Kimberly-Clark tops Q3 profit estimates, reaffirms 2026 outlook

Kimberly-Clark (KMB) reported third-quarter adjusted earnings of $1.70 per share, topping the $1.66 consensus estimate, as it completed its Kenvue acquisition.

Shares rose 1.7% at 10:04 a.m. ET, from a $108.79 close.

Revenue was $4.13 billion, in line with the $4.17 billion estimate, and down 0.4% from a year earlier.

Here's how the company did:

• Adjusted EPS from continuing operations: $1.70 vs. $1.66 expected, up 17.2% from a year earlier
• Revenue: $4.13 billion vs. $4.15 billion a year earlier, $4.17 billion expected
• Diluted EPS from continuing operations: $1.19 vs. $1.01 a year earlier
• Operating profit: $516 million vs. $621 million a year earlier
• Adjusted operating profit: $677 million vs. $683 million a year earlier

Organic sales declined 1.3%, including an about 270 basis point headwind from the China social media disruption. Gross margin was 34.9%, compared with 36.0% a year earlier. Adjusted gross margin was 35.5%, down 130 basis points.

Segment results

North America net sales were $2.7 billion, up 0.9%, driven by transactions with the Arbex Joint Venture under supply agreements. Organic sales grew 0.4%. Operating profit rose 2.7% to $657 million.

International Personal Care net sales were $1.4 billion, down 2.8%. Organic sales fell 4.6%, including an about 770 basis point headwind from the China social media disruption. Operating profit fell 32.7% to $144 million.

Costs and charges

Operating profit included $55 million of charges related to the 2024 Transformation Initiative and $106 million related to the Kenvue acquisition.

The effective tax rate was 20.2%, compared with 45.4% a year earlier. On an adjusted basis, the rate was 19.5%, compared with 26.5%.

Income from discontinued operations was $1.4 billion, including a pre-tax gain of about $1.4 billion recognized upon completion of the IFP Transaction on July 1, 2026.

2026 outlook

The company expects 2026 organic sales growth to be about 100 basis points below its weighted average category growth, which is about 1.7 percent on a trailing twelve-month basis. This primarily reflects about 100 basis points of realized and potential unfavorable impacts from the China social media disruptions.

The company expects adjusted operating profit to grow mid-single digits on a constant-currency basis. It expects adjusted EPS from continuing operations to grow high single digits, and adjusted EPS attributable to Kimberly-Clark to see a low single digit decline, both on a constant-currency basis.

Cash and capital returns

For the first nine months of 2026, cash provided by operations, including discontinued operations, was $2.4 billion, compared with $1.8 billion last year. Capital spending was $1.0 billion, compared with $741 million.

The company returned $1.3 billion to shareholders through dividends in the period. Total debt from continuing operations was $6.5 billion as of Sept. 30, 2026, down from $7.2 billion as of Dec. 31, 2025.