Procter & Gamble said it expects to see a $1 billion hit during its 2026 fiscal year as a result of the recently imposed tariffs by the administration of President Donald Trump.

The consumer products giant alluded to this during its quarterly earnings call Tuesday, detailing growth in sales and profit during its just concluded 2025 fiscal year.

Chief financial officer Andre Schulten said P&G can offset most of the impact of the tariffs through productivity or sourcing changes, but consumers will pick up the rest of the tab for the remainder of the tariffs’ impacts through price increases.

The numbers

$20.89 billion – Fiscal fourth-quarter revenue, a 2% increase from the same period in 2024. P&G beat forecasts of $20.82 billion for the quarter.

$84.284 billion – Fiscal-year-2025 revenue, flat compared with 2024.

$3.62 billion – Fourth-quarter net income, up from $3.14 billion in 2024.

+1%, -2% – Sales volumes in 2025 in the beauty and health care divisions, respectively.

Water Cooler

P&G informed retailers such as Target and Walmart about price increases for its products, expected to be implemented in July and appear on store shelves in August. According to a company spokesperson speaking to Reuters, the hikes are expected to be in the mid-single-digit range, affecting all categories.

Key Quote

“We grew sales and profit in fiscal 2025 and returned high levels of cash to shareowners in a dynamic, difficult, and volatile environment,” said Jon Moeller, chairman, president, and CEO, in a statement. “We’ve put in place strong plans to continue to deliver for all stakeholders in the current environment.”