Kenvue Inc (KVUE)

Kenvue Reports First Quarter 2026 ResultsMay 7, 2026 6:30 AM
Business Wire Net Sales Increased 4.5%; Organic Sales1 Increased 0.7% Diluted EPS Increased 47% to $0.25; Adjusted Diluted EPS1 Increased 33% to $0.32 Kenvue Inc. (NYSE: KVUE) today announced financial results for the fiscal first quarter ended March 29, 2026. “Our year is off to an encouraging start, as our continued efforts to strengthen the business and sharpen execution resulted in delivering net and organic sales growth for the second consecutive quarter, along with meaningful year-over-year improvement in gross margin, operating margin, and EPS,” said Kirk Perry, Chief Executive Officer. “We remain confident in our ability to navigate ongoing macro uncertainty, as we accelerate our organization and business transformation through our new strategic plans and work toward completing our value-creating combination with Kimberly-Clark in the second half of this year.” First Quarter Summary Net sales increased 4.5% vs the prior year period, reflecting Organic sales1 growth of 0.7% and a foreign currency benefit of 3.8%. Gross profit margin was 58.9% vs 58.0% in the prior year period. Adjusted gross profit margin1 was 60.8% vs 60.0% in the prior year period. Operating income margin was 19.6% vs 14.9% in the prior year period. Adjusted operating income margin1 was 24.0% vs 19.8% in the prior year period. Diluted earnings per share were $0.25 vs $0.17 in the prior year period. Adjusted diluted earnings per share1 were $0.32 vs $0.24 in the prior year period. Due to the pending transaction with Kimberly-Clark, the Company will not be providing forward-looking guidance. First Quarter 2026 Financial Results Net Sales and Organic Sales First quarter 2026 Net sales increased 4.5% vs the prior year period, reflecting Organic sales growth of 0.7% and a foreign currency benefit of 3.8%. Organic sales growth was driven by favorable value realization of 1.0%, partially offset by a 0.3% volume decrease. Gross Profit Margin and Operating Income Margin First quarter 2026 Gross profit margin expanded 90 basis points to 58.9% from 58.0% in the prior year period. Adjusted gross profit margin expanded 80 basis points to 60.8% from 60.0% in the prior year period. The year-over-year improvement in both measures largely reflects the savings from productivity gains attributable to our global supply chain optimization initiatives and favorable value realization, which more than offset the impact from inflation, tariffs, and lower volumes. First quarter 2026 Operating income margin expanded to 19.6% from 14.9% in the prior year period. First quarter 2026 Adjusted operating income margin expanded to 24.0% from 19.8% in the prior year period. The year-over-year improvement in both measures reflects the year-over-year increase in Gross profit margin and Adjusted gross profit margin, as well as benefits from our cost optimization actions, including Our Vue Forward and the 2026 Restructuring Initiative that, in combination with media cost improvements, drove a year-over-year reduction in Selling, general, and administrative expenses. Interest Expense, Net and Taxes First quarter 2026 Interest expense, net was $95 million vs $94 million in the prior year period. First quarter Effective tax rate was 29.5% vs 29.7% in the prior year period. The Adjusted effective tax rate1 was 27.2% vs 27.5% in the prior year period. The year-over-year reduction in both measures largely reflects favorable jurisdictional mix of earnings in the current period and the impact of tax law changes, partially offset by unfavorable return to provision items. Net Income Per Share (“Earnings Per Share”) First quarter 2026 Diluted earnings per share were $0.25 vs $0.17 in the prior year period. First quarter 2026 Adjusted diluted earnings per share were $0.32 vs $0.24 in the prior year period. First Quarter 2026 Business Segment Results Self Care First quarter 2026 Net sales increased 1.9% vs the prior year period, reflecting a foreign currency benefit of 4.2%, partially offset by Organic sales decline of 2.3%. Organic sales decline was driven by a volume decrease of 3.9%, which was partially offset by favorable value realization of 1.6%. Weak cold and flu seasons across major markets weighed on the Self Care business and more than offset continued growth in smoking cessation behind strong commercial execution on Nicorette®, which drove share gains for the brand across major markets in Europe, Middle East and Africa (“EMEA”) and Asia Pacific. In the United States, the Company’s largest market, consumption trends improved sequentially and we gained market share despite a reduction in seasonal incidences vs the prior year period. Share improvement was driven by innovations and strong brand activations like Zyrtec® becoming the first Official Allergy Relief Sponsor of the PGA TOUR, supported by a fully integrated marketing campaign and executional excellence at retail. Market share and consumption trends for Tylenol® strengthened sequentially in the first quarter, with measured brand trust steady at the same levels as in early September. Tylenol® remains the #1 HCP recommended brand both for adults and children, as Average Weekly Recommendations increased sequentially for both adults and children. Skin Health and Beauty First quarter 2026 Net sales increased 8.4% vs the prior year period, reflecting Organic sales growth of 5.0% and a foreign currency benefit of 3.4%. Organic sales growth was driven by volume growth of 4.2% and favorable value realization of 0.8%, as strong Organic sales growth in EMEA, Latin America and Asia Pacific was accompanied by sequential improvement in North America. Organic sales grew vs the prior year period across major need states. It was fueled by a robust pipeline of innovations and sharp brand activations across regions, the Company’s targeted actions to accelerate demand in the eCommerce channel, and a solid sun season in Latin America that was further amplified by strong commercial execution on Neutrogena® Sun. Innovations spanned across major brands and included entry by Neutrogena® into the Sun Care category in select markets in EMEA, as well as the introduction of OGX® Pro Growth in North America and EMEA, which builds on the recent success of OGX® Bond Protein Repair line. Essential Health First quarter 2026 Net sales increased 4.9% vs the prior year period, reflecting Organic sales growth of 1.5% and a foreign currency benefit of 3.4%. Organic sales growth was driven by volume growth of 1.4% and slightly favorable value realization of 0.1%, with North America and Latin America fueling this performance. In Latin America, we gained share across key brands. Baby Care, Oral Care, and Wound Care contributed to growth in Essential Health in the quarter and offset a decline in Women’s Health. Baby Care grew vs the prior year period across major regions, with performance in North America enabled by expanded distribution and acceleration in the eCommerce channel. Results for Oral Care and Wound Care reflect strong contribution from brand activations and innovations, including the global restage of Listerine® as we commenced the roll-out of a new range of products across select markets during the first quarter and Listerine® On-The-Go Alcohol Free Mouthwash Sachets. Cash Flow and Balance Sheet First quarter 2026 Net cash flows from operating activities were $0.5 billion vs $0.4 billion in the prior year period, with the improvement driven by an increase in net income. Capital expenditures were $0.1 billion vs $0.2 billion in the prior year period, as Free cash flow1 increased to $0.4 billion vs $0.2 billion in the prior year period. Total cash and cash equivalents were $1.1 billion as of March 29, 2026 and December 28, 2025. Total debt was $8.7 billion as of March 29, 2026 vs $8.5 billion as of December 28, 2025. Pending Transaction with Kimberly-Clark As previously announced, the Company entered into a definitive merger agreement on November 2, 2025, under which Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction. Shareholders of each company voted overwhelmingly to approve all of the proposals necessary for Kimberly-Clark to complete its acquisition of the Company at their respective Special Meetings of Stockholders held on January 29, 2026. Additionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 4, 2026. The transaction is expected to close in the second half of 2026, subject to receipt of foreign regulatory approvals and satisfaction of other customary closing conditions as described in the merger agreement. 2026 Restructuring Initiative As previously disclosed, on February 17, 2026, the Company’s Board of Directors approved an initiative (the “2026 Restructuring Initiative”) that aims to optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies, while strengthening core capabilities. The Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026. No Conference Call Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call. This press release will be posted on the Company’s website at investors.kenvue.com. About Kenvue Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at kenvue.com. 1Non-GAAP Financial Measures The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. There are limitations to the use of the non-GAAP financial measures presented herein. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP, nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Accordingly, the non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. The Company cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP. The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry. Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release. Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time. Adjusted EBITDA margin: We define EBITDA as U.S. GAAP Net income adjusted for interest, provision for taxes, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for restructuring expenses and operating model optimization initiatives, costs incurred in connection with our establishment as a standalone public company (“Separation-related costs”), conversion of stock-based awards, stock-based awards granted to individuals employed by Kenvue as of October 2, 2023 (“Founder Shares”), expenses incurred in connection with the pending transaction with Kimberly-Clark (“Pending Transaction and other related costs”), costs associated with the Skillman sale-leaseback, and the impact of the deferred transfer of certain assets and liabilities from Johnson & Johnson in certain jurisdictions (the “Deferred Markets”). We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Adjusted effective tax rate: We define Adjusted effective tax rate as U.S. GAAP Effective tax rate adjusted for the tax effects on special item adjustments including amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, and costs associated with the Skillman sale-leaseback. We also exclude taxes related to the Deferred Markets. Management believes this non-GAAP measure is useful to investors as it provides a supplemental measure of the Company’s performance over time. Adjusted gross profit margin: We define Adjusted gross profit margin as U.S. GAAP Gross profit margin adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, operating model optimization initiatives, and Pending Transaction and other related costs. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Adjusted net income: We define Adjusted net income as U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, the impact of the Deferred Markets, and their related tax impacts (i.e., special items). Adjusted net income excludes the impact of items that may obscure trends in our underlying performance. Management believes this non-GAAP measure is useful to investors as the Company uses Adjusted net income for strategic decision making, forecasting future results, and evaluating current performance. Adjusted operating income: We define Adjusted operating income as U.S. GAAP Operating income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, and the impact of the Deferred Markets. Management believes this non-GAAP measure is useful to investors as management uses Adjusted operating income to assess the Company’s financial performance. Adjusted operating income margin: We define Adjusted operating income margin as Adjusted operating income as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Free cash flow: We define Free cash flow as U.S. GAAP Net cash flows from operating activities adjusted for purchases of property, plant, and equipment. Management believes this non-GAAP measure is useful to investors as it provides a view of the Company’s liquidity after deducting capital expenditures, which are considered a necessary component of our ongoing operations. Organic sales: We define Organic sales as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures. We report changes in Organic sales on a period-over-period basis. Management believes reporting period-over-period changes in Organic sales provides investors with supplemental information that is useful in assessing the Company’s results of operations by excluding the impact of certain items that we believe do not directly reflect our underlying operations. Market Share Information The Company uses market share and related metrics, including Average Weekly Recommendations, as indicators to assess business performance and trends. Market share references in this press release are derived from a combination of consumption and market share data provided by third-party vendors and internal estimates. Unless otherwise indicated, such references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company operates and purchases data. Market share data is subject to inherent limitations, including the availability and timing of underlying information. In particular, market share data is not generally available for certain retail channels. The Company measures market share through the most recent period for which market share data is available, which generally reflects a lag time of one or two months. While the Company believes the third-party vendors it uses to provide data are reliable, it has not independently verified the accuracy or completeness of such data or its underlying assumptions. In addition, the Company’s reported market share data may differ from that reported by other companies due to differences in category definitions, geographic scope, internal estimates and other factors. Cautions Concerning Forward-Looking Statements This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position, and business strategy. Such forward-looking statements include statements regarding the pending transaction with Kimberly-Clark. