (primarily in Latin America and North America).

The volume decrease was driven by a decline in Greater China (due to market contraction and the impact of divestitures), partially offset by growth in Latin America and North America (both due to market growth).

Organic sales were unchanged as a high single-digit growth in Latin America and a mid-single-digit growth in North America were offset by a double-digit decline in Greater China.

• Hair Care net sales increased mid-single digits.

Positive impacts of an increase in unit volume, innovation-driven pricing (primarily in North America and Europe) and favorable foreign exchange were partially offset by unfavorable product and geographic mix.

The volume increase was driven by growth in Europe and Latin America (both due to innovation).

Organic sales increased low single digits due to double-digit growth in Europe and high single-digit growth in Latin America, partially offset by a low single-digit decline in North America.

Global market share of the Hair Care category decreased 1 point.

• Personal Care net sales increased high single digits.

Positive impacts of an increase in unit volume and higher pricing (primarily in North America) were partially offset by negative impacts from geographic mix and unfavorable foreign

The Procter & Gamble Company 21

The volume increase was driven by growth in Europe (due to distribution expansion and innovation), North America (due to innovation), and Latin America (due to market growth).

Organic sales increased high single digits due to a more than 20% growth in Europe, a mid-teens growth in Latin America and a high single-digit growth in North America.

Global market share of the Personal Care category increased 0.6 points.

• Skin Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, unfavorable foreign exchange and unfavorable geographic mix were partially offset by positive impacts from higher pricing (primarily in Greater China).

The volume decrease was driven by North America and Europe (both due to distribution losses).

Organic sales decreased low single digits due to a low teens decline in North America and a high single-digit decline in Asia Pacific, partially offset by a high single-digit growth in Greater China.

Global market share of the Skin Care category decreased 0.8 points.

Net earnings decreased 8% to $539 million due to a decrease in net sales and a 110 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales.

The gross margin decline was driven by unfavorable category and geographic mix, partially offset by increased productivity savings.

SG&A as a percentage of net sales increased due to increases in marketing, overhead spending and higher foreign exchange transactional charges.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Beauty net sales decreased 2% to $11.2 billion, driven by unfavorable mix of 2% (due primarily to the decline of the super-premium SK-II brand, which has higher than segment-average selling prices), unfavorable foreign exchange of 1% and a unit volume decrease of 1%, partially offset by the positive impacts of higher pricing of 2%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic volume and organic sales increased 1%.

Global market share of the Beauty segment decreased 0.2 points.

• Hair Care net sales decreased mid-single digits.

Negative impacts of divestitures, declining unit volume and unfavorable foreign exchange were partially offset by positive impacts of favorable product mix and higher pricing (primarily in Latin America and Europe).

The decline in unit volume was driven by a decline in Greater China (due to market contraction and the impact of divestitures), partially offset by growth in North America and Latin America (both due to market growth).

Organic sales increased low single digits due to a high single-digit growth in Latin America and a mid-single-digit growth in North America, partially offset by a double-digit decline in Greater China.

Global market share of the Hair Care category decreased 0.8 points.

• Personal Care net sales increased high single digits.

Positive impacts of an increase in unit volume and higher pricing (primarily in North America) were partially offset by unfavorable geographic mix and unfavorable foreign exchange.

The volume increase was driven by growth in North America (due to innovation), Europe (due to distribution expansion and innovation) and Latin America (due to market growth).

Organic sales increased double digits due to a more than 20% growth in Europe, a 20% growth in Latin America and a double-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

• Personal Care net sales increased double digits.

Positive impacts from an increase in unit volume, innovation-driven pricing (primarily in North America and Latin America) and favorable foreign exchange were partially offset by negative impacts from geographic mix.

The volume increase was across all regions, led by growth in North America, Greater China and Europe (all due to innovation).

Organic sales increased high single digits due to mid-teens growth in Europe and high single-digit growth in North America and Greater China.

Global market share of the Personal Care category increased 0.2 points.

• Skin Care net sales decreased double digits.

Negative impacts of a decrease in unit volume and unfavorable product mix (due primarily to the decline of the super-premium SK-II brand, which has higher than category-average selling prices), were partially offset by higher pricing (primarily in Greater China).

