Here are the biggest calls on Wall Street on Friday: Evercore ISI reiterates Apple as outperform Evercore says it’s bullish on the company’s partnership with Formula One. “While the initial price tag may seem high to some investors, we think acquiring the broadcasting rights is a part of AAPL long-term strategy of expanding in live sports.” JPMorgan upgrades Kodiak Sciences to overweight from neutral JPMorgan says shares of the biotech company are compelling. “We are upgrading Kodiak (KOD) to Overweight (from Neutral prior) and adjusting our December 2026 price target to $24 ($15 prior).” Stifel downgrades Snap to sell from hold Stifel says its checks show too many negative catalysts. ” SNAP: Our checks continue to skew negative, and with incremental confidence TikTok is not going away in the U.S., we believe this trend is unlikely to reverse any time soon.” Morgan Stanley upgrades Commercial Metals to overweight from equal weight Morgan Stanley says the M & A “overhang” has been removed from the stock. “We are upgrading CMC to Overweight on the completion of upcoming acquisitions that remove the prior perceived M & A overhang” JPMorgan initiates Alphatec as overweight JPMorgan says the med tech company has a differentiated offering. “We are initiating coverage of Alphatec with an Overweight rating and a December 2026 price target of $19.” Keybanc resumes Amazon as overweight Key says Amazon shares are compelling. “With shares trading well below historical levels at 22.9x 2027E P/E, we believe this screens as an attractive entry point.” JPMorgan upgrades Coinbase to overweight from neutral JPMorgan says shares of the crypto company are too attractive to ignore. “We are upgrading Coinbase to Overweight as we look ahead to emerging monetization opportunities and abating risks at what we see is an attractive valuation versus cryptocurrency peers.” Read more. Jefferies reiterates Microsoft as buy Jefferies says it’s sticking with the stock ahead of earnings next week. “After its best print in recent memory, MSFT is flat but positioned to rerate, driven by Azure and M365 momentum, robust bookings growth and rising AI contribution.” Morgan Stanley reiterates Intel as equal weight The firm says it’s sticking with its equal weight rating but that Intel’s earnings report on Thursday was “encouraging.” “Significant upside in 3q especially on margins, showing a pattern of underpromising and over-delivering, which is encouraging.” Cantor Fitzgerald initiates Novavax as overweight Cantor says it’s bullish on shares of the biotech company. “We are initiating coverage on NVAX with an OW rating and 12-month $18 PT, representing 115% upside from current levels.” Citizens JMP upgrades eBay to outperform from market perform Citizens says “AI is a tailwind” for eBay. “We upgrade shares of eBay to Market Outperform from Market Perform and establish a $115 price target as we believe eBay’s product work is creating a significantly better consumer experience…” UBS upgrades Alliant Energy to buy from neutral UBS says it sees “data center growth” for the energy company. “We are upgrading shares of LNT to Buy and raising our price target to $79 from $74 due to the company’s unique position to capitalize on additional load and generation investment required to meet surging data center demand.” Rothschild & Co Redburn initiates Albemarle as buy The firm says the lithium company is best positioned. “We launch coverage of Albemarle with a Buy recommendation.” Citi upgrades MNTN to buy from neutral Citi said in its upgrade of the connected TV company that MNTN shares have plenty more room to run. “Compelling Growth at a Reasonable Valuation as CTV Continues to Attract Incremental Budgets.” Mizuho reiterates Beyond Meat as underperform Mizuho lowered its price target to $1.50 from $2 on shares of the meme stock. “Volatility Elevated but Fundamentals Weak; Reducing PT on Dilution; Maintain Underperform. … .Recent financing actions fo r BYND have addressed concerns for short- and long-term capital structure but weak fundamentals maintain our Underperform for BYND shares.” Morgan Stanley upgrades Tractor Supply to equal weight from underweight Morgan Stanley says it sees improving margins. “Comp growth is normalizing and TSCO is moving past peak margin pressure from its investment cycle.” BTIG initiates Kyivstar as buy BTIG says it’s bullish on shares of the Ukraine mobile satellite company. “We are initiating coverage of Kyivstar Group Ltd. ( KYIV) with a Buy rating and $17 price target.” Truist reiterates Nvidia and Uber as buy Truist says it’s bullish on Uber’s autonomous vehicle partnership with Nvidia. “On Thursday, NVIDIA released a white paper in which it provided an update on the company’s AV-centered strategic partnership with Uber. Recall, the companies originally announced the partnership at CES 2025 and as part of the partnership NVDA’s Cosmos – a cloud-based AI supercomputing platform– is utilizing Uber’s driving data to enable developers of AVs with the ability to simulate driving scenarios to train AVs.”
That said, do not forget the impact on firms and the second-round effects on the economy. Yes, it’s the feedback loops again!
You guessed it – yet another negative supply shock for the EU economy, when less is produced for higher prices. For all these reasons, still burdened with a fair portion of uncertainty, we see the 2027 Czech economic expansion not reaching its full potential, but softening to 2.6% or more, depending on the winners and losers in the ETS2 game.
At the same time, the EC has recently published its legislative initiatives plan for 2026. And while it offers some positive potential, it might be said that it lacks the courage to take fundamental steps to reduce Europe’s regulatory burden and improve its competitiveness. There is simply not much on securing stable, affordable energy for both firms and households; it seems pretty heavy on legislative proposals without much added value, while tackling barriers in the internal market no longer seems to be at policymakers’ hearts. Has the Commission grown out of touch with reality – and is that a lesson already learned from the Draghi report?
SPRING HOUSE, Pa. (October 24, 2025) – Johnson & Johnson (NYSE: JNJ) today announced new long-term 52-week data from the Phase 3 ICONIC-TOTAL studya evaluating icotrokinra, a first-in-class investigational targeted oral peptide that precisely blocks the IL-23 receptor, in adults and pediatric patients 12 years of age and older (adolescents) with plaque psoriasis (PsO) affecting high-impact sites.
