The Procter & Gamble Company is a world-leading multinational consumer goods company focused on providing trusted, branded products of superior quality, performance and value to improve the lives of consumers around the world. Its products are sold in about 180 countries and territories throughout the world, and it has on-the-ground operations in about 70 countries. The market environment is highly competitive with global, regional and local competitors, and in many of the markets and industry segments in which it sells its products, P&G competes against other branded products as well as retailers' private-label brands.

P&G is well positioned in the industry segments and markets in which it operates, often holding a leadership or significant market share position. Its integrated strategy and focus on driving superiority across product, packaging, brand communication, retail execution and value are key differentiators in the marketplace. The Company's largest customer, Walmart Inc. and its affiliates, accounted for approximately 16% of total sales in 2025 and 2024 and 15% in 2023 ¹. No other customer represents more than 10% of total sales. The top ten customers accounted for 43% of total net sales in 2025, 42% in 2024 and 40% in 2023 ².

The Company's business model is focused on delivering sustainable value creation by driving balanced top- and bottom-line growth. It creates, manufactures, markets and distributes a diversified portfolio of daily-use products to delight consumers with irresistible superiority across five key vectors: product performance, packaging, brand communication, retail execution and value. The Company utilizes various distribution channels, including retail stores, e-commerce platforms and direct-to-consumer platforms to deliver its products. Its business model relies on continued productivity improvements to fuel investments in research and development and marketing and deliver value creation.

The Company's organizational structure is comprised of five reportable segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. Beauty includes Hair Care, Personal Care, and Skin Care, with major brands including Head & Shoulders, Herbal Essences, Pantene, Rejoice, Native, Old Spice, Safeguard, Secret, Olay, and SK-II. Grooming includes Appliances, Female Blades & Razors, Male Blades & Razors, Pre- and Post-Shave Products, and Other Grooming, with major brands including Braun, Gillette, and Venus. Health Care includes Oral Care and Personal Health Care, with major brands including Crest, Oral-B, Metamucil, Neurobion, Pepto-Bismol, and Vicks. Fabric & Home Care includes Fabric Care and Home Care, with major brands including Ariel, Downy, Gain, Tide, Cascade, Dawn, Fairy, Febreze, Mr. Clean, and Swiffer. Baby, Feminine & Family Care includes Baby Care, Feminine Care, and Family Care, with major brands including Luvs, Pampers, Always, Always Discreet, Tampax, Bounty, Charmin, and Puffs.

Beauty net sales were $14,964 million in fiscal 2025, representing 18% of net sales and 16% of net earnings ³. Grooming net sales were $6,662 million, representing 8% of net sales and 10% of net earnings ⁴. Health Care net sales were $11,998 million, representing 14% of net sales and 15% of net earnings ⁵. Fabric & Home Care net sales were $29,617 million, representing 36% of net sales and 35% of net earnings ⁶. Baby, Feminine & Family Care net sales were $20,248 million, representing 24% of net sales and 24% of net earnings ⁷. In Beauty, the Company is a global market leader in the retail hair care market with about 20% global market share, primarily behind Head & Shoulders and Pantene ⁸. In Grooming, the Company holds more than 45% share in the grooming market and more than 60% global blades and razors market share, primarily behind Gillette and Venus ⁹. In Health Care, the Company is a leader in oral care with a nearly 30% global market share behind Crest and Oral-B ¹⁰. In Fabric & Home Care, the Company is the global market leader with over 35% market share in fabric care and more than 30% in home care ¹¹. In Baby, Feminine & Family Care, the Company has more than 30% global market share in baby care and over 30% in feminine care ¹².

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period, including costs incurred as part of this plan and the ongoing plan ¹³. The restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027 ¹⁴. The Company and The Clorox Company have jointly decided not to renew the Glad joint venture agreement, and Clorox will purchase the Company's minority interest at fair market value as of the agreement termination in January 2026. Subject to market conditions, 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 ¹⁵.

Net sales increased $245 million to $84,284 million in fiscal 2025 versus the prior year ¹⁶. Operating income increased $1.9 billion, or 10%, to $20,451 million ¹⁷. Net earnings increased $1.1 billion, or 7%, to $16,065 million ¹⁸. Diluted net earnings per common share increased 8% to $6.51 ¹⁹. Core earnings per share increased 4% to $6.83 ²⁰. Cash flow from operating activities was $17,817 million ²¹. Adjusted free cash flow was $14,606 million ²². Adjusted free cash flow productivity was 87% ²³.

