This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are home equipment and furnishings and household and personal products.

Fortune Sector Leaders: Household Products

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

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The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

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The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

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The consumer packaged goods giant Procter &amp; Gamble, famous for products ranging from Tide detergent to Pepto Bismol, saw revenue increase 5% in 2022, to $80.2 billion. 
<ul> 
 	<li>As inflation raged in 2022 and into 2023, P&amp;G was among the most prominent companies criticized by consumer activists for “greedflation,” as it repeatedly raised prices for consumers in attempts to offset its own rising costs.</li> 
 	<li>P&amp;G raised its year-end sales outlook in April 2023 from a 1% decline to a 1% increase, a sign it believes it’s turned the corner on inflation.</li> 
 	<li>The company is diversifying away from traditional retail channels; its e-commerce sales grew 11% in 2022 and now make up 14% of total sales.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

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Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Procter and Gamble

Procter &amp; Gamble makes and sells familiar household brands such as Tide laundry detergent, Gillette razors, Crest toothpaste, and Old Spice deodorant. Like other consumer goods giants, P&amp;G has faced a tricky balancing act: It is benefiting from rising sales in a recovering economy (it brought in $76.1 billion in revenue in its last fiscal year, a 7.3% increase from the year prior) while also striving to protect its profit margins from inflation. The company also faced a potential self-inflicted wound going into 2022: The detection of benzene, a potential carcinogen, in some of its aerosol deodorants led P&amp;G to institute a recall in November 2021, and the problem has since prompted multiple lawsuits.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-21-Procter and Gamble

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 128 Procter & Gamble

The consumer products giant emerged from the COVID-19 crisis with strong profits, exceeding its own fiscal year 2020 goals with 6% organic sales growth and 13% core earnings-per-share growth. That was partially thanks to a spike in demand for home-goods brands like Charmin, Bounty, Downy, and more. Procter &amp; Gamble experienced a substantial leap in revenue almost across the board, including net sales of $19.7 billion in the second quarter of fiscal year 2021, up 8% from the year before. P&amp;G’s share price has weathered market volatility, rising 15.4% from March 2, 2020, through May 24, 2021. The company even increased its quarterly dividend by 10% in April 2021, making this the 65th consecutive year that P&amp;G has boosted its dividend.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-43-Procter and Gamble

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-156-Procter-and-Gamble

The consumer products giant emerged from a major reorganization in 2019 and ended the calendar year with an optimistic outlook for investors across the board, including net sales of $17.8 billion in the first quarter of fiscal year 2020, up 7% from the year before. What would be welcome news during normal times became a bulwark in the age of the novel coronavirus. P&amp;G’s share price weathered the stock market volatility that marked the early weeks of the pandemic’s spread, and even as other companies cut their quarterly dividends, P&amp;G made its payout for its 64th consecutive year.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-050-Proctor-and-Gamble

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

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This year's Fortune 500 marks the 64th running of the list.

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This year's Fortune 500 marks the 63rd running of the list.

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This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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The consumer packaged goods company Procter &amp; Gamble operates in five segments: beauty; grooming; health care; fabric and home care; and baby, feminine, and family care. Founded in 1837 when a British candlemaker and an Irish soapmaker merged their businesses in Cincinnati, its holdings include Tide, Pampers, Downy, Gillette, and Oral-B.

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Procter & Gamble (PG): Company Profile, Stock Price, News, Rankings

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Procter & Gamble

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Good morning, and welcome to Procter and Gamble's quarter end conference call. Today's event is being recorded for replay. This discussion will include a number of forward looking statements. If you will refer to P and G's most recent 10 k, 10 q, and eight k reports, you will see a discussion of factors that could cause the company's actual results to differ materially from these projections. As required by regulation g, Procter and Gamble needs to make you aware that during the discussion, the company will make a number of references to non GAAP and other financial measures.

Procter and Gamble believes these measures provide investors with useful perspective on underlying business trends and has posted on its Investor Relations website, www.pginvestor.com, a full reconciliation of non GAAP financial measures. Now I will turn the call over to P and G's Chief Financial Officer, Andre Shulton.

John Moeller here. I'm going to start the call, and then I will hand it over to Andre. Good morning.

Obviously, is joining me here as is John Chauvier, Senior Vice President of Investor Relations. Last evening, we announced that after thirty eight years of service, I will transition into the role of Executive Chairman of the Board beginning 01/01/2026, and that the Board of Directors has elected Shailesh Jujurukar as the incoming President and Chief Executive Officer. This move has been thoughtfully planned and provides P and G with highly capable and experienced leadership going forward. Traylesh has a distinguished track record throughout his thirty six year P and G career and has been an integral part of P and G's leadership team for the past twelve years. He's delivered substantial contributions across multiple businesses in both focus and enterprise markets, including regional and global leadership of our Fabric and Home Care categories.