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and other words of similar meaning. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; inflation and other economic factors, such as interest rate and currency exchange rate fluctuations, as well as existing or proposed tariffs and other constraints on trade both in the U.S. and in foreign markets; the ability to successfully manage local, regional, or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any dividend payments; Kenvue’s ability to maintain satisfactory credit ratings and access capital markets, which could adversely affect its liquidity, capital position, and borrowing costs; competition, including technological advances, new products, and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections, including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including the 2026 Restructuring Initiative and any other restructuring or cost-saving initiatives; the impact of business combinations and divestitures, including any ongoing or future transactions; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations and other stakeholder requirements; changes in behavior and spending patterns of consumers; natural disasters, acts of war, or terrorism, catastrophes, or epidemics, pandemics, or other disease outbreaks; financial instability of international economies and legal systems and sovereign risk; the inability to realize the benefits of the separation from Kenvue’s former parent, Johnson & Johnson; the risk of disruption or unanticipated costs in connection with the separation; the Company’s inability to consummate the pending transaction with Kimberly-Clark due to, among other things, market, regulatory, and other factors; the potential for disruption to the Company’s business resulting from the pending transaction with Kimberly-Clark; and potential adverse effects on the Company’s stock price from the announcement, suspension, or consummation of the pending transaction with Kimberly-Clark. A further list and descriptions of these risks, uncertainties, and other factors can be found in Kenvue’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Report on Form 10-Q and other filings, available at investors.kenvue.com or on request from Kenvue. Any forward-looking statement made in this release speaks only as of the date of this release. Kenvue undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or developments or otherwise.   Kenvue Inc.
Condensed Consolidated Statements of Operations
(Unaudited; Dollars in Millions, Except Per Share Data; Shares in Millions)         Fiscal Three Months Ended     March 29, 2026   March 30, 2025 Net sales   $ 3,909   $ 3,741 Cost of sales     1,607     1,573 Gross profit     2,302     2,168 Selling, general, and administrative expenses     1,453     1,537 Restructuring expenses     71     60 Other operating expense, net     11     13 Operating income     767     558 Other expense, net     —     6 Interest expense, net     95     94 Income before taxes     672     458 Provision for taxes     198     136 Net income   $ 474   $ 322           Net income per share         Basic   $ 0.25   $ 0.17 Diluted   $ 0.25   $ 0.17 Weighted-average number of shares outstanding         Basic     1,918     1,914 Diluted     1,922     1,925   Organic Sales Change The following tables present a reconciliation of the change in Net sales, as reported, to the change in Organic sales, a non-GAAP measure, for the periods presented:   Fiscal Three Months Ended March 29, 2026 vs. March 30, 2025(1)   Reported Net
Sales Change   Impact of
Foreign Currency   Organic Sales Change (Unaudited)     Total Organic
Sales Change   Price/Mix(2)   Volume Self Care 1.9%   4.2%   (2.3)%   1.6%   (3.9)% Skin Health and Beauty 8.4   3.4   5.0   0.8   4.2 Essential Health 4.9   3.4   1.5   0.1   1.4 Total 4.5%   3.8%   0.7%   1.0%   (0.3)%   (1) Acquisitions and divestitures did not impact the reported Net sales change.
(2) Price/Mix reflects value realization. Total Segment Net Sales and Adjusted Operating Income Segment Net sales for the periods presented were as follows:     Net Sales     Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Self Care   $ 1,699   $ 1,667 Skin Health and Beauty     1,059     977 Essential Health     1,151     1,097 Total segment net sales   $ 3,909   $ 3,741   Segment Adjusted operating income for the periods presented was as follows:     Adjusted Operating Income     Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Self Care Adjusted operating income   $ 625     $ 566   Skin Health and Beauty Adjusted operating income     168       92   Essential Health Adjusted operating income     299       239   Total   $ 1,092     $ 897   Reconciliation to Adjusted operating income (non-GAAP):         Depreciation(1)     78       73   General corporate/unallocated expenses     69       79   Other operating expense, net     11       13   Other—impact of Deferred Markets     (6 )     (9 ) Adjusted operating income (non-GAAP)   $ 940     $ 741   Reconciliation to Income before taxes:         Amortization of intangible assets(2)     65       63   Separation-related costs(4)     3       38   Restructuring expenses and operating model optimization initiatives(3)     78       67   Conversion of stock-based awards     1       3   Other—impact of Deferred Markets     6       9   Founder Shares     2       3   Pending Transaction and other related costs(5)     16       —   Skillman sale-leaseback     2       —   Operating income   $ 767     $ 558   Other expense, net     —       6   Interest expense, net     95       94   Income before taxes   $ 672     $ 458     Non-GAAP Financial Information The following tables present reconciliations of GAAP to non-GAAP for the periods presented:   Fiscal Three Months Ended March 29, 2026 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 3,909   —   $ 3,909             Gross profit $ 2,302   74 (a) $ 2,376   Gross profit margin   58.9 %       60.8 %           Operating income $ 767   173 (a)-(c) $ 940   Operating income margin   19.6 %       24.0 %           Net income $ 474   141 (a)-(d) $ 615   Net income margin   12.1 %       15.7 % Interest expense, net $ 95         Provision for taxes $ 198         Depreciation and amortization $ 143         EBITDA (non-GAAP) $ 910   108 (b)-(c), (e) $ 1,018   EBITDA margin (non-GAAP)   23.3 %       26.0 %     Detail of Adjustments                         Cost of Sales   SG&A/Restructuring
Expenses   Other Operating
Expense, Net   Provision for
Taxes   Total Amortization of intangible assets(2)   $ 65   $ —   $ —   $ —     $ 65   Restructuring expenses(3)     —     71     —     —       71   Operating model optimization initiatives(3)     5     2     —     —       7   Separation-related costs, conversion of stock-based awards, and Founder Shares(4)     2     4     —     —       6   Pending Transaction and other related costs(5)     2     14     —     —       16   Skillman sale-leaseback     —     2     —     —       2   Impact of Deferred Markets—minority interest expense     —     —     3     —       3   Impact of Deferred Markets—provision for taxes     —     —     3     (3 )     —   Tax impact on special item adjustments     —     —     —     (29 )     (29 ) Total   $ 74   $ 93   $ 6   $ (32 )   $ 141       (a)   (b)   (c)   (d)     Cost of sales less amortization   $ 9                     (e)                   Fiscal Three Months Ended March 30, 2025 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 3,741   —   $ 3,741             Gross profit $ 2,168   77 (a) $ 2,245   Gross profit margin   58.0 %       60.0 %           Operating income $ 558   183 (a)-(c) $ 741   Operating income margin   14.9 %       19.8 %           Net income $ 322   143 (a)-(d) $ 465   Net income margin   8.6 %       12.4 % Interest expense, net $ 94         Provision for taxes $ 136         Depreciation and amortization $ 136         EBITDA (non-GAAP) $ 688   120 (b)-(c), (e) $ 808   EBITDA margin (non-GAAP)   18.4 %       21.6 %     Detail of Adjustments                         Cost of Sales   SG&A/Restructuring
Expenses   Other Operating
Expense, Net   Provision for
Taxes   Total Amortization of intangible assets(2)   $ 63   $ —   $ —   $ —     $ 63   Restructuring expenses(3)     —     60     —     —       60   Operating model optimization initiatives(3)     6     1     —     —       7   Separation-related costs, conversion of stock-based awards, and Founder Shares(4)     8     36     —     —       44   Impact of Deferred Markets—minority interest expense     —     —     4     —       4   Impact of Deferred Markets—provision for taxes     —     —     5     (5 )     —   Tax impact on special item adjustments     —     —     —     (35 )     (35 ) Total   $ 77   $ 97   $ 9   $ (40 )   $ 143       (a)   (b)   (c)   (d)     Cost of sales less amortization   $ 14                     (e)                 (1) Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements. (2) Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives. (3) Restructuring expenses and operating model optimization initiatives in the fiscal three months ended March 29, 2026 related to the 2026 Restructuring Initiative and in the fiscal three months ended March 30, 2025 related to the 2024 Multi-year Restructuring Initiative and were composed of the following:       Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Employee-related costs (one-time severance and other termination benefits)   $ 48   $ 25 Information technology and project-related costs     30     40 Other implementation costs     —     2 Total restructuring expenses and operating model optimization initiatives   $ 78   $ 67   (4) Separation-related costs relate to non-recurring costs incurred in connection with our establishment of Kenvue as a standalone public company. Separation-related costs, the impact of the conversion of stock-based compensation awards, and the incremental stock-based compensation from the issuance of the Founder Shares, were composed of the following:       Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Information technology and other   $ —   $ 33 Legal entity name change     3     5 Total separation-related costs   $ 3   $ 38 Conversion of stock-based awards     1     3 Founder Shares     2     3 Total separation-related costs, conversion of stock-based awards, and Founder Shares   $ 6   $ 44 (5) Pending Transaction and other related costs consist of expenses incurred in connection with the pending transaction with Kimberly-Clark, including advisory fees, legal costs, professional service costs, and other related costs.   The following table presents reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented:     Fiscal Three Months Ended (Unaudited)   March 29, 2026   March 30, 2025 Effective tax rate   29.5%   29.7% Adjustments:         Tax-effect on special item adjustments   (2.4)   (2.4) Taxes related to Deferred Markets   0.1   0.2 Adjusted Effective tax rate (non-GAAP)   27.2%   27.5%   The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented:     Fiscal Three Months Ended (Unaudited)   March 29, 2026   March 30, 2025 Diluted earnings per share   $ 0.25     $ 0.17   Adjustments:         Separation-related costs     —       0.02   Restructuring expenses and operating model optimization initiatives     0.04       0.03   Amortization of intangible assets     0.03       0.03   Pending Transaction and other related costs     0.01       —   Tax impact on special item adjustments     (0.02 )     (0.02 ) Other     0.01       0.01   Adjusted diluted earnings per share (non-GAAP)   $ 0.32     $ 0.24     The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented:     Fiscal Three Months Ended (Unaudited; Dollars in Billions)   March 29, 2026   March 30, 2025 Net cash flows from operating activities   $ 0.5     $ 0.4   Purchases of property, plant, and equipment     (0.1 )     (0.2 ) Free cash flow (non-GAAP)   $ 0.4     $ 0.2     Other Supplemental Financial Information The following table presents the Company’s Net sales by geographic region for the periods presented:     Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Net sales by geographic region         North America   $ 1,860   $ 1,857 Europe, Middle East, and Africa     992     884 Asia Pacific     700     694 Latin America     357     306 Total Net sales by geographic region   $ 3,909   $ 3,741   The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses.     Fiscal Three Months Ended (Unaudited; Dollars in Millions)   March 29, 2026   March 30, 2025 Research & Development   $ 84   $ 99   The following table presents the Company’s Cash and cash equivalents, Total debt, and Net debt balance as of the periods presented: (Unaudited; Dollars in Billions)   March 29, 2026   December 28, 2025 Cash and cash equivalents   $ 1.1     $ 1.1   Total debt     (8.7 )     (8.5 ) Net debt   $ (7.6 )   $ (7.5 )   Note: Numbers may not foot due to rounding.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260507634587/en/ Investor Relations:
Sofya Tsinis
Kenvue_IR@kenvue.com Media Relations:
Melissa Witt
media@kenvue.com Original: Kenvue Reports First Quarter 2026 Results