The volume decrease was driven by declines in all regions, led by North America (due to distribution losses) and Greater China (due to market contraction).

Organic sales decreased double digits due to a high-teens decline in North America, a mid-teens decline in Asia Pacific and a mid-single-digit decline in Greater China.

Global market share of the Skin Care category decreased 0.6 points

Net earnings decreased 11% to $2.2 billion due to a decrease in net sales and a 190 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and an increase in SG&A as a percentage of net sales.

The gross margin decline was driven by unfavorable product mix (due to the decline of the super-premium SK-II brand) and higher commodities, partially offset by increased productivity savings.

SG&A as a percentage of net sales increased due primarily to an increase in marketing and overhead spending.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Grooming net sales decreased 2% to $1.5 billion as the negative impacts from unfavorable foreign exchange of 4% and divestitures of 1% were partially offset by the positive impacts from higher pricing of 2% (driven primarily by Latin America, Europe and North America) and a unit volume increase of 1%.

The volume increase was driven by growth in IMEA (due to increased distribution) and Europe (due to market growth), partially offset by volume decline in Latin America (due to competitive activity).

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3% driven by high single-digit growth in IMEA and low single-digit growth in North America and Europe.

Global market share of the Grooming segment decreased 0.5 points.

Net earnings increased 6% to $321 million due to 160 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a decrease in SG&A as a percentage of net sales.

The gross margin

• Skin Care net sales increased mid-single digits.

Positive impacts from favorable product mix, higher pricing (primarily in North America) and favorable foreign exchange were partially offset by a decrease in unit volume.

The volume decrease was driven by Europe (due to distribution loss).

Organic sales increased mid-single digits due to high single-digit growth in Greater China and Asia Pacific.

Global market share of the Skin Care category decreased 1 point.

Net earnings increased 5% to $879 million due to an increase in net sales, partially offset by a 40 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin and a higher effective tax rate, partially offset by a decrease in SG&A as a percentage of net sales.

The gross margin decline of 80 basis points was driven by higher cost of tariffs, unfavorable category mix and higher commodity costs, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to the positive scale impacts of the net sales increase and a decrease in overhead spending.

The higher effective tax rate was driven by unfavorable geographic mix.

Three months ended September 30, 2025, compared with three months ended September 30, 2024

Grooming net sales increased 5% to $1.8 billion as innovation-driven pricing of 4% (primarily by North America and Europe), favorable foreign exchange of 2% and a unit volume increase of 1% were partially offset by the negative impacts of unfavorable product mix of 2%.

Unit volume increased as growth in Latin America (due to increased distribution) was partially offset by a decline in IMEA (due to competitive activity).

Excluding the impact of acquisitions and divestitures and foreign

20 The Procter & Gamble Company

improvement was primarily driven by increased productivity savings and increased pricing, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due primarily to a reduction in marketing spending.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Grooming net sales were unchanged at $5.0 billion as the benefits of a 3% increase in unit volume and higher pricing of 1% (driven primarily by Latin America and IMEA) were offset by unfavorable foreign exchange of 2%, unfavorable geographic mix of 1% and the negative impact from divestitures of 1%.

The volume increase was driven by growth in IMEA (due to increased distribution) and Europe (due to market growth).

Excluding the impact of acquisitions and divestitures and foreign exchange, Grooming organic sales increased 3% due to low-teens growth in IMEA, high single-digit growth in Asia Pacific and low single-digit growth in Europe.

Global market share of the Grooming segment increased 0.1 points.

Net earnings increased 4% to $1.2 billion due to a 90 basis-point increase in net earnings margin.

Net earnings margin increased due to a decrease in SG&A as a percentage of net sales, an increase in gross margin and a lower effective tax rate.

The gross margin increase was driven primarily by productivity savings, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period.

The lower effective tax rate was driven by favorable geographic mix.

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Health Care net sales were unchanged at $2.9 billion as the benefits of favorable product mix of 3% and higher pricing of 1% were offset by unfavorable foreign exchange impacts of 3% and a 1% decrease in unit volume.

exchange, organic sales increased 3% driven by high single-digit growth in Latin America and mid-single-digit growth in Europe, partially offset by low single-digit growth in North America.

