PROCTER & GAMBLE Co

Previous wording

Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, or pricing controls and tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pensions and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and

Current wording

Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, or pricing controls and tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, conflicts or acts of war (such as the conflict in the Middle East), terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pensions and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business

Previous wording

maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from those projected herein is included in the section titled "Economic Conditions and Uncertainties" and the section titled "Risk Factors" (Part II, Item 1A) of this Form 10-Q.

Current wording

partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from those projected herein is included in the section titled "Economic Conditions and Uncertainties" and the section titled "Risk Factors" (Part II, Item 1A) of this Form 10-Q.

Previous wording

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

Current wording

•Results of Operations – Three and Nine Months Ended March 31, 2026

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

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•Segment Results – Three and Nine Months Ended March 31, 2026

Previous wording

P&G is a global leader in the fast-moving consumer goods industry, focused on providing branded consumer packaged goods of superior quality and value to our consumers around the world. Our products are sold in about 180 countries and territories, primarily through mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. We also sell direct to individual consumers. We have on-the-ground operations in about 70 countries.

Current wording

P&G is a global leader in the fast-moving consumer goods industry, focused on providing branded consumer packaged goods of superior quality and value to our consumers around the world. Our products are sold in about 180 countries and territories, primarily through mass merchandisers, e-commerce (including social commerce) channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores (including airport duty-free stores),

Previous wording

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

Current wording

The following table provides the percentage of net sales and net earnings by reportable business segment (excluding Corporate) for the three and nine months ended March 31, 2026:

Previous wording

In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded incremental restructuring charges of approximately $0.8 billion after tax, comprised primarily of non-cash charges for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss). The total incremental restructuring charges incurred under the program beginning in the three-month period ended December 31, 2023, through the three-month period ended September 30, 2024, were approximately $1.2 billion after tax.

Current wording

In the fiscal year ended June 30, 2024, the Company started a limited market portfolio restructuring of its business operations, primarily in certain Enterprise Markets, including Argentina and Nigeria, to address challenging macroeconomic and fiscal conditions. During the period ended September 30, 2024, the Company completed this limited market portfolio restructuring with the substantial liquidation of its operations in Argentina and recorded incremental restructuring charges of approximately $0.8 billion after tax, comprised primarily of non-cash charges for accumulated foreign currency translation losses previously included in Accumulated other comprehensive income/(loss). The total incremental restructuring charges incurred under the

Previous wording

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period. The Company expects to incur half of the costs under this plan by the end of fiscal 2026, with the remainder incurred in fiscal 2027. The restructuring activities will be executed across the Sector Business Units 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.

Current wording

In June 2025, the Company announced a portfolio and productivity plan to streamline its portfolio and organization to improve its cost structure and competitiveness. The Company expects to incur approximately $1.5 to $2.0 billion in before-tax restructuring costs over a two-year period. The Company expects to incur 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.

Previous wording

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

Current wording

The following are highlights of results for the nine months ended March 31, 2026, versus the nine months ended March 31, 2025:

Previous wording

•Net sales were $44.6 billion, an increase of $975 million, or 2%, versus the prior year period. Net sales increased mid-single digits in Beauty, Grooming and Health Care, and low single digits in Fabric & Home Care. Net sales decreased low single digits in Baby, Feminine & Family Care. Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 1% versus the prior year period. Organic sales increased mid-single digits in Beauty and low single digits in Grooming and Health Care and were unchanged in Fabric & Home Care. Organic sales decreased low single digits in Baby, Feminine & Family Care.

Current wording

•Net sales were $65.8 billion, an increase of $2.4 billion, or 4%, versus the prior year period. Net sales increased high single digits in Beauty, mid-single digits in Grooming and Health Care, and low single digits in Fabric & Home Care and Baby, Feminine & Family Care. Organic sales, which exclude the impacts of acquisitions and divestitures and foreign exchange, increased 2% versus the prior year period. Organic sales increased mid-single digits in Beauty, low single digits in Health Care, Grooming and Fabric & Home Care and were unchanged in Baby, Feminine & Family Care.

Previous wording

•Net earnings were $9.1 billion, an increase of $466 million, or 5%, versus the prior year period due primarily to higher restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina in the prior year period.

Current wording

•Net earnings were $13.1 billion, an increase of $624 million, or 5%, versus the prior year period due to higher restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina, in the prior year period.

Previous wording

•Diluted EPS increased 7% to $3.73 due to the increase in net earnings. Core EPS, which excludes incremental restructuring charges, increased 2% to $3.87.