Most recently, Shailesh served as Chief Operating Officer with P and L ownership for our enterprise markets business, along with the management responsibilities for our product supply, market operations, global business services and IT organizations. Over the last seventeen years as CFO, COO and CFO, COO and CEO, I've had the benefit of working closely with Shailesh and our outstanding global leadership team to develop an integrated comprehensive set of strategies to guide our choices and priorities. Those strategies continue to serve us well. Perlesh has been a partner in advocating for a focus on balanced top and bottom line growth and the need for P and G brands to lead the growth of our markets, growing markets versus simply taking business to build market share. These fundamentals guide our decision making as we execute our integrated growth strategy and drive value creation for shareowners.

For my part, it's been a tremendous honor to serve as P and G's Chairman, President and Chief Executive Officer. As I've walked the halls of P and G buildings around the world for the last thirty eight years, I'm constantly reminded of the privilege it is to work alongside such committed colleagues and friends. P and G has afforded me the chance to serve consumers and communities around the world. It's been a true joy and a tremendous learning experience. Our strategy is working.

Our bench is strong. As we cross the calendar year, it's a good time to transition to the next generation to lead the P and G team through its next chapter of top and bottom line growth and, of course, value creation. With that, I'll now turn the call over to another esteemed colleague, Andre Scholten, to lead us through fiscal year twenty twenty five at the fourth quarter and the year end results.

Thank you, John, and congratulations to you and to Shailesh. And I'm very happy you will be in the current position for the next six months and Executive Chairman thereafter. So with that, I'll start with an overview of results for fiscal twenty twenty five and then the fourth quarter. John will add perspective on strategic focus areas and capabilities and we will close with guidance for fiscal twenty twenty six and then take your questions. Execution of our integrated strategy enabled the company to grow organic sales and core EPS and to return cash to shareowners in line with our target range in a challenging fiscal twenty twenty five despite volatile macroeconomic, geopolitical and consumer dynamics, resulting in market level headwinds that were not anticipated at the start of the fiscal year.

Organic sales for the year grew 2%, volume growth contributed one point and price mix added one point. Growth continues to be broad based across categories and regions. Nine of 10 product categories grew organic sales for the year. Family Care and Personal Healthcare each grew with singles. Fabric Care, Home Care, Feminine Care, Hair Care, Grooming, Oral Care and Skin and Personal Care were up low single digits.

Baby Care was down low singles. Focus markets grew organic sales 2% for the year with North America up 2% and Europe focus markets up 3%. Greater China organic sales were down 5% versus the prior year, but improved sequentially throughout the fiscal year growing 2% in the most recent quarter. Enterprise markets were up 2% led by Latin America with 4% organic sales growth. E commerce sales increased 12%, now representing 19% of total company.

30 of our top 50 category country combinations held or grew share for the year. Seven of 10 product categories held or grew share globally. In aggregate, global value and volume share were both in line versus prior year. All general market value in The U. S.

Categories in which we compete grew around 3.5% in fiscal twenty twenty five. P and G consumption growth was roughly in line with category value and volume levels for the year. Core earnings per share were $6.83 up 4% for the year. Core gross margin declined 40 basis points and core operating margin increased 50 basis points. Nearly $2,700,000,000 of productivity improvement across cost of goods sold and SG and A enabled an increase in investment in superior products, packages and brand communication to drive market growth.

On a currency neutral basis, core EPS was up 4% and core operating margin increased 50 basis points. Adjusted free cash flow productivity was 87%. We increased our dividend by 5% and returned $16,000,000,000 of value to share owners, nearly €10,000,000,000 in dividends and €6,500,000,000 in share repurchase consistent with our guidance at the start of the fiscal year. Moving to fourth quarter results, organic sales rounded up to 2%. Volume was in line with prior year.

Pricing and mix were each up 1%. Growth continues to be broad based across categories and regions as nine of 10 product categories held or grew organic sales. Fabric Care, Home Care, Feminine Care, Family Care, Grooming, Oral Care, Personal Health Care and Skin and Personal Care each grew low singles. Hair Care was in line with prior year and Baby Care was down low singles. Six of seven regions held or grew organic sales.

Focus markets were up 1%. Organic sales in North America were in line with prior year, while we continue to see solid consumption growth in North America of around 2%, sell in trail sell out due to retailer inventory reductions. European focused markets organic sales were up 2%. Greater China organic sales grew 2%, another quarter of sequential improvement and positive momentum heading into fiscal twenty twenty six. The sixeighteen key consumption period was relatively strong, but we are closely watching economic and consumer confidence impacts resulting from higher U.

