What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-01-23 compared with 2025-10-24 · 335 added, 142 removed, 315 unchanged (60% of the section changed)

17 unchanged sentences

(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 systems, networks and services and the data contained therein;

(11) the ability to rely on and

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

The Procter & Gamble Company 15

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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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.

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

14 The Procter & Gamble Company

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 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 – Three Months Ended September 30, 2025

• Recent Developments

• Summary of Results – Six Months Ended December 31, 2025

• Economic Conditions and Uncertainties

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

• Segment Results – Three Months Ended September 30, 2025

• Results of Operations – Three and Six Months Ended December 31, 2025

• Segment Results – Three and Six Months Ended December 31, 2025

• Liquidity and Capital Resources

16 unchanged sentences

We have on-the-ground operations in about 70 countries.

16 The Procter & Gamble Company

Our market environment is highly competitive with global, regional and local competitors.

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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.

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

25 unchanged sentences

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 months ended September 30, 2025:

Three Months Ended September 30, 2025

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 and six months ended December 31, 2025:

Three Months Ended December 31, 2025 Six Months Ended December 31, 2025

Net Sales Net Earnings Net Sales Net Earnings

Beauty 18 % 17 % 19 % 18 %

9 unchanged sentences

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.

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Focused Portfolio, Supply Chain and Productivity Plan

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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

as well as the Enterprise Markets, Corporate Functions and Global Business Services.

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.

6 unchanged sentences

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:

SUMMARY OF RESULTS – Six Months Ended December 31, 2025

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

• Net sales were $44.6 billion, an increase of $975 million, or 2%, 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 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 sales increased mid-single digits in Beauty, Grooming and Health Care, and low single digits in Fabric & Home Care.

Net sales decreased low single digits in Baby, Feminine & Family Care.

Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 1% versus the prior year period.

Organic sales increased mid-single digits in Beauty and low single digits in Grooming and Health Care and were unchanged in Fabric & Home Care.

Organic sales decreased low single digits in Baby, Feminine & Family Care.

• Net earnings were $9.1 billion, an increase of $466 million, or 5%, 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.

22 unchanged sentences

In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.

18 The Procter & Gamble Company

Commodities and Supply Chain.

4 unchanged sentences

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

The Procter & Gamble Company 17

general overhead and workforce optimization.

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

RESULTS OF OPERATIONS – Three Months Ended December 31, 2025

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

Three Months Ended December 31

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

6 unchanged sentences

Core net earnings per common share 1.88 1.88 —%

Three Months Ended September 30

Three Months Ended December 31

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

6 unchanged sentences

Net sales for the quarter increased 1% to $22.2 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%.

The increase in net sales was due to favorable foreign exchange of 1% and higher pricing of 1%, partially offset by a decline in unit volume of 1%.

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

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1 unchanged sentence

Net Sales Change Drivers 2025 vs.

2024 (Three Months Ended September 30) (1)

2024 (Three Months Ended December 31) (1)

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

12 unchanged sentences

• 120 basis points of decline from unfavorable product mix,

• 70 basis points of higher restructuring costs,

• 60 basis points of product and packaging investments,

• 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.

• 20 basis points of unfavorable foreign exchange impacts and

• 10 basis points of other items and rounding.

These impacts were partially offset by:

• 170 basis points of manufacturing productivity savings and

• 50 basis points of increase due to higher pricing.

Total SG&A spending increased 5% to $6.0 billion versus the prior year period due to increased marketing spending and overhead costs.

SG&A as a percentage of net sales increased 90 basis points to 27.1% due primarily to an increase in marketing spending as a percentage of net sales and an increase in overhead costs as a percentage of net sales, partially offset by a decrease in other operating expenses as a percentage of net sales.

Marketing spending as a percentage of net sales increased 80 basis points due to an increase in marketing spending, partially offset by productivity savings.

Overhead costs as a percentage of net sales were increased 40 basis points as wage inflation and restructuring spending were partially offset by productivity savings.

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 110 basis points of benefit to SG&A as a percentage of net sales.

Operating income decreased $375 million, or 7%, to $5.4 billion and operating margin decreased 200 basis points to 24.2% versus the prior year period due to the decrease in gross margin and an increase in SG&A as a percentage of net sales, the components of which are described above.

Non-Operating Expenses and Income

Interest expense was $220 million for the quarter, a decrease of $20 million versus the prior year period.

Interest income was $115 million for the quarter, a decrease of $4 million versus the prior year period.