The ICONIC-TOTAL study, presented at the 2025 Fall Clinical Dermatology Conference, simultaneously evaluated adults and adolescents with at least moderate scalp, genital and/or hand/foot plaque psoriasis with ≥1% Body Surface Area (BSA) affected. Through Week 52, icotrokinra demonstrated high and durable rates of site-specific psoriasis clearance affecting all of these high-impact and difficult-to-treat areas of the body.1
72% of patients with scalp psoriasis achieved a scalp-specific Investigator’s Global Assessment (ss-IGA) 0/1 score and 57% achieved ss-IGA 0b
85% of patients with genital psoriasis achieved a Physician’s Global Assessment of Genitalia (sPGA-G) 0/1 and 73% achieved sPGA-G 0c
In the smaller subset of patients with hand/foot psoriasis, treatment with icotrokinra showed a numerically higher rate of skin clearance at Week 16, which increased through Week 52 with patients achieving a hand and/or foot Physician’s Global Assessment (hf-PGA)e score of 0/1 increasing from 42% to 62%.
“Many of the patients in my practice experience significant distress when psoriasis affects sensitive areas such as the scalp, genitals, hands, and feet,” said Edward (Ted) Lain, MD, MBA Executive Director of the Austin Institute for Clinical Research in Austin, Texas, and study investigator. “The durable response rates observed in the ICONIC-TOTAL study show that icotrokinra has the potential to be a meaningful new option for effectively managing moderate-to-severe plaque psoriasis long-term in both adults and adolescents.”
Overall response rates among patients treated with once daily icotrokinra were maintained through Week 52, with 67% of patients treated with icotrokinra achieving clear or almost clear skin (Investigator’s Global Assessment (IGA)f 0/1) and 44% achieving completely clear skin (IGA 0) at Week 52. The overall response rates were also comparable among patients who received icotrokinra for all 52 weeks and those who transitioned from placebo to icotrokinra at Week 16 (67% versus 68% achieved IGA0/1, respectively). Across treatment groups, adverse event and serious adverse event rates were similar through Week 52 compared to those through Week 16, with no new safety signals identified.
“The new long-term data from ICONIC-TOTAL adds to the robust findings seen across several studies this year, including the recently reported ICONIC-LEAD 52-week data,” said Liza O’Dowd, MD, Vice President, Immunodermatology and Respiratory Disease Areas Lead, Johnson & Johnson Innovative Medicine. “Psoriasis that affects high-impact skin sites often results in greater physical discomfort for patients due to the sensitivity of these areas. Icotrokinra is being developed with the goal of setting a new standard of treatment that offers patients the precision of a targeted therapy, high level skin clearance and favorable safety profile with the ease of a once daily pill.”
Editor’s notes: a. ICONIC-TOTAL evaluates the efficacy and safety of icotrokinra compared with placebo in participants with at least moderate scalp, genital, and/or hand/foot PsO with once daily icotrokinra or placebo, with placebo-to-icotrokinra transition at Week 16. b. The ss-IGA is a five-point scale where scalp lesions are assessed in terms of clinical signs of redness, thickness, and scaliness on a severity score ranging from 0 to 4, where 0 indicates absence of disease, 1 is very mild, 2 is mild, 3 is moderate and 4 indicates severe disease. c. The sPGA-G is a six-point scale used to evaluate the severity of genital psoriasis at a given time point ranging from 0 to 5, where 0 indicates clear, 1 is minimal, 2 is mild, 3 is moderate, 4 is severe and 5 indicates very severe disease.2 d. The Physician’s Global Assessment of Psoriasis on the Hands and/or Feet (hf-PGA) assesses the severity of hand and foot psoriasis using a 5-point scale to score the plaques on the hands and feet as: clear (0), almost clear (1), mild (2), moderate (3) and severe (4).3 e. Dr. Lain is a paid consultant for Johnson & Johnson. He has not been compensated for any media work. f. The IGA is a five-point scale with a severity score ranging from 0 to 4, where 0 indicates clear, 1 is minimal, 2 is mild, 3 is moderate, and 4 indicates severe disease.4
About the ICONIC Clinical Development Program The pivotal Phase 3 ICONIC clinical development program of icotrokinra (JNJ-2113) in adult and pediatric patients 12 years of age and older with moderate-to-severe plaque PsO was initiated with two studies in Q4 2023 – ICONIC-LEAD and ICONIC-TOTAL – pursuant to the license and collaboration agreement between Protagonist Therapeutics, Inc. and Janssen Biotech, Inc., a Johnson & Johnson company.5
ICONIC-LEAD ( NCT06095115) is a RCT to evaluate the efficacy and safety of icotrokinra compared with placebo in participants with moderate-to-severe plaque PsO, with PASI 90 and IGA score of 0 or 1 with at least a 2-grade improvement as co-primary endpoints.6
ICONIC-TOTAL ( NCT06095102) is a RCT to evaluate the efficacy and safety of icotrokinra compared with placebo for the treatment of PsO in participants with at least moderate severity affecting special areas (e.g., scalp, genital, and/or hands and feet) with overall IGA score of 0 or 1 with at least a 2-grade improvement as the primary endpoint.7
Other Phase 3 studies in the development program include ICONIC-ADVANCE 1 ( NCT06143878) and ICONIC-ADVANCE 2 ( NCT06220604), which are evaluating the efficacy and safety of icotrokinra compared with both placebo and deucravacitinib in adults with moderate-to-severe plaque PsO.8,9 ICONIC-ASCEND will evaluate the efficacy and safety of icotrokinra compared with placebo and ustekinumab in participants with moderate-to-severe plaque psoriasis. ICONIC-PsA 1 ( NCT06878404) and ICONIC-PsA 2 ( NCT06807424) will evaluate the efficacy and safety of icotrokinra compared to placebo in participants with active psoriatic arthritis.10,11 ICONIC-UC ( NCT07196748) will evaluate the efficacy and safety of icotrokinra in adults and adolescents with moderately to severely active ulcerative colitis (UC) and ICONIC-CD ( NCT07196722) will evaluation the efficacy and safety of icotrokinra in adults with moderately to severely active Crohn’s disease (CD).12,13
