NEW YORK – Procter & Gamble, a major player in the consumer goods industry, revealed an annual earnings forecast that fell short of what analysts expected. Additionally, the company announced plans to increase prices for around 25% of its U.S. products, partly due to the rising expenses associated with tariffs imposed by President Donald Trump.

On Tuesday, this announcement followed the news that the Cincinnati-headquartered company, known for Crest toothpaste, Tide detergent, and Charmin toilet paper, has appointed Shailesh Jejurikar, currently serving as chief operating officer, to take over from Jon Moeller as president and CEO on January 1, 2026. Moeller, who has led the company since November 2021, will transition to the role of executive chairman at P&G.

P&G’s Chief Financial Officer, Andre Schulten, stated that the price hikes, set to begin the following month, will fall in the mid-single-digit percentage range. These increases will also include enhancements to the products themselves, as explained during a conference call on Tuesday after the release of P&G’s fiscal fourth-quarter earnings.

Back in April, P&G mentioned they were taking measures to mitigate the impact of Trump’s extensive tariffs, such as altering sourcing and reformulating products to circumvent duties. At that time, Schulten indicated that despite their efforts, consumers would still likely face higher prices starting as early as July.

P&G on Tuesday estimated that tariffs will increase its costs by about $1 billion before tax for fiscal 2026.

The decision to raise prices coincides with P&G observing a shift in consumer behavior, with shoppers becoming more cautious and strategic. People are more likely to exhaust their pantry supplies before shopping again, gravitate towards bulk purchases at warehouse clubs, and hunt for bargains.

“Consumers are being more discerning in their shopping habits within our product categories, showing a clear inclination to seek out value,” Schulten explained during a call with reporters on Tuesday.

But Schulten believes that when price increases are combined with improved features on products they resonate with customers. He declined to give specifics but noted that with its baby care brand Luvs, the company boosted prices while making some improvements a few months ago, and it was able to increase market share.

P&G reported net income of $3.62 billion, or $1.48 per share, for the quarter ended June 30. That compares with $3.14 billion, or $1.27 per share, in the year-ago period. Analysts were expecting $1.42 per share, according to FactSet analysts.

Sales rose to $20.89 billion, in line with what analysts predicted. That was up from $20.53 billion in the year-ago quarter.

For the current year, P&G expects earnings per share in the range of $6.83 to $7.09. That was below the $7.23 per share that analysts predicted. The company expects annual sales to be up anywhere from 1% to 5% for the year.