Procter & Gamble Posts Earnings Beat and Names New CEO. What to Know.

Procter & Gamble is the parent company of brands like Pampers and Gillette. (Getty Images)

Shares of Procter & Gamble rose modestly Tuesday after the company posted better-than-expected results and named a new chief executive.

The company—parent to brands like Pampers and Gillette—reported adjusted earnings of $1.48 a share for its fiscal fourth quarter ended in June, beating analysts’ consensus call for $1.42. Sales totaled $20.9 billion, just above Wall Street’s forecast of $20.8 billion. Organic sales rose 2% from the same period last year.

The company expects organic sales to grow between 0% and 4% in fiscal 2026 but warned of around $1 billion in higher costs from tariffs before taxes.

P&G stock was up 0.1% to $157.30 in midday trading.

The earnings print came after P&G announced Monday evening that current Chief Operating Officer Shailesh Jejurikar will succeed Jon Moeller as CEO on Jan. 1, 2026. Moeller will stay on as executive chairman of the board.

Jejurikar, who joined P&G in 1989 and has been a member of its global leadership team since 2014, was seen as a natural successor to Moeller.

“We expect a smooth transition, as Mr. Jejurikar has been COO since 2021,” wrote Olivia Tong of Raymond James in a research note Tuesday. “With five months until the succession plan becomes effective and Mr. Moeller staying as Executive Chairman, Mr. Jejurikar will have ample time for transition.”

Jejurikar will oversee the company’s restructuring plan announced in June. As part of that effort, P&G expects to cut roughly 15% of its nonmanufacturing jobs —around 7,000 workers—over the next two years. The cost-cutting measures should better position the company to deliver on its long-term goals, Tong wrote. She reiterated an Outperform 2 rating—a notch below the firm’s “Strong Buy” rating—and a $185 price target on the stock.

Beyond the succession announcement, Tuesday’s financial results didn’t change many minds on Wall Street. P&G’s expectations were low heading into the print, and its wide guidance range for next year reflected an uncertain macroeconomic environment, said Nik Modi of RBC Capital Markets in a note.

Modi maintained an Outperform rating and a $177 price target, calling P&G one of the best-positioned companies in its sector to handle “the volatility that has come to define the past few years and most likely the next few years.”

Write to Nate Wolf at nate.wolf@barrons.com