PROCTER & GAMBLE Co 10-Q

Item 1. Financial Statements THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS Three Months Ended March 31 Nine Months Ended March 31 Amounts in millions except per share amounts 2026 2025 2026 2025 NET SALES $ 21,235 $ 19,776 $ 65,828 $ 63,395 Cost of products sold 10,722 9,694 32,442 30,533 Selling, general and administrative expense 5,936 5,524 17,588 16,765 OPERATING INCOME 4,576 4,558 15,798 16,096 Interest expense ( 223 ) ( 217 ) ( 641 ) ( 695 ) Interest income 100 111 322 365 Other non-operating income/(expense), net 537 210 964 ( 120 ) EARNINGS BEFORE INCOME TAXES 4,989 4,661 16,444 15,646 Income taxes 1,039 868 3,381 3,207 NET EARNINGS 3,951 3,793 13,063 12,439 Less: Net earnings attributable to noncontrolling interests 18 23 60 80 NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE $ 3,932 $ 3,769 $ 13,002 $ 12,359 NET EARNINGS PER COMMON SHARE (1) Basic $ 1.66 $ 1.58 $ 5.47 $ 5.16 Diluted $ 1.63 $ 1.54 $ 5.36 $ 5.03 (1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended March 31 Nine Months Ended March 31 Amounts in millions 2026 2025 2026 2025 NET EARNINGS $ 3,951 $ 3,793 $ 13,063 $ 12,439 OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Foreign currency translation ( 211 ) 367 ( 186 ) 623 Unrealized gains/(losses) on investment securities 1 2 1 3 Unrealized gains/(losses) on defined benefit postretirement plans 13 ( 39 ) 14 ( 37 ) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX ( 198 ) 330 ( 171 ) 590 TOTAL COMPREHENSIVE INCOME 3,753 4,123 12,892 13,029 Less: Comprehensive income attributable to noncontrolling interests 11 24 45 78 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 3,742 $ 4,099 $ 12,847 $ 12,951 See accompanying Notes to Consolidated Financial Statements. 2 The Procter & Gamble Company THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Amounts in millions March 31, 2026 June 30, 2025 Assets CURRENT ASSETS Cash and cash equivalents $ 12,306 $ 9,556 Accounts receivable 6,322 6,185 INVENTORIES Materials and supplies 1,971 2,022 Work in process 1,063 1,012 Finished goods 4,819 4,516 Total inventories 7,853 7,551 Prepaid expenses and other current assets 1,506 2,100 TOTAL CURRENT ASSETS 27,987 25,392 PROPERTY, PLANT AND EQUIPMENT, NET 24,574 23,897 GOODWILL 41,359 41,650 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 21,531 21,910 OTHER NONCURRENT ASSETS 12,928 12,381 TOTAL ASSETS $ 128,378 $ 125,231 Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 15,030 $ 15,227 Accrued and other liabilities 10,031 11,318 Debt due within one year 13,174 9,513 TOTAL CURRENT LIABILITIES 38,235 36,058 LONG-TERM DEBT 23,852 24,995 DEFERRED INCOME TAXES 6,047 5,774 OTHER NONCURRENT LIABILITIES 5,513 6,120 TOTAL LIABILITIES 73,647 72,946 SHAREHOLDERS’ EQUITY Preferred stock 759 777 Common stock – shares issued – March 2026 4,009.2 June 2025 4,009.2 4,009 4,009 Additional paid-in capital 69,375 68,770 Reserve for ESOP debt retirement ( 596 ) ( 672 ) Accumulated other comprehensive loss ( 12,298 ) ( 12,143 ) Treasury stock ( 142,168 ) ( 138,702 ) Retained earnings 135,424 129,973 Noncontrolling interest 226 272 TOTAL SHAREHOLDERS’ EQUITY 54,731 52,284 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 128,378 $ 125,231 See accompanying Notes to Consolidated Financial Statements. The Procter & Gamble Company 3 THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Three Months Ended March 31, 2026 Dollars in millions except per share amounts; shares in thousands Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/(Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total Shareholders' Equity Shares Amount BALANCE DECEMBER 31, 2025 2,324,001 $ 4,009 $ 767 $ 69,010 ($ 637 ) ($ 12,108 ) ($ 141,981 ) $ 133,981 $ 276 $ 53,317 Net earnings 3,932 18 3,951 Other comprehensive income/(loss) ( 190 ) ( 7 ) ( 198 ) Dividends and dividend equivalents ($ 1.0568 per share): Common ( 2,465 ) ( 2,465 ) Preferred ( 72 ) ( 72 ) Treasury stock purchases ( 3,912 ) ( 618 ) ( 618 ) Employee stock plans 7,560 364 424 789 Preferred stock conversions 950 ( 8 ) 1 7 — ESOP debt impacts 41 47 88 Noncontrolling interest, net — ( 61 ) ( 61 ) BALANCE MARCH 31, 2026 2,328,599 $ 4,009 $ 759 $ 69,375 ($ 596 ) ($ 12,298 ) ($ 142,168 ) $ 135,424 $ 226 $ 54,731 Nine Months Ended March 31, 2026 Dollars in millions; shares in thousands Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/(Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total Shareholders' Equity Shares Amount BALANCE JUNE 30, 2025 2,341,994 $ 4,009 $ 777 $ 68,770 ($ 672 ) ($ 12,143 ) ($ 138,702 ) $ 129,973 $ 272 $ 52,284 Net earnings 13,002 60 13,063 Other comprehensive income/(loss) ( 155 ) ( 16 ) ( 171 ) Dividends and dividend equivalents ($ 3.1704 per share): Common ( 7,425 ) ( 7,425 ) Preferred ( 218 ) ( 218 ) Treasury stock purchases ( 27,503 ) ( 4,147 ) ( 4,147 ) Employee stock plans 11,864 602 666 1,268 Preferred stock conversions 2,244 ( 18 ) 3 16 — ESOP debt impacts 76 91 168 Noncontrolling interest, net — ( 90 ) ( 90 ) BALANCE MARCH 31, 2026 2,328,599 $ 4,009 $ 759 $ 69,375 ($ 596 ) ($ 12,298 ) ($ 142,168 ) $ 135,424 $ 226 $ 54,731 See accompanying Notes to Consolidated Financial Statements. 