S. Tariffs on Chinese imports. Enterprise markets grew 3% for the quarter. Latin America organic sales were up 6% including double digit growth in Mexico more than offsetting a modest sales decline in Brazil due to trade inventory reductions. Europe Enterprise and Asia Pacific, Middle East, Africa Enterprise regions each grew organic sales low singles.

Global aggregate market share was down 20 basis points. 28 of our top 50 category country combinations held or grew share for the quarter. On the bottom line, core earnings per share were $1.48 up 6% versus prior year. And on a currency neutral basis, core EPS increased 5%. These results include a €03 impact from tariffs.

Our gross margin was down 70 basis points and core operating margin increased 150 basis points. Very strong productivity improvement of five sixty basis points with healthy reinvestment in innovation and demand creation. Currency neutral core operating margin increased 170 basis points. Adjusted free cash flow productivity was 110% and we returned $3,300,000,000 of cash to share owners this quarter, 2,600,000,000.0 in dividends and €700,000,000 in share repurchase. In summary, another year of sales and earnings growth and strong cash return to shareowners in the challenging economic and geopolitical environment.

With that, I'll pass it back to John. Thanks, Andre.

I'll start with a few thoughts on results before discussing the strategy. We're pleased with the performance P and G People delivered last fiscal year in the face of a very dynamic, difficult and volatile environment. Growing sales and profit and returning high levels of cash to shareowners despite heightened consumer anxiety with tariffs, inflation, interest rates, political and social divisiveness and immigration and employment status uncertainty, all resulting in lower category growth, an unpredictable geopolitical environment and against highly capable competitors. While not all results are at the levels we aspire to deliver at the beginning of the year, growth in this environment is worth acknowledging. To be clear, there's more work to do to continue improving the areas in our control, which will be needed to offset the headwinds that are largely not in our control.

The restructuring program we announced last month is one important step towards strengthening the execution of our integrated strategy. I'll talk more about this later. At Investor Day last year and at recent investor conferences, we've highlighted the significant growth opportunities we have ahead of us just in the categories where we play today. In North America, to $5,000,000,000 of market potential simply by growing household penetration of our brands among currently unserved or underserved consumers. In Europe, more than $10,000,000,000 of opportunity by driving consumption and growing markets to the current best in class levels in the region, while maintaining current market share.

In enterprise markets, 10,000,000,000 to $15,000,000,000 of sales opportunity by driving per capita consumption to the levels we currently have in Mexico. Positioning ourselves to capture these growth opportunities and manage the increasing near term challenges is best accomplished with disciplined execution of our integrated growth strategy, with a focus on driving category growth and value creation. A focused portfolio of daily use products in categories where performance drives brand choice. The portfolio is performing, delivering broad based growth across nearly all categories and most geographies. We're active managers of this portfolio.

Over the last several years, we've made some targeted additions and subtractions in our Brand Portfolio. We've adjusted our operating model in several markets. We'll be making additional portfolio moves as part of the new restructuring program. Next, an ongoing commitment to and investment in integrated irresistible superiority through innovation across the five vectors of product package, brand communication, retail execution and value holistically defined. Leveraging that superiority to delight consumers, grow markets and our share in them to jointly create value with retail partners.

The innovation plans across the businesses are broad and strong as each category team works to increase their margin of superiority and consumer delight. Superior innovations that are driven by deep consumer insights, communicated to consumers with more effective and efficient marketing programs, executed in stores and online in conjunction with retailer strategies to grow categories and our brands and price to deliver superior value across each price tier where we compete. No one of the five superiority vectors can carry the day by itself. It's all five working together. A few recent examples.

In China, Pampers is driving growth in the premium and super premium segments of the market by consistently upgrading and clearly communicating its superior offerings to deliver ultimate comfort, protection and luxury softness on skin. In fiscal twenty twenty five, Pampers grew organic sales nearly 20% in China and increased value share by over two points, growing share in both offline and online channels. Pampers grew its point of market entry share, becoming the best diaper for newborns among moms less than 30 years old. SK II recently launched a supercharged product line called LXP. It contains our highest concentration of Patera, delivering eight times faster visible results and is positioned in the super premium segment of the prestige skin market.

