Q4 Revenue Up 3.2% and EPS of $0.27 Beat Estimates
Kenvue’s Q4 revenue rose 3.2% to $3.78 billion and adjusted EPS of $0.27 beat estimates by $0.05, while gross margin climbed to 58.8% and operating margin reached 19.9%. Organic sales grew 1.2% as value gains offset volume declines, and the Kimberly-Clark acquisition remains on track to close in H2 2026.
1. Q4 Financial Results
Kenvue delivered Q4 revenue of $3.78 billion, up 3.2% year over year, and adjusted EPS of $0.27 beat estimates by $0.05. Adjusted gross margin rose 10 basis points to 58.8%, operating margin improved 70 basis points to 19.9%, and adjusted EBITDA totaled $815 million.
2. Segment Performance
Organic sales grew 1.2%, with value realization of 2.3% offsetting a 1.1% volume decline. Essential Health led with 6.1% sales growth to $1.15 billion, Skin Health and Beauty rose 2.9% to $1.04 billion, and Self Care increased 1.5% to $1.59 billion.
3. Regional Revenue Trends
North America revenue declined 4.5% to $1.76 billion, while EMEA rose 10% to $949 million. Asia Pacific sales increased 10.7% to $703 million and Latin America grew 14.6% to $369 million, driven by favorable currency impacts and regional demand strength.
4. Kimberly-Clark Acquisition Update
Kenvue remains on track to close its merger with Kimberly-Clark in the second half of 2026, subject to customary regulatory approvals and closing conditions following Hart-Scott-Rodino clearance on February 4, 2026.