Global market share of the Grooming segment decreased 0.8 points.

Net earnings increased 9% to $463 million due to an increase in net sales and a 80 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a decrease in SG&A as a percentage of net sales, partially offset by a higher effective tax rate.

The gross margin improvement of 10 basis points was primarily driven by increased pricing, partially offset by higher cost of tariffs and unfavorable product mix.

SG&A as a percentage of net sales decreased due to the positive scale impacts of the net sales increase and a decrease in marketing spending.

The higher effective tax rate was driven by unfavorable geographic mix.

Three months ended September 30, 2025, compared with three months ended September 30, 2024

Health Care net sales increased 2% to $3.2 billion as the benefits of favorable product mix of 2%, higher pricing of 1% and favorable foreign exchange impacts of 1% were partially offset by a 2% decline in unit volume.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 1%.

Global market share of the Health Care segment increased 0.3 points.

• Oral Care net sales decreased low single digits driven by a unit volume decline and negative impacts of unfavorable foreign exchange, partially offset by positive impacts of favorable product mix (due to growth of power brushes and premium paste, which have higher than category-average selling prices).

The unit volume decrease was due to declines in all regions, led by Greater China (due to market contraction and competitive activity) and IMEA (due to share losses).

Organic sales increased low single digits driven by a mid-single-digit increase in Europe, partially offset by a mid-teens decrease in Greater China.

Global market share of the Oral Care category increased 0.1 points.

• Personal Health Care net sales increased mid-single digits driven by a unit volume increase and the positive impact of higher pricing (driven by Latin America and Europe), partially offset by the negative impact of unfavorable foreign exchange.

The unit volume increase was primarily due to growth in North America (due to the later peak in the respiratory season) and IMEA (due to innovation).

Organic sales increased high single digits driven by low-teens growth in Latin America and high single-digit growth in North America.

Global market share of the Personal Health Care category increased 0.4 points.

Net earnings increased 8% to $569 million due to a 140 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin, a decrease in SG&A as a percentage of net sales and a lower effective tax rate.

The gross margin increase was driven primarily by productivity savings and higher pricing, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to a decline in marketing spending.

The lower effective tax rate was driven by favorable geographic mix.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Health Care net sales increased 2% to $9.3 billion driven by favorable geographic and product mix of 3% and higher pricing of 1%, partially offset by unfavorable foreign exchange of 1% and a 1% decrease in unit volume.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3% and organic volume was unchanged.

Global market share of the Health Care segment increased 0.2 points.

• Oral Care net sales increased low single digits due to the positive impacts of favorable product mix (due to growth of premium paste and power brushes, which have higher than category-average selling prices), partially offset by a decline in unit volume and unfavorable foreign exchange.

The unit volume decrease was due to a decline in Greater China (due to market contraction and increased competitive activity) and IMEA (due to share losses), partially offset by growth in North America (due to market growth and innovation).

Organic sales also increased low single digits due to a high single-digit increase in Europe and a low single-digit increase in North America, partially offset by mid-teens decreases in Greater China and IMEA.

Global market share of the Oral Care category increased 0.1 points.

• Personal Health Care net sales increased low single digits due to a unit volume increase and the positive impacts of higher pricing (driven by Latin America and Europe) and favorable geographic mix, partially offset by the negative impacts of unfavorable foreign exchange.

The increase in unit volume was driven by growth in North America (due to distribution gains), partially offset by a decline in IMEA (due to market contraction and increased competitive activity).

Organic sales increased mid-single digits due to a high single-digit growth in Latin America and a mid-single-digit growth in both North America and Europe.

• Oral Care net sales increased low single digits driven by positive impacts of favorable product mix (due to growth of power brushes and premium paste, which have higher than category-average selling prices) and favorable foreign exchange, partially offset by a unit volume decline.

Unit volume decreased across all regions (due to market contraction and increased competitive activity) except unit volume increased in Latin America (due to distribution gains).

Organic sales were unchanged as low single-digit increases in North America and Latin America were fully offset by a double-digit decrease in Asia Pacific and a high single-digit decrease in Greater China.

Global market share of the Oral Care category decreased 0.3 points.