Other non-operating income/(expense) was $160 million, which is a decrease of $64 million versus the prior year period.

The effective income tax rate for the three months ended December 31, 2025, was 20.1%, compared to 20.3% for the three months ended December 31, 2024.

The decrease in the effective tax rate was primarily driven by discrete impacts related to uncertain tax positions, partially offset by an increase due to lower excess tax benefits of share-based compensation in the current year.

Net earnings were $4.3 billion, a decrease of $328 million, or 7%, versus the prior year period due primarily to the decrease in operating income, the details of which are described above.

Foreign exchange had a positive impact of approximately $89 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 $4.3 billion, a decrease of $311 million, or 7%, for the quarter.

Diluted EPS decreased 5% to $1.78 versus the prior year period.

20 The Procter & Gamble Company

RESULTS OF OPERATIONS – Six Months Ended December 31, 2025

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

Six Months Ended December 31

Amounts in millions, except per share amounts 2025

Net sales $ 44,594 $ 43,619 2%

Operating income 11,222 11,538 (3)%

Earnings before income taxes 11,455 10,985 4%

Net earnings 9,112 8,646 5%

Net earnings attributable to Procter & Gamble 9,070 8,589 6%

Diluted net earnings per common share 3.73 3.49 7%

Core net earnings per common share 3.87 3.81 2%

Six Months Ended December 31

COMPARISONS AS A PERCENTAGE OF NET SALES 2025

Gross margin 51.3 % 52.2 % (90)

Selling, general & administrative expense 26.1 % 25.8 % 30

Operating income 25.2 % 26.5 % (130)

Earnings before income taxes 25.7 % 25.2 % 50

Net earnings 20.4 % 19.8 % 60

Net earnings attributable to Procter & Gamble 20.3 % 19.7 % 60

Net sales for the period increased 2% to $44.6 billion driven by a 1% increase from higher pricing and a 1% increase from favorable foreign exchange.

Volume and mix was unchanged.

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

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

Net Sales Change Drivers 2025 vs.

2024 (Six Months Ended December 31) (1)

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

Net Sales Growth

Beauty 4 % 4 % 1 % 2 % (1) % — % 6 %

Grooming — % — % 2 % 3 % (1) % — % 4 %

Health Care (1) % (1) % 2 % 1 % 2 % — % 4 %

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

Baby, Feminine & Family Care (3) % (3) % 1 % — % 1 % — % (1) %

Total Company — % — % 1 % 1 % — % — % 2 %

(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 90 basis points to 51.3% of net sales for the period.

The decrease in gross margin was due to:

• 90 basis points of decline from unfavorable product mix,

• 60 basis points of product and packaging investments,

• 60 basis points of higher tariff costs,

• 60 basis points of unfavorable foreign exchange impacts and

• 50 basis points of higher restructuring costs.

These impacts were partially offset by:

• 170 basis points of manufacturing productivity savings,

• 50 basis points of increase due to higher pricing and

The Procter & Gamble Company 21

• 10 basis points of other items and rounding.

Total SG&A spending increased 4% to $11.7 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 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.

SG&A as a percentage of net sales increased 30 basis points to 26.1% due primarily to a 30 basis point increase in marketing spending as a percentage of sales as the increase in marketing spending was partially offset by productivity savings.

Overhead costs as a percentage of net sales increased 20 basis points as wage inflation and restructuring spending were partially offset by productivity savings.

Other operating expenses as a percentage of net sales decreased 10 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 $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.

Operating income decreased $316 million, or 3%, to $11.2 billion and operating margin decreased 130 basis points to 25.2% versus the prior year period due primarily to incremental restructuring charges in the current year.

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 $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.

Interest expense was $417 million for the period, a decrease of $61 million versus the prior year period.

Interest income was $222 million for the period, a decrease of $32 million versus the prior year period.

Other non-operating income/(expense) was $427 million, which is an increase of $757 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 prior year period.

The effective income tax rate for the six months ended December 31, 2025, was 20.5%, compared to 21.3% for the six months ended December 31, 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 140 basis points and discrete impacts related to uncertain tax positions, partially offset by a 120 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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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

Net earnings increased $466 million, or 5%, to $9.1 billion, as the increase in other non-operating income/(expense), the components of which are described above, were partially offset by the decrease in operating income.

Foreign exchange had a positive impact of approximately $85 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 $481 million, or 6%, to $9.1 billion for the period.

Diluted EPS increased 7% to $3.73 versus the prior year period due to the increase in net earnings.