About Plaque Psoriasis Plaque psoriasis (PsO) is a chronic immune-mediated disease resulting in overproduction of skin cells, which causes inflamed, scaly plaques that may be itchy or painful.14 It is estimated that 8 million Americans and more than 125 million people worldwide live with the disease.15 Nearly one-quarter of all people with plaque PsO have cases that are considered moderate-to-severe.15 Plaques typically appear as raised patches with a silvery white buildup of dead skin cells or scales.Plaques may appear red in lighter skin or more of a purple, gray or dark brown color in patients with darker skin tones. Plaques can appear anywhere on the body, although they most often appear on the scalp, knees, elbows, and torso.16 Living with plaque PsO can be a challenge and impact life beyond a person’s physical health, including emotional health, relationships, and handling the stressors of life.17 Psoriasis on highly visible areas of the body or sensitive skin, such as the scalp, hands, feet, and genitals, can have an increased negative impact on quality of life.16,18
About Icotrokinra (JNJ-77242113, JNJ-2113) Investigational icotrokinra is the first targeted oral peptide designed to precisely block the IL-23 receptor,19 which underpins the inflammatory response in moderate-to-severe plaque PsO, ulcerative colitis and offers potential in other IL-23-mediated diseases.20,21 Icotrokinra binds to the IL-23 receptor with single-digit picomolar affinity and demonstrated potent, precise inhibition of IL-23 signaling in human T cells.22 The license and collaboration agreement established between Protagonist Therapeutics, Inc. and Janssen Biotech, Inc., a Johnson & Johnson company, in 2017 enabled the companies to work together to discover and develop next-generation compounds that ultimately led to icotrokinra.23
Icotrokinra was jointly discovered and is being developed pursuant to the license and collaboration agreement between Protagonist and Johnson & Johnson. Johnson & Johnson retains exclusive worldwide rights to develop icotrokinra in Phase 2 clinical trials and beyond, and to commercialize compounds derived from the research conducted pursuant to the agreement against a broad range of indications.24,25,26
Icotrokinra is being studied in the pivotal Phase 3 ICONIC clinical development program in moderate-to-severe plaque psoriasis, active psoriatic arthritis, moderately to severely active ulcerative colitis and moderately to severely active Crohn’s disease.
About Johnson & Johnson At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow and profoundly impact health for humanity.
Learn more at https://www.jnj.com/ or at www.innovativemedicine.jnj.com. Follow us at @JNJInnovMed.
Janssen Biotech, Inc. is a Johnson & Johnson company.
Cautions Concerning Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding icotrokinra (JNJ-2113). The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: challenges and uncertainties inherent in product research and development, including the uncertainty of clinical success and of obtaining regulatory approvals; uncertainty of commercial success; manufacturing difficulties and delays; competition, including technological advances, new products and patents attained by competitors; challenges to patents; product efficacy or safety concerns resulting in product recalls or regulatory action; changes in behavior and spending patterns of purchasers of health care products and services; changes to applicable laws and regulations, including global health care reforms; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s most recent Annual Report on Form 10-K, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
Footnotes 1 Lain, E et al. Durability of Response to the Targeted Oral Peptide Icotrokinra for High-Impact Site Psoriasis: 1-Year ICONIC-TOTAL Findings. Oral presentation (Presentation FC01.1G) at the 2025 Fall Clinical Dermatology Conference. October 2025.
2 Merola JF, Bleakman AP, Gottlieb AB, et al. The Static Physician’s Global Assessment of Genitalia: a clinical outcome measure for the severity of genital psoriasis. J Drugs Dermatol. 2017;16(8):793-799
3 Goldblum O, et al. Validation of the physician’s global assessment of psoriasis of the hands and/or feet as a clinical endpoint. J Am Acad Dermatol. 2013:68(4)Supplement1:AB218.
4 Simpson E, Bissonnette R, Eichenfield LF, et al. The validated Investigator Global Assessment for Atopic Dermatitis (vIGA-AD™): The development and reliability testing of a novel clinical outcome measurement instrument for the severity of atopic dermatitis [published online April 25, 2020]. J Am Acad Dermatol. doi: 10.1016/j.jaad.2020.04.104. Accessed April 2025.
5 Protagonist Therapeutics. Press release. Protagonist announces advancement of JNJ-2113 across multiple indications. Available at: https://www.accesswire.com/791174/protagonist-announces-advancement-of-jnj-2113-across-multiple-indications. Accessed August 2025.
6 Clinicaltrials.gov. A study of JNJ-2113 in adolescent and adult participants with moderate-to-severe plaque psoriasis (ICONIC-LEAD). Identifier NCT06095115. https://classic.clinicaltrials.gov/ct2/show/NCT06095115. Accessed July 2025.
7 Clinicaltrials.gov. A study of JNJ-2113 for the treatment of participants with plaque psoriasis involving special areas (scalp, genital, and/or palms of the hands and the soles of the feet) (ICONIC-TOTAL). Identifier NCT06095102. https://classic.clinicaltrials.gov/ct2/show/NCT06095102. Accessed July 2025.
8 Clinicaltrials.gov. A Study of JNJ-77242113 for the Treatment of Participants With Moderate to Severe Plaque Psoriasis. Identifier NCT06143878. https://clinicaltrials.gov/study/NCT06143878. Accessed July 2025.
9 Clinicaltrials.gov. A Study of JNJ-77242113 for the Treatment of Participants With Moderate to Severe Plaque Psoriasis (ICONIC-ADVANCE 2). Identifier NCT06220604. https://clinicaltrials.gov/study/NCT06220604. Accessed July 2025.