• Personal Health Care net sales increased low single digits driven by positive impacts of higher pricing (driven by Latin America and North America) and favorable foreign exchange, partially offset by a unit volume decrease.

The unit volume decrease was driven by a decline in North America (due to a shift in customer order timing ahead of the respiratory season), partially offset by a unit volume increase in IMEA (due to innovation).

Organic sales increased low single digits driven by a mid-teens increase in Latin America and a mid-single-digit increase in Europe, partially offset by a mid-single-digit decline in North America.

Global market share of the Personal Health Care category increased 0.5 points.

The Procter & Gamble Company 23

Net earnings increased 7% to $2.1 billion due to net sales growth and a 110 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a decrease in SG&A as a percentage of net sales.

The gross margin increase was driven by productivity savings, partially offset by unfavorable geographic mix.

SG&A as a percentage of net sales decreased due to decreased marketing spending.

Net earnings decreased 3% to $718 million due to a 120 basis-point decrease in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales.

The gross margin decrease of 170 basis points was driven primarily by unfavorable geographic mix and higher cost of tariffs, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to the positive scale impacts of the net sales increase.

Fabric & Home Care

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Fabric & Home Care net sales decreased 3% to $6.9 billion driven by unfavorable foreign exchange of 2% and a unit volume decrease of 1%.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales and organic volume were unchanged.

Global market share of the Fabric & Home Care segment increased 0.1 points.

• Fabric Care net sales decreased low single digits driven by unfavorable foreign exchange.

Unit volume was unchanged as growth in Latin America (due to market growth) and IMEA (due to market growth) was offset by a decline in North America (due to retail inventory reduction).

Organic sales were unchanged as the impact of a mid-single-digit growth in Latin America and a low single-digit growth in Europe was offset by the impact of a high single-digit decline in IMEA and a low single-digit decline in North America.

Three months ended September 30, 2025, compared with three months ended September 30, 2024

Fabric & Home Care net sales increased 1% to $7.8 billion driven by favorable foreign exchange of 2% and the benefits of higher pricing of 1%, partially offset by a unit volume decrease of 2%.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales were unchanged.

Global market share of the Fabric & Home Care segment decreased 0.4 points.

• Fabric Care net sales were unchanged as positive impacts from favorable foreign exchange were fully offset by negative impacts from a unit volume decrease.

The unit volume decrease was driven by a decline in Europe (due to increased competitive activity), partially offset by an increase in Asia Pacific and Latin America (both due to market growth).

Organic sales decreased low single digits driven by a double-digit decline in Europe, partially offset by a low single-digit increase in North America.

Global market share of the Fabric Care category decreased 0.9 points.

• Home Care net sales decreased low single digits driven by a unit volume decrease and unfavorable foreign exchange, partially offset by favorable premium product mix.

The decrease in volume was due primarily to a decline in Europe (due to increased competitive activity).

Organic sales decreased low single digits driven by a low single-digit decline in Europe, partially offset by a low single-digit growth in North America.

• Home Care net sales increased low single digits driven by the positive impacts of higher pricing (primarily in North America and Europe) and favorable foreign exchange, partially offset by a decrease in unit volume.

The decrease in volume was due primarily to a decline in Europe (due to increased competitive activity), partially offset by an increase in North America (due to innovation).

Organic sales increased low single digits driven by a low single-digit increase in North America, partially offset by a high single-digit decrease in Asia Pacific.

Global market share of the Home Care category increased 0.4 points.

Net earnings decreased 1% to $1.3 billion as the decrease in net sales was partially offset by a 40 basis-point increase in net

earnings margin.

Net earnings margin increased due to a decrease in SG&A as a percentage of net sales and a lower effective tax rate, partially offset by a decrease in gross margin.

The gross margin decrease was driven by unfavorable geographic and product mix, partially offset by productivity savings.

Net earnings decreased 3% to $1.6 billion due to a 70 basis-point decrease in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales.

The gross margin decrease of 130 basis points was driven by unfavorable product mix, higher cost of tariffs and higher commodities, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to a decrease in marketing spending.

The lower effective tax rate was driven by favorable geographic mix.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Fabric & Home Care net sales were unchanged at $22.2 billion as favorable product mix of 1% was offset by unfavorable foreign exchange of 1%.