Kenvue Declares Quarterly Cash DividendApril 29, 2026 6:45 AM
Business Wire
Kenvue Inc. (NYSE: KVUE) today announced that its Board of Directors declared a quarterly dividend of $0.2075 per share on its common stock. The quarterly dividend is payable on May 27, 2026, to shareholders of record as of the close of business on May 13, 2026.


About Kenvue

Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena® and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at www.kenvue.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429239263/en/
Investor Relations:

Sofya Tsinis

Kenvue_IR@Kenvue.com
Media Relations:

Melissa Witt

Media@Kenvue.com


Original: Kenvue Declares Quarterly Cash Dividend

Kimberly-Clark Shares Tick Higher After Post-Acquisition Leadership Plans RevealedApril 15, 2026 10:07 AM
IH Market News
Kimberly-Clark (NASDAQ:KMB) shares edged up 0.6% in premarket trading on Monday after the company outlined its future organizational structure and leadership team ahead of its planned acquisition of Kenvue Inc. (NYSE:KVUE).The group confirmed the deal is still expected to close in the second half of 2026, pending regulatory approvals and standard closing conditions.Once completed, the combined business will be organized into four operating divisions. North America is projected to generate around $18.0 billion in annual revenue, while Asia Pacific Focus Markets is expected to contribute approximately $4.3 billion. Europe, Middle East and Africa are forecast to deliver about $5.0 billion, with Enterprise Markets adding roughly $4.3 billion. These estimates are based on combined fiscal 2025 net sales, adjusted to reflect the new structure.Mike Hsu will remain Chairman and Chief Executive Officer of the merged company. The leadership lineup will also include Russ Torres as Group President and Chief Operations Officer, Nelson Urdaneta as Chief Financial Officer, and regional presidents overseeing each division.“Our team was selected after a thorough and thoughtful process and reflects leaders with the right blend of experience, capabilities, and technical expertise to unlock the full potential of our combined portfolio, iconic brands, and talented people,” Hsu commented.Under the new structure, the Asia Pacific Focus Markets segment will cover Greater China, Australia, New Zealand, South Korea and Indonesia, while Enterprise Markets will include Latin America, India, Southeast Asia and Japan.Kimberley-Clark stock price

Original: Kimberly-Clark Shares Tick Higher After Post-Acquisition Leadership Plans Revealed

Kimberly-Clark Announces Post-Closing Organizational Structure and Identifies Key LeadershipApril 15, 2026 8:55 AM
PR Newswire (US)

DALLAS, April 15, 2026 /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) today announced the organizational structure and key leadership that will become effective upon completion of its pending acquisition of Kenvue Inc. (NYSE: KVUE). The organizational structure, roles, and responsibilities reflect the fast-and-lean, balanced matrix approach that has built strong operating momentum at Kimberly-Clark since implementing its Powering Care strategy two years ago."We are excited to name the leadership team that will guide us forward to create a new kind of health and wellness company poised to raise the standard of care for billions of consumers across every stage of life," said Mike Hsu, Chairman and Chief Executive Officer of Kimberly-Clark. "Our team was selected after a thorough and thoughtful process and reflects leaders with the right blend of experience, capabilities, and technical expertise to unlock the full potential of our combined portfolio, iconic brands, and talented people. Our structure is designed to align our teams around a shared mindset of ownership, agility, and speed. Markets will own the business end-to-end with the functions bringing our best capabilities to the markets – at speed – to help them win. Together, we will bring our global might to the local fight and drive durable, repeatable growth that will capitalize on the generational opportunity we have ahead."Organizational Structure and Key LeadershipAfter close, the combined company will operate with four business segments, each driving a focus on winning in its local markets:North America, a business generating approximately $18.0 billion1 in sales annually;Asia Pacific Focus Markets, which will include Greater China, Australia / New Zealand, South Korea, and Indonesia, generating approximately $4.3 billion1 in annual sales;Europe, Middle East, and Africa (EMEA), with approximately $5.0 billion1 in annual sales; andEnterprise Markets, which will include Latin America (including Brazil), India, Southeast Asia markets, and Japan, generating approximately $4.3 billion1 in annual sales.As previously announced, Mr. Hsu will continue to serve as Chairman and CEO of the combined company. The following future leaders will report directly to Mr. Hsu:Russ Torres, Group President and Chief Operations OfficerNelson Urdaneta, Chief Financial OfficerStacey Valy Panayiotou, Chief Human Resources OfficerJeff Melucci, Chief Strategy, Business Development and Administrative OfficerJohn Carmichael, President North AmericaKaty Chen, President Asia Pacific Focus MarketsCarlton Lawson, President EMEA"Today is an important milestone that demonstrates the tremendous progress we have been making to ensure we hit the ground running on Day 1," said Russ Torres, President and Chief Operating Officer of Kimberly-Clark, and Head of the Integration Management Office. "The work of more than 30 workstreams across the integration team has identified our biggest growth and efficiency opportunities as well as the sequencing of priorities following transaction close. We are organizing to bring the best capabilities to the markets at speed and focus on the places where we can unlock significant value creation."The following leaders will report to Mr. Torres:Anindya Dasgupta, President Enterprise MarketsCarlos De Jesus, Chief Growth OfficerCraig Slavtcheff, Chief Research & Development OfficerTamera Fenske, Chief Supply Chain OfficerMichael Wondrasch, Chief Consumer Growth Technology OfficerFrancesco Tinto, Chief Information and Global Business Services OfficerThe leadership team for the combined company will also include:Leonardo Curado, General Manager LATAM, who will report to Mr. DasguptaJonathan Halvorson, Chief Marketing Officer, who will report to Mr. De JesusGrant McGee, General Counsel, Russell Dyer, Chief Corporate Affairs Officer and Alan Ross, Head of Strategy, who will report to Mr. MelucciFull biographies for the post-closing key leadership members are available on the transaction website: leadinghealthandwellness.com.Mr. Hsu continued, "K-C and Kenvue have a talented and dedicated group of leaders at both companies. I am grateful to those leaders who will be transitioning from their roles at closing for their contributions and for the important role they continue to play in driving business momentum as we bring our companies together."The transaction remains on track to close in the second half of 2026, subject to the receipt of regulatory approvals and satisfaction of other remaining customary closing conditions.About Kimberly-ClarkKimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website. Forward Looking StatementsCertain matters contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based upon management's expectations and beliefs concerning future events impacting Kimberly-Clark. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to publicly update them. The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on many factors outside our control, including risks and uncertainties around the pending Kenvue acquisition (including the risk that the anticipated benefits and synergies of the acquisition may not be realized when expected or at all, the terms and scope of the expected financing in connection with the acquisition may prove to be less favorable than currently expected, that the acquisition may not be completed in a timely matter or at all and the risk of litigation related to the acquisition). The factors described under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, or in our other SEC filings, among others, could cause our future results to differ from those expressed in any forward-looking statements made by us or on our behalf. Other factors not presently known to us or that we presently consider immaterial could also affect our business operations and financial results.1 Represents the combined net sales of Kimberly-Clark and Kenvue for fiscal year 2025, as reported in each company's Annual Report on Form 10-K, recast to reflect the estimated impact of the new proposed segment structure.[KMB-F] [KMB-C]ContactsInvestor Relations:
Christopher Jakubik, CFA
KC.InvestorRelations@kcc.com Media Relations:
Kyrsten Aspegren
media.relations@kcc.com Logo - https://mma.prnewswire.com/media/648588/Kimberly_Clark_v1_Logo.jpg



