Procter & Gamble's Q2 Earnings Call: Our Top 5 Analyst Questions

Procter & Gamble’s second quarter results met Wall Street’s revenue expectations, but the market responded negatively, reflecting uncertainty around the company’s growth trajectory. Management attributed the flat sales volumes to cautious consumer behavior and a slower category growth environment, particularly in North America and Europe. CEO Jon Moeller specifically highlighted ongoing inventory reductions at retailers and pockets of lost brand superiority in select categories as key challenges. CFO Andre Schulten noted, “Where we have superiority in the Olay lineup like Super Serum, we bring in 65% of business via new users,” emphasizing the need for ongoing innovation to regain momentum.

Is now the time to buy PG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Procter & Gamble’s Q2 Earnings Call

• Stephen Powers (Deutsche Bank) asked about the timing and rationale for the CEO transition. CEO Jon Moeller emphasized the company’s strategic strength and confidence in Shailesh Jejurikar’s leadership for the next phase.
• Lauren Lieberman (Barclays) questioned the narrowing gap between Procter & Gamble’s performance and category growth. Moeller acknowledged the need to regain product superiority in certain segments and pointed to the restructuring as a key enabler.
• Dara Mohsenian (Morgan Stanley) inquired about the potential of the restructuring program to enhance organizational agility and leverage technology. Moeller cited pilots demonstrating lower costs and faster decision-making, with positive employee feedback.
• Peter Grom (UBS) focused on the assumptions behind category growth rates and the realism of guidance. CFO Andre Schulten explained that the guidance range reflects persistent uncertainty in consumer behavior and market trends.
• Robert Moskow (TD Cowen) asked if U.S. price increases will be higher due to tariffs and how pricing variability factors into guidance. Schulten detailed that price increases on tariff-affected SKUs will be mid-single digits, with overall pricing closely tied to inflation and tariff developments.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will monitor (1) progress on restructuring execution and realization of cost savings, (2) the pace of recovery in category growth rates, especially in North America and China, and (3) the consumer response to new product innovations like Tide evo and Pampers Platinum Protection. We will also track the company’s ability to offset tariff and input cost headwinds through pricing and supply chain initiatives.

Procter & Gamble currently trades at $155.08, down from $157.03 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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