10 Clinicaltrials.gov. A Study to Evaluate the Efficacy and Safety of JNJ-77242113 (Icotrokinra) in Biologic-naïve Participants With Active Psoriatic Arthritis (ICONIC-PsA 1). Identifier NCT06878404. https://clinicaltrials.gov/study/NCT06878404.
11 A Study to Evaluate the Efficacy and Safety of Icotrokinra (JNJ-77242113) in Biologic-experienced Participants With Active Psoriatic Arthritis (ICONIC-PsA 2). Identifier NCT06807424. https://clinicaltrials.gov/study/NCT06807424.
12 Clinicaltrials.gov. A Protocol of Icotrokinra Therapy in Adult and Adolescent Participants With Moderately to Severely Active Ulcerative Colitis (ICONIC-UC). Identifier NCT07196748. https://clinicaltrials.gov/study/NCT07196748. Accessed September 2025.
13 Clinicaltrials.gov. A Study of Icotrokinra in Participants With Moderately to Severely Active Crohn’s Disease. Identifier NCT07196722. https://clinicaltrials.gov/study/NCT07196722. Accessed October 2025.
14 National Psoriasis Foundation. About Psoriasis. Available at: https://www.psoriasis.org/about-psoriasis. Accessed July 2025.
15 National Psoriasis Foundation. Psoriasis Statistics. Available at: https://www.psoriasis.org/content/statistics. Accessed July 2025.
16 National Psoriasis Foundation. Plaque Psoriasis. Available at: https://www.psoriasis.org/plaque/. Accessed July 2025.
17 National Psoriasis Foundation. Life with Psoriasis. Available at: https://www.psoriasis.org/life-with-psoriasis/. Accessed July 2025.
18 National Psoriasis Foundation. High Impact Sites. Available at: https://www.psoriasis.org/high-impact-sites/. Accessed July 2025.
19 Bissonnette R, et al. Data presentation. A phase 2, randomized, placebo-controlled, dose-ranging study of oral JNJ-77242113 for the treatment of moderate-to-severe plaque psoriasis: FRONTIER 1. Presented at WCD 2023, July 3-8.
20 Razawy W, et al. The role of IL‐23 receptor signaling in inflammation‐mediated erosive autoimmune arthritis and bone remodeling. Eur J Immunol. 2018 Feb; 48(2): 220–229.
21 Tang C, et al. Interleukin-23: as a drug target for autoimmune inflammatory diseases. Immunology. 2012 Feb; 135(2): 112–124.
22 Pinter A, et al. Data Presentation. JNJ-77242113 Treatment Induces a Strong Systemic Pharmacodynamic Response Versus Placebo in Serum Samples of Patients with Plaque Psoriasis: Results from the Phase 2, FRONTIER 1 Study. Presented at EADV 2023, October 11-14.
23 Johnson & Johnson. Press release. Janssen enters into worldwide exclusive license and collaboration agreement with Protagonist Therapeutics, Inc. for the oral Interlukin-23 receptor antagonist drug candidate for the treatment of Inflammatory Bowel Disease. Available at: https://www.jnj.com/media-center/press-releases/janssen-enters-into-worldwide-exclusive-license-and-collaboration-agreement-with-protagonist-therapeutics-inc-for-the-oral-interlukin-23-receptor-antagonist-drug-candidate-for-the-treatment-of-inflammatory-bowel-disease. Accessed July 2025.
24 Protagonist Therapeutics. Press release. Protagonist Therapeutics announces amendment of agreement with Janssen Biotech for the continued development and commercialization of IL-23 antagonists. Available at: https://www.prnewswire.com/news-releases/protagonist-therapeutics-announces-amendment-of-agreement-with-janssen-biotech-for-the-continued-development-and-commercialization-of-il-23-antagonists-301343621.html. Accessed July 2025.
25 Protagonist Therapeutics. Press release. Protagonist Reports positive results from Phase 1 and pre-clinical studies of oral Interleukin-23 receptor antagonist JNJ-2113. Available at: https://www.prnewswire.com/news-releases/protagonist-reports-positive-results-from-phase-1-and-pre-clinical-studies-of-oral-interleukin-23-receptor-antagonist-jnj-2113-301823039.html. Accessed July 2025.
26 Protagonist Therapeutics. Press release. Protagonist Therapeutics announces positive topline results for Phase 2b FRONTIER 1 clinical trial of oral IL-23 receptor antagonist JNJ-2113 (PN-235) in psoriasis. Available at: https://www.prnewswire.com/news-releases/protagonist-therapeutics-announces-positive-topline-results-for-phase-2b-frontier-1-clinical-trial-of-oral-il-23-receptor-antagonist-jnj-2113-pn-235-in-psoriasis-301764181.html. Accessed July 2025.
By signing the MoU, Airbus, Leonardo and Thales aim to join forces to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration and national security.
The new company will pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions. The goal is to create a unified, integrated and resilient European space player, which will employ around 25,000 people across Europe, capable of competing globally and exploiting growth opportunities in international markets.
A member of staff poses next to trading boards at the London Stock Exchange on April 25, 2025 in London, England.
Carl Court | Getty Images News | Getty Images
The amount of money managed by hedge funds has reached an all-time high of $5 trillion, fueled by a surge in capital allocations in the third quarter coupled with positive investment returns.
Analysis published Thursday by industry tracker Hedge Fund Research (HFR) showed total global assets under management stood at a landmark $4.98 trillion at the end of the third quarter.
Overall industry assets swelled by $238.4 billion in the three-month period that ended Sept. 30.
This included $33.7 billion in net new allocations from investors such as pension funds, insurance companies, sovereign wealth funds, endowments and family offices. HFR said that was the biggest quarterly net asset inflow since the third quarter of 2007 — before the Global Financial Crisis.