View original content:https://www.prnewswire.com/news-releases/kimberly-clark-announces-post-closing-organizational-structure-and-identifies-key-leadership-302742498.htmlSOURCE Kimberly-Clark Corporation

Original: Kimberly-Clark Announces Post-Closing Organizational Structure and Identifies Key Leadership

Tylenol during pregnancy—>no autism association, according to Danish study published today:

https://www.reuters.com/business/healthcare-pharmaceuticals/tylenol-pregnancy-not-linked-with-autism-danish-study-finds-2026-04-13/ The use of Tylenol by women during pregnancy was not associated with autism in their children, according to results of a nationwide study in Denmark published on Monday.

Among more than 1.5 million children born between 1997 and 2022, including 31,098 exposed to Tylenol in the womb, autism was later diagnosed in 1.8% of exposed children and 3% of the unexposed group [i.e. numerically lower in the Tylenol group], Danish researchers reported in JAMA Pediatrics. The lack of an association persisted after researchers accounted for individual risk factors including the dose of the drug and the ?trimester of pregnancy in which it was used…

A 2024 Swedish study, opens new tab also found no link between autism and pregnancy use of Tylenol, a brand name for acetaminophen and paracetamol.

In September, the U.S. Food and Drug Administration said it was initiating the process for a label change for acetaminophen to warn that its use by pregnant women may be associated with an increased ?risk of autism and ADHD. The FDA declined to comment on the status of its planned label change. LOL re the last sentence.

KMB 1Q26 webcast—>4/28/26, 8am ET.

KMB slides from CAGNY webcast:

https://www.investor.kimberly-clark.com/static-files/6d80ac08-783c-41a5-abc0-4acd2f4c3545

KVUE 4Q25 results—>Tylenol market-share improving:

https://www.reuters.com/business/healthcare-pharmaceuticals/kenvue-beats-quarterly-estimates-announces-job-cuts-amid-kimberly-clark-2026-02-17/

I fully expect Tylenol’s market share to return to its historical norm in due course, as more and more people come to realize that: 1) Tylenol does not have a higher risk of adverse events than any of the numerous private-label acetaminophen products; and 2) The anti-Tylenol bluster from RFJ/DJT is not supported by science.

No KVUE 4Q25 CC or 2026 guidance due to the pending merger with KMB. KVUE plans to implement a 3.5% workforce reduction prior to the merger.

Kenvue Reports Fourth Quarter and Full Year 2025 ResultsFebruary 17, 2026 4:45 PM
Business Wire

Q4 Net Sales 3.2%; Organic Sales1 1.2%



Q4 Diluted EPS was $0.17; Adjusted Diluted EPS1 was $0.27



FY'25 Net Sales (2.1)%; Organic Sales (2.2)%



FY'25 Diluted EPS was $0.76; Adjusted Diluted EPS was $1.08



Kenvue Inc. (NYSE: KVUE) today announced financial results for the fiscal fourth quarter and full year ended December 28, 2025.


“We ended 2025 with stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as a more favorable year-ago comparison on sales,” said Kirk Perry, Chief Executive Officer. “As we look to 2026, we remain focused on continuing to enhance our performance, while progressing toward completion of our value-creating combination with Kimberly-Clark.”


Fourth Quarter Summary



Net sales increased 3.2% vs the prior year period, primarily reflecting Organic sales1 growth of 1.2% and a foreign currency benefit of 2.1%.



Gross profit margin was flat year-over-year at 56.5%. Adjusted gross profit margin1 was 58.8% vs 58.7% in the prior year period.



Operating income margin was 14.2% vs 13.2% in the prior year period. Adjusted operating income margin1 was 19.9% vs 19.2% in the prior year period.



Diluted earnings per share were $0.17 vs $0.15 in the prior year period. Adjusted diluted earnings per share1 were $0.27 vs $0.26 in the prior year period.



Due to the pending transaction with Kimberly-Clark, the Company will not be providing forward-looking guidance.



Fourth Quarter 2025 Financial Results


Net Sales and Organic Sales


Fourth quarter 2025 Net sales increased 3.2% vs the prior year period, primarily reflecting Organic sales growth of 1.2% and a foreign currency benefit of 2.1%. Organic sales growth was driven by favorable value realization of 2.3%, partially offset by a 1.1% volume decrease. As expected, volumes in the current quarter benefited from lapping the impact of the go-to-market disruption the Company experienced in Asia Pacific in the prior year period. This tailwind was offset primarily by trade inventory reductions by certain customers and low seasonal incidences, particularly in the United States, which weighed on the global weighted category growth rate.


Gross Profit Margin and Operating Income Margin


Fourth quarter 2025 Gross profit margin was flat year-over-year at 56.5%. Adjusted gross profit margin expanded 10 basis points to 58.8% from 58.7% in the prior year period. The year-over-year change in both measures reflects the savings from productivity gains attributable to our global supply chain optimization initiatives and favorable value realization, which helped offset the impact from inflationary, tariff, and transactional foreign exchange headwinds.


Fourth quarter 2025 Operating income margin was 14.2%, including non-cash charges related to asset impairment, vs 13.2% in the prior year period. Fourth quarter 2025 Adjusted operating income margin was 19.9% vs 19.2% in the prior year period. The year-over-year improvement in both measures reflects the year-over-year change in Gross profit margin and Adjusted gross profit margin and savings from Our Vue Forward, partially offset by a year-over-year increase in brand support.


Interest Expense, Net and Taxes


Fourth quarter 2025 Interest expense, net was $98 million vs $95 million in the prior year period.


Fourth quarter Effective tax rate was 22.7% vs 15.3% in the prior year period. The Adjusted effective tax rate1 was 20.2% in the current period vs 17.7% in the prior year period. The year-over-year increase in both measures largely reflects a decrease in discrete tax benefits, partially offset by favorable jurisdictional mix of earnings in the current period.


Net Income Per Share (“Earnings Per Share”)


Fourth quarter 2025 Diluted earnings per share were $0.17 vs $0.15 in the prior year period. Adjusted diluted earnings per share were $0.27 in the current period vs $0.26 in the prior year period.


Fourth Quarter 2025 Business Segment Results


Self Care


Fourth quarter 2025 Net sales increased 1.5% vs the prior year period, reflecting a foreign currency benefit of 2.7%, partially offset by Organic sales decline of 1.2%. Organic sales decline was driven by a volume decrease of 3.1%, which was partially offset by favorable value realization of 1.9%. Subdued seasonal incidences in the United States weighed on the overall Self Care category, which contracted year-over-year. In aggregate, Kenvue gained slight share in its seasonal businesses in the United States, with continued strong contribution from innovations. While a late quarter spike in flu incidences in the United States was not enough to offset the impact of weak incidences throughout the quarter, both consumption and share performance trends for Tylenol improved in December. Relative to prior year, Organic sales rebounded in Asia Pacific and grew across major need states in Europe, Middle East and Africa.


Skin Health and Beauty


Fourth quarter 2025 Net sales increased 2.9% vs the prior year period, primarily reflecting a foreign currency benefit of 1.6% and Organic sales growth of 1.5%. Organic sales growth was driven by favorable value realization of 2.3%, partially offset by a volume decrease of 0.8%. Innovations, along with strong commercial execution drove Organic sales growth vs the prior year period across every geographic region outside North America.


Essential Health


Fourth quarter 2025 Net sales increased 6.1% vs the prior year period, reflecting Organic sales growth of 4.2% and a foreign currency benefit of 1.9%. Organic sales growth was driven by favorable value realization of 2.9% and volume growth of 1.3%, with broad based growth across the major need states, propelled by the Asia Pacific, Latin America and Europe, Middle East and Africa regions, with sequential improvement in performance in North America.


Full Year 2025 Financial Results


Net Sales and Organic Sales


Full year 2025 Net sales decreased 2.1% vs the prior year period, primarily reflecting Organic sales decline of 2.2%, partially offset by foreign currency benefit of 0.2%. Organic sales decline was driven by a 2.3% volume decrease partially offset by slightly favorable value realization of 0.1%. Volumes were impacted by trade inventory reductions by certain customers, as well as low seasonal incidences, impacting Self Care, which constrained the global weighted category growth rate.


Gross Profit Margin and Operating Income Margin


Full year 2025 Gross profit margin expanded 10 basis points to 58.1% from 58.0% in the prior year period. Adjusted gross profit margin declined 20 basis points to 60.2% from 60.4% in the prior year period. The year-over-year change in both measures reflects the savings from productivity gains attributable to our global supply chain optimization initiatives, as well as the impact from inflation, lower volume, and transactional foreign exchange and tariff headwinds.


