Kenvue Q4 EPS Beats by 5 Cents; Revenues Rise 3.2%, Acquisition with Kimberly-Clark on Track
Kenvue delivered adjusted Q4 EPS of $0.27, beating estimates by $0.05, and posted revenues of $3.78 billion, up 3.2% driven by 1.2% organic growth and a 2.1% foreign currency boost. Adjusted gross margin rose 10 bps to 58.8% as cost initiatives offset inflation, and its Kimberly-Clark acquisition remains on track for H2 2026.
1. Q4 Financial Results
Kenvue reported adjusted earnings of $0.27 per share, surpassing consensus by $0.05, and delivered revenues of $3.78 billion, a 3.2% increase year over year. Organic sales grew 1.2%, partially offset by a 1.1% volume decline, while favorable foreign currency impacts contributed 2.1%.
2. Margin and Cost Performance
Adjusted gross margin expanded 10 basis points to 58.8% driven by global supply-chain productivity and value realization. SG&A expenses fell 100 basis points as a percentage of revenue to 40.6%, supporting a 19.9% operating margin, up 70 basis points despite higher brand investments.
3. Segment and Regional Breakdown
Self Care net sales rose 1.5% to $1.59 billion, Skin Health and Beauty sales increased 2.9% to $1.04 billion, and Essential Health grew 6.1% to $1.15 billion. EMEA, Asia Pacific and Latin America delivered double-digit revenue gains, offsetting a 4.5% decline in North America.
4. Kimberly-Clark Acquisition Update
Kenvue remains on schedule to complete its acquisition by Kimberly-Clark in the second half of 2026, pending final regulatory approvals and closing conditions following the expiration of the Hart-Scott-Rodino waiting period.