Current wording

•Diluted EPS increased 7% to $5.36 due to the increase in net earnings. Core EPS, which excludes the gain from the dissolution of the Glad joint venture business and incremental restructuring charges, increased 2% to $5.46.

Previous wording

•Operating cash flow was $10.4 billion. Adjusted free cash flow, which is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act, was $8.7 billion. Adjusted free cash flow productivity, which is defined as adjusted free cash flow as a percentage of net earnings, was 95%.

Current wording

•Operating cash flow was $14.4 billion. Adjusted free cash flow, which is defined as operating cash flow less capital expenditures and excluding payments for the transitional tax resulting from the 2017 U.S. Tax Act, was $11.7 billion. Adjusted free cash flow productivity, which is defined as adjusted free cash flow as a percentage of net earnings excluding the gain from the dissolution of the Glad joint venture business, was 92%.

Previous wording

Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 21% of our net sales in fiscal 2025. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs, foreign exchange and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the ongoing war between Russia and Ukraine. Our Russia business accounted for 1% of consolidated net sales, net earnings and net assets as of June 30, 2025.

Current wording

Global Economic Conditions. Our products are sold in numerous countries worldwide, with more than half our sales generated outside the United States. Our largest international markets are Greater China, the United Kingdom, Canada, Japan and Germany and collectively comprised approximately 21% of our net sales in fiscal 2025. As a result, we are exposed to global macroeconomic factors, geopolitical tensions and government policies. We are exposed to various risks due to economic, political and social instabilities, market volatility, natural disasters, debt and credit issues, currency controls, new or increased tariffs, foreign exchange, the availability and cost of materials and interest rate changes. These risks can negatively impact our net sales, net earnings and cash flows. For example, we are exposed to risks due to the conflict in the Middle East and the ongoing war between Russia and Ukraine. Our Russia business accounted for 1% of consolidated net sales, net earnings and net assets as of June 30, 2025.

Previous wording

Foreign Exchange. We have significant exposure to exchange rate fluctuations, both due to translation and transaction exposures. Translation exposures arise from measuring income statements of foreign subsidiaries with functional currencies other than the U.S. dollar. Transaction exposures involve impacts from 1) input costs that are denominated in currencies other than the local reporting currency and 2) revaluation of working capital balances denominated in currencies other than the functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the U.S. dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.

Current wording

functional currency. We have experienced significant foreign exchange impacts in the past due to the weakening of certain foreign currencies versus the U.S. dollar, which have negatively impacted net sales, net earnings and cash flows. In response to the devaluation of foreign currencies (including those deemed highly inflationary), any lags or inability (due to government restrictions) to implement price increases or the negative impacts of such actions on product consumption may lead to a decline in our net sales, net earnings and cash flows.

Previous wording

Net sales for the quarter increased 1% to $22.2 billion. The increase in net sales was due to favorable foreign exchange of 1% and higher pricing of 1%, partially offset by a decline in unit volume of 1%. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales were unchanged.

Current wording

Net sales for the quarter increased 7% to $21.2 billion. The increase in net sales was due to favorable foreign exchange of 4%, a unit volume increase of 2% and higher pricing of 1%. Mix was unchanged. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 3%.

Previous wording

Gross margin decreased 120 basis points to 51.2% of net sales for the quarter. The decrease in gross margin was due to:

Current wording

Gross margin decreased 150 basis points to 49.5% of net sales for the quarter. The decrease in gross margin was due to:

Previous wording

•90 basis points of decline from unfavorable product mix,

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•180 basis points of decline from unfavorable product mix,

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•60 basis points of product and packaging investments,

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•100 basis points of product and packaging investments,

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•60 basis points of higher costs from tariffs,

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•50 basis points of higher costs from tariffs,

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•10 basis points of other items and rounding.

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•20 basis points of other items and rounding and

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•170 basis points of manufacturing productivity savings and

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•210 basis points of manufacturing productivity savings and

Previous wording

Total SG&A spending increased 4% to $11.7 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 30 basis points to 26.1% due primarily to a 30 basis point increase in marketing spending as a percentage of sales as the increase in marketing spending was partially offset by productivity savings. Overhead costs as a percentage of net sales increased 20 basis points as wage inflation and restructuring spending were partially offset by productivity savings. Other operating expenses as a percentage of net sales decreased 10 basis points primarily driven by favorable foreign exchange impacts. Productivity-driven cost savings delivered 100 basis points of benefit to SG&A as a percentage of net sales.

