TLDR
- Kenvue posted Q1 adjusted EPS of $0.32, beating the $0.26–$0.31 analyst consensus
- Revenue came in at $3.91 billion, up 4.5% year-over-year, above the $3.84 billion estimate
- Skin Health and Beauty segment led growth with an 8.4% sales increase
- The $40 billion Kimberly-Clark acquisition is expected to close in the second half of 2026
- No forward guidance was provided due to the pending deal
Kenvue (KVUE) reported first-quarter results on Thursday that topped Wall Street expectations across both profit and revenue, with the stock up around 1.78% on the day.
The consumer health company posted adjusted earnings per share of $0.32, beating the average analyst estimate of around $0.26 to $0.31. Revenue reached $3.91 billion for the quarter ended March 29, up 4.5% from $3.74 billion in the same period last year, and ahead of the $3.84 billion estimate.
$KVUE Q1 2026 earnings: Margins Surge While Deal Looms, But Volumes Tell a Cautious Story
Kenvue's Q1 results are overshadowed by the pending Kimberly-Clark acquisition, but the standalone numbers reveal a bifurcated business. While reported revenue grew 4.5%, this was heavily… pic.twitter.com/dqI8hyQ8ik
— Finsee (@Finsee_main) May 7, 2026
Organic sales grew 0.7%, driven by 1.0% favorable pricing, partially offset by a 0.3% volume decline.
KVUE had slipped 0.11% in pre-market trading ahead of the numbers, but the results appeared to reassure investors.
CEO Kirk Perry said the company had delivered net and organic sales growth for the second consecutive quarter, along with year-over-year improvements in gross margin, operating margin, and EPS.
Adjusted gross profit margin expanded 80 basis points to 60.8%, reflecting supply chain gains and favorable pricing that helped offset inflation and tariff headwinds. Adjusted operating income margin improved to 24.0% from 19.8% a year ago.
Skin Health and Beauty Leads the Way
The Skin Health and Beauty segment was the standout performer, with net sales rising 8.4% to $1.06 billion. Brands like Neutrogena and Aveeno drove demand globally.
Self Care rose 1.9% and Essential Health gained 4.9%. The Self Care unit was weighed down by a weak cold and flu season across major markets.
The company said its restructuring plan is expected to result in pre-tax charges totaling around $250 million this year.
Kimberly-Clark Deal Shapes the Outlook
Kenvue withheld forward guidance due to the pending $40 billion acquisition by Kimberly-Clark, which is expected to close in the second half of 2026, subject to foreign regulatory approvals.
Kimberly-Clark stock rose around 2.05% on the day, with the earnings viewed favorably for the acquirer.
RBC Capital Markets analyst Nik Modi called the results bullish for Kimberly-Clark, saying “Kenvue’s fundamentals seem to be stabilizing.” He noted that near-term stock performance will likely be driven more by the deal timeline and litigation headlines than by underlying business results.
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