4 The Procter & Gamble Company Three Months Ended March 31, 2025 Dollars in millions; shares in thousands Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/(Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total Shareholders' Equity Shares Amount BALANCE DECEMBER 31, 2024 2,344,852 $ 4,009 $ 788 $ 68,283 ($ 707 ) ($ 11,637 ) ($ 137,112 ) $ 127,544 $ 275 $ 51,443 Net earnings 3,769 23 3,793 Other comprehensive income/(loss) 330 1 330 Dividends and dividend equivalents ($ 1.0065 per share): Common ( 2,367 ) ( 2,367 ) Preferred ( 71 ) ( 71 ) Treasury stock purchases ( 7,966 ) ( 1,351 ) ( 1,351 ) Employee stock plans 6,836 331 384 715 Preferred stock conversions 820 ( 7 ) 1 6 — ESOP debt impacts 35 44 79 Noncontrolling interest, net — ( 26 ) ( 26 ) BALANCE MARCH 31, 2025 2,344,542 $ 4,009 $ 781 $ 68,615 ($ 672 ) ($ 11,307 ) ($ 138,073 ) $ 128,919 $ 273 $ 52,545 Nine Months Ended March 31, 2025 Dollars in millions; shares in thousands Common Stock Preferred Stock Additional Paid-In Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income/(Loss) Treasury Stock Retained Earnings Noncontrolling Interest Total Shareholders' Equity Shares Amount BALANCE JUNE 30, 2024 2,357,051 $ 4,009 $ 798 $ 67,684 ($ 737 ) ($ 11,900 ) ($ 133,379 ) $ 123,811 $ 272 $ 50,559 Net earnings 12,359 80 12,439 Other comprehensive income/(loss) 592 ( 2 ) 590 Dividends and dividend equivalents ($ 3.0195 per share): Common ( 7,121 ) ( 7,121 ) Preferred ( 215 ) ( 215 ) Treasury stock purchases ( 34,235 ) ( 5,813 ) ( 5,813 ) Employee stock plans 19,662 929 1,104 2,033 Preferred stock conversions 2,063 ( 17 ) 2 15 — ESOP debt impacts 64 86 150 Noncontrolling interest, net — ( 77 ) ( 77 ) BALANCE MARCH 31, 2025 2,344,542 $ 4,009 $ 781 $ 68,615 ($ 672 ) ($ 11,307 ) ($ 138,073 ) $ 128,919 $ 273 $ 52,545 See accompanying Notes to Consolidated Financial Statements. The Procter & Gamble Company 5 THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended March 31 Amounts in millions 2026 2025 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD $ 9,556 $ 9,482 OPERATING ACTIVITIES (1) Net earnings 13,063 12,439 Depreciation and amortization 2,348 2,124 Share-based compensation expense 394 364 Deferred income taxes 178 183 (Gain)/loss on sale of assets ( 345 ) 782 Change in accounts receivable ( 186 ) ( 79 ) Change in inventories ( 346 ) ( 409 ) Change in accounts payable 196 ( 547 ) Other ( 877 ) ( 2,026 ) TOTAL OPERATING ACTIVITIES 14,425 12,832 INVESTING ACTIVITIES Capital expenditures ( 3,386 ) ( 2,777 ) Proceeds from asset sales 501 64 Acquisitions, net of cash acquired ( 85 ) ( 11 ) Other investing activity ( 458 ) ( 33 ) TOTAL INVESTING ACTIVITIES ( 3,428 ) ( 2,755 ) FINANCING ACTIVITIES Dividends to shareholders ( 7,623 ) ( 7,319 ) Additions to short-term debt with original maturities of more than three months 7,785 5,905 Reductions in short-term debt with original maturities of more than three months ( 6,353 ) ( 3,781 ) Net additions/(reductions) to other short-term debt 1,028 ( 543 ) Additions to long-term debt 2,652 995 Reductions in long-term debt ( 2,361 ) ( 1,478 ) Treasury stock purchases ( 4,153 ) ( 5,800 ) Impact of stock options and other 872 1,601 TOTAL FINANCING ACTIVITIES ( 8,154 ) ( 10,420 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 94 ) ( 22 ) CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 2,749 ( 365 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 12,306 $ 9,116 (1) Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the previously reported Total Operating Activities. See accompanying Notes to Consolidated Financial Statements. 6 The Procter & Gamble Company THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of The Procter & Gamble Company and subsidiaries ("the Company," "Procter & Gamble," "P&G," "we" or "our") should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. We have prepared these statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim financial information. Note that certain columns and rows may not add due to rounding. In the opinion of management, the accompanying Consolidated Financial Statements contain all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. 2. New Accounting Pronouncements and Policies In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes: Improvements to Income Tax Disclosures”. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. This amendment is effective for our fiscal year ending June 30, 2026. This guidance will require additional disclosures in the Income Tax footnote but will not have a material impact on our Consolidated Financial Statements. In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses”. This guidance requires disclosures about significant expense categories, including but not limited to, inventory purchases, employee compensation, depreciation, amortization and selling expenses. This amendment is effective for our fiscal year ending June 30, 2028, and our interim periods within the fiscal year ending June 30, 2029. We are currently assessing the impact of this guidance on our disclosures. In September 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software”. This guidance amends the accounting for and disclosure of software costs. This amendment is effective for our fiscal year ending June 30, 2029, and the interim periods within that fiscal year. We are currently assessing the impact of this guidance on our Consolidated Financial Statements. In December 2025, the FASB issued ASU No. 2025-10, “Accounting for Government Grants Received by Business Entities”. This amendment provides guidance on the recognition, measurement and presentation of government grants. This amendment is effective for our fiscal year ending June 30, 2030, and the interim periods within that fiscal year. We are currently assessing the impact of this guidance on our Consolidated Financial Statements. No other new accounting pronouncement issued or effective during the fiscal year had, or is expected to have, a material impact on our Consolidated Financial Statements. 3. Segment Information Under U.S. GAAP, our operating segments are aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric & Home Care and 5) Baby, Feminine & Family Care. Our five reportable segments are comprised of: • Beauty : Hair Care (Conditioners, Shampoos, Styling Aids, Treatments); Personal Care (Antiperspirants and Deodorants, Personal Cleansing); Skin Care (Facial Moisturizers, Cleaners and Treatments); • Grooming : Grooming (Appliances, Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, Other Grooming); • Health Care : Oral Care (Toothbrushes, Toothpastes, Other Oral Care); Personal Health Care (Gastrointestinal, Pain Relief, Rapid Diagnostics, Respiratory, Vitamins/Minerals/Supplements, Other Personal Health Care); • Fabric & Home Care : Fabric Care (Fabric Enhancers, Laundry Additives, Laundry Detergents); Home Care (Air Care, Dish Care, P&G Professional, Surface Care); and • Baby, Feminine & Family Care : Baby Care (Baby Wipes, Taped Diapers and Pants); Feminine Care (Adult Incontinence, Menstrual Care); Family Care (Paper Towels, Tissues, Toilet Paper). Amounts in millions of dollars except per share amounts or as otherwise specified. The Procter & Gamble Company 7 Operating segments as a percentage of consolidated net sales are as follows: % of Net sales by operating segment (1) Three Months Ended March 31 Nine Months Ended March 31 2026 2025 2026 2025 Fabric Care 23 % 23 % 23 % 23 % Home Care 12 % 12 % 12 % 12 % Baby Care 9 % 9 % 9 % 9 % Hair Care 9 % 9 % 9 % 9 % Family Care 9 % 9 % 8 % 9 % Grooming 8 % 8 % 8 % 8 % Oral Care 8 % 8 % 8 % 8 % Personal Health Care 7 % 7 % 7 % 7 % Feminine Care 6 % 6 % 7 % 6 % Personal Care 6 % 6 % 6 % 6 % Skin Care 3 % 3 % 3 % 3 % Total 100 % 100 % 100 % 100 % (1) % of Net sales by operating segment excludes sales recorded in Corporate. The following is a summary of reportable segment results: Three Months Ended March 31, 2026 Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company Net sales $ 3,866 $ 1,608 $ 3,073 $ 7,403 $ 5,058 $ 225 $ 21,235 Cost of products sold ( 1,575 ) ( 642 ) ( 1,277 ) ( 4,068 ) ( 2,753 ) ( 406 ) ( 10,722 ) Selling, general and administrative expense ( 1,530 ) ( 533 ) ( 1,028 ) ( 1,647 ) ( 1,023 ) ( 176 ) ( 5,936 ) Other segment items (1) — 3 — — — 410 413 Earnings/(loss) before income taxes 761 436 768 1,689 1,282 54 4,989 Net earnings/(loss) $ 579 $ 331 $ 579 $ 1,300 $ 980 $ 181 $ 3,951 Other segment information Depreciation and amortization $ 102 $ 80 $ 112 $ 188 $ 210 $ 92 $ 785 Capital expenditures $ 97 $ 124 $ 141 $ 266 $ 324 $ 67 $ 1,019 (1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). Corporate includes non-operating income comprised primarily of a $ 343 gain due to the dissolution of the Glad joint venture business. Amounts in millions of dollars except per share amounts or as otherwise specified. 