Current wording

Total SG&A spending increased 7% to $5.9 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 10 basis points to 28.0% due primarily to an increase in marketing spending as a percentage of net sales, partially offset by a decrease in overhead costs as a percentage of net sales and a decrease in other operating expenses as a percentage of net sales. Marketing spending as a percentage of net sales increased 20 basis points as the positive scale impacts of the net sales increase and productivity savings were more than offset by an increase in marketing spending. Overhead costs as a percentage of net sales decreased 10 basis points driven by productivity savings and the positive scale impacts of the net sales increase, partially offset by wage inflation, adjustments to expected variable compensation payouts and restructuring spending. Other operating expenses as a percentage of net sales decreased 10 basis points. Productivity-driven cost savings delivered 120 basis points of benefit to SG&A as a percentage of net sales.

Previous wording

Interest expense was $220 million for the quarter, a decrease of $20 million versus the prior year period. Interest income was $115 million for the quarter, a decrease of $4 million versus the prior year period. Other non-operating income/(expense) was $160 million, which is a decrease of $64 million versus the prior year period.

Current wording

Interest expense was $223 million for the quarter, an increase of $6 million versus the prior year period. Interest income was $100 million for the quarter, a decrease of $11 million versus the prior year period. Other non-operating income/(expense), net was $537 million, which is an increase of $327 million versus the prior year period due primarily to the gain from the dissolution of the Glad joint venture business in the current year.

Previous wording

The effective income tax rate for the three months ended December 31, 2025, was 20.1%, compared to 20.3% for the three months ended December 31, 2024. The decrease in the effective tax rate was primarily driven by discrete impacts related to uncertain tax positions, partially offset by an increase due to lower excess tax benefits of share-based compensation in the current year.

Current wording

The effective income tax rate for the three months ended March 31, 2026, was 20.8%, compared to 18.6% for the three months ended March 31, 2025. The increase in the effective tax rate was primarily driven by a 100 basis-point increase due to discrete impacts related to uncertain tax positions, lower excess tax benefits of share-based compensation in the current year and unfavorable geographic mix impacts.

Previous wording

Net earnings were $4.3 billion, a decrease of $328 million, or 7%, versus the prior year period due primarily to the decrease in operating income, the details of which are described above. Foreign exchange had a positive impact of approximately $89 million on net earnings for the quarter, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble were $4.3 billion, a decrease of $311 million, or 7%, for the quarter. Diluted EPS decreased 5% to $1.78 versus the prior year period.

Current wording

Net earnings were $4.0 billion, an increase of $158 million, or 4%, versus the prior year period due to the increase in other non-operating income/(expense), net, partially offset by the increase in income taxes, the details of which are described above. Foreign exchange had a positive impact of approximately $101 million on net earnings for the quarter, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble were $3.9 billion, an increase of $163 million, or 4%, for the quarter. Diluted EPS increased 6% to $1.63 versus the prior year period. Core EPS, which represents diluted EPS excluding the gain from the dissolution of the Glad joint venture business and charges for incremental restructuring, increased 3% to $1.59.

Previous wording

Net sales for the period increased 2% to $44.6 billion driven by a 1% increase from higher pricing and a 1% increase from favorable foreign exchange. Volume and mix was unchanged. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 1%.

Current wording

Net sales for the period increased 4% to $65.8 billion driven by a 2% increase from favorable foreign exchange and a 1% increase from higher pricing. Volume and mix were unchanged. Excluding the impact of acquisitions and divestitures and foreign exchange, organic sales increased 2%.

Previous wording

Gross margin decreased 90 basis points to 51.3% of net sales for the period. The decrease in gross margin was due to:

Current wording

Gross margin decreased 110 basis points to 50.7% of net sales for the period. The decrease in gross margin was due to:

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•60 basis points of product and packaging investments,

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•70 basis points of product and packaging investments,

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•70 basis points of higher restructuring costs,

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•50 basis points of higher restructuring costs,

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•10 basis points of other items and rounding.

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•20 basis points of other items and rounding,

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•20 basis points of unfavorable foreign exchange impacts and

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•10 basis points of unfavorable foreign exchange impacts and

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•170 basis points of manufacturing productivity savings,

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•180 basis points of manufacturing productivity savings and

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•50 basis points of increase due to higher pricing and

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•50 basis points of increase due to higher pricing.

Previous wording

Total SG&A spending increased 5% to $6.0 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 90 basis points to 27.1% due primarily to an increase in marketing spending as a percentage of net sales and an increase in overhead costs as a percentage of net sales, partially offset by a decrease in other operating expenses as a percentage of net sales. Marketing spending as a percentage of net sales increased 80 basis points due to an increase in marketing spending, partially offset by productivity savings. Overhead costs as a percentage of net sales were increased 40 basis points as wage inflation and restructuring spending were partially offset by productivity savings. Other operating expenses as a percentage of net sales decreased 40 basis points primarily driven by favorable foreign exchange impacts. Productivity-driven cost savings delivered 110 basis points of benefit to SG&A as a percentage of net sales.

