Kimberly-Clark Beats Q3 Estimates, Reports $1.82 EPS and Plans $48.7B Kenvue Acquisition
Kimberly-Clark reported Q3 adjusted EPS of $1.82, beating estimates by $0.07, and delivered flat $4.15B revenue, topping forecasts by $50M despite a 2.2% drag from exiting its private label diaper business. It unveiled a $48.7B cash-and-stock bid for Kenvue and marked its 53rd consecutive annual dividend increase.
1. Strong Q3 Earnings Beat and Organic Growth
Kimberly-Clark reported third quarter results on October 30th, 2025, delivering adjusted EPS of $1.82, seven cents above consensus, on flat year-over-year revenue of $4.15 billion, which topped forecasts by $50 million. The company achieved 2.5% organic sales growth driven by a 2.4% volume uptick, offsetting the 2.2% revenue drag from its exit from the private-label diaper business in the U.S. Gross margin stood at 36.8% of revenue, down 170 basis points from a year earlier as productivity gains were outpaced by pricing investments and higher input costs due to tariffs. These results underscore Kimberly-Clark’s ability to leverage its leading Personal Care and Consumer Tissue segments across 175 markets.
2. $48.7 B Acquisition of Kenvue to Accelerate Growth
In conjunction with its earnings release, Kimberly-Clark confirmed plans to acquire Kenvue for $48.7 billion in a cash-and-stock transaction. The deal—one of the largest consumer health takeovers in recent memory—positions the company to expand its footprint in over-the-counter healthcare products, complementing its staple hygiene brands such as Huggies, Kotex and Kleenex. Management expects the combination to generate at least $1 billion in annual cost synergies within three years, bolstering margins and diversifying revenue streams beyond core tissue and diaper products.
3. Dividend King Status and Institutional Ownership Dynamics
Kimberly-Clark has increased its dividend for 53 consecutive years, yielding approximately 5.1%, a level well above the S&P 500 average. The board’s commitment to shareholder returns is evident in the recent quarterly payment of $1.26 per share. On the institutional front, Allspring Global Investments trimmed its stake by 49.1% in the third quarter, reducing holdings to 22,001 shares valued at $2.71 million. By contrast, Vanguard Group holds over 40 million shares, representing more than $5.2 billion in market value, while other major investors such as Charles Schwab Investment Management and Geode Capital Management also maintain multi-billion-dollar positions, underlining broad confidence in Kimberly-Clark’s long-term dividend and growth profile.