01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation's first-quarter 2026 results show net sales of $4.16 billiona, up 2.7% from $4.05 billion, with organic sales growth of 2.5% led by volume gains of 2.6%.
Operating profit rose to $753 millionb from $631 million, but this was helped by a $120 million benefit from settling insurance claims tied to a previous acquisition. Adjusted operating profit increased 3.7% to $732 million, and adjusted diluted EPS declined 1.2% to $1.60 from $1.62, mainly because the adjusted effective tax rate rose to 26.2% from 20.7%. Reported diluted EPS from continuing operations was $1.70, up from $1.39.
Net income attributable to Kimberly-Clark was $665 millionc, and total diluted EPS was $2.00 including discontinued operations. The filing describes two pending transactions. The Kenvue Acquisition, under which holders of Kenvue common stock will receive 0.14625 Kimberly-Clark shares plus $3.50 in cash per share, is expected to close in the second half of 2026 and remains subject to foreign regulatory approvals.
The IFP Transaction, a joint venture with Suzano in which Suzano will acquire a 51% interest for approximately $1.7 billiond, is expected to close in mid-2026. The IFP business is reported as discontinued operations. Management estimates incremental input costs of approximately $200 million for the rest of 2026 from Middle East conflict-related energy price volatility, assuming oil at $100 per barrel, before mitigation.
Cash provided by operations rose to $745 million from $327 million, aided by an insurance recovery and working capital changes. Capital spending increased to $424 million from $204 million, and management expects full-year capital spending of approximately $1.3 billion.
Short-term debt was $595 million at quarter-end, and total debt from continuing operations was $7.1 billion, compared with $7.2 billion at December 31, 2025. No shares were repurchased during the quarter.
02—Key points
Key Highlights
- Net sales rose 2.7% to $4.16 billion, with organic sales growth of 2.5% driven by volume gains of 2.6%.
- Operating profit increased 19.3% to $753 million, including a $120 million benefit from insurance claim settlements and charges of $51 million for the 2024 Transformation Initiative and $48 million for the Kenvue Acquisition.
- Adjusted operating profit rose 3.7% to $732 million, while adjusted diluted EPS fell 1.2% to $1.60 due to a higher adjusted effective tax rate of 26.2%.
- North America net sales declined 0.6% to $2.65 billion and operating profit fell 8.1%, while International Personal Care net sales grew 9.1% to $1.51 billion and operating profit rose 21.9%.
- Cash provided by operations increased to $745 million from $327 million, while capital spending rose to $424 million from $204 million.
- The Kenvue Acquisition is expected to close in the second half of 2026 and the IFP Transaction in mid-2026; the company expects approximately $200 million of incremental input costs for the rest of 2026 from Middle East conflict-related energy price volatility before mitigation.
- No shares were repurchased in the quarter, and approximately 30.8 million shares remain available under the existing repurchase authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Kimberly-Clark kept $0.16.
- Revenue$4.16B100.0%
- Cost of revenue−$2.63B63.2%
- Gross profit$1.53B36.8%
- Operating costs−$781.0M18.8%
- Operating income$753.0M18.1%
- Interest, other & tax−$88.0M2.1%
- Net income$665.0M16.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.16B$4.05B | +2.7% |
| Cost of Revenue | $2.63B$2.54B | +3.3% |
| Gross Profit | $1.53B$1.51B | +1.7% |
| Operating Income | $753.00M$631.00M | +19.3% |
| Interest Expense | $58.00M$64.00M | −9.4% |
| Net Income | $665.00M$567.00M | +17.3% |
| EPS (Basic) | $2.00$1.71 | +17.0% |
| EPS (Diluted) | $2.00$1.70 | +17.6% |
| Shares Outstanding (Basic) | 331.90M331.80M | 0.0% |
| Shares Outstanding (Diluted) | 333.20M333.30M | 0.0% |
05—Questions
Frequently Asked Questions
Why did reported operating profit rise faster than adjusted operating profit?
Reported operating profit of $753 million included a $120 million benefit from settling insurance claims related to a previous acquisition, which was partly offset by $51 million of 2024 Transformation Initiative charges and $48 million of Kenvue Acquisition costs. Excluding these items, adjusted operating profit rose 3.7% to $732 million.
What is driving the decline in adjusted earnings per share?
Adjusted diluted EPS fell 1.2% to $1.60 primarily because the adjusted effective tax rate increased to 26.2% from 20.7%, reflecting the lapping of discrete tax benefits from the prior year and a change in U.S. tax law effective July 2025.
What are the terms of the pending Kenvue Acquisition?
Each Kenvue common share will be converted into 0.14625 shares of Kimberly-Clark common stock plus $3.50 in cash. The company expects about 280 million shares to be issued and about $6.7 billion paid in merger consideration. Kimberly-Clark and Kenvue stockholders approved the deal on January 29, 2026, and the HSR waiting period expired February 4, 2026. Closing is expected in the second half of 2026, subject to foreign regulatory approvals and other customary conditions.
How is the IFP Transaction structured and what does it mean for reported results?
Suzano will acquire a 51% interest in a joint venture comprised of substantially all of the former IFP business for approximately $1.7 billion, and Kimberly-Clark will retain a 49% equity interest. The closing is expected in mid-2026. The IFP business is reported as discontinued operations, contributing $101 million of income from discontinued operations in the quarter, compared with $103 million a year earlier.
How is the company managing rising energy and input costs?
The company estimates incremental input costs of approximately $200 million for the remainder of 2026 from Middle East conflict-related energy price volatility, assuming oil at $100 per barrel, before mitigation actions. Management says it is continuing to evaluate the environment and its ability to offset the impact.
06—Continue