Executive Summary
The Procter & Gamble Company delivered a solid Q2 2025 with a revenue of $21.882 billion and net income of $4.63 billion, translating to an EPS of $1.94 (GAAP) and diluted $1.88. The quarter saw a gross margin of 52.39% and an operating margin of 26.24%, supported by ongoing pricing power and disciplined cost management. Net income rose ~33.5% year-over-year, while operating income increased ~29.5% YoY, underscoring a favorable mix and resilient demand for core consumer staples across regions. Free cash flow stood at $3.90 billion, with $2.51 billion of share repurchases and $2.441 billion in dividends paid, signaling an active shareholder-friendly capital allocation stance. The balance sheet remains robust with total assets of ~$122.6B and total liabilities of ~$71.2B, yielding a solid equity base of ~$51.2B. Net debt stood at ~$24.5B, and cash on hand was ~$10.23B, supporting ongoing investment and liquidity requirements.
Key Performance Indicators
Key Insights
Revenue: $21.882B; YoY growth: 2.06%; QoQ growth: 0.67%. Gross Profit: $11.464B; Gross margin: 52.39%; YoY gross profit growth: 1.48%; QoQ: 1.31%. Operating Income: $5.741B; Operating margin: 26.24%; YoY operating income growth: 29.51%; QoQ: -0.97%. Net Income: $4.63B; Net margin: 21.16%; YoY net income growth: 33.51%; QoQ: 16.95%. EPS (GAAP): $1.94; EPS (Diluted): $1.88; YoY EPS growth: 34.72%; QoQ: 17.58%. Cash flow from operations: $4.825B; Free cash flow: $3.90B. Net debt: $24.457B; Total de...
Financial Highlights
Revenue: $21.882B; YoY growth: 2.06%; QoQ growth: 0.67%. Gross Profit: $11.464B; Gross margin: 52.39%; YoY gross profit growth: 1.48%; QoQ: 1.31%. Operating Income: $5.741B; Operating margin: 26.24%; YoY operating income growth: 29.51%; QoQ: -0.97%. Net Income: $4.63B; Net margin: 21.16%; YoY net income growth: 33.51%; QoQ: 16.95%. EPS (GAAP): $1.94; EPS (Diluted): $1.88; YoY EPS growth: 34.72%; QoQ: 17.58%. Cash flow from operations: $4.825B; Free cash flow: $3.90B. Net debt: $24.457B; Total debt: $34.687B; Debt/Capitalization: 40.4%; Interest Coverage: 23.92x. Dividend payout ratio: 52.7%; ROE: 9.05%; ROA: 3.78%; Cash conversion cycle: -38.94 days. Revenue mix by segment remains supportive of overall margin strength, with a diversified portfolio across Beauty, Grooming, Health Care, Fabric & Home, and Baby, Feminine & Family Care.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
21.88B |
2.06% |
0.67% |
| Gross Profit |
11.46B |
1.48% |
1.31% |
| Operating Income |
5.74B |
29.51% |
-0.97% |
| Net Income |
4.63B |
33.51% |
16.95% |
| EPS |
1.94 |
34.72% |
17.58% |
Key Financial Ratios
operatingProfitMargin
26.2%
operatingCashFlowPerShare
$2.05
freeCashFlowPerShare
$1.66
dividendPayoutRatio
52.7%
Management Commentary
No earnings call transcript provided in the data; as a result, explicit management themes and quotes are not available in this dataset.
Forward Guidance
Explicit numerical guidance for Q3/Q2 2025 was not provided in the supplied data. Nevertheless, the quarter demonstrates meaningful operating leverage (operating income up ~29.5% YoY) and strong free cash flow generation ($3.9B) that supports ongoing capital allocation, including a $2.51B share buyback and $2.441B in dividends. Market commentary would likely emphasize continued price realization, cost discipline, and portfolio diversification as levers for sustaining margins amid input-cost volatility and currency fluctuations. Key risk factors to monitor include currency headwinds, commodity price swings, competitive intensity, and macro consumer confidence. Investors should watch for any updates on guidance related to organic growth targets, margin trajectory, and capital deployment plans.