$KVUE · Kenvue Inc.
Kenvue reported Q3 FY2026 results with net sales of $3.886B (+3.2% YoY), organic sales growth of 2.9%, and adjusted diluted EPS of $0.29 (+4% YoY). Gross margin expanded 40 bps to 59.5%, and free cash flow for the nine-month period nearly doubled to $1.6B. The company suspended forward guidance due to the pending Kimberly-Clark transaction.
- Net sales rose 3.2% YoY to $3.886B; organic sales grew 2.9% (volume +1.6%, price/mix +1.3%).
- Adjusted diluted EPS of $0.29 beat prior-year $0.28; GAAP diluted EPS $0.22 vs $0.21.
- Gross profit margin expanded to 59.5% from 59.1%; adjusted gross margin 61.5% vs 61.2%.
- Free cash flow surged to $1.6B for nine months vs $1.0B in the prior-year period.
- Self Care led with 5.9% reported sales growth; Skin Health and Beauty was flat at +0.1%.
Extended-hours trading pushed KVUE to $19.86, +1.53% vs the regular close of $19.56, indicating a modestly positive reception to the Q3 beat and fourth consecutive quarter of organic growth. The pending Kimberly-Clark merger likely caps standalone valuation speculation.
Kenvue's fourth straight quarter of organic growth and margin expansion validates its standalone strategy just as it prepares to merge with Kimberly-Clark, making this one of the last clean reads on the pure-play consumer health business.
Kenvue's 2.9% organic growth and margin expansion outpaces many consumer staples peers, though the suspended guidance due to the Kimberly-Clark deal mirrors the uncertainty typical of pre-merger periods.
Skin Health and Beauty organic sales declined 0.5%, driven by U.S. distribution losses and European retailer negotiations. The pending Kimberly-Clark transaction introduces integration risk and the company suspended forward guidance.