This superior product in a beautiful package sold online and in department stores with upgraded counters and beauty counselors is a superior shopping experience and value for the Battera loving loyal consumer. The superior LXP messaging has the added benefit of haloing over the total SK II brand and is building brand equity through consistent recognition from top beauty award groups. During the most recent key consumption event in China, SK II and Pampers led growth in their respective categories, outperforming the market and gaining share. Another example in Latin America, Pantene's deep conditioning treatment collection is leading category growth, leveraging formulas featuring visibly enticing melting pearls, which deliver superior hair repair. Superior advertising with compelling visuals and retail execution with beautiful end aisle displays communicate the benefit and value for the consumer seeking softer, shinier hair.

Mexico Hair Care organic sales were up mid teens in fiscal twenty twenty five with value share growth over 1.5 points. Swiffer recently introduced the Sweep and Mop Deluxe, the first major upgrade to the original Swiffer Sweeper since its launch twenty five years ago and following the Swiffer PowerMop launch last year. Sweep and Mop Deluxe features a sturdier stick that collapses in half for easy storage and two in-one dry and wet cleaning capabilities. It's designed for efficient floor cleaning and is great for small spaces. Early launch results indicate 6% new users and 30% incremental sales to the Swiffer Sweeper starter kit business.

For the PowerMop launch, the Swiffer team brought several top TikTok creators into their labs to learn about PowerMop from P and G scientists and create engaging communication. From there, the creator's social media content was tested with P and G's proprietary AI studios. This process ultimately created the superior Mop Smarter campaign across TV, digital and influencer marketing to connect with consumers in fresh ways. Swiffer PowerMop has become the largest product launch in Swiffer's history, contributing to 40% of the growth of the Swiffer portfolio and driving 35% of category growth, making it the number one growth driver in the category. In The U.

S. Digestive wellness market, Align launched its bloating, relief and food digestion version to address the number one unmet need for nearly half of all consumers bloating associated with the inability to digest food. Align delivered meaningful product innovation and communicated the symptom by showing one of the most common and relatable signs of bloating for consumers not being able to button their pants. This spring, Align launched its first three in-one biotic, a prebiotic to nourish good bacteria, a probiotic to soothe bloating and a postbiotic to support immune health. This new innovation is off to a strong start, enabling Align to accelerate share growth since launch.

Finally, Tide EVO, our new laundry detergent developed on our breakthrough functional fibers platform has started its first stage of national expansion with an online launch of Tide EVO Free and Gentle. EVO offers superior cleaning performance in a recyclable package with no plastic bottles or water. In test market stores, EVO sales have been highly incremental to category growth and retailer demand has been well above initial expectations. We're in the process of adding manufacturing capacity and we'll have more to share about this exciting innovation over the coming months. There are many more examples across all categories, more than we have time to discuss in detail this morning.

One third party measure of innovation success is the Surcana U. S. New products pacesetters report. In 2024, P and G earned four of the top 10 spots for the most successful non food product launches of the year as measured by retail sales and five of the top 25. This marks the fifth year in a row that we have had at least three of the top 10 entries.

Our five entries in the top 25 list are the most by any individual company for the seventh consecutive year and more than our seven closest competitors, Unilever, Kenview, Kimberly Clark, Colgate, L'Oreal, Clorox, Reckitt, Denkiser combined for the fifth consecutive year. Looking forward, P and G has seven entries on the Pacesetters Rising Stars list for next year, including Downy Comfy Cozy Fabric Enhancer, Febreze premium seasonal collection air care, GAIN mood collection detergent, Loves Platinum Protection Diapers, Mr. Clean 2x Concentrated Cleaner, Oral B IO Series two Power Brushes and Secret whole body deodorant sprays. For perspective, all three of our products on the rising stars last year finished in the top 10 for the current year. Third strategy element, productivity improvement in all areas of our operation to fund investments in innovation, brand building and market growth, to mitigate costs and currency challenges and to expand margins and generate cash.

We have an objective for gross savings and cost of goods of up to $1,500,000,000 before tax enabled by platform programs with global application across categories with Supply Chain three point zero. We have line of sight to savings from improved marketing productivity, more efficiency and greater effectiveness, avoiding excess frequency and reducing waste while increasing reach. We're taking targeted steps to reduce overhead as we digitize more of our operations. Visibility to more savings opportunity is increasing as the businesses continue to build their three year rolling productivity master plans and as we accelerate productivity with our restructuring efforts. Next element of the strategy, constructive disruption of ourselves and our industry, a willingness to change, adapt and create new trends, technologies and capabilities that will shape the future of our industry and extend our competitive advantage.

Finally, we've designed and continue to refine an empowered, agile and accountable organization, an inclusive and diverse organization, enabling us to better serve an increasingly diverse set of consumers. There are times when continuous improvement of each element of the strategy is enough to deliver the near term objectives we've set and to prepare us for the next phase of growth and value creation. However, at times, there's a need for a bigger step forward to bolster P and G's growth and value creation. The two year restructuring program we announced is aimed at making changes to enable stronger delivery of our integrated growth strategy. This is not a new approach, rather an intentional strengthening of our current strategy to widen our margin of advantage and superiority fueled by productivity to win in the increasingly challenging environment in which we compete.

