Kenvue Inc. reported first-quarter 2026 adjusted earnings of 32 cents per share, up 33% from a year earlier, while sales rose 4.5% to $3.91 billion. Organic sales grew just 0.7% and volume slipped 0.3%, but adjusted gross margin expanded 80 basis points to 60.8% and adjusted operating margin jumped 420 basis points to 24%. Operating cash flow increased to $489 million from $428 million, and free cash flow rose to roughly $350 million from about $249 million. Total debt climbed to approximately $8.7 billion from $8.5 billion at fiscal 2025-end, and the company is not providing 2026 financial guidance while the pending Kimberly-Clark transaction remains unresolved. The stock trades at 16.49 times forward 12-month earnings, below the 18.41 times multiple for its Zacks sub-industry and the 20.11 times multiple for the S&P 500 index.
Kenvue Inc.Adjusted earnings up 33%, margins expanded, and cash flow improved, but slow organic growth and deal uncertainty limit appeal.
Kimberly-Clark CorporationKenvue's pending Kimberly-Clark transaction creates deal uncertainty, but no direct impact on Kimberly-Clark is discussed.
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