Core EPS, which represents diluted EPS excluding charges for incremental restructuring, increased 2% to $3.87.

SEGMENT RESULTS – Three and Six Months Ended December 31, 2025

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

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.

Analysis of the results for the three and six months ended December 31, 2025, is provided based on a comparison to the three and six months ended December 31, 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 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

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

Three Months Ended December 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 $ 4,039 5 % $ 992 — % $ 763 (2) %

5 unchanged sentences

Total Company $ 22,208 1 % $ 5,421 (7) % $ 4,331 (7) %

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%.

22 The Procter & Gamble Company

Six Months Ended December 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 $ 8,182 6 % $ 2,124 3 % $ 1,643 1 %

Grooming 3,611 4 % 1,117 2 % 881 — %

Health Care 6,626 4 % 1,947 1 % 1,489 (1) %

Fabric & Home Care 15,479 1 % 4,003 (2) % 3,100 (3) %

Baby, Feminine & Family Care 10,294 (1) % 2,784 (2) % 2,125 (3) %

Corporate 402 N/A (520) N/A (125) N/A

Total Company $ 44,594 2 % $ 11,455 4 % $ 9,112 5 %

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

Beauty net sales increased 5% to $4.0 billion as a 3% increase in unit volume, the positive impacts of pricing of 2% and favorable foreign exchange of 1% were partially offset by unfavorable geographic mix of 1%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 4%.

1 unchanged sentence

• 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 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.

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

The volume increase was driven by growth in Latin America and Asia Pacific (both due to innovation), partially offset by a decline in North America (due to competitive activity).

Organic sales also increased mid-single digits due to mid-teens growth in Latin America, high single-digit growth in Asia Pacific and mid-single-digit growth in Europe, partially offset by a mid-single-digit decline in North America.

Global market share of the Hair Care category decreased 0.7 points.

• Personal Care net sales increased mid-single digits.

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

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

Organic sales also increased mid-single digits led by high-teens growth in Europe, mid-single-digit growth in Greater China and low single-digit growth in North America.

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

• 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

• Skin Care net sales increased low single digits.

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

The volume decrease was driven by Greater China (due to competitive activity).

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

Global market share of the Skin Care category decreased 0.7 points.

Net earnings decreased 2% to $763 million as the increase in net sales was more than offset by a 140 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 of 50 basis points was driven by higher cost of tariffs, higher commodity costs and unfavorable geographic mix, partially offset by productivity savings.

SG&A as a percentage of net sales increased due to an increase in marketing spending, partially offset by a decrease in overhead spending.

Six months ended December 31, 2025, compared with six months ended December 31, 2024

Beauty net sales increased 6% to $8.2 billion, driven by a 4% increase in unit volume, the positive impacts of higher pricing of 2% and favorable foreign exchange of 1%, partially offset by unfavorable geographic mix of 1%.

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 5%.

Global market share of the Beauty segment decreased 0.4 points.

• Hair Care net sales increased mid-single digits.

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

The increase in unit volume was driven by growth in Latin America and Europe (both due to innovation), partially offset by a decline in North America (due to competitive activity).

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

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, higher pricing (primarily in North America) and favorable foreign exchange were partially offset by unfavorable geographic mix.

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

Organic sales also increased high single digits led by mid-teens growth in Europe, high single-digit growth in Greater

The Procter & Gamble Company 23

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.

China and mid-single-digit growth in North America.

Global market share of the Personal Care category increased 0.3 points.

• Skin Care net sales increased low single digits.

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

The volume decrease was driven by Europe (due to distribution loss) and Greater China (due to competitive activity).

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

Global market share of the Skin Care category decreased 0.7 points.

Net earnings increased 1% to $1.6 billion due to an increase in net sales, partially offset by a 80 basis-point decline in net earnings margin.

Net earnings margin decreased due to a decrease in gross margin.

The gross margin decline of 70 basis-points was driven by higher cost of tariffs, unfavorable category mix and higher commodities, partially offset by increased productivity savings.

SG&A as a percentage of net sales was unchanged as the increase in marketing spending was offset by a decrease in overhead spending.

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

Grooming net sales increased 2% to $1.8 billion as innovation-driven pricing of 2% (primarily by North America and Europe) and favorable foreign exchange of 2% were partially offset by a unit volume decrease of 2%.

The volume decrease was driven by North America (due to market contraction) and Asia Pacific (due to competitive activity).

Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales were unchanged as a mid-single-digit growth in Europe was offset by a high single-digit decline in Asia Pacific and a mid-single-digit decline in North America.

