(Reuters) -Procter & Gamble on Tuesday forecast annual results largely below Wall Street estimates in the face of cautious consumers, a day after the Tide parent named an insider as CEO to steer it through the tariff uncertainty.
The muted expectations will likely pile pressure on Shailesh Jejurikar, who on Monday was named to the top post replacing Jon Moeller.
Meanwhile, P&G, which topped fourth-quarter revenue and profit estimates on price hikes, will raise prices on about a quarter of its products
in the U.S., starting this month, to help offset the cost of new tariffs imposed by President Donald Trump.
The price hikes have been communicated to retailers such as Walmart and Target and are in the mid-single digits across categories, a spokesperson said, and will be seen on shelves starting in August.
The comments from the world's largest consumer goods maker reinforce how consumers, particularly in the lower income category, are seeking value as they look to stretch their household budgets. Packaged food maker Nestle said last week that consumers in North America remained weak.
P&G, which makes household basics spanning from Bounty paper towel to Metamucil fiber supplements, estimated tariffs will increase its costs by about $1 billion before tax for fiscal 2026. That compares with projections of between $1 billion and $1.5 billion made in April.
P&G expects fiscal 2026 core net earnings per share growth in the range of flat to up 4% to between $6.83 and $7.09, compared with estimates of a 3.49% growth to $6.99, according to estimates compiled by LSEG.
The company expects total net sales for fiscal 2026 to grow between 1% to 5%, the mid-point of which was slightly below analysts' average estimate of a 3.09% rise to $86.80 billion.
P&G began a restructuring effort in June to exit some brands and cut about 7,000 jobs over the next two years to increase productivity.
The company's revenue rose 1.7% to $20.89 billion in the fourth quarter, compared with analysts' average estimate of a 1.38% rise to $20.82 billion.
Prices rose 1% while volumes were flat year-over year, after having fallen about 1% in the prior quarter.
The company reported earnings per share of $1.48 for the three months ended June 30, compared with estimates of $1.42.
Its shares were up marginally in premarket trading. They have fallen about 6% so far this year.
(Reporting by Juveria Tabassum in Bengaluru and Jessica DiNapoli in New York; Editing by Sriraj Kalluvila)