8 The Procter & Gamble Company Three Months Ended March 31, 2025 Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company Net sales $ 3,490 $ 1,505 $ 2,880 $ 6,948 $ 4,755 $ 198 $ 19,776 Cost of products sold ( 1,349 ) ( 595 ) ( 1,190 ) ( 3,698 ) ( 2,602 ) ( 260 ) ( 9,694 ) Selling, general and administrative expense ( 1,457 ) ( 506 ) ( 955 ) ( 1,609 ) ( 1,003 ) 7 ( 5,524 ) Other segment items (1) — — — 1 — 102 103 Earnings/(loss) before income taxes 684 404 734 1,642 1,150 48 4,661 Net earnings/(loss) $ 539 $ 321 $ 569 $ 1,285 $ 880 $ 200 $ 3,793 Other segment information Depreciation and amortization $ 98 $ 75 $ 96 $ 178 $ 200 $ 43 $ 690 Capital expenditures $ 80 $ 119 $ 136 $ 289 $ 265 $ ( 30 ) $ 859 (1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). Nine Months Ended March 31, 2026 Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company Net sales $ 12,048 $ 5,219 $ 9,699 $ 22,882 $ 15,352 $ 627 $ 65,828 Cost of products sold ( 4,756 ) ( 2,117 ) ( 3,994 ) ( 12,277 ) ( 8,285 ) ( 1,013 ) ( 32,442 ) Selling, general and administrative expense ( 4,407 ) ( 1,553 ) ( 2,993 ) ( 4,914 ) ( 3,001 ) ( 720 ) ( 17,588 ) Other segment items (1) — 3 2 — — 640 646 Earnings/(loss) before income taxes 2,885 1,552 2,714 5,692 4,066 ( 466 ) 16,444 Net earnings/(loss) $ 2,222 $ 1,212 $ 2,067 $ 4,400 $ 3,105 $ 57 $ 13,063 Other segment information Depreciation and amortization $ 307 $ 238 $ 325 $ 559 $ 623 $ 296 $ 2,348 Capital expenditures $ 257 $ 384 $ 389 $ 866 $ 959 $ 530 $ 3,386 (1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). Corporate includes non-operating income comprised primarily of a $ 343 gain due to the dissolution of the Glad joint venture business. Nine Months Ended March 31, 2025 Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Corporate Total Company Net sales $ 11,231 $ 4,980 $ 9,277 $ 22,233 $ 15,155 $ 520 $ 63,395 Cost of products sold ( 4,304 ) ( 1,982 ) ( 3,733 ) ( 11,639 ) ( 8,152 ) ( 723 ) ( 30,533 ) Selling, general and administrative expense ( 4,179 ) ( 1,505 ) ( 2,882 ) ( 4,886 ) ( 3,006 ) ( 308 ) ( 16,765 ) Other segment items (1) ( 1 ) — — 1 — ( 450 ) ( 451 ) Earnings/(loss) before income taxes 2,746 1,493 2,662 5,709 3,997 ( 961 ) 15,646 Net earnings/(loss) $ 2,158 $ 1,206 $ 2,068 $ 4,473 $ 3,065 $ ( 531 ) $ 12,439 Other segment information Depreciation and amortization $ 298 $ 235 $ 293 $ 536 $ 606 $ 156 $ 2,124 Capital expenditures $ 198 $ 299 $ 354 $ 760 $ 724 $ 442 $ 2,777 (1) Other segment items for each reportable segment includes interest expense, interest income and certain other non-operating income/(expense). Corporate includes non-operating losses comprised primarily of a non-cash charge of $ 752 for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina. Amounts in millions of dollars except per share amounts or as otherwise specified. The Procter & Gamble Company 9 The Chief Operating Decision Maker (CODM) does not use assets by segment to evaluate performance or allocate resources. Therefore, we do not disclose assets by segment. 4. Goodwill and Intangible Assets Goodwill is allocated by reportable segment as follows: Beauty Grooming Health Care Fabric & Home Care Baby, Feminine & Family Care Total Company GOODWILL AT JUNE 30, 2025 $ 14,229 $ 12,993 $ 7,941 $ 1,848 $ 4,640 $ 41,650 Acquisitions and divestitures — — 40 — — 40 Translation and other ( 124 ) ( 85 ) ( 78 ) ( 9 ) ( 35 ) ( 330 ) GOODWILL AT MARCH 31, 2026 $ 14,105 $ 12,908 $ 7,902 $ 1,840 $ 4,605 $ 41,359 Goodwill decreased from June 30, 2025, primarily due to currency translation, partially offset by a minor acquisition within Health Care. Identifiable intangible assets at March 31, 2026, were comprised of: Gross Carrying Amount Accumulated Amortization Intangible assets with determinable lives $ 9,175 $ ( 7,189 ) Intangible assets with indefinite lives 19,544 — Total identifiable intangible assets $ 28,719 $ ( 7,189 ) Intangible assets with determinable lives consist of brands, patents, technology and customer relationships. The intangible assets with indefinite lives primarily consist of brands. The amortization expense of determinable-lived intangible assets for the three months ended March 31, 2026 and 2025, was $ 76 and $ 78 , respectively. For the nine months ended March 31, 2026 and 2025, amortization expense was $ 232 and $ 241 , respectively. Goodwill and indefinite-lived intangible assets are not amortized but are tested at least annually for impairment. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. When appropriate, the market approach, which leverages comparable company revenue and earnings multiples, is weighted with the income approach to estimate fair value. If the resulting fair value is less than the asset's carrying value, that difference represents an impairment. Our annual impairment testing for goodwill and indefinite-lived intangible assets occurs during the three months ended December 31. Other than our Gillette indefinite-lived intangible asset, our goodwill reporting units and indefinite-lived intangible assets have fair values that significantly exceed their underlying carrying values. Based on our impairment testing performed during the three months ended December 31, 2025, the Gillette indefinite-lived intangible asset's fair value exceeds its carrying value by greater than 10 %. As of March 31, 2026, the carrying value of the Gillette indefinite-lived intangible asset was $ 12.8 billion. While we have concluded that no triggering event has occurred during the quarter ended March 31, 2026, the Gillette indefinite-lived intangible asset is susceptible to impairment risk. Adverse changes in the business or in the macroeconomic environment, including foreign currency devaluation, increasing global inflation or market contraction from an economic recession, could reduce the underlying cash flows used to estimate the fair value of the Gillette indefinite-lived intangible asset and trigger an impairment charge. The most significant assumptions utilized in the determination of the estimated fair value of the Gillette indefinite-lived intangible asset are the net sales growth rates (including residual growth rate), discount rate and royalty rate. Net sales growth rates could be negatively impacted by reductions or changes in demand for our Gillette products, which may be caused by, among other things: changes in the use and frequency of grooming products, shifts in demand away from one or more of our higher priced products to lower priced products or potential supply chain constraints. In addition, relative global and country/regional macroeconomic factors could result in additional and prolonged devaluation of other countries' currencies relative to the U.S. dollar. The residual growth rate represents the expected rate at which the Gillette brand is expected to grow beyond the shorter-term business planning period. The residual growth rate utilized in our fair value estimates is consistent with the brand operating plans and approximates expected long-term category market growth rates. The residual growth rate depends on overall market growth rates, the competitive environment, inflation, relative currency exchange rates and business activities that impact market share. As a result, the residual growth rate could be adversely impacted by a sustained deceleration in category growth, grooming habit changes, devaluation of currencies against the U.S. dollar or an increased competitive environment. The discount rate is based on a weighted average cost of capital that is likely to be expected by a market participant, including consideration of both debt and equity components of the capital structure. Our discount rate may be impacted by adverse changes in the macroeconomic environment, volatility in the equity and debt markets or other country specific factors, such as Amounts in millions of dollars except per share amounts or as otherwise specified. 10 The Procter & Gamble Company further devaluation of currencies against the U.S. dollar. Spot rates as of the fair value measurement date are utilized in our fair value estimates for cash flows outside the U.S. The royalty rate used to determine the estimated fair value for the Gillette indefinite-lived intangible asset is driven by historical and estimated future profitability of the underlying Gillette business. The royalty rate may be impacted by significant adverse changes in long-term operating margins. We performed a sensitivity analysis for the Gillette indefinite-lived intangible asset as part of our annual impairment testing during the three months ended December 31, 2025, utilizing reasonably possible changes in the assumptions for the discount rate, the short-term and residual growth rates and the royalty rate to demonstrate the potential impacts to estimated fair values. The table below provides, in isolation, the estimated fair value impacts related to a 25 basis-point increase in the discount rate, a 25 basis-point decrease in our short-term and residual growth rates or a 50 basis-point decrease in our royalty rate. Approximate Percent Change in Estimated Fair Value +25 bps Discount Rate -25 bps Growth Rates -50 bps Royalty Rate Gillette indefinite-lived intangible asset ( 5 ) % ( 5 ) % ( 4 ) % 5. Earnings Per Share Basic net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble less preferred dividends by the weighted average number of common shares outstanding during the period. Diluted net earnings per common share are calculated by dividing Net earnings attributable to Procter & Gamble by the diluted weighted average number of common shares outstanding during the period. The diluted shares include the dilutive effect of stock options and other share-based awards based on the treasury stock method and the assumed conversion of preferred stock. Net earnings per common share were calculated as follows: CONSOLIDATED AMOUNTS Three Months Ended March 31 Nine Months Ended March 31 2026 2025 2026 2025 Net earnings attributable to P&G (Diluted) $ 3,932 $ 3,769 $ 13,002 $ 12,359 Less: Preferred dividends 72 71 218 215 Net