The remainder of the third-quarter capital increase stemmed from positive trading gains made by managers throughout the three-month period.
Here, HFR’s main Fund Weighted Composite Index — which aims to provide an overall snapshot of the industry — gained 5.4% during the period.
The index, which tracks the gains and losses of more than 1,400 single manager funds across all strategy types, is up 9.5% since the start of 2025.
HFR president Kenneth Heinz said the “historic growth” has been driven by a mix of rising M&A activity among corporates, successful bets on the ongoing AI and tech boom and growing expectations for lower interest rates.
“While risk-on sentiment has dominated recent months, risks have also evolved, with managers participating in acceleration of these trends through year end but also positioning for sentiment and trend reversals across equities, commodities, currencies and cryptocurrencies,” Heinz said.
More to come?
The big winners during the third quarter were equity hedge fund managers, who trade stocks long and short, often using thematic analyses, sector-specific approaches and fundamental single-company research.
During the third quarter, they made 7.2% in investment returns, and saw their assets grow by $96.7 billion, including positive investor net inflows of $18 billion.
Overall, that brought equity-focused funds’ total capital to $1.5 trillion — making them the biggest hedge fund sub-strategy in terms of assets. Year-to-date, stock-picking strategies have gained about 13.6%.
The other key beneficiary has been macro hedge funds, which invest in macroeconomic and geopolitical trends using equities, bonds, currencies, commodities and other assets.
General view of the City of London skyline, the capital’s financial district.
Sopa Images | Lightrocket | Getty Images
Macro strategies’ assets grew by $33.5 billion overall during Q3, with clients pouring in $1.7 billion net, bringing total macro capital to $759 billion.
Macro managers added 4.7% in investment returns in Q3. Having recouped losses suffered earlier in the year, the sector is up 3.8% in the nine months to the end of September.
Heinz said the industry can expect more money to flow into its coffers as investors look to traverse a challenging geopolitical environment and trade policy uncertainty.
“Institutions seeking to strategically position for these trends, including both continued acceleration and defensive reversals, are likely to increase allocations to managers which have demonstrated their ability to navigate both the recent risk-on trends, as well as volatile reversals, with these allocations set to drive industry growth beyond the $5 trillion milestone into year-end.”
NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.
Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.
Twaite said on a call with journalists on Friday: “I think the government should be thoughtful about signals it sends to investors who are looking at the UK as a long-term home for capital.”
His comments came as NatWest reported a strong jump in profits, which grew 30.4% to £2.18bn in the three months to the end of September, from £1.67bn during the same period last year.
“My view remains that strong economies need strong banks, and I really want to use the capital of the bank to support our customers,” Thwaite said. “You can see in our numbers today, we’re providing a lot of capital to those who are buying houses or moving houses, a lot of capital to businesses … So I think it’s important that strong domestic banks are the backbone of the UK, and the best way to use our capital is to support customers.”
The once bailed-out bank – which shed its final UK government stake earlier this year – said it was upping its full-year profitability and income guidance. It now expects income for 2025 to come in at £16.3bn, excluding notable items, solidifying previous forecasts for income greater than £16bn. Shares rose 2.9% on Friday morning, making the bank one of the biggest risers on the FTSE 100.
Thwaite’s warnings come amid speculation over a number of potential tax increases, including on banks, property and landlords’ rental income, which could help the chancellor shore up the public finances in the budget on 26 November.
Major UK bank stocks tumbled in August amid fears that the government could follow recommendations by the Institute for Public Policy Research, a thinktank, to introduce a new tax on the banking sector. That tax would help recover “windfalls” enjoyed by lenders as a result of an emergency economic policy known as quantitative easing that was put in place after the 2008 financial crisis.
Thwaite echoed comments by high street bank peers including the Lloyds chief executive, Charlie Nunn, who previously said a rise in bank taxation “wouldn’t be consistent” with the chancellor’s overtures as the government pushes to reboot growth.
skip past newsletter promotion
after newsletter promotion
Labour has placed financial services among its eight key sectors to receive government backing in its industrial strategy, while industry lobbyists have warned that the UK could lose business and make its financial services less competitive compared with other hubs including the US.
Thwaite said: “I’ve been encouraged by what the chancellor and government have said and about how they see the role of financial services and banks in helping support that growth agenda. I do welcome those comments from NatWest’s perspective. I want us to play our part. Those messages have resonated well with investors. They have supported confidence in the sector.”
Boxes of Tide Pods dishwasher detergent are displayed at a Costco Wholesale store on July 12, 2025 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
Procter & Gamble on Friday reported fiscal first-quarter earnings and revenue that beat analysts’ expectations, lifted by higher demand for its beauty and grooming products.
However, the company warned that it expects higher costs from tariffs in fiscal 2026, which began in July. Despite what CEO Jon Moeller called a “challenging consumer and geopolitical environment,” P&G reiterated its forecast for all-in sales and earnings for the fiscal year.
Shares of the company rose about 2% in premarket trading.
Here’s what the company reported for the quarter ended Sept. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.99 adjusted vs. $1.90 expected
Revenue: $22.39 billion vs. $22.18 billion expected
P&G reported fiscal first-quarter net income attributable to the company of $4.75 billion, or $1.95 per share, up from $3.96 billion, or $1.61 per share, a year earlier.
Excluding items, including costs associated with incremental restructuring, the consumer giant earned $1.99 per share.
Net salesrose 3% to $22.39 billion. Organic sales, which strips out the impact of acquisitions, divestitures and foreign currency, increased 2% in the quarter
P&G’s volume was flat compared with the year-ago period. Volume excludes pricing, which makes it a more accurate reflection of demand than sales.
This story is developing. Please check back for updates.