The Company expects the delivery of the following long-term growth algorithm: organic sales growth above market growth rates in the categories and geographies in which it competes; Core EPS growth of mid-to-high single digits; and adjusted free cash flow productivity of 90% or greater ²⁴. While periods of significant macroeconomic pressures may cause short-term results to deviate from the long-term growth algorithm, the Company intends to maintain a disciplined approach to investing in its business.

The Company's strategy is to deliver and sustain value creation through five integrated choices: a portfolio of daily-use products where performance drives brand choice; superiority across product, package, brand communication, retail execution and value; productivity; constructive disruption of the entire value chain; and a highly efficient and effective organization structure. The Company has declared four focus areas: leveraging environmental sustainability as an additional driver of superior performing products and packaging innovations; increasing digital acumen to drive consumer and customer preference, reduce cost and enable rapid and efficient decision making; developing next-level supply chain capabilities to enable flexibility, agility, resilience and a new level of productivity; and delivering a superior employee value equation for all employees inclusive of all genders, races, ethnicities, sexual orientations, ages and abilities to ensure the Company continues to attract, retain and develop the best talent to better serve its increasingly diverse consumer base.

The Company is focused on designing and manufacturing irresistibly superior products that are more sustainable. In 2021, the Company announced a 2040 net zero ambition ²⁵. The Climate Transition Action Plan outlines the Company's ongoing efforts toward reducing greenhouse gas emissions across scopes 1 and 2 and elements of scope 3. The Company has also declared ambitions towards purchasing renewable electricity for its operations, reducing intensity of virgin petroleum-based plastic in packaging, designing more consumer packaging to be recyclable or reusable, responsible sourcing of key forest-based commodities, improving efficiency of water usage in its operations and driving a global portfolio of water restoration projects in key water basins. While the Company has met or exceeded some of the goals and is making significant progress against others, scalable infrastructure and cost-effective solutions are not yet available to fully deliver against some of its stated ambitions.

The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period, including costs incurred as part of the portfolio and productivity plan and the ongoing plan ²⁶. 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 ²⁷. The restructuring activities include a plan for a reduction of up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027 ²⁸. Productivity-driven cost savings delivered 140 basis points of benefit to SG&A as a percentage of net sales in fiscal 2025 ²⁹.

The Company's ability to meet customers' needs and achieve cost targets depends on its ability to maintain key manufacturing and supply arrangements, including execution of supply chain optimizations and certain sole supplier or sole manufacturing plant arrangements. The Company has on-the-ground operations in about 70 countries and owns and operates 24 manufacturing sites in the U.S. located in 18 different states, as well as 75 manufacturing sites in 32 other countries ³⁰. As of June 30, 2025, the Company had approximately 109,000 employees, an increase of 2% versus the prior year due to business growth ³¹.

The Company's capital allocation priorities include funding operating needs and capital expenditures, with excess operating cash used first to fund shareholder dividends, followed by share repurchases and acquisitions. Research and development costs were $2.1 billion in fiscal 2025 and $2.0 billion in fiscal 2024 and 2023 ³². Capital expenditures were $3,773 million in fiscal 2025 ³³. The Company reaffirmed in its earnings release on April 24, 2025, that it expected to reduce outstanding shares through direct share repurchases at a value of $6 to $7 billion in fiscal year 2025 ³⁴. The total value of the shares purchased under the share repurchase plan was $6.5 billion ³⁵. P&G has been paying a dividend for 135 consecutive years since its incorporation in 1890 and has increased its dividend for 69 consecutive years since 1956 ³⁶. Over the past ten years, the dividend has increased at an annual compound average rate of 5% ³⁷. Dividends per share were $4.08 in 2025 ³⁸.

The Company is exposed to significant foreign exchange impacts due to the weakening of certain foreign currencies versus the U.S. dollar, which have negatively impacted net sales, net earnings and cash flows. Operations outside the U.S. generate more than 50% of annual net sales ³⁹. The Company's largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 21% of net sales in fiscal 2025 ⁴⁰. The Company is also exposed to risks due to the ongoing war between Russia and Ukraine, and its Russia business accounted for 1% of consolidated net sales, net earnings and net assets as of June 30, 2025 ⁴¹. The Company is subject to changes in U.S. and foreign government legislative, regulatory or enforcement policies that can have a negative impact on net sales, net earnings and cash flows, including tax policy changes and government controls such as currency exchanges, pricing and import authorizations.

