Procter & Gamble

Recent years show clear evidence of pricing power and mix: FY24 organic sales rose 4 percent primarily from price, and in FY25, organic sales increased 2 percent with price and mix each adding roughly a point, while FY26 Q1 organic grew 2 percent. This reflects the ability to sustain pricing without material volume losses in many categories.

However, price sensitivity is higher in tissue/towels and some baby care lines, and retailer private labels remain a restraint. FY25 gross margin included a 30 bps headwind from higher commodities and 10 bps from tariffs, indicating that productivity and mix offset a good part of input inflation.

Looking forward, tariff costs in FY26 are a headwind (management has referenced a several-hundred-million-dollar pre-tax impact), but P&G has multiple levers: product superiority, premium tiers, pack-price architectures, and ongoing productivity.