01—Abstract
Summary
Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.
Kenvue Inc. (NYSE: KVUE) reported fourth-quarter and full-year 2025 results for the periods ended December 28, 2025.
Q4 net sales rose 3.2% to $3.78 billiona, with Organic sales growth of 1.2% and a 2.1% foreign currency benefit. Diluted EPS was $0.17 versus $0.15 a year earlier, and Adjusted diluted EPS was $0.27 versus $0.26. For full year 2025, net sales declined 2.1% to $15.12 billion, Organic sales fell 2.2%, and diluted EPS was $0.76 versus $0.54, while Adjusted diluted EPS was $1.08 versus $1.14.
Free cash flow increased to $1.7 billionb from $1.3 billion, and total debt was $8.5 billion at year-end. Because of the pending transaction with Kimberly-Clark, the company is not providing forward-looking guidance and will not hold a conference call. The company also approved a restructuring initiative on February 17, 2026, aimed at optimizing its operating model and transforming its supply chain.
It is expected to reduce the net global workforce by approximately 3.5% and to produce pre-tax restructuring expenses and other charges of approximately $250 millionc in fiscal 2026, consisting of information technology and project-related costs (about 59%), employee-related costs (about 35%), and other implementation costs (about 6%). The company states these cost estimates are preliminary and actual charges may differ, possibly materially.
On the Kimberly-Clark transaction, shareholders of both companies approved the required proposals on January 29, 2026, and the HSR waiting period expired on February 4, 2026. The transaction is expected to close in the second half of 2026, subject to foreign regulatory approvals and other customary closing conditions.
02—Key points
Key Highlights
- Q4 2025 net sales rose 3.2% to $3,780 million, with Organic sales up 1.2% and a 2.1% foreign currency benefit; volume decreased 1.1% while value realization added 2.3%.
- Full-year 2025 net sales fell 2.1% to $15,124 million, with Organic sales down 2.2%, driven by a 2.3% volume decrease.
- Full-year 2025 diluted EPS was $0.76 versus $0.54, while Adjusted diluted EPS declined to $1.08 from $1.14.
- Full-year 2025 operating cash flow was $2.2 billion and free cash flow increased to $1.7 billion from $1.3 billion; total debt was $8.5 billion at year-end.
- Kenvue will provide no forward-looking guidance due to the pending Kimberly-Clark transaction, and will not host a quarterly earnings conference call.
- A new restructuring initiative targets a net global workforce reduction of about 3.5% and approximately $250 million of pre-tax charges in fiscal 2026, with estimates described as preliminary.
- Kimberly-Clark merger milestones: shareholder approvals on January 29, 2026, HSR waiting period expired February 4, 2026, and closing expected in the second half of 2026 pending foreign approvals.
03—Questions
Frequently Asked Questions
How did Kenvue perform in the fourth quarter of 2025?
Net sales rose 3.2% to $3,780 million. Diluted EPS was $0.17 versus $0.15, and Adjusted diluted EPS was $0.27 versus $0.26. Operating income margin was 14.2% versus 13.2%, and Adjusted operating income margin was 19.9% versus 19.2%.
What is the new restructuring initiative and what will it cost?
The Board approved an initiative to optimize the operating model, transform the supply chain, reduce complexity and drive efficiencies. It is expected to reduce the net global workforce by approximately 3.5% and produce pre-tax restructuring expenses and other charges of about $250 million in fiscal 2026. The company describes these as preliminary estimates that may differ materially.
Will Kenvue provide guidance for 2026?
No. Because of the pending transaction with Kimberly-Clark, the company is not providing forward-looking guidance.
What is the status of the Kimberly-Clark transaction?
Shareholders of both companies approved the required proposals on January 29, 2026, and the HSR waiting period expired on February 4, 2026. The transaction is expected to close in the second half of 2026, subject to foreign regulatory approvals and other customary closing conditions.
How did Kenvue's cash flow and balance sheet look at year-end 2025?
Net cash from operating activities was $2.2 billion versus $1.8 billion, largely from working capital improvements. Capital expenditures were $0.5 billion, and free cash flow reached $1.7 billion versus $1.3 billion. Cash and cash equivalents were $1.1 billion and total debt was $8.5 billion, compared with $8.6 billion a year earlier.
04—Continue