P&G Plans CEO Succession, Warns $1B Tariff Impact

Procter & Gamble (P&G) reported quarterly earnings that exceeded Wall Street expectations despite facing challenges from consumer uncertainty and tariffs imposed by President Donald Trump's administration. The company forecasted a $1 billion negative impact on profits for fiscal 2026 due to these tariffs, along with unfavorable commodity costs and higher interest expenses, which is expected to reduce core earnings per share growth by approximately 6%. As a result, P&G announced it will raise prices by about 5% on roughly a quarter of its U.S. products this year to offset tariff-related costs. Amid these financial pressures, P&G revealed plans to cut up to 7,000 non-manufacturing jobs over the next two years as part of a restructuring effort to enhance growth and value creation. Additionally, leadership changes were announced with Shailesh Jejurikar, the current COO, set to replace CEO Jon Moeller starting January 1, 2026, while Moeller will transition to executive chairman. Analysts view Jejurikar's appointment as a natural succession given his extensive experience within P&G, including leading major business units like Tide fabric care.