Global market share of the Grooming segment decreased 0.4 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.

Net earnings decreased 9% to $417 million due to a 290 basis-point decrease in net earnings margin, partially offset by an increase in net sales.

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 decrease of 190 basis points was primarily driven by unfavorable product mix and higher cost of tariffs, partially offset by increased productivity savings and higher pricing.

SG&A as a percentage of net sales increased due to an increase in marketing spending, partially offset by a decrease in overhead spending.

Six months ended December 31, 2025, compared with six months ended December 31, 2024

Grooming net sales increased 4% to $3.6 billion as the benefits of higher pricing of 3% (driven by North America and Europe) and favorable foreign exchange of 2% were partially offset by unfavorable impacts of geographic mix of 1%.

Unit volume was unchanged as growth in Latin America (due to increased distribution) was offset by a decline in North America (due to market contraction) and IMEA (due to competitive activity).

Excluding the impact of acquisitions and divestitures and foreign exchange, Grooming organic sales increased 2% due to mid-single-digit growth in Europe and Latin America, partially offset by a low single-digit decline in North America.

Global market share of the Grooming segment decreased 0.6 points.

Net earnings were unchanged at $881 million due to an increase in net sales offset by a 110 basis-point decrease in net earnings margin.

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

The gross margin decline of 90 basis points was driven by unfavorable product mix and higher tariffs costs, partially offset by higher pricing and productivity savings.

SG&A as a percentage of net sales decreased due to a decrease in overhead spending, partially offset by an increase 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.

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

Health Care net sales increased 5% to $3.4 billion as the benefits of favorable product mix of 2%, favorable foreign exchange impacts of 2% and higher pricing of 1% were partially offset by a 1% decrease in unit volume.

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

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

• 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.

• Oral Care net sales increased mid-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 lower pricing (due to investments in North America and Europe) and a unit volume decline.

The unit volume decrease was driven by declines in Greater China (due to market contraction and competitive activity), partially offset by increases in Europe (due to innovation) and Latin America (due to distribution gains).

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

Global market share of the Oral Care category decreased 0.1 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.

• Personal Health Care net sales increased mid-single digits driven by positive impacts of higher pricing (driven by North America) and favorable foreign exchange, partially offset by unfavorable product mix (due to the decline of respiratory

24 The Procter & Gamble Company

products, which have higher than category-average selling prices).

Unit volume was unchanged as an increase in IMEA and Europe (both due to innovation) was offset by a decrease in North America (due to lower average incidence of cough and cold).

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

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

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.

Net earnings increased 2% to $770 million due to an increase in net sales, partially offset by a 70 basis-point decrease 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 decrease of 80 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.

SG&A as a percentage of net sales decreased due to a decrease in overhead spending, partially offset by an increase in marketing spending.

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

Six months ended December 31, 2025, compared with six months ended December 31, 2024

Health Care net sales increased 4% to $6.6 billion driven by favorable product mix of 2%, favorable foreign exchange of 2% and higher pricing of 1%, partially offset by a 1% decrease in unit volume.

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

Global market share of the Health Care segment increased 0.3 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) and favorable foreign exchange, partially offset by a unit volume decrease and lower pricing (due to investments in North America and Europe).

The unit volume decrease was due to a decline in Greater China (due to market contraction and competitive activity) and North America (due to competitive activity), partially offset by growth in Latin America (due to distribution gains).

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

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

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

The unit volume decrease was driven by a decline in North America (due to lower average incidence of cough and cold), partially offset by an increase in IMEA and Europe (both due to innovation).

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

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

Net earnings decreased 1% to $1.5 billion as the increase in net sales was more than offset by a 90 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 120 basis points was driven by unfavorable geographic mix and higher tariff costs, partially offset by higher pricing.

SG&A as a percentage of net sales decreased primarily due to a reduction in overhead spending, partially offset by increased marketing spending.

Fabric & Home Care

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%.

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

Fabric & Home Care net sales increased 1% to $7.7 billion driven by favorable foreign exchange of 1% and higher pricing of 1%, partially offset by unfavorable product mix of 1%.

Unit volume was unchanged.

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

Global market share of the Fabric & Home Care segment decreased 0.2 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.

• Fabric Care net sales increased low single digits as positive impacts from favorable foreign exchange were partially offset by negative impacts from unfavorable product mix.

Unit volume was unchanged as an increase in North America (due to innovation) and Latin America (due to market growth) was offset by a decrease in Europe (due to competitive activity).

