Kimberly-Clark Q3 Sales Soft; Adjusted EPS Rises to $1.70

Kimberly-Clark Corporation reported third-quarter 2026 net sales of $4.1 billion, down 0.4% from a year earlier, while adjusted diluted earnings per share from continuing operations rose 17.2% to $1.70, the company said in a Nov. 5 earnings release furnished to the Securities and Exchange Commission.

The results cover the quarter ended Sept. 30 and exclude the International Family Care and Professional business, which is presented as discontinued operations after the Arbex joint venture closed July 1. Organic sales fell 1.3%, including an about 270 basis-point drag from China social media disruptions and retailer inventory shifts in North America, Kimberly-Clark said.

Profit, margins and per-share figures

Gross margin was 34.9%. Adjusted gross margin was 35.5%, down 130 basis points from a year earlier, as unfavorable pricing net of cost inflation and supply-chain investments outweighed productivity savings, the release said.

Operating profit was $516 million, including $55 million of 2024 Transformation Initiative charges and $106 million of Kenvue acquisition-related charges. Adjusted operating profit was $677 million, down 0.9% from $683 million a year earlier. Diluted EPS from continuing operations were $1.19; adjusted continuing EPS were $1.70. Diluted EPS attributable to Kimberly-Clark were $5.37, lifted by about a $1.4 billion pre-tax gain on the IFP transaction in discontinued operations; adjusted attributable EPS were $1.70, down 6.6%.

Net interest expense fell to $32 million from $59 million. The adjusted effective tax rate was 19.5%, versus 26.5% a year earlier, reflecting prior-year One Big Beautiful Bill Act effects and current-year tax initiatives, the company said.

North America and international personal care

North America net sales were $2.7 billion, up 0.9%, with organic sales up 0.4% despite about 130 basis points of retailer inventory headwinds. International Personal Care net sales were $1.4 billion, down 2.8%; organic sales fell 4.6%, including about a 770 basis-point China social media drag.

For the first nine months, cash from operations including discontinued operations was $2.4 billion. Total debt from continuing operations was $6.5 billion as of Sept. 30, down from $7.2 billion at year-end 2025. The company returned $1.3 billion to shareholders through dividends year to date.

Kenvue close and 2026 outlook

Kimberly-Clark completed its acquisition of Kenvue on Nov. 2, uniting brands including Huggies, Listerine, Cottonelle, Neutrogena, Depend, Tylenol, Kleenex, Johnson’s Baby, Kotex and Scott, according to the company’s closing release and CNBC. Chairman and CEO Mike Hsu said in the earnings statement that the deal marks a defining moment and that the company remains focused on integration.

Kimberly-Clark reaffirmed its 2026 standalone outlook: organic sales growth about 100 basis points below roughly 1.7% weighted category growth, mainly from China social media effects; mid-single-digit adjusted operating-profit growth on a constant-currency basis; high-single-digit adjusted continuing EPS growth; and a low-single-digit decline in adjusted EPS attributable to Kimberly-Clark, both on a constant-currency basis.

Sources: Kimberly-Clark SEC Exhibit 99.1, PR Newswire, PR Newswire (Kenvue close), CNBC