Quarterly ResultMay 7, 2026, 06:37 AM
Kenvue Q1 Net Sales +4.5% to $3.91B; Diluted EPS $0.25
AI Summary
Kenvue Inc. reported strong financial results for the fiscal first quarter ended March 29, 2026, with net sales increasing 4.5% to $3.909 billion and diluted earnings per share rising 47% to $0.25. The company achieved organic sales growth for the second consecutive quarter, alongside significant year-over-year improvements in gross margin, operating margin, and EPS. Kenvue is also progressing with its pending merger with Kimberly-Clark, anticipated to close in the second half of 2026, and has initiated a 2026 Restructuring Initiative to optimize its operating model.
Key Highlights
- Net sales increased 4.5% to $3.909 billion for Q1 2026.
- Organic sales grew 0.7%, marking the second consecutive quarter of growth.
- Diluted EPS increased 47% to $0.25; Adjusted diluted EPS rose 33% to $0.32.
- Gross profit margin expanded 90 basis points to 58.9%, and operating income margin expanded to 19.6%.
- Skin Health and Beauty segment net sales increased 8.4% with 5.0% organic growth.
- Net cash flows from operating activities were $0.5 billion, with Free cash flow at $0.4 billion.
- The pending merger with Kimberly-Clark is expected to close in the second half of 2026.
- A 2026 Restructuring Initiative is expected to incur approximately $250 million in pre-tax charges.