Did Kimberly-Clark meet its earnings expectations for the first quarter of 2026?

The filing does not contain analyst consensus estimates, so it cannot be compared against expectations. It reports adjusted EPS from continuing operations of $1.60, down 1.2 percent from the prior year, and adjusted EPS attributable to Kimberly-Clark of $1.97, up 2.1 percent.

What drove the difference between reported and adjusted results?

Reported operating profit of $753 million included a $120 million benefit from settling insurance claims from a previous acquisition, offset by $99 million of charges related to the 2024 Transformation Initiative and the Kenvue acquisition. Adjusting for these items gave adjusted operating profit of $732 million.

How did the exit of the private label diaper business affect sales?

The exit of the company's private label diaper business in the US reduced consolidated net sales growth by 1.8 percent. In North America, it was a 2.7 percent impact, while organic North America sales still increased 1.8 percent.

What is the status of the Kenvue acquisition and the IFP transaction?

The filing describes the Kenvue acquisition as pending. The IFP transaction is expected to close in mid-2026, and its proceeds will be held to fund, in part, the Kenvue acquisition. Management notes that the outlook assumes these transactions and their risks as described in the filing.

What is the 2026 outlook?

Management reaffirmed that it expects 2026 organic sales growth in line to ahead of the weighted average growth of its categories and countries, which grew about two-and-a-half percent over the latest twelve months. Adjusted operating profit is expected to grow at a mid-to-high single-digit rate and adjusted EPS from continuing operations at a double-digit rate, both on a constant-currency basis. Reported EPS is expected to benefit from currency translation of approximately 170 basis points.

KMB 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Kimberly-Clark Corporation (Nasdaq: KMB) reported first quarter 2026 results on April 28, 2026, furnished under Item 2.02 via Exhibit 99.1.

Net sales were $4.2 billion^a, up 2.7 percent, with organic sales growth of 2.5 percent, volume-plus-mix growth of 3.0 percent, and a 2.0 percent favorable currency impact partially offset by a 1.8 percent decline from the exit of the private label diaper business in the US. Reported operating profit rose to $753 million from $631 million, while adjusted operating profit was $732 million, up 3.7 percent. Gross margin was 36.8 percent, and adjusted gross margin was 37.9 percent, down 60 basis points year over year, as productivity savings were more than offset by pricing investments and cost inflation.

Reported diluted EPS from continuing operations was $1.70^b, while adjusted EPS from continuing operations was $1.60, down 1.2 percent, mainly due to a higher adjusted effective tax rate of 26.2 percent versus 20.7 percent. Diluted EPS attributable to Kimberly-Clark was $2.00, and adjusted EPS attributable to Kimberly-Clark was $1.97, up 2.1 percent. Cash provided by operations was $745 million versus $327 million a year earlier, and total debt was $7.1 billion at March 31, 2026, down from $7.2 billion at December 31, 2025.

Management reaffirmed its 2026 outlook, expecting organic sales growth in line to ahead of category and country growth, adjusted operating profit growth at a mid-to-high single-digit rate on a constant-currency basis, and adjusted EPS from continuing operations growth at a double-digit rate on a constant-currency basis. The company also flagged the pending Kenvue acquisition and the IFP transaction, which it expects to close in mid-2026, with proceeds to be used in part to fund the Kenvue acquisition.

02—Key points

Key Highlights

Net sales of $4.2 billion rose 2.7 percent, with organic sales growth of 2.5 percent and volume-plus-mix growth of 3.0 percent.
Reported operating profit increased to $753 million from $631 million, including a $120 million insurance claim settlement benefit and $99 million of transformation and Kenvue-related charges.
Adjusted operating profit of $732 million rose 3.7 percent, driven by productivity savings and lower marketing, research and general expenses.
Adjusted gross margin was 37.9 percent, down 60 basis points, as pricing investments and supply chain investments outweighed productivity savings.
Adjusted EPS from continuing operations was $1.60, down 1.2 percent, while adjusted EPS attributable to Kimberly-Clark was $1.97, up 2.1 percent.
Operating cash flow was $745 million versus $327 million a year earlier, and total debt declined to $7.1 billion from $7.2 billion.
2026 outlook was reaffirmed, with adjusted operating profit expected to grow at a mid-to-high single-digit rate on a constant-currency basis and adjusted EPS from continuing operations at a double-digit rate.

03—Questions

Frequently Asked Questions

Did Kimberly-Clark meet its earnings expectations for the first quarter of 2026?
The filing does not contain analyst consensus estimates, so it cannot be compared against expectations. It reports adjusted EPS from continuing operations of $1.60, down 1.2 percent from the prior year, and adjusted EPS attributable to Kimberly-Clark of $1.97, up 2.1 percent.
What drove the difference between reported and adjusted results?
Reported operating profit of $753 million included a $120 million benefit from settling insurance claims from a previous acquisition, offset by $99 million of charges related to the 2024 Transformation Initiative and the Kenvue acquisition. Adjusting for these items gave adjusted operating profit of $732 million.
How did the exit of the private label diaper business affect sales?
The exit of the company's private label diaper business in the US reduced consolidated net sales growth by 1.8 percent. In North America, it was a 2.7 percent impact, while organic North America sales still increased 1.8 percent.
What is the status of the Kenvue acquisition and the IFP transaction?
The filing describes the Kenvue acquisition as pending. The IFP transaction is expected to close in mid-2026, and its proceeds will be held to fund, in part, the Kenvue acquisition. Management notes that the outlook assumes these transactions and their risks as described in the filing.
What is the 2026 outlook?
Management reaffirmed that it expects 2026 organic sales growth in line to ahead of the weighted average growth of its categories and countries, which grew about two-and-a-half percent over the latest twelve months. Adjusted operating profit is expected to grow at a mid-to-high single-digit rate and adjusted EPS from continuing operations at a double-digit rate, both on a constant-currency basis. Reported EPS is expected to benefit from currency translation of approximately 170 basis points.

04—Continue

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