MAINTAINS FISCAL YEAR SALES, EPS GROWTH AND CASH RETURN GUIDANCE
CINCINNATI–(BUSINESS WIRE)–The Procter & Gamble Company (NYSE:PG) reported first quarter fiscal year 2026 net sales of $22.4 billion, an increase of three percent versus the prior year. Organic sales, which excludes the impacts of foreign exchange and acquisitions and divestitures, increased two percent versus the prior year. Diluted net earnings per share were $1.95, an increase of 21% versus the prior year primarily due to higher non-core restructuring charges in the prior year. Core earnings per share were $1.99, an increase of three percent versus the prior year.
Operating cash flow was $5.4 billion, and net earnings were $4.8 billion for the quarter. Adjusted free cash flow productivity was 102%. Adjusted free cash flow productivity is calculated as operating cash flow less capital spending and certain other items, as a percentage of net earnings. The Company returned $3.8 billion of cash to shareowners via $2.55 billion of dividend payments and $1.25 billion of share repurchases.
First Quarter ($ billions, except EPS)
GAAP
2026
2025
% Change
Non-GAAP*
2026
2025
% Change
Net Sales
22.4
21.7
3%
Organic Sales
n/a
n/a
2%
Diluted EPS
1.95
1.61
21%
Core EPS
1.99
1.93
3%
*Please refer to Exhibit 1 – Non-GAAP Measures for the definition and reconciliation of these measures to the related GAAP measures.
“Our organic sales growth, earnings and cash results in the first quarter reflect strong execution of our integrated strategy,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. “These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment. We remain committed to our integrated growth strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization. We are increasing investment in innovation and demand creation to improve value for consumers and drive category growth.”
July – September Quarter Discussion
Net sales in the first quarter of fiscal year 2026 were $22.4 billion, a three percent increase versus the prior year. Organic sales, which exclude the impacts of foreign exchange and acquisitions and divestitures, increased two percent driven by a one percent increase from higher pricing and a one percent increase from favorable mix. Organic volume had a neutral impact on sales for the quarter.
July – September 2025
Volume
Foreign
Exchange
Price
Mix
Other(2)
Net Sales
Organic
Volume
Organic
Sales
Net Sales Drivers(1)
Beauty
4%
1%
2%
(1)%
—%
6%
4%
6%
Grooming
1%
2%
4%
(2)%
—%
5%
1%
3%
Health Care
(2)%
1%
1%
2%
—%
2%
(2)%
1%
Fabric & Home Care
(2)%
2%
1%
—%
—%
1%
(2)%
—%
Baby, Feminine & Family Care
—%
1%
—%
—%
—%
1%
—%
—%
Total P&G
—%
1%
1%
1%
—%
3%
—%
2%
(1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
Beauty segment organic sales increased six percent versus year ago. Hair Care organic sales increased low single-digits driven by volume increases and innovation-driven pricing in North America and Europe, partially offset by unfavorable geographic and product mix. Personal Care organic sales increased high single digits due to innovation-driven volume growth and pricing in North America, partially offset by negative impacts from geographic mix. Skin Care organic sales increased mid-single digits due to favorable premium product mix and higher pricing primarily in North America, partially offset by volume declines.
Grooming segment organic sales increased three percent versus year ago behind innovation-driven pricing, primarily in North America and Europe, and volume growth, partially offset by unfavorable product mix.
Health Care segment organic sales increased one percent versus year ago. Oral Care organic sales were unchanged as product mix from premium innovation was offset by volume declines. Personal Health Care organic sales increased low single digits due to higher pricing, primarily in Latin America and North America, partially offset by volume declines.
Fabric and Home Care segment organic sales were unchanged versus year ago. Fabric Care organic sales decreased low single digits driven by volume declines mainly in Europe. Home Care organic sales increased low single digits driven by higher pricing, primarily in North America and Europe, partially offset by volume declines, primarily in Europe.
Baby, Feminine and Family Care segment organic sales were unchanged versus year ago. Baby Care organic sales increased low single digits due to favorable premium product mix and a unit volume increase. Feminine Care organic sales were unchanged as the positive impacts of favorable product mix and innovation-driven pricing, primarily in North America, were offset by volume declines. Family Care organic sales decreased low single digits driven by merchandising investments.
Diluted net earnings per share increased by 21% to $1.95, driven primarily by higher restructuring charges related to the substantial liquidation of operations in certain Enterprise Markets, including Argentina, in the prior year period. Core earnings per share and currency-neutral core EPS increased three percent to $1.99.
Reported gross margin for the quarter decreased 70 basis points versus the prior year. Core gross margin for the quarter decreased 50 basis points versus the prior year and on a currency-neutral basis decreased 30 basis points. Benefits from gross productivity savings of 140 basis points, increased pricing of 50 basis points and 20 basis points of rounding and other items were more than offset by 100 basis points of unfavorable mix, 70 basis points of product reinvestments and 70 basis points of higher costs from tariffs and commodities.
Reported selling, general and administrative expense (SG&A) as a percentage of sales declined 20 basis points versus year ago. Core SG&A as a percentage of sales decreased 40 basis points versus year ago and decreased 70 basis points on a currency-neutral basis. The decline was driven by 90 basis points of productivity savings, 40 basis points of net sales growth leverage and 10 basis points of rounding and other items, partially offset by 70 basis points of reinvestments.
Reported operating margin for the quarter decreased 50 basis points versus the prior year. Core operating margin for the quarter was unchanged versus the prior year and increased 40 basis points on a currency-neutral basis. Core operating margin included gross productivity savings of 230 basis points.
Fiscal Year 2026 Guidance
P&G maintained its guidance range for fiscal 2026 all-in sales growth to be in the range of one to five percent versus the prior year. The net impacts of foreign exchange rates and acquisitions and divestitures are expected to be a tailwind of approximately one percentage point to all-in sales growth. The Company also maintained its outlook for organic sales growth in the range of in-line to up four percent versus the prior year.
