Kenvue beats Q4 estimates and cuts 3.5% workforce ahead of Kimberly-Clark deal
Kenvue’s fourth-quarter net sales rose 3.2% to $3.78 billion, led by a 1.5% increase in self-care sales to $1.59 billion and a 6.1% gain in essential health to $1.15 billion. The company reported adjusted EPS of $0.27 versus $0.22 estimated and will cut 3.5% of its 22,000-employee workforce, incurring $250 million in charges.
1. Q4 Financial Results
Kenvue reported fourth-quarter net sales of $3.78 billion, a 3.2% increase year-over-year, with self-care segment sales rising 1.5% to $1.59 billion and essential health sales up 6.1% to $1.15 billion. Adjusted earnings per share reached $0.27, beating the $0.22 consensus estimate.
2. Workforce Reduction Plan
The board approved a global workforce reduction of 3.5%, affecting roughly 770 positions out of 22,000 employees. The restructuring is expected to generate $250 million in pre-tax charges in 2026 and optimize Kenvue’s operating model ahead of the merger.
3. Merger Implications for Kimberly-Clark
Kimberly-Clark’s proposed $40 billion acquisition of Kenvue, set to close in H2 2026, gains momentum as Kenvue improves profitability and streamlines operations. The performance beat and cost cuts enhance deal synergies and support the combined consumer health strategy.