Organic sales were unchanged as the impact of a high single-digit increase in Latin America was offset by the impact of a low single-digit decline in Europe.

Global market share of the Fabric Care category decreased 0.6 points.

• 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.

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

The decrease in volume was due to a decline in North America (due to a shift in customer order timing for merchandising events), partially offset by an increase in Latin America (due to innovation).

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

Global market share of the Home Care category increased 0.3 points.

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

Net earnings decreased 3% to $1.5 billion due to a 90 basis-point decrease in net earnings margin, partially offset by an increase in net sales.

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 gross margin decrease of 90 basis points was driven by unfavorable product mix and higher cost of

The Procter & Gamble Company 25

tariffs, partially offset by productivity savings.

SG&A as a percentage of net sales decreased due to a decrease in overhead spending, partially offset by an increase in marketing spending.

Six months ended December 31, 2025, compared with six months ended December 31, 2024

Fabric & Home Care net sales increased 1% to $15.5 billion as the benefits of favorable foreign exchange of 1% and higher pricing of 1% were partially offset by a unit volume decline of 1%.

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

Global market share of the Fabric & Home Care segment decreased 0.3 points.

• Fabric Care net sales increased low single digits driven by a favorable foreign exchange impact, partially offset by a unit volume decline.

The unit volume decline was driven by a decline in Europe (due to competitive activity), partially offset by an increase in Latin America (due to market growth) and North America (due to innovation).

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

Global market share of the Fabric Care category decreased 0.7 points.

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

The decrease in volume was driven by declines in Europe (due to competitive activity) and North America (due to a shift in customer order timing for merchandising events).

Organic sales also increased low single digits driven by low single-digit growth in Europe and North America, partially offset by a mid-single-digit decline in Asia Pacific.

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

Net earnings decreased 3% to $3.1 billion due to a 90 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 100 basis points was driven by unfavorable product mix and higher tariff costs, partially offset by increased productivity savings.

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

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 were unchanged.

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

Baby, Feminine & Family Care net sales decreased 3% to $5.1 billion driven by a unit volume decline of 5%, partially offset by favorable foreign exchange of 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales decreased 4%.

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

• 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.

• Baby Care net sales were unchanged as positive impacts of favorable foreign exchange and higher pricing (primarily in North America) were offset by a unit volume decline and unfavorable geographic mix.

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

Organic sales decreased low single digits driven by a double-digit decline in North America, partially offset by a 20% increase in Greater China.

Global market share of the Baby Care category increased 0.4 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.

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

The unit volume decrease was driven by declines across all regions, led by North America (due to share losses) and Europe and IMEA (both due to competitive activity).

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

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

• Net sales in Family Care, which is predominantly a North America business, decreased double digits driven by a unit volume decrease (due to strong consumption offtake and retail inventory build in the prior year) and lower pricing (due to merchandising investments).

Organic sales also decreased double digits.

North America market share of the Family Care category decreased 1.1 points.

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.

Net earnings decreased 9% to $1.0 billion due to a decrease in net sales and a 120 basis-point decrease 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 decrease of 70 basis points was primarily due to unfavorable category mix and higher cost of tariffs, partially offset by lower commodity costs and productivity savings.

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

Six months ended December 31, 2025, compared with six months ended December 31, 2024

Baby, Feminine & Family Care net sales decreased 1% to $10.3 billion driven by a unit volume decline of 3%, partially offset by favorable foreign exchange of 1% and favorable category mix of 1%.

Excluding the impacts of foreign exchange and acquisitions and divestitures, organic sales decreased 2%.

Global market share of the Baby, Feminine & Family Care segment decreased 0.2 points.

• Baby Care net sales increased low single digits driven by favorable foreign exchange, partially offset by a unit volume decline.

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

Organic sales were unchanged as a 20% increase in Greater China and a low single-digit increase in Europe were offset by a mid-single-digit decline in North America.

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

26 The Procter & Gamble Company

• Feminine Care net sales increased low single digits.

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

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

Organic sales were unchanged as 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 decreased 0.1 points.

• Net sales in Family Care, which is predominantly a North America business, decreased mid-single digits driven by a unit volume decrease (due to strong consumption offtake and retail inventory build in the prior year) and lower pricing (due to merchandising investments).

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

North America market share of the Family Care category decreased 0.9 points.

Net earnings decreased 3% to $2.1 billion due to a decrease in net sales and a 40 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 30 basis points due to unfavorable category mix and higher tariff costs, partially offset by productivity savings and lower commodity costs.