Unit volume was unchanged.

Excluding the impact of foreign exchange and acquisitions and divestitures, organic sales increased 2% and organic volume increased 1%.

Global market share of the Fabric & Home Care segment increased 0.1 points.

• Fabric Care net sales decreased low single digits driven by an unfavorable foreign exchange impact, partially offset by the positive impact of favorable premium product mix.

Unit volume was unchanged as growth in Europe (due to innovation) and North America (due to market growth) was offset by declines in Latin America and Asia Pacific (both due to share losses).

Organic sales increased low single digits driven by a mid-single-digit increase in Europe and a low single-digit increase in North America, partially offset by a double-digit decrease in IMEA.

Global market share of the Fabric Care category decreased 0.1 points.

• Home Care net sales increased low single digits driven by a unit volume increase and favorable premium product mix, partially offset by the impact of unfavorable foreign exchange.

The increase in volume was driven by growth in North America (due to innovation).

Organic sales increased low single digits driven by mid-single-digit growth in North America and low single-digit growth in Europe.

Global market share of the Home Care category increased 0.4 points.

Net earnings increased 1% to $4.5 billion due to a 10 basis-point increase in net earnings margin.

Net earnings margin increased due to an increase in gross margin and a lower effective tax rate, partially offset by an increase in SG&A as a percentage of net sales.

The gross margin increase was driven by increased productivity savings, partially offset by unfavorable geographic and product mix.

SG&A as a percentage of net sales increased due to an increase in marketing and overhead spending, partially offset by higher foreign exchange transactional charges in the prior year period.

The lower effective tax rate was driven by favorable geographic mix.

Baby, Feminine & Family Care

Three months ended March 31, 2025, compared with three months ended March 31, 2024

Baby, Feminine & Family Care net sales decreased 4% to $4.8 billion driven by a 2% decrease in unit volume and a 2% decline from unfavorable foreign exchange, partially offset by favorable geographic and product mix of 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales decreased 1%.

Global market share of the Baby, Feminine & Family Care segment decreased 0.3 points.

• Baby Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, unfavorable foreign exchange and divestitures were partially offset by positive impacts of favorable geographic and product mix (due to a higher proportion of premium diapers, which have higher than category-average selling prices).

The unit volume decline was driven by IMEA (due to competitive activity), North America (due to distribution loss and competitive activity) and

The Procter & Gamble Company 21

Latin America (due to the impact of divestitures and pricing).

Organic sales decreased low single digits driven by a low-teens decline in Asia Pacific and a double-digit decline in IMEA, partially offset by a low-teens increase in Greater China.

Global market share of the Baby Care category decreased 0.1 points.

• Feminine Care net sales decreased low single digits driven by a unit volume decline and negative impacts of unfavorable foreign exchange, partially offset by positive impacts of favorable geographic mix.

The unit volume decrease was primarily driven by declines in Greater China (due to market contraction and competitive activity) and Latin America (due to share losses), partially offset by growth in North America (due to market growth).

Organic sales were unchanged as the impact of a mid-single-digit growth in North America was offset by double-digit declines in Greater China and Latin America.

Global market share of the Feminine Care category decreased 0.3 points.

• Net sales in Family Care, which is predominantly a North America business, decreased low single digits driven by a decrease in unit volume (due to retail inventory reduction and competitive activity), lower pricing (due to merchandising investments) and unfavorable product mix (due to growth of larger pack sizes, with lower than category-average selling prices).

Organic sales also decreased low single digits.

North America market share of the Family Care category decreased 0.4 points.

Net earnings decreased 12% to $880 million due to a decrease in net sales and a 170 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decline in gross margin and an increase in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable category mix.

SG&A as a percentage of net sales increased due to the negative scale effects of the net sales decrease.

Nine months ended March 31, 2025, compared with nine months ended March 31, 2024

Baby, Feminine & Family Care net sales decreased 1% to $15.2 billion driven by unfavorable foreign exchange of 1%.

Baby, Feminine & Family Care

Three months ended September 30, 2025, compared with three months ended September 30, 2024

Baby, Feminine & Family Care net sales increased 1% to $5.2 billion driven by favorable foreign exchange of 1%.

