01—Abstract
Summary
Summary of the 8-K filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Kimberly-Clark Corporation reported second quarter 2026 results on August 4, 2026, with net sales of $4.2 billiona, up 0.6 percent, and organic sales growth broadly in line with the prior year at negative 0.1 percent.
Reported diluted EPS from continuing operations was $1.22b, while adjusted EPS from continuing operations was $1.80, up 10.4 percent. Diluted EPS attributable to Kimberly-Clark was $1.04, and adjusted EPS attributable to Kimberly-Clark was $2.12, also up 10.4 percent. Results were supported by one-time tariff refunds and strong productivity savings, but were offset by business exits and a discrete disruption in China tied to false social media allegations about the quality of certain diaper brands, which the company says was independently refuted by government-certified testing.
For the first half of 2026, net sales were $8.4 billionc, up 1.6 percent, with organic sales growth of 1.2 percent. Year-to-date adjusted operating profit was $1.5 billion, up 4.9 percent, and adjusted EPS attributable to Kimberly-Clark was $4.09 compared with $3.85 a year earlier. Total debt from continuing operations fell to $6.5 billion at June 30, 2026, from $7.2 billion at December 31, 2025.
Management updated its 2026 outlook. Organic sales growth is now expected to be approximately 100 basis points below its weighted average category growth, which the company states primarily reflects roughly 100 basis points of impact from the China social media disruption.
Adjusted operating profit is expected to grow mid-single digits on a constant-currency basis, adjusted EPS from continuing operations is expected to grow high single digits, and adjusted EPS attributable to Kimberly-Clark is expected to see a low single digit decline on a constant-currency basis. The pending Kenvue acquisition is stated to remain on track to close by the end of 2026.
02—Key points
Key Highlights
- Q2 2026 net sales were $4.2 billion, up 0.6 percent, with favorable currency impacts of 1.1 percent partially offset by the exit of the private label diaper business in the US.
- Reported diluted EPS attributable to Kimberly-Clark was $1.04 versus $1.53 a year earlier; adjusted EPS attributable to Kimberly-Clark was $2.12, up 10.4 percent.
- Gross margin was 38.3 percent versus 35.0 percent in the prior year; adjusted gross margin was 38.8 percent, up 190 basis points, aided by one-time tariff refunds and productivity savings.
- The China social media disruption, involving false allegations about diaper quality, reduced Q2 organic sales growth by approximately 50 basis points at the consolidated level and is expected to affect sales and profits in the near term.
- The 2026 outlook was updated: adjusted operating profit is expected to grow mid-single digits and adjusted EPS from continuing operations high single digits on a constant-currency basis, while adjusted EPS attributable to Kimberly-Clark is expected to decline low single digits.
- Income from equity companies is expected to rise approximately 30 percent versus 2025, and the Arbex joint venture with Suzano was launched.
- Total debt from continuing operations decreased to $6.5 billion at June 30, 2026, from $7.2 billion at December 31, 2025, and cash provided by operations for the first half was $1.7 billion.
03—Questions
Frequently Asked Questions
Why did reported EPS fall while adjusted EPS rose?
Reported diluted EPS attributable to Kimberly-Clark was $1.04 versus $1.53 a year earlier, inclusive of net charges of $1.08 per share for items including 2024 Transformation Initiative costs, Kenvue acquisition costs, IFP separation costs, and IFP reorganization tax charges. Excluding these items, adjusted EPS attributable to Kimberly-Clark was $2.12, up 10.4 percent.
How much did the China social media disruption affect results?
The company stated that the disruption reduced consolidated organic sales growth by approximately 50 basis points in Q2 and reduced International Personal Care organic sales growth by 140 basis points. It also reduced International Personal Care operating profit by 440 basis points. The company expects approximately 100 basis points of total company-level impact for 2026 and says the effects are expected to continue in the near term.
What changed in the 2026 outlook?
The company now expects 2026 organic sales growth to be approximately 100 basis points below its weighted average category growth, which it currently puts at 2 percent on a trailing twelve-month basis. Adjusted operating profit is expected to grow mid-single digits, adjusted EPS from continuing operations high single digits, and adjusted EPS attributable to Kimberly-Clark a low single digit decline, all on a constant-currency basis.
What are the status and expected effects of the Kenvue acquisition?
The filing states that the pending Kenvue acquisition remains on track to close by the end of 2026. Kenvue-related acquisition costs were $109 million in Q2 2026 and $157 million year to date, and the company expects income from equity companies to rise approximately 30 percent versus 2025.
04—Continue