Shares of Procter & Gamble (PG) plunged 5% in pre-market trading on Thursday after the consumer goods giant reported disappointing third-quarter revenue and cut its full-year sales and profit forecasts. The company cited pressured consumers and cost uncertainty related to tariffs as key factors behind the guidance reduction.

P&G reported third-quarter net sales of $19.78 billion, down 2% year-over-year and below analysts' estimates of $20.11 billion. While adjusted earnings per share of $1.54 slightly beat expectations, the company lowered its fiscal 2025 outlook, now projecting organic sales growth of about 2% compared to its previous forecast of 3% to 5%. P&G also cut its earnings per share guidance to a range of $6.72 to $6.82, down from $6.91 to $7.05 previously.

The guidance reduction reflects ongoing challenges in the consumer environment and uncertainty surrounding tariffs. P&G's CFO Andre Schulten stated on a media call that "tariffs obviously put pressure on our cost structure" and estimated the annual impact on cost of goods to be about $1 billion to $1.5 billion. CEO Jon Moeller added that consumers' logical response to tariffs is to "pause" spending, noting that U.S. shoppers slowed their purchasing in February and March. The company is considering price increases to mitigate tariff impacts but remains cautious about potential consumer reactions.