There are three main areas of focus: portfolio, supply chain and organization design. The portfolio choices include exits of some categories, brands and product forms in individual markets. They may also include some brand divestitures. It takes time to plan the execution of these moves and most have not been communicated broadly, so we can't discuss all of the details today. Our priority is communicating first to employees and to retail customers.

So here are a few examples of the areas where we will be simplifying the portfolio. We'll be streamlining the Feminine Care pad lineup in several markets in Asia. Similarly, in Oral Care, Fabric Care and Grooming, we'll be discontinuing small non strategic country product form combinations. We'll be discontinuing business operations in Bangladesh. This is not an exhaustive list, but a representation of the ways we're focusing our energy and resources on higher value creation opportunities.

These portfolio moves enable us to make related investments interventions in our supply chain, rightsizing and right locating production to drive efficiencies, faster innovation, cost reduction and even more reliable and resilient supply. Finally, we're making additional changes to ensure an even more agile empowered and accountable organization design, making roles broader, teams smaller, work more fulfilling and more efficient, leveraging digitization and automation. Smaller teams with greater breadth of skills will work on an integrated end to end basis from consumer understanding to design and execution, eliminating the siloed approach to work, creating more integrated ways of working, broadening employees' skills to empower decision making, increasing individual contribution and development and improving the employee value proposition. Across these three areas portfolio, supply chain, organization, we expect to reduce up to 7,000 non manufacturing roles or roughly 15% of our current non manufacturing workforce over the next two years. These steps have been an evaluation by the leadership team for some time.

We've been thinking through some of these organization design changes and shortly after our last restructure change six years ago. And we've had pilots and focus in enterprise markets in place for well over a year. The portfolio moves have been evaluated over the last year following successful execution with other brands and markets over the past two years. I say all of this to ensure our owners that these are well thought out plans, not knee jerk reactions to recent slower markets or higher cost impacts. We remain as confident as ever in our strategy and our ability to drive market growth, to deliver balanced growth and value creation, to delight consumers, customers, employees, society and shareowners.

And we're taking steps to drive better execution and more investment in the strategy to grow markets and improve our ability to achieve our growth and value creation objectives. With that, I'll hand it back to Andre to outline our guidance for the New Year.

Thanks, John. As we enter fiscal twenty twenty six, we continue to expect the environment around us to remain volatile and challenging from cost to currencies to consumer, competitor, retailer and geopolitical dynamics. We believe our going in guidance for fiscal twenty twenty six prudently reflects these market realities. On the top line, we currently expect the markets in which we compete to deliver local currency value growth in the range of flat to 3% for the year, with the current run rate roughly in the middle of this range. Our objective is to grow organic sales modestly ahead of the underlying growth of these markets.

However, our guidance includes a 30 to 50 basis point headwind from brand and product form discontinuations as part of our two year restructuring program. Taken together, our guidance range for organic sales growth is in line to up 4% versus prior year. The low end of this range protects for additional softness in underlying market growth rates. The high end would require acceleration in underlying market growth and market shares. On the bottom line, we are guiding for core EPS growth in line to plus four percent versus fiscal year twenty twenty five, core EPS of $6.83 This guidance equates to a range of €6.83 to €7.09 per share, 6.96 or up 2% at the center of the range.

This outlook includes a commodity cost headwind of approximately $200,000,000 after tax and the foreign exchange tailwind of approximately $300,000,000 after tax. In addition, our outlook includes $1,000,000,000 before tax in higher costs from tariffs in fiscal twenty twenty six. This is based on tariff rates announced since July 9 and assumes USMCA exemptions still apply for imports from Canada and Mexico. You can think about the tariff impact in three buckets, about $200,000,000 from materials and products imported from China to The U. S.

Another €200,000,000 from Canada's tariffs on goods shipped from The U. S. And the remaining €600,000,000 from tariffs on goods coming from coming to The U. S. From the rest of the world.

At these rates, tariffs alone are a five point headwind to core EPS growth in fiscal twenty twenty six. We will look for every opportunity to mitigate these impacts including sourcing flexibility, productivity improvements and pricing with innovation in affected categories and markets. Below the operating line, we expect modestly higher interest expense versus last fiscal year and a core effective tax rate in the range of 20% to 21% for fiscal twenty twenty six combined roughly a $250,000,000 after tax headwind to earnings growth. We are forecasting adjusted free cash flow productivity in the range of 85% to 90% for the year. This includes an increase in capital spending as we add capacity in several categories and as we incur the cash costs from the restructuring book.

