5 Insightful Analyst Questions From Procter & Gamble's Q1 Earnings Call

Procter & Gamble’s first quarter results were met with a negative market reaction, as management pointed to consumer and retail volatility in the U.S. and Europe as significant headwinds. CFO Andre Schulten explained that “the consumer has been hit with a lot, and that's a lot to process,” referencing shifting retail traffic, cautious spending, and changes in purchasing channels. Management emphasized that despite these challenges, seven out of ten product categories held or grew organic sales, with innovation in personal health care and skin care providing some bright spots.

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 Procter & Gamble’s Q1 Earnings Call

• Lauren Lieberman (Barclays) asked about evolving consumer behavior in the U.S. and Europe. CFO Andre Schulten explained that consumers are pausing purchases, shifting channels, and seeking value, prompting Procter & Gamble to double down on innovation.
• Bryan Spillane (Bank of America) questioned the long-term outlook and levers for mitigating tariff impacts. Schulten pointed to productivity, innovation, and pricing as the primary tools to offset $1–1.5 billion in annual tariff costs.
• Steve Powers (Deutsche Bank) inquired about the nature and level of investment behind the innovation pipeline. Schulten said investment in media and advertising remains flat as a percentage of sales, with a focus on visibility over deep discounting.
• Dara Mohsenian (Morgan Stanley) asked about private label risk and market share trends. Schulten responded that Procter & Gamble’s portfolio covers all value tiers and private label shares are trending down, reflecting brand strength.
• Olivia Tong (Raymond James) sought details on managing tariff impacts in categories with high private label exposure. Schulten noted that mitigation strategies would vary by brand, market, and SKU, with productivity and selective pricing as key elements.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will closely watch (1) the effectiveness of tariff mitigation strategies and the extent of required price increases, (2) consumer response and share trends as new innovations reach shelves, and (3) signs of stabilization or recovery in key markets such as China and Europe. Execution on productivity initiatives and adaptability to evolving retail channels will also be critical indicators.

Procter & Gamble currently trades at $159, down from $165.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.