01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Kenvue Inc. (NYSE: KVUE) reported first quarter 2026 results for the fiscal quarter ended March 29, 2026, in a press release furnished as Exhibit 99.1 to this Form 8-K.
Net sales rose 4.5% to $3,909 milliona from $3,741 million, reflecting Organic sales growth of 0.7% and a foreign currency benefit of 3.8%. Organic growth came from favorable value realization of 1.0%, partly offset by a 0.3% volume decrease. Operating income was $767 million (19.6% margin) versus $558 million (14.9%), and diluted EPS was $0.25 versus $0.17.
Adjusted diluted EPS was $0.32b versus $0.24, and adjusted operating income margin was 24.0% versus 19.8%. Net income was $474 million, and free cash flow was $0.4 billion versus $0.2 billion in the prior year period. Segment results were mixed.
Self Care Organic sales declined 2.3% on weak cold and flu seasons, while Skin Health and Beauty Organic sales grew 5.0% and Essential Health grew 1.5%. Total debt rose to $8.7 billionc from $8.5 billion at year-end 2025, and cash and cash equivalents were $1.1 billion. The company will not provide forward-looking guidance and will not hold a conference call because of the pending merger with Kimberly-Clark, under which Kimberly-Clark will acquire all outstanding Kenvue shares in a cash and stock transaction.
Shareholders approved the deal on January 29, 2026, and the HSR waiting period expired on February 4, 2026. The companies expect the transaction to close in the second half of 2026, subject to foreign regulatory approvals and other customary conditions. The company also expects pre-tax restructuring expenses and other charges of approximately $250 milliond in fiscal 2026 under its 2026 Restructuring Initiative.
02—Key points
Key Highlights
- Net sales increased 4.5% to $3,909 million, with Organic sales up 0.7% and a 3.8% foreign currency benefit.
- Operating income rose to $767 million (19.6% margin) from $558 million (14.9%); adjusted operating income margin was 24.0% versus 19.8%.
- Diluted EPS was $0.25 versus $0.17; adjusted diluted EPS was $0.32 versus $0.24.
- Skin Health and Beauty led growth with Organic sales up 5.0%, while Self Care Organic sales declined 2.3% on weak cold and flu seasons.
- Kenvue will not provide forward-looking guidance due to the pending Kimberly-Clark transaction, which is expected to close in the second half of 2026.
- Free cash flow increased to $0.4 billion from $0.2 billion; total debt rose to $8.7 billion from $8.5 billion.
- A 2026 Restructuring Initiative is expected to result in approximately $250 million in pre-tax restructuring expenses and other charges in fiscal 2026.
03—Questions
Frequently Asked Questions
Why did Kenvue stop providing guidance and hold no earnings call?
The company states that, due to the pending transaction with Kimberly-Clark, it will not provide forward-looking guidance and will not host a quarterly conference call. The press release will be posted on its investor website instead.
What is the status of the Kimberly-Clark transaction?
Kenvue entered into a definitive merger agreement on November 2, 2025, under which Kimberly-Clark will acquire all outstanding Kenvue common stock in a cash and stock transaction. Shareholders of both companies approved the proposals at special meetings on January 29, 2026, and the HSR waiting period expired on February 4, 2026. Closing is expected in the second half of 2026, subject to foreign regulatory approvals and other customary conditions.
What drove the improvement in margins and earnings?
The filing attributes the gross margin improvement to productivity savings from global supply chain optimization initiatives and favorable value realization, which more than offset inflation, tariffs, and lower volumes. Operating margin also benefited from cost actions, including Our Vue Forward and the 2026 Restructuring Initiative, and from media cost improvements that reduced SG&A expenses.
How did the business segments perform?
Self Care net sales rose 1.9%, but Organic sales fell 2.3% as volume declined 3.9%. Skin Health and Beauty net sales rose 8.4% with Organic growth of 5.0%, and Essential Health net sales rose 4.9% with Organic growth of 1.5%. Weak cold and flu seasons weighed on Self Care, while smoking cessation, Nicorette, and strength in EMEA, Latin America, and Asia Pacific supported other results.
What do the costs and balance sheet look like?
The company expects approximately $250 million in pre-tax restructuring expenses and other charges in fiscal 2026 under the 2026 Restructuring Initiative. Interest expense, net was $95 million versus $94 million, and the effective tax rate was 29.5% versus 29.7%. Cash and cash equivalents were $1.1 billion, while total debt increased to $8.7 billion from $8.5 billion at year-end 2025.
04—Continue