Current wording

Total SG&A spending increased 5% to $17.6 billion versus the prior year period due to increased marketing spending and overhead costs. SG&A as a percentage of net sales increased 30 basis points to 26.7% due primarily to an increase in marketing spending as a percentage of net sales and an increase in overhead costs as a percentage of net sales, partially offset by a decrease in other operating expenses as a percentage of net sales. Marketing spending as a percentage of net sales increased 20 basis points as the positive scale impacts of the net sales increase and productivity savings were more than offset by an increase in marketing spending. Overhead costs as a percentage of net sales increased 10 basis points as wage inflation and restructuring spending were partially offset by productivity savings and the positive scale impacts of the net sales increase. Other operating expenses as a percentage of net sales decreased 10 basis points. Productivity-driven cost savings delivered 100 basis points of benefit to SG&A as a percentage of net sales.

Previous wording

Interest expense was $417 million for the period, a decrease of $61 million versus the prior year period. Interest income was $222 million for the period, a decrease of $32 million versus the prior year period. Other non-operating income/(expense) was $427 million, which is an increase of $757 million versus the prior year period primarily due to the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the prior year period.

Current wording

Interest expense was $641 million for the period, a decrease of $54 million versus the prior year period. Interest income was $322 million for the period, a decrease of $43 million versus the prior year period. Other non-operating income/(expense), net, was $964 million, which is an increase of $1.1 billion versus the prior year period primarily due to the non-cash charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina recorded in the prior year period and the gain from the dissolution of the Glad joint venture business in the current year period.

Previous wording

The effective income tax rate for the six months ended December 31, 2025, was 20.5%, compared to 21.3% for the six months ended December 31, 2024. The decrease in the effective tax rate was primarily driven by the prior year charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina of 140 basis points and discrete impacts related to uncertain tax positions, partially offset by a 120 basis point increase due to lower excess tax benefits of share-based compensation in the current year.

Current wording

The effective income tax rate for the nine months ended March 31, 2026, was 20.6%, compared to 20.5% for the nine months ended March 31, 2025. The increase in the effective tax rate was primarily driven by a 100 basis-point increase due to lower excess tax benefits of share-based compensation in the current year, partially offset by the prior year charge for accumulated foreign currency translation losses due to the substantial liquidation of operations in Argentina.

Previous wording

Net earnings increased $466 million, or 5%, to $9.1 billion, as the increase in other non-operating income/(expense), the components of which are described above, were partially offset by the decrease in operating income. Foreign exchange had a positive impact of approximately $85 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble increased $481 million, or 6%, to $9.1 billion for the period. Diluted EPS increased 7% to $3.73 versus the prior year period due to the increase in net earnings. Core EPS, which represents diluted EPS excluding charges for incremental restructuring, increased 2% to $3.87.

Current wording

Net earnings increased $624 million, or 5%, to $13.1 billion, as the increase in other non-operating income/(expense), net, the components of which are described above, were partially offset by the decrease in operating income. Foreign exchange had a positive impact of approximately $185 million on net earnings for the period, including both transactional and translational impacts from converting earnings from foreign subsidiaries to U.S. dollars. Net earnings attributable to Procter & Gamble increased $643 million, or 5%, to $13.0 billion for the period. Diluted EPS increased 7% to $5.36 versus the prior year period due to the increase in net earnings. Core EPS, which represents diluted EPS excluding the charges for incremental restructuring and the gain from the dissolution of the Glad joint venture business, increased 2% to $5.46.

Previous wording

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

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SEGMENT RESULTS – Three and Nine Months Ended March 31, 2026

Previous wording

The following discussion provides a review of results by reportable business segment. Analysis of the results for the three and six months ended December 31, 2025, is provided based on a comparison to the three and six months ended December 31, 2024. The primary financial measures used to evaluate segment performance are net sales and net earnings. The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and six months ended December 31, 2025, versus the comparable prior year period (dollar amounts in millions):

Current wording

The following discussion provides a review of results by reportable business segment. Analysis of the results for the three and nine months ended March 31, 2026, is provided based on a comparison to the three and nine months ended March 31, 2025. The primary financial measures used to evaluate segment performance are net sales and net earnings. The table below provides supplemental information on net sales, earnings before income taxes and net earnings by reportable business segment for the three and nine months ended March 31, 2026, versus the comparable prior year period (dollar amounts in millions):