We expect to pay around $10,000,000,000 in dividends and to repurchase approximately $5,000,000,000 in common stock, combined the plan to return roughly $15,000,000,000 of cash to shareowners in fiscal twenty twenty six. These guidance ranges reflect current market realities for consumption and costs including tariffs. They also reflect our desire to maintain strong investment in the business to enable delivery of our growth algorithm over two three year rolling periods as we work through market and cost volatility. This outlook is based on current market growth rate estimates, commodity prices and foreign exchange rates. Significant additional currency weakness, commodity cost increases, geopolitical disruption, major supply chain disruptions or store closures are not anticipated within these guidance ranges. With that, I'll hand it back to John for closing thoughts.

We're very pleased with the results P and G People have delivered in a very challenging and volatile environment, growing sales, growing earnings and returning strong levels of cash to shareowners. We continue to believe the best path to sustainable balanced growth is to double down on the strategy. Excellent execution of an integrated set of market constructive strategies delivered with a focus on balanced top and bottom line growth and value creation, starting with a commitment to deliver irresistibly superior propositions to consumers and retail partners. We're taking proactive steps to improve the execution of strategy and our ability to deliver our growth and value creation objectives.

I'm looking forward to being with you through the calendar year as CEO and then as Executive Chair. I'm excited by the additional contributions that Shailesh and our team will make to Delight consumers, customers, employees, society and through this, our shareowners. With that, we'll be happy to take any questions.

Your first question will come from the line of Steve Powers with Deutsche Bank. Please go ahead.

Thank you, and good morning, everybody. Picking up on last night's announcement, I guess I'd like to begin by extending my congratulations to Shailesh, assuming he's listening somewhere, and and also say congratulations to you and the entire team, John, on what appears a a well thought out transition. Two two questions stemming from that, if I could. First, I know we'll hear a lot more from Shailesh starting in about six months, but, maybe you could offer a bit more perspective, John, on what, what you see as Shailesh's unique attributes and why you feel he's the right person to succeed you while also, elaborating on your goals as you think about the pivot to executive chairman? And then secondly, shifting back to the business, Shailesh spoke in early June about the importance of P and G working, as he put it, to create its own tailwinds as we enter fiscal 'twenty six in order to reaccelerate category growth and P and G's own top line.

You spoke to the innovation slate this year and overall priorities, but could you elaborate further on those tailwind creation efforts? And when within the fiscal year you might expect them to accumulate into more tangible overall results? Thank you.

Thanks, Steve. As it relates to Shailesh's strong suitability to lead the next phase of growth and value creation for the company, he has successfully led our largest businesses, specifically the fabric and home care sector most recently. He's led businesses in both enterprise markets and focus markets. Most recently as COO, he had responsibility for p and l responsibility for each of the enterprise markets. As COO, he gained even deeper knowledge of some of our functional skill sets and capabilities.

So he'll bring all of that to bear combined with thirty six years of experience. I've worked closely with Shailesh, most closely in the last number of years as he was COO and I was CEO, but we've worked in other capacities together over the years. So he's gonna be a great a very strong candidate to lead again the next phase of growth and value creation, and I feel very, very good about that. It gives me a fair amount of peace and comfort as I move into my next chapter. In terms of creating our own headwinds or sorry, tailwinds.

The last thing we need to do is create any more headwinds. The restructuring program that both Andre and I referenced in our remarks is very good example of that. Building financial headroom to invest in innovation, invest in commercialization And that's the reason we're doing that is to continue to create our own tailwinds to accelerate growth in what is otherwise a very, very difficult environment. Focusing those efforts on the categories and brands and markets that matter is another example of creating our own tailwinds. And we continue to create tremendous advantage with all the work that we're doing in supply, both to improve service to consumers and customers, reduce costs, creating more financial headroom.

And then obviously, the appropriate levels of investment and expertise focused on the next round of innovation, the next round of commercialization, and I took you through some of the on market examples in my prepared remarks. And there are many exciting things coming, not just in the categories we currently compete in, but also selectively a few additional categories. So, again, I move to my next assignment with a sense of excitement and anticipation for what the team will accomplish. And that's one thing I think is important to emphasize when we have these times of leadership rotation. Big multinational business is not a me sport.

It is a we sport. And I'm most comforted by the breadth and quality of the leadership team, the breadth and quality of the organization that's been executing against the strategies that have generated some of the results that we've been talking about. I'll leave it there.