Full year 2025 Operating income margin was 16.0% vs 11.9% in the prior year period, which included significantly higher non-cash charges related to asset impairments. Full year 2025 Adjusted operating income margin was 21.0% vs 21.5% in the prior year period. The year-over-year change in both measures reflects the year-over-year change in Gross profit margin and Adjusted gross profit margin, savings from Our Vue Forward, as well as a year-over-year increase in brand support.


Interest Expense, Net and Taxes


Full year 2025 Interest expense, net was $379 million vs $378 million in the prior year period.


Full year Effective tax rate was 26.5% vs 27.2% in the prior year period. The Adjusted effective tax rate was 24.7% vs 25.5% in the prior year period. The year-over-year reduction in both measures largely reflects favorable tax return true-ups and jurisdictional mix of earnings in the current period, partially offset by a decrease in discrete tax benefits.


Net Income Per Share (“Earnings Per Share”)


Full year 2025 Diluted earnings per share were $0.76 vs $0.54 in the prior year period. Adjusted diluted earnings per share were $1.08 vs $1.14 in the prior year period.


Cash Flow and Balance Sheet


Full year 2025 Net cash flows from operating activities were $2.2 billion vs $1.8 billion in the prior year period, largely driven by improvements in working capital. Capital expenditures were $0.5 billion vs $0.4 billion in the prior year period, as Free cash flow1 increased to $1.7 billion vs $1.3 billion in the prior year period. Total cash and cash equivalents were $1.1 billion as of December 28, 2025 and December 29, 2024. Total debt was $8.5 billion as of December 28, 2025 vs $8.6 billion as of December 29, 2024.


Proposed Transaction with Kimberly-Clark


As previously announced, the Company entered into a definitive merger agreement on November 2, 2025, under which Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction. Shareholders of each company voted overwhelmingly to approve all of the proposals necessary for Kimberly-Clark to complete its acquisition of the Company at their respective Special Meetings of Stockholders held on January 29, 2026. Additionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 4, 2026. The transaction is expected to close in the second half of 2026, subject to receipt of foreign regulatory approvals and satisfaction of other customary closing conditions as described in the merger agreement.


No Conference Call


Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call. This press release will be posted on the Company’s website at investors.kenvue.com.


About Kenvue


Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at kenvue.com.


1Non-GAAP Financial Measures


The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. There are limitations to the use of the non-GAAP financial measures presented herein. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Accordingly, the non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. The Company cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.


The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry.


Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release.


Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time.


Adjusted EBITDA margin: We define EBITDA as U.S. GAAP Net income adjusted for interest, provision for taxes, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for restructuring expenses and operating model optimization initiatives, costs incurred in connection with our establishment as a standalone public company (“Separation-related costs”), conversion of stock-based awards, stock-based awards granted to individuals employed by Kenvue as of October 2, 2023 (“Founder Shares”), expenses incurred in connection with the proposed transaction with Kimberly-Clark (“Proposed Transaction costs”), impairment charges, the impact of the deferred transfer of certain assets and liabilities from Johnson & Johnson in certain jurisdictions (the “Deferred Markets”), litigation income, the gain recognized on the sale of the Skillman, New Jersey facility, losses on investments, and tax indemnification releases. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.


Adjusted effective tax rate: We define Adjusted effective tax rate as U.S. GAAP Effective tax rate adjusted for the tax effects on special item adjustments including amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Proposed Transaction costs, impairment charges other than the Dr.Ci:Labo® asset impairment, litigation income, the gain recognized on the sale of the Skillman, New Jersey facility, losses on investments, and tax indemnification releases. We also exclude taxes related to the Deferred Markets and taxes related to the Dr.Ci:Labo® asset impairment charges. Management believes this non-GAAP measure is useful to investors as it provides a supplemental measure of the Company’s performance over time.


Adjusted gross profit margin: We define Adjusted gross profit margin as U.S. GAAP Gross profit margin adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, and operating model optimization initiatives. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.


Adjusted net income: We define Adjusted net income as U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Proposed Transaction costs, impairment charges, the impact of the Deferred Markets, litigation income, the gain recognized on the sale of the Skillman, New Jersey facility, losses on investments, tax indemnification releases, and their related tax impacts (i.e., special items). Adjusted net income excludes the impact of items that may obscure trends in our underlying performance. Management believes this non-GAAP measure is useful to investors as the Company uses Adjusted net income for strategic decision making, forecasting future results, and evaluating current performance.


Adjusted operating income: We define Adjusted operating income as U.S. GAAP Operating income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Proposed Transaction costs, impairment charges, the impact of the Deferred Markets, litigation income, and the gain recognized on the sale of the Skillman, New Jersey facility. Management believes this non-GAAP measure is useful to investors as management uses Adjusted operating income to assess the Company’s financial performance.


Adjusted operating income margin: We define Adjusted operating income margin as Adjusted operating income as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.


Free cash flow: We define Free cash flow as U.S. GAAP Net cash flows from operating activities adjusted for purchases of property, plant, and equipment. Management believes this non-GAAP measure is useful to investors as it provides a view of the Company’s liquidity after deducting capital expenditures, which are considered a necessary component of our ongoing operations.


Organic sales: We define Organic sales as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures. We report changes in Organic sales on a period-over-period basis. Management believes reporting period-over-period changes in Organic sales provides investors with supplemental information that is useful in assessing the Company’s results of operations by excluding the impact of certain items that we believe do not directly reflect our underlying operations.


Cautions Concerning Forward-Looking Statements


This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position, and business strategy. Such forward-looking statements include statements regarding the proposed transaction with Kimberly-Clark and the recently announced restructuring initiative. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and other words of similar meaning. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; inflation and other economic factors, such as interest rate and currency exchange rate fluctuations, as well as existing or proposed tariffs and other constraints on trade both in the U.S. and in foreign markets; the ability to successfully manage local, regional, or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any dividend payments; Kenvue’s ability to maintain satisfactory credit ratings and access capital markets, which could adversely affect its liquidity, capital position, and borrowing costs; competition, including technological advances, new products, and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including the recently announced restructuring initiative and any other restructuring or cost-saving initiatives; the impact of business combinations and divestitures, including any ongoing or future transactions; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations and other stakeholder requirements; changes in behavior and spending patterns of consumers; natural disasters, acts of war, or terrorism, catastrophes, or epidemics, pandemics, or other disease outbreaks; financial instability of international economies and legal systems and sovereign risk; the inability to realize the benefits of the separation from Kenvue’s former parent, Johnson & Johnson; the risk of disruption or unanticipated costs in connection with the separation; the Company’s inability to consummate the proposed transaction with Kimberly-Clark due to, among other things, market, regulatory, and other factors; the potential for disruption to the Company’s business resulting from the proposed transaction with Kimberly-Clark; and potential adverse effects on the Company’s stock price from the announcement, suspension, or consummation of the proposed transaction with Kimberly-Clark. A further list and descriptions of these risks, uncertainties, and other factors can be found in Kenvue’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other filings, available at investors.kenvue.com or on request from Kenvue. Any forward-looking statement made in this release speaks only as of the date of this release. Kenvue undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or developments or otherwise.




Kenvue Inc.




Condensed Consolidated Statements of Operations




(Unaudited; Dollars in Millions, Except Per Share Data; Shares in Millions)








 






 






 






 






 








 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








 






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Net sales






 






$






3,780






 






 






$






3,662






 






 






$






15,124






 






 






$






15,455









Cost of sales






 






 






1,643






 






 






 






1,592






 






 






 






6,332






 






 






 






6,496









Gross profit






 






 






2,137






 






 






 






2,070






 






 






 






8,792






 






 






 






8,959









Selling, general, and administrative expenses






 






 






1,535






 






 






 






1,525






 






 






 






6,088






 






 






 






6,329









Restructuring expenses






 






 






86






 






 






 






65






 






 






 






290






 






 






 






185









Impairment charges






 






 






23






 






 






 






—






 






 






 






23






 






 






 






578









Other operating (income) expense, net






 






 






(42






)






 






 






(3






)






 






 






(23






)






 






 






26









Operating income






 






 






535






 






 






 






483






 






 






 






2,414






 






 






 






1,841









Other expense, net






 






 






10






 






 






 






42






 






 






 






36






 






 






 






48









Interest expense, net






 






 






98






 






 






 






95






 






 






 






379






 






 






 






378









Income before taxes






 






 






427






 






 






 






346






 






 






 






1,999






 






 






 






1,415









Provision for taxes






 






 






97






 






 






 






53






 






 






 






529






 






 






 






385









Net income






 






$






330






 






 






$






293






 






 






$






1,470






 






 






$






1,030









 






 






 






 






 






 






 






 






 









Net income per share






 






 






 






 






 






 






 






 









Basic






 






$






0.17






 






 






$






0.15






 






 






$






0.77






 






 






$






0.54









Diluted






 






$






0.17






 






 






$






0.15






 






 






$






0.76






 






 






$






0.54









Weighted-average number of shares outstanding






 






 






 






 






 






 






 






 









Basic






 






 






1,916






 






 






 






1,916






 






 






 






1,917






 






 






 






1,915









Diluted






 






 






1,920






 






 






 






1,929






 






 






 






1,924






 






 






 






1,923








Organic Sales Change


The following tables present a reconciliation of the change in Net sales, as reported, to the change in Organic sales, a non-GAAP measure for the periods presented:




 







Fiscal Three Months Ended December 28, 2025 vs. December 29, 2024








 







Reported Net Sales Change






 






Impact of Foreign Currency






 






Acquisitions and Divestitures






 






Organic Sales Change








(Unaudited)







 






 






 






Total Organic Sales Change






 






Price/Mix(1)






 