Unit volume was unchanged.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales and organic volume increased 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales were unchanged.

Global market share of the Baby, Feminine & Family Care segment decreased 0.3 points.

• Baby Care net sales decreased mid-single digits.

Negative impacts of a decrease in unit volume, lower pricing (driven by investments in North America and Europe), unfavorable foreign exchange and divestitures were partially offset by favorable geographic and product mix (due to a higher proportion of premium diapers, which have higher than category-average selling prices).

The unit volume decline was across most regions led by IMEA (due to competitive activity), Asia Pacific (due to market contraction) and Latin America (due to the impact of divestitures).

Organic sales decreased low single digits primarily driven by a double-digit decline in IMEA and a mid-single-digit decline in Europe.

Global market share of the Baby Care category decreased 0.2 points.

• Feminine Care net sales were unchanged.

Positive impacts of favorable geographic mix were offset by negative impacts of a decrease in unit volume and unfavorable foreign exchange.

Organic sales increased low single digits driven by a mid-single-digit growth in North America, partially offset by a mid-single-digit decline in Greater China.

Global market share of the Feminine Care category decreased 0.4 points.

• Net sales in Family Care, which is predominantly a North America business, increased low single digits driven by an increase in unit volume (due to retail inventory build, partially offset by competitive activity), partially offset by lower pricing (due to merchandising investments).

Excluding the impact of foreign exchange, organic sales increased mid-single digits.

• Baby Care net sales increased low single digits driven by the positive impacts of favorable foreign exchange, premium product mix and an increase in unit volume.

The unit volume increase was driven by Greater China and Europe (both due to distribution gains), partially offset by a unit volume decrease in North America (due to competitive activity).

Organic sales increased low single digits driven by a 20% increase in Greater China and a mid-single-digit increase in Latin America, partially offset by a low single-digit decline in North America.

Global market share of the Baby Care category increased 0.1 points.

• Feminine Care net sales increased low single digits driven by positive impacts of premium product mix, favorable foreign exchange and innovation-driven pricing (primarily in North America), partially offset by a unit volume decline.

The unit volume decrease was driven by declines in IMEA (due to distribution losses) and Greater China (due to market contraction).

Organic sales were unchanged as the impact of a low single-digit growth in North America was offset by a high single-digit decline in IMEA and a low single-digit decline in Europe.

Global market share of the Feminine Care category increased 0.1 points.

• Net sales in Family Care, which is predominantly a North America business, decreased low single digits driven by lower pricing (due to merchandising investments).

Unit volume was unchanged.

Organic sales also decreased low single digits.

North America market share of the Family Care category decreased 0.8 points.

Net earnings decreased 3% to $3.1 billion due to a decrease in net sales and a 60 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin, partially offset by a decrease in SG&A as a percentage of net sales.

Gross margin decreased primarily due to higher commodity costs and unfavorable category mix, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to higher foreign exchange transactional charges in the prior year period and a reduction in marketing spending.

Net earnings increased 4% to $1.1 billion due to an increase in net sales and a 50 basis-point increase in net earnings margin.

Net earnings margin increased due to a decrease in SG&A as a percentage of net sales, partially offset by an increase in the effective tax rate and a decrease in gross margin.

The gross margin decrease of 10 basis points was primarily due to unfavorable category mix and higher cost of tariffs, partially offset by productivity savings and lower commodity costs.

SG&A as a percentage of net sales decreased primarily due to a decrease in marketing spending.

The higher effective tax rate was driven by unfavorable geographic mix.

Corporate includes certain operating and non-operating activities not allocated to specific business segments.

These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization.

These include but are not limited to incidental businesses managed at the corporate level, gains and losses related to certain divested brands or businesses, impacts from various financing and investing activities, certain impacts related to employee benefits, asset impairments and restructuring activities including manufacturing and workforce optimization.

Corporate also includes reconciling items to adjust the accounting policies used within the reportable segments to U.S.

The most notable ongoing reconciling item is income taxes, which adjusts the blended statutory rates that are reflected in the reportable segments to the overall Company effective tax rate.

For the three months ended March 31, 2025, Corporate net sales increased $70 million to $198 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $132 million to $200 million for the quarter due primarily to adjustments to expected variable compensation payouts.

