P&G Highlights Shifting Consumer Spending Trends as Beauty Demand Boosts Profits

Written by Emily J. Thompson, Senior Investment Analyst

CL+0.99%

PG+0.15%

Source: Reuters

Updated: Oct 24 2025

0mins

Source: Reuters

Quarterly Performance: Procter & Gamble (P&G) exceeded quarterly earnings estimates, driven by strong demand for beauty and hair-care products, despite a general slowdown in consumer spending due to economic uncertainty.
Tariff Adjustments: The company halved its annual tariff cost estimate to about $400 million after Canada lifted retaliatory duties on U.S. goods, although trade talks with Canada were recently terminated by U.S. President Donald Trump.
Consumer Behavior: P&G noted that both lower-income and higher-income consumers are looking to save money, with the former opting for smaller pack sizes and the latter purchasing larger sizes, while the company faces increased discounting from competitors.
Restructuring Plans: P&G is undergoing a restructuring that includes cutting about 7,000 non-manufacturing roles and exiting certain markets, with expected restructuring costs of $1.5 billion to $2.0 billion over two years.

$86.66+Infinity%1D

Analyst Views on CL

Wall Street analysts forecast CL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CL is 87.79 USD with a low forecast of 77.00 USD and a high forecast of 95.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

10 Buy

4 Hold

1 Sell

Moderate Buy

Current: 85.810

Low

77.00

Averages

87.79

High

95.00

Current: 85.810

Low

77.00

Averages

87.79

High

95.00

JPMorgan

Andrea Teixeira

maintain

$88 -> $93

2026-01-16

Reason

JPMorgan

Andrea Teixeira

Price Target

$88 -> $93

AI Analysis

2026-01-16

maintain

Reason

JPMorgan analyst Andrea Teixeira raised the firm's price target on Colgate-Palmolive to $93 from $88 and keeps an Overweight rating on the shares. The firm adjusted ratings and targets in the beverage, household and personal care products group as part of its Q4 earnings preview. JPMorgan believes the sector setup into earnings remains mixed, with the "most plain vanilla companies" and with those with the most exposure to the U.S. consumer likely to post "lackluster" sales. The stocks exposed to beauty and companies that focus on "differentiated and innovative premium products" should continue to outperform, the analyst tells investors in a research note.

Barclays

Lauren Lieberman

Equal Weight

maintain

$80 -> $83

2026-01-16

Reason

Barclays

Lauren Lieberman

Price Target

$80 -> $83

2026-01-16

maintain

Equal Weight

Reason

Barclays analyst Lauren Lieberman raised the firm's price target on Colgate-Palmolive to $83 from $80 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the consumer staples group as part of a Q4 earnings preview. Barclays attributes the recent "enthusiasm" in the stock to "a flight to safety" and remains concerned about company- and sector-level fundamentals. Potential oil and currency headwinds could materialize in 2026, the analyst tells investors in a research note.

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TD Cowen

Buy

downgrade

$90 -> $86

2026-01-08

Reason

TD Cowen

Price Target

$90 -> $86

2026-01-08

downgrade

Buy

Reason

TD Cowen lowered the firm's price target on Colgate-Palmolive to $86 from $90 and keeps a Buy rating on the shares. The firm adjusted price targets in consumer staples as part of a 2026 outlook. TD expects a "challenging" year for large-cap consumer staples with volume growth unlikely to improve materially from the negative 0.9% in 2025 and pricing "muted."

Piper Sandler

Neutral -> Overweight

upgrade

$82 -> $88

2026-01-06

Reason

Piper Sandler

Price Target

$82 -> $88

2026-01-06

upgrade

Neutral -> Overweight

Reason

Piper Sandler upgraded Colgate-Palmolive to Overweight from Neutral with a price target of $88, up from $82.

About CL

Colgate-Palmolive Company is a growth company. It is focused on Oral Care, Personal Care, Home Care and Pet Nutrition, it sells its products under brands, such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill's Science Diet and Hill's Prescription Diet. Its Oral, Personal and Home Care product segment is managed geographically in five segments, such as North America, Latin America, Europe, Asia Pacific and Africa/Eurasia, all of which sell primarily to a variety of traditional and e-commerce retailers, wholesalers, distributors, dentists and skin health professionals. Its Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill's Pet Nutrition. The customers for Pet Nutrition products are authorized pet supply retailers, veterinarians and e-commerce retailers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.