The Company faces risks from commodity and input material price fluctuations, particularly certain oil-derived materials like resins and paper-based materials like pulp. Volatility in the market price of commodities and input materials directly affects costs. Disruptions in manufacturing, supply and distribution operations can lead to increased costs. The Company also faces risks from changing political and geopolitical conditions, including sanctions, tariffs, trade barriers and market contraction, which could adversely affect its results of operations and cash flows.

Management's message emphasizes the Company's focus on delivering sustainable value creation through balanced top- and bottom-line growth, with a strategy centered on superiority, productivity, constructive disruption, and an efficient organization structure. The Company expects the delivery of the following long-term growth algorithm: organic sales growth above market growth rates in the categories and geographies in which it competes; Core EPS growth of mid-to-high single digits; and adjusted free cash flow productivity of 90% or greater ⁴⁴. Management's strategic priorities include leveraging environmental sustainability as an additional driver of superior performing products and packaging innovations, increasing digital acumen, developing next-level supply chain capabilities, and delivering a superior employee value equation for all employees. The Company also announced a portfolio and productivity plan in June 2025 to streamline its portfolio and organization, expecting to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period and reducing up to 7,000 non-manufacturing overhead personnel by the end of fiscal 2027 ⁴⁵.

For the fiscal year ended June 30, 2025, net sales were $84,284 million compared to $84,039 million in fiscal 2024 ⁴⁶. Net earnings were $16,065 million versus $14,974 million in the prior year ⁴⁷. Diluted net earnings per common share were $6.51 compared to $6.02 in fiscal 2024 ⁴⁸. Operating income was $20,451 million versus $18,545 million in the prior year ⁴⁹. Gross margin was 51.2% of net sales in fiscal 2025 compared to 51.4% in fiscal 2024 ⁵⁰. Operating margin was 24.3% compared to 22.1% in the prior year ⁵¹. Cash flow from operating activities was $17,817 million versus $19,846 million in fiscal 2024 ⁵². Adjusted free cash flow was $14,606 million compared to $16,946 million in the prior year ⁵³. The Company recorded a non-cash impairment charge of $1.3 billion before tax ($1.0 billion after tax) on the Gillette indefinite-lived intangible asset in fiscal 2024 ⁵⁴. In fiscal 2025, the Company incurred incremental restructuring charges of $801 million after tax related to the substantial liquidation of operations in Argentina, comprised primarily of non-cash charges for accumulated foreign currency translation losses ⁵⁵. Beauty segment net earnings were $2,715 million in fiscal 2025 ⁵⁶. Grooming segment net earnings were $1,577 million ⁵⁷. Health Care segment net earnings were $2,440 million ⁵⁸. Fabric & Home Care segment net earnings were $5,848 million ⁵⁹. Baby, Feminine & Family Care segment net earnings were $4,013 million ⁶⁰.

The Company faces material risks from foreign currency fluctuations, as operations outside the U.S. generate more than 50% of annual net sales, and fluctuations in exchange rates have and could continue to reduce the U.S. dollar value of sales, earnings and cash flows ⁴². The Company's business results depend on its ability to manage disruptions in its global supply chain, including the loss or disruption of key manufacturing and supply arrangements, which could interrupt product supply and adversely impact business. The Company also faces significant risks from commodity cost fluctuations, particularly for oil-derived materials like resins and paper-based materials like pulp, and inflation pressures sometimes result in increases in these input costs. A significant information security or cybersecurity incident could have a material adverse impact on business operations and financial results, and the Company relies extensively on information and operational technology systems, networks and services. The Company's ability to meet its growth targets depends on successful product, marketing and operations innovation and successful responses to competitive innovation, evolving digital marketing and selling platforms and changing consumer habits. The Company is subject to a wide variety of laws and regulations across the countries in which it does business, and changes in applicable tax laws and regulations, including the OECD Pillar Two global minimum tax rate of 15% for large multinational corporations, could negatively affect financial results ⁴³.