earnings attributable to P&G available to common shareholders (Basic) $ 3,860 $ 3,698 $ 12,784 $ 12,144 SHARES IN MILLIONS Basic weighted average common shares outstanding 2,328.5 2,347.2 2,335.3 2,351.8 Add effect of dilutive securities: Stock options and other unvested equity awards (1) 20.0 31.9 21.8 34.9 Convertible preferred shares (2) 68.0 70.7 68.7 71.3 Diluted weighted average common shares outstanding 2,416.5 2,449.8 2,425.8 2,458.0 NET EARNINGS PER COMMON SHARE Basic $ 1.66 $ 1.58 $ 5.47 $ 5.16 Diluted $ 1.63 $ 1.54 $ 5.36 $ 5.03 (1) For the three months ended March 31, 2026 and 2025, the weighted average of stock options that were antidilutive and not included in the diluted net earnings per share calculation were 22 million and 8 million, respectively. For the nine months ended March 31, 2026 and 2025, the weighted average of stock options that were antidilutive and not included in the diluted net earnings per share calculation were 20 million and 6 million, respectively. (2) An overview of preferred shares can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025. 6. Share-Based Compensation and Postretirement Benefits The following table provides a summary of our share-based compensation expense and postretirement benefit impacts: Three Months Ended March 31 Nine Months Ended March 31 2026 2025 2026 2025 Share-based compensation expense $ 132 $ 123 $ 394 $ 364 Net periodic benefit cost for pension benefits 27 29 93 92 Net periodic benefit (credit) for other retiree benefits ( 153 ) ( 180 ) ( 456 ) ( 541 ) Amounts in millions of dollars except per share amounts or as otherwise specified. The Procter & Gamble Company 11 7. Risk Management Activities and Fair Value Measurements As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. There have been no significant changes in our risk management policies or activities during the nine months ended March 31, 2026. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets and liabilities during the period. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. There were no transfers between levels during the periods presented. Also, there was no significant activity within the Level 3 assets and liabilities during the periods presented. There were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis during the periods presented. Cash equivalents were $ 11.1 billion and $ 8.3 billion as of March 31, 2026 and June 30, 2025, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented. The fair value of long-term debt was $ 29.4 billion and $ 29.5 billion as of March 31, 2026 and June 30, 2025, respectively. This includes the current portion of long-term debt instruments ($ 6.5 billion and $ 5.3 billion as of March 31, 2026 and June 30, 2025, respectively). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of March 31, 2026 and June 30, 2025, are as follows: Notional Amount Fair Value Asset Fair Value (Liability) March 31, 2026 June 30, 2025 March 31, 2026 June 30, 2025 March 31, 2026 June 30, 2025 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ 5,262 $ 3,280 $ — $ — $ ( 230 ) $ ( 201 ) DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS Foreign currency interest rate contracts $ 9,860 $ 11,874 $ 80 $ — $ ( 321 ) $ ( 860 ) TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS $ 15,122 $ 15,154 $ 80 $ — $ ( 551 ) $ ( 1,061 ) DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ 4,226 $ 3,576 $ 8 $ 19 $ ( 17 ) $ — TOTAL DERIVATIVES AT FAIR VALUE $ 19,348 $ 18,730 $ 88 $ 19 $ ( 568 ) $ ( 1,062 ) The fair value of the interest rate derivative asset/(liability) directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $ 5.0 billion and $ 3.1 billion as of March 31, 2026 and June 30, 2025, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $ 12.1 billion and $ 11.2 billion as of March 31, 2026 and June 30, 2025, respectively. The increase in the notional balance of interest rate contracts designated as fair value hedges is driven by debt portfolio rebalancing to meet interest rate risk management objectives. The decrease in the notional balance of derivative instruments designated as net investment hedges was primarily driven by the maturity of certain swaps, consistent with the Company's ongoing management of its hedge portfolio. Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Certain of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a liability position was $ 477 and $ 1.1 billion as of Amounts in millions of dollars except per share amounts or as otherwise specified. 