The next question will come from Lauren Lieberman of Barclays. Please go ahead.

Great. Thanks. Good morning. And I'll just echo everything that Steve so eloquently said both to you, John, and to to Shailesh. It was great to get the context of your expectations for market growth and also kind of the current the current rate.

But one thing that's become true over the last couple of quarters is the outperformance of P and G versus its categories. That gap has narrowed and narrowed and narrowed. And that's with what I think has still been a very steady slate of innovation, of consistent reinvestment. So notwithstanding all the words you just shared around consistency of strategy and confidence in the strategy, what do you think maybe needs to change? And maybe we can focus just on North America to widen that gap back out where your innovation, your strategies are in fact growing the categories and by virtue of that, growing your share because that that math doesn't seem to be working more recently.

So whether it's competitive environment, particular cohorts in the consumer landscape that have been more challenged, what your what your perspective would be on how that gap kinda widens back out to support P and G outperformance? Thanks.

I'll provide some perspective on your accurate observations and our response to them, and then I'll ask Andre to do the same from his vantage point. In North America specifically, we have kind of three things that are happening. One is the reduction in category growth rates. The second is if you're if you're operating within a category that's growing at a a lower rate, by definition, your margin of growth advantage narrows. Second is, as Andre mentioned in his remarks, the relationship between sell in and sell out, where we've seen inventory reductions in the part of our retail partners, that is exaggerated by the shift of shopping across the retail channels.

And the channels that are growing the quickest right now typically carry lower levels of on hand inventory, whether that's Walmart, whether that's Amazon, whether that's club stores. The third and probably most important is that we do have categories where we've lost superiority. And we simply must regain that level of superiority that allows us to outgrow the market. That's why we're going through the restructuring program that we are. There are specific plans, as you can imagine, they're competitively sensitive.

And I'm not going to go into step by step elements. But you should assume that we clearly understand that we have work to do there. And hopefully, the restructuring program gives you some confidence that we're committed to do exactly that. And obviously, as these things come to market, we'll be talking more about them as early as the back to school conference in September. Andre, any other thoughts?

No. Echo what you said, John. I think maybe to be specific and give you some confidence here. As John said, I think in some categories, we have not been able to maintain the level of superiority that we know we need in order to grow the category and grow within the category. But we also know that when we do that, the business quickly reaccelerates and picks up.

So if you take Baby Care, for example, while the premium end of the lineup has been growing consistently because we've innovated consistently on spotless and cruisers three sixty, etcetera, the lower end, the value tier had not delivered. When we put innovation on lofts with platinum protection, the category part reaccelerated, our share reaccelerated and our organic sales reaccelerated. We have the same opportunity on Olay on the core jars business. So we know we're not superior. We know we need to adjust and we're on it.

But where we have superiority in the Olay lineup like SuperSerum, we bring in 65 of business via new users. So we grow the category, we grow share within the category. And then we just have a few S curves that will just fundamentally change the category operates, which is EVO, which will launch in the back half of the year. We've got it in the online business right now, but we'll we firmly plan to expand that further. So there's plenty of proof.

We know what to do. We need to execute brilliantly and we create the fuel to do that with the restructuring and the productivity efforts that you see. The second part I'll leave you with is the new business opportunity of $5,000,000,000 that we quote is real. These are underserved and unserved consumers that we can access. But they are this is only a number on a piece of paper until we allocate resources to it, which is exactly what we're doing and doubling down to ensure that regions, segments, consumer groups that we have not as actively pursued in The U.

S, we are going after with full intention and all the resources we have.

And I think, Lauren, as you just again, to the heart of your question on reaccelerating the gap in performance or the advantage in performance between P and G and the competitive set, I mean, thing you need to look at is who is positioning themselves for the level of investment that we're describing here. And I won't speak to others, but we are intent on ensuring that we're well positioned to do exactly what we described.

The next question today will come from Dara Mohsenian of Morgan Stanley. Please go ahead.

Hey, good morning. John, congrats on a remarkable run at driving shareholder value and Shailesh on his greater responsibilities. John, can you discuss how the restructuring you recently announced will enable greater organizational capabilities looking forward, particularly just given the external technology advancements that we've seen and how those two points interplay with each other. And on the other piece of big news with the CEO change, all the background on Shailesh's capabilities is very helpful. Just any insight or perspective on the timing of the CEO change?

Why is now or technically January the right time to move to new leadership? Thanks.

Great. I'm gonna start with the last part of your question, Dara. And usually, when I do that, you'll have to repeat the first part. But in terms of why now, and and you said technically January 1. It's not technically January 1.

