Kenvue Q2 sales rise but slightly miss estimates

Kenvue

06/08/2026 11:55

Overview
U.S. consumer health firm's Q2 sales rose 3% but slightly missed analyst expectations
Adjusted diluted EPS for Q2 rose 7% to $0.31
Gross and operating margins declined due to inflation, tariffs, and higher brand support

Outlook
Kenvue will not provide forward-looking guidance due to pending Kimberly-Clark transaction
Company expects Kimberly-Clark acquisition to close in Q4 2026, subject to regulatory approvals

Result Drivers
PRICING AND VOLUME - Organic sales growth was driven by favorable pricing (value realization) and volume increases
MARGIN PRESSURE - Gross and operating margins declined due to inflation, tariffs, and unfavorable transactional foreign exchange, partially offset by supply chain productivity gains
SEGMENT INNOVATION - Skin Health and Beauty segment growth was driven by Hair Care and Face Care, eCommerce momentum, and new product launches; Essential Health benefited from innovation in Wound Care and Baby Care

Company press release: ID:nBw3gGvjYa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$3.96 bln
$3.97 bln (10 Analysts)
Q2 Adjusted EPS
 
$0.31
 
Q2 EPS
 
$0.24
 
Q2 Net Income
 
$456 mln
 
Q2 Gross Profit
 
$2.30 bln
 
Q2 Operating Income
 
$699 mln
 
Q2 Pretax Profit
 
$598 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy."
Wall Street's median 12-month price target for Kenvue Inc. is $20.00, about 1.7% above its August 5 closing price of $19.67
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 4 - Kimberly-Clark cuts annual forecasts as China quality claims hurt diaper sales
Aug 5 - Edgewell Personal Care Q3 sales miss estimates; narrows FY outlook
Aug 6 - Prestige Consumer Healthcare beats Q1 revenue estimates, raises 2027 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)