12 The Procter & Gamble Company March 31, 2026 and June 30, 2025, respectively. The Company has not been required to post collateral as a result of these contractual features. Before tax gains and losses on our financial instruments in hedging relationships are categorized as follows: Amount of Gain/(Loss) Recognized in OCI on Derivatives Three Months Ended March 31 Nine Months Ended March 31 2026 2025 2026 2025 DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) Foreign currency interest rate contracts $ 208 $ ( 473 ) $ 205 $ ( 117 ) (1) For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $ 56 and $ 60 for the three months ended March 31, 2026 and 2025, respectively. The amount of gain excluded from effectiveness testing was $ 191 and $ 167 for the nine months ended March 31, 2026 and 2025, respectively. (2) In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in Accumulated other comprehensive income (AOCI) for such instruments was $ 279 and $( 436 ) for the three months ended March 31, 2026 and 2025, respectively. The amount of gain/(loss) recognized in AOCI for such instruments was $ 318 and $( 221 ) for the nine months ended March 31, 2026 and 2025, respectively. Amount of Gain/(Loss) Recognized in Earnings Three Months Ended March 31 Nine Months Ended March 31 2026 2025 2026 2025 DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS Interest rate contracts $ ( 24 ) $ ( 2 ) $ ( 29 ) $ 109 DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS Foreign currency contracts $ ( 1 ) $ 30 $ 21 $ ( 19 ) The gains/(losses) on the derivatives in fair value hedging relationships are fully offset by the mark-to-market impact of the related exposure. These are both recognized in Interest expense. The gains/(losses) on derivatives not designated as hedging instruments are substantially offset by the currency mark-to-market of the related exposure. These are both recognized in Selling, general and administrative expense (SG&A). 8. Accumulated Other Comprehensive Income/(Loss) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: Investment Securities Postretirement Benefit Plans Foreign Currency Translation Total AOCI BALANCE AT JUNE 30, 2025, NET OF TAX $ 9 $ ( 777 ) $ ( 11,375 ) $ ( 12,143 ) Other comprehensive income/(loss), before tax: OCI before reclassifications 2 4 ( 63 ) ( 58 ) Amounts reclassified to the Consolidated Statement of Earnings — 15 — 15 Total other comprehensive income/(loss), before tax 2 18 ( 63 ) ( 43 ) Tax effect ( 1 ) ( 4 ) ( 123 ) ( 128 ) Total other comprehensive income/(loss), net of tax 1 14 ( 186 ) ( 171 ) Less: OCI attributable to noncontrolling interests, net of tax — — ( 16 ) ( 16 ) BALANCE AT MARCH 31, 2026, NET OF TAX $ 10 $ ( 763 ) $ ( 11,545 ) $ ( 12,298 ) Foreign currency translation includes financial statement translation and changes in fair value of net investment hedges (see Note 7). Postretirement benefit plan amounts are reclassified from AOCI into Other non-operating income/(expense), net and included in the computation of net periodic postretirement costs. 9. Commitments and Contingencies Litigation We are subject, from time to time, to certain legal proceedings and claims arising out of our business, which cover a wide range of matters, including antitrust and trade regulation, product liability, advertising, contracts, environmental, patent and trademark matters, labor and employment matters and tax. While considerable uncertainty exists, in the opinion of management and our Amounts in millions of dollars except per share amounts or as otherwise specified. The Procter & Gamble Company 13 counsel, the ultimate resolution of the various lawsuits and claims will not materially affect our financial position, results of operations or cash flows. We are also subject to contingencies pursuant to environmental laws and regulations that in the future may require us to take action to correct the effects on the environment of prior manufacturing and waste disposal practices. Based on currently available information, we do not believe the ultimate resolution of environmental remediation will materially affect our financial position, results of operations or cash flows. Income Tax Uncertainties The Company is present in about 70 countries and over 150 taxable jurisdictions and, at any point in time, has 30 – 40 jurisdictional audits underway at various stages of completion. We evaluate our tax positions and establish liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained, despite our belief that the underlying tax positions are fully supportable. Uncertain tax positions are reviewed on an ongoing basis and are adjusted in light of changing facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitations. Such adjustments are reflected in the tax provision as appropriate. We have tax years open ranging from 2013 and forward. We are generally not able to reliably estimate the timing and ultimate settlement amounts until the close of an audit. Based on information currently available, we anticipate over the next 12-month period, audit activity could be completed related to uncertain tax positions in multiple jurisdictions for which we have accrued liabilities of approximately $ 121 , including interest and penalties. Additional information on the Commitments and Contingencies of the Company can be found in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025. 