Volume








Self Care







1.5






%






 






2.7






%






 






—






%






 






(1.2






)%






 






1.9






%






 






(3.1






)%








Skin Health and Beauty







2.9






 






 






1.6






 






 






(0.2






)






 






1.5






 






 






2.3






 






 






(0.8






)








Essential Health







6.1






 






 






1.9






 






 






—






 






 






4.2






 






 






2.9






 






 






1.3






 








Total







3.2






%






 






2.1






%






 






(0.1






)%






 






1.2






%






 






2.3






%






 






(1.1






)%









 



 







Fiscal Twelve Months Ended December 28, 2025 vs. December 29, 2024








 







Reported Net Sales Change






 






Impact of Foreign Currency






 






Acquisitions and Divestitures






 






Organic Sales Change








(Unaudited)







 






 






 






Total Organic Sales Change






 






Price/Mix(1)






 






Volume








Self Care







(2.3






)%






 






0.7






%






 






—






%






 






(3.0






)%






 






0.4






%






 






(3.4






)%








Skin Health and Beauty







(3.0






)






 






—






 






 






(0.3






)






 






(2.7






)






 






(0.9






)






 






(1.8






)








Essential Health







(1.2






)






 






(0.5






)






 






—






 






 






(0.7






)






 






0.5






 






 






(1.2






)








Total







(2.1






)%






 






0.2






%






 






(0.1






)%






 






(2.2






)%






 






0.1






%






 






(2.3






)%








(1) Price/Mix reflects value realization.







Total Segment Net Sales and Adjusted Operating Income


Segment Net sales for the periods presented were as follows:




 






 






Net Sales








 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Self Care






 






$






1,592







 






$






1,569







 






$






6,378







 






$






6,527









Skin Health and Beauty






 






 






1,040







 






 






1,011







 






 






4,114







 






 






4,240









Essential Health






 






 






1,148







 






 






1,082







 






 






4,632







 






 






4,688









Total segment net sales






 






$






3,780







 






$






3,662







 






$






15,124







 






$






15,455








Segment Adjusted operating income for the periods presented was as follows:




 






 






Adjusted Operating Income








 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Self Care Adjusted operating income






 






$






496






 






 






$






481






 






 






$






2,109






 






 






$






2,173






 








Skin Health and Beauty Adjusted operating income






 






 






99






 






 






 






105






 






 






 






477






 






 






 






607






 








Essential Health Adjusted operating income






 






 






279






 






 






 






248






 






 






 






1,176






 






 






 






1,162






 








Total






 






$






874






 






 






$






834






 






 






$






3,762






 






 






$






3,942






 








Reconciliation to Adjusted operating income (non-GAAP):






 






 






 






 






 






 






 






 








Depreciation(1)






 






 






74






 






 






 






91






 






 






 






300






 






 






 






329






 








General corporate/unallocated expenses






 






 






78






 






 






 






56






 






 






 






329






 






 






 






314






 








Other operating (income) expense, net






 






 






(42






)






 






 






(3






)






 






 






(23






)






 






 






26






 








Other—impact of Deferred Markets






 






 






(4






)






 






 






(12






)






 






 






(34






)






 






 






(59






)








Litigation (expense) income






 






 






—






 






 






 






—






 






 






 






—






 






 






 






4






 








Gain on Skillman held for sale asset(2)






 






 






17






 






 






 






—






 






 






 






17






 






 






 






—






 








Adjusted operating income (non-GAAP)






 






$






751






 






 






$






702






 






 






$






3,173






 






 






$






3,328






 








Reconciliation to Income before taxes:






 






 






 






 






 






 






 






 








Amortization of intangible assets(3)






 






 






64






 






 






 






57






 






 






 






257






 






 






 






269






 








Separation-related costs(4)






 






 






9






 






 






 






65






 






 






 






88






 






 






 






296






 








Restructuring expenses and operating model optimization initiatives(5)






 






 






103






 






 






 






75






 






 






 






335






 






 






 






221






 








Conversion of stock-based awards






 






 






2






 






 






 






5






 






 






 






7






 






 






 






39






 








Other—impact of Deferred Markets






 






 






4






 






 






 






12






 






 






 






34






 






 






 






59






 








Founder Shares






 






 






3






 






 






 






5






 






 






 






7






 






 






 






29






 








Proposed Transaction costs(6)






 






 






25






 






 






 






—






 






 






 






25






 






 






 






—






 








Litigation expense (income)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(4






)








Impairment charges(7)






 






 






23






 






 






 






—






 






 






 






23






 






 






 






578






 








Gain on Skillman held for sale asset(2)






 






 






(17






)






 






 






—






 






 






 






(17






)






 






 






—






 








Operating income






 






$






535






 






 






$






483






 






 






$






2,414






 






 






$






1,841






 








Other expense, net






 






 






10






 






 






 






42






 






 






 






36






 






 






 






48






 








Interest expense, net






 






 






98






 






 






 






95






 






 






 






379






 






 






 






378






 








Income before taxes






 






$






427






 






 






$






346






 






 






$






1,999






 






 






$






1,415






 









(1)






 






Depreciation consists of depreciation of property, plant, and equipment and amortization of integration and development costs capitalized in connection with cloud computing arrangements.








(2)






 






Relates to the gain recognized on the sale of the Skillman, New Jersey facility during the fiscal three months ended December 28, 2025.








(3)






 






Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives.








(4)






 






Separation-related costs relate to non-recurring costs incurred in connection with our establishment of Kenvue as a standalone public company. Separation-related costs associated with information technology and other activities, primarily related to the disentanglement of systems and the discontinuance of certain information technology assets, are substantially completed. However, costs related to legal entity name changes and certain other separation-related activities are expected to continue for a longer period than originally anticipated. Separation-related costs are composed of the following:









 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Information technology and other






 






$






5







 






$






52







 






$






68







 






$






255









Legal entity name change






 






 






4







 






 






13







 






 






20







 






 






41









Total Separation-related costs






 






$






9







 






$






65







 






$






88







 






$






296










 






 






Information technology and other costs primarily relates to the disentanglement of systems and the costs associated with the discontinuation of certain information technology assets. These costs also include depreciation expense on Separation-related assets for the fiscal three and twelve months ended December 29, 2024.








(5)






 






Restructuring expenses and operating model optimization initiatives, which relate to the 2024 Multi-Year Restructuring Initiative, are composed of the following:









 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Employee-related costs (one-time severance and other termination benefits)






 






$






31







 






$






25







 






$






109







 






$






106









Information technology and project-related costs






 






 






69







 






 






50







 






 






216







 






 






99









Other implementation costs






 






 






3







 






 






—







 






 






10







 






 






16









Total Restructuring expenses and operating model optimization initiatives






 






$






103







 






$






75







 






$






335







 






$






221










(6)






 






Proposed Transaction costs primarily consist of expenses incurred in connection with the proposed transaction with Kimberly-Clark, including advisory fees, legal costs, and other professional service costs.








(7)






 






Impairment charges for the fiscal twelve months ended December 28, 2025 includes $23 million recognized in connection with the ORSL® trade name following regulatory changes in India. Impairment charges for the fiscal twelve months ended December 29, 2024 includes $488 million recognized in relation to Dr.Ci:Labo® long-lived assets, $68 million recognized on the held for sale asset associated with the Company’s former corporate headquarters in Skillman, New Jersey, and $22 million recognized on certain software development assets.







Non-GAAP Financial Information


The following tables present reconciliations of GAAP to non-GAAP for the periods presented:




 






 






Fiscal Three Months Ended December 28, 2025








(Unaudited; Dollars in Millions)






 






As Reported






 






 






 






Adjustments






 






Reference






 






 






 






As Adjusted








Net sales






 






$






3,780






 






 






 






 






—







 






 






 






 






 






$






3,780






 








 






 






 






 






 






 






 







 






 






 






 






 






 








Gross profit






 






$






2,137






 






 






 






 






87







 






(a)






 






 






 






$






2,224






 








Gross profit margin






 






 






56.5






%






 






 






 






 







 






 






 






 






 






 






58.8






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Operating income






 






$






535






 






 






 






 






216







 






(a)-(d)






 






 






 






$






751






 








Operating income margin






 






 






14.2






%






 






 






 






 







 






 






 






 






 






 






19.9






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Net income






 






$






330






 






 






 






 






183







 






(a)-(e)






 






 






 






$






513






 








Net income margin






 






 






8.7






%






 






 






 






 







 






 






 






 






 






 






13.6






%








Interest expense, net






 






$






98






 






 






 






 






 







 






 






 






 






 






 








Provision for taxes






 






$






97






 






 






 






 






 







 






 






 






 






 






 








Depreciation and amortization






 






$






138






 






 






 






 






 







 






 






 






 






 






 








EBITDA (non-GAAP)






 






$






663






 






 






 






 






152







 






(b)-(d), (f)






 






 






 






$






815






 








EBITDA margin (non-GAAP)






 






 






17.5






%






 






 






 






 







 






 






 






 






 






 






21.6






%









Detail of Adjustments






 






 








 






 






Cost of Sales






 






SG&A/Restructuring Expenses






 






Impairment Charges






 






Other Operating (Income) Expense, Net






 






Provision for Taxes






 






Total








Amortization of intangible assets(1)






 






$






64







 






$






—







 






$






—







 






$






—






 






 






$






—






 






 






$






64






 








Restructuring expenses(2)






 






 






—







 






 






86







 






 






—







 






 






—






 






 






 






—






 






 






 






86






 








Operating model optimization initiatives(2)






 






 






16







 






 






1







 






 






—







 






 






—






 






 






 






—






 






 






 






17






 








Separation-related costs (including conversion of stock-based awards and Founder Shares)(3)






