01—Abstract
Summary
Summary of the 8-K filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Kenvue Inc. (NYSE: KVUE) reported results for its fiscal third quarter ended September 27, 2026 in a press release furnished as Exhibit 99.1 to this Form 8-K.
Net sales rose 3.2% to $3,886 milliona, driven by Organic sales growth of 2.9%, volume growth of 1.6% and favorable value realization of 1.3%. Gross profit margin was 59.5% (vs. 59.1%), operating income margin was 18.2% (vs. 16.7%), and diluted EPS was $0.22 (vs. $0.21). Adjusted diluted EPS was $0.29 (vs. $0.28), and adjusted operating income margin was 21.9% (vs. 21.5%).
Self Care was the strongest segment with Organic sales growth of 5.4%, while Skin Health and Beauty declined 0.5% on an Organic basis and Essential Health grew 2.5%. For the first nine months of fiscal 2026, net cash flows from operating activities were $1.9 billionb (vs. $1.3 billion) and free cash flow was $1.6 billion (vs. $1.0 billion). Total debt was $8.2 billion as of September 27, 2026, and cash and cash equivalents were $1.0 billion.
The company is also executing a 2026 Restructuring Initiative, which is expected to result in pre-tax restructuring expenses and other charges of approximately $250 millionc in fiscal 2026. Because of the pending transaction with Kimberly-Clark, Kenvue will not provide forward-looking guidance and will not host a quarterly conference call. Management stated it is nearing completion of the combination with Kimberly-Clark.
02—Key points
Key Highlights
- Net sales increased 3.2% to $3,886 million, with Organic sales growth of 2.9% and a foreign currency benefit of 0.3%; this marks the fourth consecutive quarter of net and organic sales growth.
- Diluted EPS rose to $0.22 from $0.21; adjusted diluted EPS rose to $0.29 from $0.28.
- Operating income margin improved to 18.2% from 16.7%; adjusted operating income margin reached 21.9% vs. 21.5%.
- Self Care Net sales rose 5.9% (Organic +5.4%), while Skin Health and Beauty Net sales rose 0.1% (Organic decline of 0.5%) and Essential Health rose 2.5%.
- Nine-month free cash flow was $1.6 billion vs. $1.0 billion, with operating cash flow of $1.9 billion vs. $1.3 billion.
- Total debt was $8.2 billion at September 27, 2026, down from $8.5 billion at December 28, 2025.
- No forward-looking guidance will be provided and no conference call will be held due to the pending Kimberly-Clark transaction.
03—Questions
Frequently Asked Questions
Why is Kenvue not providing forward-looking guidance?
The company stated that, due to the pending transaction with Kimberly-Clark, it will not be providing forward-looking guidance.
What drove the improvement in third-quarter margins?
The filing attributes the year-over-year change in gross profit margin to productivity gains from global supply chain optimization, U.S. tariff refunds and favorable value realization, partially offset by inflation and unfavorable transactional foreign exchange. Operating margin also benefited from cost optimization actions, partly offset by higher brand support.
How did the business segments perform?
Self Care net sales rose 5.9% (Organic +5.4%) to $1,656 million. Essential Health net sales rose 2.5% to $1,191 million. Skin Health and Beauty net sales rose 0.1% to $1,039 million, with Organic sales declining 0.5% due to U.S. distribution losses, promotion timing and European retailer negotiations.
What is the status of the 2026 Restructuring Initiative?
The Board approved the initiative on February 17, 2026. It is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026. Restructuring expenses were $33 million in the third quarter, versus $84 million in the prior year period.
Will Kenvue host an earnings call for this quarter?
No. Due to the pending transaction with Kimberly-Clark, Kenvue will not host a quarterly conference call. The press release is posted at investors.kenvue.com.
04—Continue