P&G maintained its fiscal 2026 diluted net earnings per share growth to be in the range of 3% to 9% versus fiscal 2025 diluted net EPS of $6.51. P&G also maintained its fiscal 2026 core earnings per share growth to be in the range of in-line to up four percent versus fiscal 2025 core EPS of $6.83. This outlook equates to a range of $6.83 to $7.09 per share, with a mid-point estimate of $6.96, or an increase of 2%.
P&G now expects a commodity cost headwind of approximately $100 million after tax and higher costs from tariffs of approximately $400 million after tax for fiscal 2026. The Company continues to expect a net headwind of roughly $250 million after-tax from modestly higher net interest expense and a higher core effective tax rate versus the prior year. The Company also continues to expect favorable foreign exchange rates will be a tailwind of approximately $300 million after tax. Collectively these impacts equate to a headwind of $0.19 per share for fiscal 2026.
The Company is unable to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.
P&G continues to expect a core effective tax rate to be in the range of 20% to 21% in fiscal 2026.
Capital spending is estimated to be in the range of four to five percent of fiscal 2026 net sales.
P&G continues to expect adjusted free cash flow productivity of 85% to 90% and expects to pay around $10 billion in dividends and to repurchase approximately $5 billion of common shares in fiscal 2026.
Forward-Looking Statements
Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law.
Risks and uncertainties to which our forward-looking statements are subject include, without limitation: (1) the ability to successfully manage global financial risks, including foreign currency fluctuations, changes in global interest rates and rate differentials, currency exchange, pricing controls or tariffs; (2) the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow the Company to effect the expected share repurchases and dividend payments; (3) the ability to successfully manage uncertainties related to changing political and geopolitical conditions and potential implications such as exchange rate fluctuations, market contraction, boycotts, variability and unpredictability in trade relations, sanctions, tariffs or other trade controls; (4) the ability to manage disruptions in credit markets or to our banking partners or changes to our credit rating; (5) the ability to maintain key manufacturing and supply arrangements (including execution of supply chain optimizations and sole supplier and sole manufacturing plant arrangements) and to manage disruption of business due to various factors, including ones outside of our control, such as natural disasters, acts of war or terrorism or disease outbreaks; (6) the ability to successfully manage cost fluctuations and pressures, including prices of commodities and raw materials and costs of labor, transportation, energy, pension and healthcare; (7) the ability to compete with our local and global competitors in new and existing sales channels, including by successfully responding to competitive factors such as prices, promotional incentives and trade terms for products; (8) the ability to manage and maintain key customer relationships; (9) the ability to protect our reputation and brand equity by successfully managing real or perceived issues, including concerns about safety, quality, ingredients, efficacy, packaging content, supply chain practices, social or environmental practices or similar matters that may arise; (10) the ability to successfully manage the financial, legal, reputational and operational risk associated with third-party relationships, such as our suppliers, contract manufacturers, distributors, contractors and external business partners; (11) the ability to rely on and maintain key company and third-party information and operational technology systems, networks and services and maintain the security and functionality of such systems, networks and services and the data contained therein; (12) the ability to successfully manage the demand, supply and operational challenges, as well as governmental responses or mandates, associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns; (13) the ability to stay on the leading edge of innovation, obtain necessary intellectual property protections and successfully respond to changing consumer habits, evolving digital marketing and selling platform requirements and technological advances attained by, and patents granted to, competitors; (14) the ability to successfully manage our ongoing acquisition, divestiture and joint venture activities, in each case to achieve the Company’s overall business strategy and financial objectives, without impacting the delivery of base business objectives; (15) the ability to successfully achieve productivity improvements and cost savings and manage ongoing organizational changes while successfully identifying, developing and retaining key employees, including in key growth markets where the availability of skilled or experienced employees may be limited; (16) the ability to successfully manage current and expanding regulatory and legal requirements and matters (including, without limitation, those laws, regulations, policies and related interpretations involving product liability, product and packaging composition, manufacturing processes, intellectual property, labor and employment, antitrust, privacy, cybersecurity, data protection and data transfers, artificial intelligence, tax, the environment, due diligence, risk oversight, accounting and financial reporting) and to resolve new and pending matters within current estimates; (17) the ability to manage changes in applicable tax laws and regulations; and (18) the ability to continue delivering progress towards our environmental sustainability ambitions.
For additional information concerning factors that could cause actual results and events to differ materially from those projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.
About Procter & Gamble
P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Consolidated Earnings Information
Three Months Ended September 30
Amounts in millions except per share amounts
2025
2024
% Chg
NET SALES
$
22,386
$
21,737
3%
Cost of products sold
10,887
10,421
4%
GROSS PROFIT
11,499
11,316
2%
Selling, general and administrative expense
5,643
5,519
2%
OPERATING INCOME
5,856
5,797
1%
Interest expense
(197
)
(238
)
(17)%
Interest income
108
135
(20)%
Other operating income/(expense), net
268
(554
)
(148)%
EARNINGS BEFORE INCOME TAXES
6,034
5,140
17%
Income taxes
1,253
1,152
9%
NET EARNINGS
4,781
3,987
20%
Less: Net earnings attributable to noncontrolling interests
31
28
11%
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE
$
4,750
$
3,959
20%
EFFECTIVE TAX RATE
20.8
%
22.4
%
NET EARNINGS PER COMMON SHARE (1)
Basic
$
2.00
$
1.65
21%
Diluted
$
1.95
$
1.61
21%
DIVIDENDS PER COMMON SHARE
$
1.0568
$
1.0065
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
2,436.8
2,466.0
COMPARISONS AS A % OF NET SALES
Basis Pt Chg
Gross profit
51.4%
52.1%
(70)
Selling, general and administrative expense
25.2%
25.4%
(20)
Operating income
26.2%
26.7%
(50)
Earnings before income taxes
27.0%
23.6 %
340
Net earnings
21.4%
18.3%
310
Net earnings attributable to Procter & Gamble
21.2%
18.2%
300
(1) Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble.