 






 






7







 






 






7







 






 






—







 






 






—






 






 






 






—






 






 






 






14






 








Proposed Transaction costs(4)






 






 






—







 






 






25







 






 






—







 






 






—






 






 






 






—






 






 






 






25






 








Impairment charges(5)






 






 






—







 






 






—







 






 






23







 






 






—






 






 






 






—






 






 






 






23






 








Impact of Deferred Markets—minority interest expense






 






 






—







 






 






—







 






 






—







 






 






2






 






 






 






—






 






 






 






2






 








Impact of Deferred Markets—provision for taxes






 






 






—







 






 






—







 






 






—







 






 






2






 






 






 






(2






)






 






 






—






 








Gain on Skillman held for sale asset(6)






 






 






—







 






 






—







 






 






—







 






 






(17






)






 






 






—






 






 






 






(17






)








Tax impact on special item adjustments






 






 






—







 






 






—







 






 






—







 






 






—






 






 






 






(31






)






 






 






(31






)








Total






 






$






87







 






$






119







 






$






23







 






$






(13






)






 






$






(33






)






 






$






183






 








 






 






(a)







 






(b)







 






(c)







 






(d)






 






(e)






 






 








Cost of sales less amortization






 






$






23







 






 







 






 







 






 






 






 






 






 








 






 






(f)







 






 







 






 







 






 






 






 






 






 









 






 






Fiscal Three Months Ended December 29, 2024








(Unaudited; Dollars in Millions)






 






As Reported






 






 






 






Adjustments






 






Reference






 






 






 






As Adjusted








Net sales






 






$






3,662






 






 






 






 






—







 






 






 






 






 






$






3,662






 








 






 






 






 






 






 






 







 






 






 






 






 






 








Gross profit






 






$






2,070






 






 






 






 






81







 






(a)






 






 






 






$






2,151






 








Gross profit margin






 






 






56.5






%






 






 






 






 







 






 






 






 






 






 






58.7






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Operating income






 






$






483






 






 






 






 






219







 






(a)-(c)






 






 






 






$






702






 








Operating income margin






 






 






13.2






%






 






 






 






 







 






 






 






 






 






 






19.2






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Net income






 






$






293






 






 






 






 






206







 






(a)-(e)






 






 






 






$






499






 








Net income margin






 






 






8.0






%






 






 






 






 







 






 






 






 






 






 






13.6






%








Interest expense, net






 






$






95






 






 






 






 






 







 






 






 






 






 






 








Provision for taxes






 






$






53






 






 






 






 






 







 






 






 






 






 






 








Depreciation and amortization






 






$






148






 






 






 






 






 







 






 






 






 






 






 








EBITDA (non-GAAP)






 






$






589






 






 






 






 






203







 






(b)-(d), (f)






 






 






 






$






792






 








EBITDA margin (non-GAAP)






 






 






16.1






%






 






 






 






 







 






 






 






 






 






 






21.6






%









Detail of Adjustments






 






 








 






 






Cost of Sales






 






SG&A/Restructuring Expenses






 






Other Operating (Income) Expense, Net






 






Other Expense, Net






 






Provision for Taxes






 






Total








Amortization of intangible assets(1)






 






$






57







 






$






—







 






$






—







 






$






—







 






$






—






 






 






$






57






 








Restructuring expenses(2)






 






 






—







 






 






65







 






 






—







 






 






—







 






 






—






 






 






 






65






 








Operating model optimization initiatives(2)






 






 






8







 






 






2







 






 






—







 






 






—







 






 






—






 






 






 






10






 








Separation-related costs (including conversion of stock-based awards and Founder Shares)(3)






 






 






16







 






 






59







 






 






—







 






 






—







 






 






—






 






 






 






75






 








Impact of Deferred Markets—minority interest expense






 






 






—







 






 






—







 






 






4







 






 






—







 






 






—






 






 






 






4






 








Impact of Deferred Markets—provision for taxes






 






 






—







 






 






—







 






 






8







 






 






—







 






 






(8






)






 






 






—






 








Losses on investments(7)






 






 






—







 






 






—







 






 






—







 






 






41







 






 






—






 






 






 






41






 








Tax impact on special item adjustments






 






 






—







 






 






—







 






 






—







 






 






—







 






 






(46






)






 






 






(46






)








Total






 






$






81







 






$






126







 






$






12







 






$






41







 






$






(54






)






 






$






206






 








 






 






(a)







 






(b)







 






(c)







 






(d)







 






(e)






 






 








Cost of sales less amortization






 






$






24







 






 







 






 







 






 







 






 






 






 








 






 






(f)







 






 







 






 







 






 







 






 






 






 









 






 






Fiscal Twelve Months Ended December 28, 2025








(Unaudited; Dollars in Millions)






 






As Reported






 






 






 






Adjustments






 






Reference






 






 






 






As Adjusted








Net sales






 






$






15,124






 






 






 






 






—







 






 






 






 






 






$






15,124






 








 






 






 






 






 






 






 







 






 






 






 






 






 








Gross profit






 






$






8,792






 






 






 






 






320







 






(a)






 






 






 






$






9,112






 








Gross profit margin






 






 






58.1






%






 






 






 






 







 






 






 






 






 






 






60.2






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Operating income






 






$






2,414






 






 






 






 






759







 






(a)-(d)






 






 






 






$






3,173






 








Operating income margin






 






 






16.0






%






 






 






 






 







 






 






 






 






 






 






21.0






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Net income






 






$






1,470






 






 






 






 






606







 






(a)-(e)






 






 






 






$






2,076






 








Net income margin






 






 






9.7






%






 






 






 






 







 






 






 






 






 






 






13.7






%








Interest expense, net






 






$






379






 






 






 






 






 







 






 






 






 






 






 








Provision for taxes






 






$






529






 






 






 






 






 







 






 






 






 






 






 








Depreciation and amortization






 






$






557






 






 






 






 






 







 






 






 






 






 






 








EBITDA (non-GAAP)






 






$






2,935






 






 






 






 






502







 






(b)-(d), (f)






 






 






 






$






3,437






 








EBITDA margin (non-GAAP)






 






 






19.4






%






 






 






 






 







 






 






 






 






 






 






22.7






%









Detail of Adjustments






 






 








 






 






Cost of Sales






 






SG&A/Restructuring Expenses






 






Impairment Charges






 






Other Operating (Income) Expense, Net






 






Provision for Taxes






 






Total








Amortization of intangible assets(1)






 






$






257







 






$






—







 






$






—







 






$






—






 






 






$






—






 






 






$






257






 








Restructuring expenses(2)






 






 






—







 






 






290







 






 






—







 






 






—






 






 






 






—






 






 






 






290






 








Operating model optimization initiatives(2)






 






 






36







 






 






9







 






 






—







 






 






—






 






 






 






—






 






 






 






45






 








Separation-related costs (including conversion of stock-based awards and Founder Shares)(3)






 






 






27







 






 






75







 






 






—







 






 






—






 






 






 






—






 






 






 






102






 








Proposed Transaction costs(4)






 






 






—







 






 






25







 






 






—







 






 






—






 






 






 






—






 






 






 






25






 








Impairment charges(5)






 






 






—







 






 






—







 






 






23







 






 






—






 






 






 






—






 






 






 






23






 








Impact of Deferred Markets—minority interest expense






 






 






—







 






 






—







 






 






—







 






 






14






 






 






 






—






 






 






 






14






 








Impact of Deferred Markets—provision for taxes






 






 






—







 






 






—







 






 






—







 






 






20






 






 






 






(20






)






 






 






—






 








Gain on Skillman held for sale asset(6)






 






 






—







 






 






—







 






 






—







 






 






(17






)






 






 






—






 






 






 






(17






)








Tax impact on special item adjustments






 






 






—







 






 






—







 






 






—







 






 






—






 






 






 






(133






)






 






 






(133






)








Total






 






$






320







 






$






399







 






$






23







 






$






17






 






 






$






(153






)






 






$






606






 








 






 






(a)







 






(b)







 






(c)







 






(d)






 






(e)






 






 








Cost of sales less amortization






 






$






63







 






 







 






 







 






 






 






 






 






 








 






 






(f)







 






 







 






 







 






 






 






 






 






 









 






 






Fiscal Twelve Months Ended December 29, 2024








(Unaudited; Dollars in Millions)






 






As Reported






 






 






 






Adjustments






 






Reference






 






 






 






As Adjusted








Net sales






 






$






15,455






 






 






 






 






—







 






 






 






 






 






$






15,455






 








 






 






 






 






 






 






 







 






 






 






 






 






 








Gross profit






 






$






8,959






 






 






 






 






369







 






(a)






 






 






 






$






9,328






 








Gross profit margin






 






 






58.0






%






 






 






 






 







 






 






 






 






 






 






60.4






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Operating income






 






$






1,841






 






 






 






 






1,487







 






(a)-(d)






 






 






 






$






3,328






 








Operating income margin






 






 






11.9






%






 






 






 






 







 






 






 






 






 






 






21.5






%








 






 






 






 






 






 






 







 






 






 






 






 






 








Net income






 






$






1,030






 






 






 






 






1,169







 






(a)-(f)






 






 






 






$






2,199






 








Net income margin






 






 






6.7






%






 






 






 






 







 






 






 






 






 






 






14.2






%








Interest expense, net






 






$






378






 






 






 






 






 







 






 






 






 






 






 








Provision for taxes






 






$






385






 






 






 






 






 







 






 






 






 






 






 








Depreciation and amortization






 






$






598






 






 






 






 






 







 






 






 






 






 






 








EBITDA (non-GAAP)






 






$






2,391






 






 






 






 






1,269







 






(b)-(e), (g)