The Procter & Gamble Company 25

For the nine months ended March 31, 2025, Corporate net sales increased $122 million to $520 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $783 million to a loss of $531 million due primarily to the non-cash impairment charge of $1.3 billion ($1.0 billion after tax) on the Gillette intangible asset in the prior year, partially offset by incremental restructuring charges in the current year, comprised primarily of accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

For the three months ended September 30, 2025, Corporate net sales increased $79 million to $242 million due to an increase in net sales of incidental businesses managed at the corporate level.

Corporate net earnings increased $743 million to $36 million for the quarter due primarily to restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina, in the prior year period.

LIQUIDITY & CAPITAL RESOURCES

Operating Activities

Operating cash flow was $12.8 billion fiscal year to date, a decrease of $1.3 billion versus the prior year period.

Net earnings, adjusted for non-cash items (depreciation and amortization, share-based compensation expense, deferred income taxes and loss on sale of assets), generated $15.9 billion of operating cash flow.

Working capital and other impacts used $3.1 billion of cash in the period primarily driven by the payment of the transitional tax related to the U.S.

Tax Act, a reduction in postretirement benefit and compensation accruals, a reduction in accrued marketing expense and a reduction in accounts payable.

Operating cash flow was $5.4 billion fiscal year to date, an increase of $1.1 billion versus the prior year period.

Net earnings, adjusted for non-cash items (depreciation and amortization, share-based compensation expense, deferred income taxes and gain/loss on sale of assets), generated $5.7 billion of operating cash flow.

Working capital and other impacts consumed $304 million of cash in the period.

Accounts receivable increased, consuming $305 million of cash, driven primarily by sales growth.

Days sales outstanding were flat.

Days inventory on hand increased by four days driven by higher inventory for new product initiatives and increased safety stock levels.

Total inventories increased, consuming $303 million of cash, driven primarily by increased safety stock levels and new product initiatives.

Days inventory on hand decreased by one day.

Trade payables increased, generating $648 million of cash, driven primarily by increased supply chain activity in line with the increase in inventory.

Other impacts consumed additional cash of $344 million primarily driven by the payment of the transitional tax related to the 2017 U.S.

Tax Act and a reduction in postretirement benefit and compensation accruals, partially offset by current year income tax accruals in excess of estimated payments.

Investing Activities

1 unchanged sentence

Financing Activities

Financing activities used $10.4 billion of net cash fiscal year to date, mainly due to dividends to shareholders and treasury stock purchases, partially offset by the impact of stock options and other and a net debt increase.

As of March 31, 2025, our current liabilities exceeded current assets by $9.8 billion.

Financing activities used $2.2 billion of net cash fiscal year to date, mainly due to dividends to shareholders and treasury stock purchases, partially offset by a net debt increase.

22 The Procter & Gamble Company

As of September 30, 2025, our current liabilities exceeded current assets by $10.9 billion.

We anticipate being able to support our short-term liquidity and operating needs largely through cash generated from operations.

13 unchanged sentences

This measure is used in assessing the achievement of management goals for at-risk compensation.

26 The Procter & Gamble Company

The following tables provide a numerical reconciliation of organic sales growth to reported net sales growth:

Three Months Ended March 31, 2025 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Organic Sales Growth

Beauty (2) % 3 % 1 % 2 %

Grooming (2) % 4 % 1 % 3 %

Health Care — % 3 % 1 % 4 %

Fabric & Home Care (3) % 2 % 1 % — %

Baby, Feminine & Family Care (4) % 2 % 1 % (1) %

Total Company (2) % 2 % 1 % 1 %

(1) Acquisition & Divestiture Impact/Other includes the volume and mix impact of acquisitions and divestitures and rounding impacts necessary to reconcile net sales to organic sales.

Nine Months Ended March 31, 2025 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

The following tables provide a numerical reconciliation of net sales growth to organic sales growth:

Three Months Ended September 30, 2025 Net Sales Growth Foreign Exchange Impact Acquisition & Divestiture Impact/Other (1)

Organic Sales Growth

7 unchanged sentences

Adjusted free cash flow.

Adjusted free cash flow is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the U.S.