Certain columns and rows may not add due to rounding.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Consolidated Earnings Information
Three Months Ended September 30, 2025
Amounts in millions
Net Sales
% Change
Versus Year
Ago
Earnings/(Loss)
Before
Income Taxes
% Change
Versus Year
Ago
Net Earnings
% Change
Versus Year
Ago
Beauty
$
4,143
6%
$
1,132
6%
$
879
5%
Grooming
1,817
5%
585
12%
463
9%
Health Care
3,220
2%
937
(2)%
718
(3)%
Fabric & Home Care
7,793
1%
2,042
(2)%
1,579
(3)%
Baby, Feminine & Family Care
5,171
1%
1,446
5%
1,105
4%
Corporate
242
N/A
(108
)
N/A
36
N/A
Total Company
$
22,386
3%
$
6,034
17%
$
4,781
20%
Three Months Ended September 30, 2025
Net Sales Drivers (1)
Volume
Organic
Volume
Foreign
Exchange
Price
Mix
Other (2)
Net Sales
Beauty
4%
4%
1%
2%
(1)%
—%
6%
Grooming
1%
1%
2%
4%
(2)%
—%
5%
Health Care
(2)%
(2)%
1%
1%
2%
—%
2%
Fabric & Home Care
(2)%
(2)%
2%
1%
—%
—%
1%
Baby, Feminine & Family Care
—%
—%
1%
—%
—%
—%
1%
Total Company
—%
—%
1%
1%
1%
—%
3%
(1) Net sales percentage changes are approximations based on quantitative formulas that are consistently applied.
(2) Other includes the sales mix impact from acquisitions and divestitures and rounding impacts necessary to reconcile volume to net sales.
Certain columns and rows may not add due to rounding.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Three Months Ended September 30
Amounts in millions
2025
2024
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD
$
9,556
$
9,482
OPERATING ACTIVITIES (1)
Net earnings
4,781
3,987
Depreciation and amortization
761
728
Share-based compensation expense
121
105
Deferred income taxes
53
184
Loss/(gain) on sale of assets
(3
)
794
Change in accounts receivable
(305
)
(134
)
Change in inventories
(303
)
(188
)
Change in accounts payable
648
90
Other
(344
)
(1,264
)
TOTAL OPERATING ACTIVITIES
5,408
4,302
INVESTING ACTIVITIES
Capital expenditures
(1,200
)
(993
)
Proceeds from asset sales
8
45
Acquisitions, net of cash acquired
(5
)
(6
)
Other investing activity
(338
)
(154
)
TOTAL INVESTING ACTIVITIES
(1,535
)
(1,108
)
FINANCING ACTIVITIES
Dividends to shareholders
(2,549
)
(2,445
)
Additions to short-term debt with original maturities of more than three months
1,123
4,090
Reductions in short-term debt with original maturities of more than three months
(1,800
)
(571
)
Net additions/(reductions) to other short-term debt
2,108
(444
)
Reductions in long-term debt
(3
)
(70
)
Treasury stock purchases
(1,250
)
(1,939
)
Impact of stock options and other
134
745
TOTAL FINANCING ACTIVITIES
(2,239
)
(634
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(20
)
116
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
1,615
2,675
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
$
11,171
$
12,156
(1) Certain prior period amounts within Operating Activities have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the previously reported Total Operating Activities.
Certain columns and rows may not add due to rounding.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
Amounts in millions
September 30, 2025
June 30, 2025
Cash and cash equivalents
$
11,171
$
9,556
Accounts receivable
6,487
6,185
Inventories
7,848
7,551
Prepaid expenses and other current assets
1,612
2,100
TOTAL CURRENT ASSETS
27,118
25,392
Property, plant and equipment, net
24,119
23,897
Goodwill
41,643
41,650
Trademarks and other intangible assets, net
21,818
21,910
Other noncurrent assets
12,901
12,381
TOTAL ASSETS
$
127,599
$
125,231
Accounts payable
$
15,609
$
15,227
Accrued and other liabilities
10,756
11,318
Debt due within one year
11,631
9,513
TOTAL CURRENT LIABILITIES
37,995
36,058
Long-term debt
24,315
24,995
Deferred income taxes
5,893
5,774
Other noncurrent liabilities
5,844
6,120
TOTAL LIABILITIES
74,048
72,946
TOTAL SHAREHOLDERS’ EQUITY
53,551
52,284
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
127,599
$
125,231
Certain columns and rows may not add due to rounding.
The Procter & Gamble Company
Exhibit 1: Non-GAAP Measures
The following provides definitions of the non-GAAP measures used in Procter & Gamble’s October 24, 2025 earnings release and the reconciliation to the most closely related GAAP measures. We believe that these measures provide useful perspective on underlying business trends (i.e., trends excluding non-recurring or unusual items) and results and provide a supplemental measure of period-to-period results. The non-GAAP measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes. These measures may be useful to investors, as they provide supplemental information about business performance and provide investors a view of our business results through the eyes of management. Certain of these measures are also used to evaluate senior management and are a factor in determining their at-risk compensation. These non-GAAP measures are not intended to be considered by the user in place of the related GAAP measures but rather as supplemental information to our business results. These non-GAAP measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted. The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures because the Company cannot predict the timing and amounts of discrete items such as acquisition and divestitures, which could significantly impact GAAP results. Note that certain columns and rows may not add due to rounding.
The Core earnings measures included in the following reconciliation tables refer to the equivalent GAAP measures adjusted as applicable for the following item:
Incremental restructuring: The Company has historically had an ongoing level of restructuring activities of approximately $250 – $500 million before tax.
Contacts
P&G Media Contacts: Wendy Kennedy, 513.780.7212
Henry Molski, 513.505.3587
P&G Investor Relations Contact: John Chevalier, 513.983.9974