 






 






 






$






3,660






 








EBITDA margin (non-GAAP)






 






 






15.5






%






 






 






 






 







 






 






 






 






 






 






23.7






%









Detail of Adjustments






 






 








 






 






Cost of Sales






 






SG&A/Restructuring Expenses






 






Impairment Charges






 






Other Operating (Income) Expense, Net






 






Other Expense, Net






 






Provision for Taxes






 






Total








Amortization of intangible assets(1)






 






$






269







 






$






—







 






$






—







 






$






—






 






 






$






—






 






 






$






—






 






 






$






269






 








Restructuring expenses(2)






 






 






—







 






 






185







 






 






—







 






 






—






 






 






 






—






 






 






 






—






 






 






 






185






 








Operating model optimization initiatives(2)






 






 






27







 






 






9







 






 






—







 






 






—






 






 






 






—






 






 






 






—






 






 






 






36






 








Separation-related costs (including conversion of stock-based awards and Founder Shares)(3)






 






 






73







 






 






291







 






 






—







 






 






—






 






 






 






—






 






 






 






—






 






 






 






364






 








Impairment charges(5)






 






 






—







 






 






—







 






 






578







 






 






—






 






 






 






—






 






 






 






(151






)






 






 






427






 








Impact of Deferred Markets—minority interest expense






 






 






—







 






 






—







 






 






—







 






 






24






 






 






 






—






 






 






 






—






 






 






 






24






 








Impact of Deferred Markets—provision for taxes






 






 






—







 






 






—







 






 






—







 






 






35






 






 






 






—






 






 






 






(35






)






 






 






—






 








Litigation income






 






 






—







 






 






—







 






 






—







 






 






(4






)






 






 






—






 






 






 






—






 






 






 






(4






)








Losses on investments(7)






 






 






—







 






 






—







 






 






—







 






 






—






 






 






 






72






 






 






 






—






 






 






 






72






 








Tax indemnification release






 






 






—







 






 






—







 






 






—







 






 






—






 






 






 






(21






)






 






 






—






 






 






 






(21






)








Tax impact on special item adjustments






 






 






—







 






 






—







 






 






—







 






 






—






 






 






 






—






 






 






 






(183






)






 






 






(183






)








Total






 






$






369







 






$






485







 






$






578







 






$






55






 






 






$






51






 






 






$






(369






)






 






$






1,169






 








 






 






(a)







 






(b)







 






(c)







 






(d)






 






(e)






 






(f)






 






 








Cost of sales less amortization






 






$






100







 






 







 






 







 






 






 






 






 






 






 






 








 






 






(g)







 






 







 






 







 






 






 






 






 






 






 






 









(1)






 






Relates to the amortization of definite-lived intangible assets (primarily trademarks, trade names, and customer lists) over their estimated useful lives.








(2)






 






Restructuring expenses and operating model optimization initiatives, which relate to the 2024 Multi-Year Restructuring Initiative, are composed of the following:









 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Employee-related costs (one-time severance and other termination benefits)






 






$






31







 






$






25







 






$






109







 






$






106









Information technology and project-related costs






 






 






69







 






 






50







 






 






216







 






 






99









Other implementation costs






 






 






3







 






 






—







 






 






10







 






 






16









Total Restructuring expenses and operating model optimization initiatives






 






$






103







 






$






75







 






$






335







 






$






221










(3)






 






Separation-related costs relate to non-recurring costs incurred in connection with our establishment of Kenvue as a standalone public company. Separation-related costs associated with information technology and other activities, primarily related to the disentanglement of systems and the discontinuance of certain information technology assets, are substantially completed. However, costs related to legal entity name changes and certain other separation-related activities are expected to continue for a longer period than originally anticipated. Separation-related costs, including the impact of the conversion of stock-based compensation awards and the incremental stock-based compensation from the issuance of the Founder Shares, are composed of the following:









 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Information technology and other






 






$






5







 






$






52







 






$






68







 






$






255









Legal entity name change






 






 






4







 






 






13







 






 






20







 






 






41









Separation-related costs






 






$






9







 






$






65







 






$






88







 






$






296









Conversion of stock-based awards






 






 






2







 






 






5







 






 






7







 






 






39









Founder Shares






 






 






3







 






 






5







 






 






7







 






 






29









Total






 






$






14







 






$






75







 






$






102







 






$






364










 






 






Information technology and other costs primarily relates to the disentanglement of systems and the costs associated with the discontinuation of certain information technology assets. These costs also include depreciation expense on Separation-related assets for the fiscal three and twelve months ended December 29, 2024.








(4)






 






Proposed Transaction costs primarily consist of expenses incurred in connection with the proposed transaction with Kimberly-Clark, including advisory fees, legal costs, and other professional service costs.








(5)






 






Impairment charges for the fiscal twelve months ended December 28, 2025 includes $23 million recognized in connection with the ORSL® trade name following regulatory changes in India. Impairment charges for the fiscal twelve months ended December 29, 2024 includes $488 million recognized in relation to Dr.Ci:Labo® long-lived assets, $68 million recognized on the held for sale asset associated with the Company’s former corporate headquarters in Skillman, New Jersey, and $22 million recognized on certain software development assets.








(6)






 






Relates to the gain recognized on the sale of the Skillman, New Jersey facility during the fiscal three months ended December 28, 2025.








(7)






 






Relates to impairment charges incurred to fully write off the Company’s equity investment balance.







The following table presents reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented:




 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Effective tax rate






 






22.7






%






 






15.3






%






 






26.5






%






 






27.2






%








Adjustments:






 






 






 






 






 






 






 






 








Tax-effect on special item adjustments






 






(2.9






)






 






1.7






 






 






(2.2






)






 






(2.6






)








Dr.Ci:Labo® Impairment






 






—






 






 






—






 






 






—






 






 






0.3






 








Taxes related to Deferred Markets






 






0.4






 






 






0.7






 






 






0.4






 






 






0.7






 








Other






 






—






 






 






—






 






 






—






 






 






(0.1






)








Adjusted Effective tax rate (non-GAAP)






 






20.2






%






 






17.7






%






 






24.7






%






 






25.5






%







The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented:




 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Diluted earnings per share






 






$






0.17






 






 






$






0.15






 






 






$






0.76






 






 






$






0.54






 








Adjustments:






 






 






 






 






 






 






 






 








Separation-related costs






 






 






—






 






 






 






0.03






 






 






 






0.05






 






 






 






0.15






 








Conversion of stock-based awards






 






 






—






 






 






 






—






 






 






 






—






 






 






 






0.02






 








Restructuring expenses and operating model optimization initiatives






 






 






0.05






 






 






 






0.04






 






 






 






0.17






 






 






 






0.11






 








Impairment charges






 






 






0.01






 






 






 






—






 






 






 






0.01






 






 






 






0.30






 








Amortization of intangible assets






 






 






0.03






 






 






 






0.03






 






 






 






0.13






 






 






 






0.14






 








Losses on investments






 






 






—






 






 






 






0.02






 






 






 






—






 






 






 






0.04






 








Proposed Transaction costs






 






 






0.01






 






 






 






—






 






 






 






0.01






 






 






 






—






 








Gain on Skillman held for sale asset






 






 






(0.01






)






 






 






—






 






 






 






(0.01






)






 






 






—






 








Tax impact on special item adjustments






 






 






(0.02






)






 






 






(0.02






)






 






 






(0.07






)






 






 






(0.17






)








Other






 






 






0.03






 






 






 






0.01






 






 






 






0.03






 






 






 






0.01






 








Adjusted diluted earnings per share (non-GAAP)






 






$






0.27






 






 






$






0.26






 






 






$






1.08






 






 






$






1.14






 







The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented:




 






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Billions)






 






December 28, 2025






 






December 29, 2024








Net cash flows from operating activities






 






$






2.2






 






 






$






1.8






 








Purchases of property, plant, and equipment






 






 






(0.5






)






 






 






(0.4






)








Free cash flow (non-GAAP)






 






$






1.7






 






 






$






1.3






 








Note: Numbers may not foot due to rounding.















Other Supplemental Financial Information


The following table presents the Company’s Net sales by geographic region for the periods presented:




 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Net sales by geographic region






 






 







 






 







 






 







 






 









North America






 






$






1,759







 






$






1,842







 






$






7,259







 






$






7,579









Europe, Middle East, and Africa






 






 






949







 






 






863







 






 






3,721







 






 






3,559









Asia Pacific






 






 






703







 






 






635







 






 






2,775







 






 






2,974









Latin America






 






 






369







 






 






322







 






 






1,369







 






 






1,343









Total Net sales by geographic region






 






$






3,780







 






$






3,662







 






$






15,124







 






$






15,455








The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses.




 






 






Fiscal Three Months Ended






 






Fiscal Twelve Months Ended








(Unaudited; Dollars in Millions)






 






December 28,




2025






 






December 29,




2024






 






December 28,




2025






 






December 29,




2024








Research & Development






 






$






98







 






$






106







 






$






382







 






$






408








The following table presents the Company’s Cash and cash equivalents, Total debt, and Net debt balance as of the periods presented:




(Unaudited; Dollars in Billions)






 






December 28, 2025






 






December 29, 2024








Cash and cash equivalents






 






$






1.1






 






 






$






1.1






 








Total debt






 






 






(8.5






)






 






 






(8.6






)








Net debt






 






$






(7.5






)






 






$






(7.5






)








Note: Numbers may not foot due to rounding.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260217515258/en/
Investor Relations:

Sofya Tsinis

Kenvue_IR@kenvue.com


Media Relations:

Melissa Witt

media@kenvue.com


Original: Kenvue Reports Fourth Quarter and Full Year 2025 Results