It's actually January 1. And the only reason I emphasize that is because of the next observation I'm gonna make. As of January 1, I will have served this company for thirty eight years. My wife worked for this company in a senior executive capacity until she retired when I became CEO. Between the two of us, we'll have served this company for seven decades, almost three quarters of a century.

The results that you referred to and that have been delivered give me comfort in the strength of the strategy, the sustainability of the strategy. If you go back to when we completed the articulation of the strategy and began executing against it, which was seven years ago in 2018. This team has built has created $17,500,000,000 in incremental sales, which puts us at the eighty fourth percentile of the S and P 500. At the same time, they've generated $6,000,000,000 in incremental profit, which puts us at the ninety second percentile of the S and P 500. Grading, as you referenced, significant market cap growth of $180,000,000,000 more value creation than all but one of our competitors have created over their entire one and two century histories as a company, so seven years vis a vis one or two centuries.

And in the process, the team has built the eighteenth most valuable publicly U. S. Publicly traded company, the twenty first most valuable in the world. So we embark on our next chapter from a position of strength, both from a strategic standpoint and from an executional standpoint. We've recently, and Andre mentioned, we described this first at the Deutsche Bank Conference in Paris in June, strengthened the execution of that strategy, which gives me further comfort that we'll be able to execute against that.

And as I mentioned, we have a very strong team, inclusive of Shailesh. And so I just look at all of this and say this is the right time to make a transition as we lap the fiscal year, and I'm very confident we'll be able to do that in a very constructive way. In terms of the timing or the cadence that you asked about, in terms of when these tailwinds that we're creating for ourselves bear fruit, as you would expect, there's an executional period that has there's a planning period that has to occur. There's an executional phase, then we get to impact. So that will build as we go through the fiscal year and into next.

Oh, sorry. You always ask very complex questions there. So my team here has reminded me that I've, as is typical, overlooked one of your key questions, and it's it's a very important one, which is how is, you know, how are we thinking about the organization design and and why do we why does that give us confidence and what tailwinds does that create? Many of you have probably heard me talk about this before. It's one of my top topics to talk about because I think there's so much there there.

You know, industry broadly defined has operated over the last a hundred years in a very siloed, heavily functional organization model. But the world has changed, and and the world isn't thinking about things that way. And so I think there is immense opportunity to tear down some of those silos and in the process, build better and quicker decision making, more efficient work processes, and a much higher employee value proposition. Each one of those things by themselves would make a significant difference in terms of the creation of tailwinds that we've been talking about. Together, I think they're extraordinarily powerful, and that expands across the activity system of the enterprise.

So the the potential there is is is significant. So I'm highly well, one last thing because you you also referred to this. That would have been a very, very difficult task or reality to get your arms wrapped around without the advent of some of the technology that we have available to us now. So so now is the time to utilize those tools and empower the organization to move forward. Each one of those functional silos that I referred to largely, historically, and even currently had has their own data repository.

And there are people within each of those functions, and I mean each and every, whose job is to create, maintain, extract, translate all of that data. And our objective is to make that seamlessly available to everybody on an end to end basis, not siloed just like the organizations are siloed, not hard to access, and obviously utilizing the analytical and even predictive tools that are increasingly available. Sorry for the long answer, but when you ask a long question, you get a long answer.

Our next question today will come from Bonnie Herzog of Goldman Sachs. Please go ahead.

All right. Thank you and congratulations from me too to both Shailesh and John. And John, we're really all going to miss seeing you, especially at CAGNY, but, of course, you're always welcome. So I just had a few questions on your f y My

Does that does that mean they want you? Oh, we'd love to to keep seeing you.

Oh, no. No. That's fine. But I just had a few questions on your f y twenty six guidance, if I may. First, your ranges are quite a bit wider than they've been historically.

Now I certainly recognize there's a fair amount of volatility uncertainty. But is there any other reason maybe why you have less visibility on your business right now? Then also your guidance does imply deleverage at the midpoint. So maybe help us to understand the puts and takes of this. And then finally, how are you thinking about phasing in the year?

Should we assume EPS growth will be back half weighted? Thanks.

I'll take a run at this and John, please jump in here. Morning, Bonnie. Just for the record, we were smiling not frowning. On the top line, I think the reality that we're seeing is simply a lack of clarity on where the category growth is going to go. Our midpoint assumes that growth rates in The U.

S. And in Europe stay about where we see them today, which is around 2%, maybe a little bit lower in the most recent weekly data. China continuing on its path to growth, not quite there. And Latin America and Enterprise Markets in general remaining at around 5%, 6% of category growth. So if that holds true, we think we can be at the midpoint of slightly higher.

Procter & Gamble (PG) Q4 2025 Earnings Call Transcript

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