Adjusted free cash flow is defined as operating cash flow less capital spending and excluding payments for the transitional tax resulting from the 2017 U.S.

Adjusted free cash flow represents the cash that the Company is able to generate after taking into account planned maintenance and asset expansion.

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The following table provides a numerical reconciliation of adjusted free cash flow ($ millions):

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Operating Cash Flow Capital Spending 2017 U.S.

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Adjusted free cash flow productivity.

Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings excluding a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

Adjusted free cash flow productivity is defined as the ratio of adjusted free cash flow to net earnings.

We view adjusted free cash flow productivity as a useful measure to help investors understand P&G’s ability to generate cash.

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The following table provides a numerical reconciliation of adjusted free cash flow productivity ($ millions):

Nine Months Ended March 31, 2025

Adjusted Free Cash Flow Net Earnings Adjustments to

Net Earnings (1)

as Adjusted Adjusted Free Cash

Flow Productivity

Three Months Ended September 30, 2025

Adjusted Free Cash Flow Net Earnings Adjusted Free Cash Flow Productivity

$ 4,896 $ 4,781 102 %

(1) Adjustments to Net earnings relate to a non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

Core EPS is a measure of the Company's diluted EPS excluding items that are not judged by management to be part of the Company's sustainable results or trends.

Management views this non-GAAP measure as a useful supplemental measure of Company performance over time.

This measure is also used in assessing the achievement of management goals for at-risk compensation.

This measure is also used in assessing the achievement of management goals for at-risk

The Procter & Gamble Company 23

compensation.

The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following items:

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The Company has historically had an ongoing level of restructuring activities of approximately $250 - $500 million before tax.

On June 5, 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness.

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,

The Procter & Gamble Company 27

2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina.

During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina.

The adjustment to Core earnings includes the restructuring charges that exceed the normal, recurring level of restructuring charges.

• Intangible asset impairment:

In the fiscal year ended June 30, 2024, the Company recognized a non-cash, after-tax impairment charge of $1.0 billion ($1.3 billion before tax) to adjust the carrying value of the Gillette intangible asset acquired as part of the Company's 2005 acquisition of The Gillette Company.

We do not view the above items to be part of our sustainable results, and their exclusion from Core earnings measures provides a more comparable measure of year-on-year results.

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Reconciliation of Non-GAAP Measures

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Amounts in millions except per share amounts As Reported

(GAAP) Incremental Restructuring Core

Cost of products sold $ 9,694 $ 9,855 $ (13) $ 9,842

Selling, general and administrative expense 5,524 5,880 3 5,883

Operating income 4,558 4,460 10 4,471

Income taxes 868 812 — 812

Net earnings attributable to P&G 3,769 3,754 10 3,763

Diluted net earnings per common share (2)

$ 1.54 $ 1.52 $ — $ 1.52

(1) For the three months ended March 31, 2025, there were no adjustments to or reconciling items for Core EPS.

(2) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

CHANGE IN CURRENT YEAR REPORTED (GAAP) MEASURES VERSUS PRIOR YEAR NON-GAAP (CORE) MEASURES

Core net earnings attributable to P&G — %

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Amounts in millions except per share amounts As Reported (GAAP) Incremental Restructuring Core

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Other non-operating income/(expense), net 268 7 275

(120) 789 669

Income taxes 1,253 23 1,276

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CHANGE VERSUS YEAR AGO

Net earnings attributable to P&G 20 %

Core net earnings attributable to P&G 2 %

28 The Procter & Gamble Company

Diluted net earnings per common share 21 %

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Nine Months Ended March 31, 2024

Amounts in millions except per share amounts As Reported (GAAP) Incremental Restructuring Intangible Impairment Core

Three Months Ended September 30, 2024

Amounts in millions except per share amounts As Reported (GAAP) Incremental Restructuring Core

Cost of products sold $ 10,421 $ 20 $ 10,441

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Operating income 5,797 5 5,802

Other non-operating income/(expense), net (554) 789 235

Income taxes 1,152 (7) 1,145

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(1) Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.

24 The Procter & Gamble Company

Quantitative and Qualitative Disclosures About Market Risk

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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 2. Management’s Discussion and Analysis