Procter & Gamble Co. (NYSE: PG), the consumer-goods powerhouse behind iconic brands like Pampers, Gillette, Crest, and Tide, reported stronger-than-expected first-quarter earnings early Friday, surpassing Wall Street forecasts despite a challenging economic landscape.

The company, which has been navigating tariff-related uncertainties, announced a reduced estimate for tariff costs in fiscal 2026. This adjustment, coupled with solid financial performance, sent the stock up 3.5% in premarket trading. As of Thursday, the stock had already climbed 2.5% since hitting a 22-month low of $147.42 on Oct. 15.

For the quarter ending Sept. 30, Procter & Gamble’s revenue increased 3% year-over-year to $22.39 billion, exceeding the FactSet consensus estimate of $22.18 billion. Segment highlights included a 6% rise in beauty revenue to $4.14 billion, a 5% increase in grooming revenue to $1.82 billion, and a 1% uptick in fabric and home-care sales to $7.79 billion. Baby, feminine, and family-care sales also grew 1% to $5.17 billion, while healthcare revenue rose 2% to $3.22 billion.

Net income surged 20% to $4.75 billion, with earnings per share jumping 21% to $1.95, compared to $1.61 in the prior year. Core earnings per share, which exclude nonrecurring items, rose 3% to $1.99, beating the FactSet consensus of $1.90.

“These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year, despite a challenging consumer and geopolitical environment,” said CEO Jon Moeller in a company statement.

Procter & Gamble reaffirmed its fiscal 2026 guidance, projecting sales growth of 1% to 5% and core earnings-per-share growth ranging from flat to up 4%, equating to $6.83 to $7.09 per share, with a midpoint of $6.96 (a 2% increase from fiscal 2025’s $6.83).

The company also revised its outlook for fiscal 2026 commodity and tariff costs. It now anticipates a $100 million after-tax commodity-cost headwind and $400 million in after-tax tariff costs, down from its previous estimate of $800 million after tax.