The EPS beat reinforces the standalone value ahead of the Kimberly-Clark deal. However, the lack of guidance and pending transaction limit upside. Monitor regulatory filings for deal progress.
Price Chart
Executive Summary
Kenvue reported Q1 2026 adjusted EPS of $0.32, beating the $0.27 consensus by 18.5%, driven by margin expansion and cost savings. Net sales grew 4.5% YoY to $3,909M, though organic sales rose only 0.7% with a volume decline. The company remains on track to close its acquisition by Kimberly-Clark in H2 2026 and did not provide guidance.
Key Financial Metrics
Key Facts
- Adjusted diluted EPS $0.32 vs consensus $0.27 (+18.5% beat)
- Net sales $3,909M, +4.5% YoY; organic sales +0.7%
- Gross margin expanded 90bps to 58.9%; adjusted operating margin 24.0%
- Free cash flow doubled to $0.4B from $0.2B a year ago
- Pending Kimberly-Clark acquisition expected to close H2 2026
Financial Impact
Adjusted EPS beat of $0.05 per share (+18.5%) versus consensus, with operating leverage driving margin expansion across all segments.
Risk Factors
- Failure to close the Kimberly-Clark acquisition
- Weak organic sales growth with volume decline of 0.3%
- High leverage with $8.7B total debt
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001944048-26-000097 |
| Document: kvue-20260507.htm | 0001944048-26-000097 |
| Document: 0001944048-26-000097-index-headers.html | 0001944048-26-000097 |
| Document: 0001944048-26-000097-index.html | 0001944048-26-000097 |
| Document: 0001944048-26-000097.txt | 0001944048-26-000097 |
| 8-K Data (Synthetic) | 0001944048-26-000097 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 12, 2026 16w ago | Institutional Cluster | $18.14 $19.48 | ▲ +7.39% | ▲ +5.61% | $17.20 (−5.15%) |
Jun 10, 2026 16w ago | 144 | $18.05 $19.18 | ▲ +6.26% | ▲ +2.64% | $17.20 (−4.68%) |
May 19, 2026 19w ago | Court Ruling | $17.15 $18.01 | ▲ +5.01% | ▲ +4.03% | $17.20 (+0.32%) |
May 7, 2026 21w ago | 8-K | $17.72 $16.83 | ▼ −5.02% | ▼ −8.16% | $17.20 (−2.91%) |
Apr 15, 2026 24w ago | 8-K | $17.30 $17.47 | ▼ −0.98% | ▲ +5.06% | $17.20 (+0.55%) |
Apr 8, 2026 25w ago | DEFA14A | $17.43 $17.68 | ▲ +1.43% | ▼ −6.13% | $17.20 (−1.29%) |
Feb 28, 2026 30w ago | Institutional Cluster | $18.89 $17.24 | ▲ +8.73% | ▲ +0.80% | $17.20 (+8.92%) |
US Market Status
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