10. Supplier Finance Programs The Company has an ongoing program to negotiate extended payment terms with its suppliers consistent with market practices. The Company also supports a Supply Chain Finance program (“SCF”) with several global financial institutions. Under SCF, the Company maintains an accounts payable system to facilitate participating suppliers' ability to sell receivables from the Company to a SCF bank. These participating suppliers negotiate their sales of receivables arrangements directly with the respective SCF bank. The Company is not party to those agreements, but the SCF banks allow the suppliers to utilize the Company’s creditworthiness in establishing credit spreads and associated costs. Under this model, this arrangement generally provides the suppliers with more favorable terms than they would be able to secure on their own. The Company has no economic interest in a supplier’s decision to sell a receivable. Once a qualifying supplier chooses to participate in SCF, the supplier selects which individual Company invoices to sell to the SCF bank. The Company’s obligations to its suppliers, including the amounts due and scheduled payment dates, are not impacted by the supplier’s decisions to finance amounts under these arrangements. The Company does not provide any form of guarantee under these financing arrangements. Our payment terms for suppliers under this program generally range from 60 to 180 days. All outstanding amounts related to suppliers participating in SCF are recorded within Accounts payable in our Consolidated Balance Sheets, and the associated payments are included in operating activities within our Consolidated Statements of Cash Flows. The amount due to suppliers participating in SCF and included in Accounts payable was approximately $ 5.7 billion as of March 31, 2026 and $ 5.8 billion as of June 30, 2025. 11. Restructuring Program The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under the ongoing program have generally ranged from $ 250 to $ 500 annually. Consistent with our historical policies for restructuring-type activities, the restructuring program charges will be funded by and included within Corporate for management and segment reporting. In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $ 1.5 to $ 2.0 billion in before-tax restructuring costs over two years . The Company expects to incur over half of the costs under this plan by the end of fiscal 2026, with the remainder incurred in fiscal 2027. The restructuring activities will be executed across the Sector Business Units as well as the Enterprise Markets, Corporate Functions and Global Business Services. These restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027. In addition, the plan includes brand and market exits as well as the optimization of the supply chain and other manufacturing processes. Costs incurred under the plan will consist primarily of costs to separate employees and asset-related costs to exit facilities. The Company will also incur other types of costs outlined below as a direct result of the plan. For the three months ended March 31, 2026, the Company incurred total before tax charges of $ 198 including $ 138 in Costs of products sold, $ 53 in SG&A and $ 6 in Other non-operating income/(expense), net. For the nine months ended March 31, 2026, the Company incurred charges of $ 782 including $ 418 in Costs of products sold, $ 330 in SG&A and $ 33 in Other non-operating income/(expense), net. Amounts in millions of dollars except per share amounts or as otherwise specified. 14 The Procter & Gamble Company The following table presents restructuring activity for the nine months ended March 31, 2026: Separations Asset Related Costs Other Total RESERVE JUNE 30, 2025 $ 120 $ — $ 69 $ 189 Costs incurred for the six months ended December 31, 2025 322 109 152 584 Costs incurred for the three months ended March 31, 2026 133 53 12 198 Costs incurred for the nine months ended March 31, 2026 455 162 164 782 Costs paid/settled for the nine months ended March 31, 2026 ( 382 ) ( 162 ) ( 157 ) ( 701 ) RESERVE MARCH 31, 2026 $ 193 $ — $ 76 $ 269 Separation Costs Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Asset-Related Costs Asset-related costs consist of both asset write-downs and accelerated depreciation for manufacturing consolidations. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. Other Costs Other restructuring-type charges are incurred as a direct result of the restructuring plan. Such charges include asset removal and termination of contracts related to supply chain redesign.