Procter & Gamble's Q2 Surge: Optimism Grows Amid Stable US Sales, Improving Trends In China

Procter & Gamble Co PG shares are trading slightly higher on Thursday.

Yesterday, the company reported second-quarter sales growth of 2% year-on-year to $21.9 billion, beating the analyst consensus estimate of $21.542 billion. Adjusted EPS of $1.88 beat the consensus estimate of $1.86.

Here are the analyst takes on the company’s earnings performance.

Goldman Sachs analyst Bonnie Herzog reiterated the Neutral rating on Procter & Gamble, raising the price forecast to $165 from $164.

Herzog expressed increasing optimism about Procter & Gamble following stronger-than-expected second-quarter results, with organic sales growth of +3%, surpassing consensus expectations of 2.0%–2.5%.

This was mainly driven by better-than-expected volume/mix performance, the analyst wrote. While there were concerns about an end-market slowdown and previous headwinds like Blue Yonder and FX, management highlighted strong customer orders in late December, which helped offset disruptions from Blue Yonder.

About 85% of the business in regions such as the U.S., Europe, and Latin America continued to grow around 4%, with improvements seen in China. However, management warned conditions in China may remain volatile.

The strong sales growth in Beauty and Baby, Fem & Family Care segments, particularly driven by SK-II and Family Care, were key contributors to the top-line beat, the analyst adds.

Herzog viewed the company as one of the most resilient HPC companies in its coverage, with potential for +MSD EPS growth in the long term due to strong top-line performance, easing input costs, and operating leverage.

The analyst’s optimism increased after the company’s solid organic sales growth, positive comments on a stable consumer environment, and improving trends in China.

Stifel analyst Mark S. Astrachan reiterated the Hold rating on the stock, raising the price forecast to $165 from $161.

Astrachan sees near-term risk/reward for P&G shares as balanced, with valuation slightly below historical averages.

The analyst projects accelerating organic sales and EBIT growth through F2025, driven by favorable comparisons and high base period marketing spend.

Growth is anticipated to be supported by improving trends in China, where sales increased by 3% in the second quarter of 2025, compared to declines in previous quarters.

The analyst notes, SK-II trends also showed improvement, with a 3% year-over-year increase and a ~1000bps sequential improvement in the two-year CAGR. U.S. sales, which represented 48% of total sales, remained solid and grew 4%, consistent with recent trends.

BofA Securities analyst Bryan D. Spillane maintained a Buy rating on Procter & Gamble, with a price forecast of $190.

The analyst noted that in Africa/Middle East, the company would be comparing against last year’s conflict-related softness, while in China, a sequential improvement in sales signaled improving momentum.

Management remains cautious about the Chinese consumer, but with SK-II returning to growth in 2Q, there is optimism for improvement in other struggling markets.

In Latin America/Europe, easing comparisons and improving trends in North America should support growth in the core 85% of the company’s markets, which requires only -3% growth in the rest of the regions to meet the low end of the +3% organic growth target.

The analyst also highlighted that hurricane-related pantry-loading in the U.S. last quarter may affect consumption in the third quarter, but the company’s proven innovation and activation strategies should help boost growth in the fourth quarter.

PG Price Action: Procter & Gamble shares are trading higher by 0.64% to $165.80 at last check Thursday.

Read Next: