Procter & Gamble Co. (NYSE: PG) reported fiscal first-quarter earnings and sales that topped analyst forecasts, supported by resilient consumer spending despite a challenging economic backdrop.

The maker of brands such as Crest and Head & Shoulders posted net sales of $22.4 billion, up 3% year-over-year and above Bloomberg's estimate of $22.19 billion. Core earnings per share rose 3% to $1.99, surpassing expectations of $1.88.

P&G said it now expects to face after-tax costs of approximately $400 million from sweeping U.S. tariffs during its 2026 fiscal year, down from the $800 million projected in July. The company has raised prices to offset the levies, but volumes remained flat for the July-September period.

Organic sales in the Beauty segment climbed 6% from a year earlier, supported by strong personal care pricing in North America and moderate growth in hair and skin care.

The announcement came as investors continued to monitor renewed trade tensions between the U.S. and China following President Donald Trump's decision to terminate talks with Canada. Ottawa has yet to issue a response.