SG&A as a percentage of net sales decreased due a decrease in overhead spending, partially offset by an increase in marketing spending.

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

2 unchanged sentences

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 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.

For the three months ended December 31, 2025, Corporate net sales increased $1 million to $160 million.

Corporate net earnings decreased $137 million to a loss of $161 million for the quarter due primarily to incremental restructuring charges in the current year.

For the six months ended December 31, 2025, Corporate net sales increased $80 million to $402 million.

Corporate net earnings increased $606 million to a loss of $125 million due primarily to restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina, in the prior year period, partially offset by current year restructuring charges.

LIQUIDITY & CAPITAL RESOURCES

3 unchanged sentences

Working capital and other impacts consumed $753 million of cash in the period.

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

Days sales outstanding were flat.

Accounts receivable increased, consuming $92 million of cash.

Days sales outstanding decreased by one day.

Total inventories increased, consuming $255 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.

Trade payables generated $239 million of cash, driven primarily by increased supply chain activity in line with the increase in inventory and increased marketing support activity.

Other impacts consumed additional cash of $645 million primarily driven by the payment of the transitional tax related to the 2017 U.S.

4 unchanged sentences

Financing activities used $6.3 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.

As of December 31, 2025, our current liabilities exceeded current assets by $10.1 billion.

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

3 unchanged sentences

In accordance with the SEC's Regulation S-K Item 10(e), the following provides definitions of the non-GAAP measures and the reconciliation to the most closely related GAAP measure.

We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results.

We believe that these measures provide useful perspective on

The Procter & Gamble Company 27

underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results.

The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes.

8 unchanged sentences

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)

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

Organic Sales Growth

6 unchanged sentences

(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.

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

Organic Sales Growth

Beauty 6 % (1) % — % 5 %

Grooming 4 % (2) % — % 2 %

Health Care 4 % (2) % — % 2 %

Fabric & Home Care 1 % (1) % — % — %

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

Total Company 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.

Adjusted free cash flow.

3 unchanged sentences

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

Three Months Ended September 30, 2025

Six Months Ended December 31, 2025

Operating Cash Flow Capital Spending 2017 U.S.

6 unchanged sentences

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

28 The Procter & Gamble Company

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

Three Months Ended September 30, 2025

Six Months Ended December 31, 2025

Adjusted Free Cash Flow Net Earnings Adjusted Free Cash Flow Productivity

2 unchanged sentences

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

The Procter & Gamble Company 23

compensation.

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

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

6 unchanged sentences

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.

These items are also excluded when evaluating senior management in determining their at-risk compensation.

This item is also excluded when evaluating senior management in determining their at-risk compensation.

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Three Months Ended September 30, 2025

Three Months Ended December 31, 2025 Three Months Ended December 31, 2024

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

(Non-GAAP) As Reported

Cost of products sold $ 10,834 $ (152) $ 10,681 $ 10,418

3 unchanged sentences

Income taxes 1,090 59 1,149 1,187

Net earnings 4,331 261 4,592 4,659

Net earnings attributable to noncontrolling interests 12 15 27 29

Net earnings attributable to P&G 4,319 246 4,565 4,630

1 unchanged sentence

$ 1.78 $ 0.10 $ 1.88 $ 1.88

(1) For the three months ended December 31, 2024, 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.

3 unchanged sentences

Diluted net earnings per common share (5) %

The Procter & Gamble Company 29

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Three Months Ended September 30, 2024

Six Months Ended December 31, 2025

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

4 unchanged sentences

Income taxes 2,343 82 2,425

Net earnings 9,112 361 9,472

Net earnings attributable to noncontrolling interests 42 15 57

Net earnings attributable to P&G 9,070 346 9,415

2 unchanged sentences

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

24 The Procter & Gamble Company

CHANGE VERSUS YEAR AGO

Net earnings attributable to P&G 6 %

Core net earnings attributable to P&G — %

Diluted net earnings per common share 7 %

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

Six Months Ended December 31, 2024

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

Cost of products sold $ 20,839 $ 20 $ 20,859

Selling, general and administrative expense 11,242 (25) 11,216

Operating income 11,538 5 11,543

Other non-operating income/(expense), net (330) 789 459

Income taxes 2,339 (7) 2,331

Net earnings attributable to P&G 8,589 801 9,391

Diluted net earnings per common share (1)

$ 3.49 $ 0.33 $ 3.81

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

Quantitative and Qualitative Disclosures About Market Risk

2 unchanged sentences

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