Kenvue Reports Q3 2026 Results: Net Sales Up 3.2% and Organic Sales Up 2.9%

Kenvue Inc. (NYSE: KVUE) Q3 2026 Earnings Summary

Key Financial Highlights

• Net Sales: Rose 3.2% year-over-year to $3,886 million (vs. $3,764 million in Q3 2025). Growth was driven by 2.9% organic growth (1.6% volume, 1.3% value realization) and a 0.3% foreign currency benefit.
• Gross Profit Margin: 59.5% vs. 59.1% in Q3 2025; Adjusted Gross Profit Margin expanded to 61.5% from 61.2%.
• Operating Income Margin: 18.2% vs. 16.7% in Q3 2025; Adjusted Operating Income Margin increased to 21.9% vs. 21.5% in the prior year period.
• Diluted EPS: $0.22 (up 5% from $0.21 in the prior year period); Adjusted Diluted EPS was $0.29 (up 4% from $0.28).
• Effective Tax Rate: 29.4% (Adjusted Effective Tax Rate of 24.7%).
• Cash Flow & Balance Sheet: Nine-month operating cash flow reached $1.9 billion compared to $1.3 billion in the prior period; Free Cash Flow increased to $1.6 billion. Cash and cash equivalents totaled $1.0 billion, and total debt stood at $8.2 billion as of September 27, 2026.

Segment Performance

• Self Care: Net sales increased 5.9% YoY (Organic sales +5.4%), led by strong demand in APAC, Motrin® outperformance, and low double-digit organic growth in Smoking Cessation (Nicorette®).
• Skin Health and Beauty: Net sales increased 0.1% YoY (Organic sales -0.5%), impacted by distribution losses and promotional timing in the U.S. and retailer negotiations in Europe, offset by strong momentum in Hair Care (Rogaine® and OGX®).
• Essential Health: Net sales increased 2.5% YoY (Organic sales +2.5%), supported by Johnson’s Baby®, Stayfree®, and BAND-AID® Brand.

Strategic & Corporate Updates

• Pending Transaction with Kimberly-Clark: Kenvue did not provide forward-looking guidance or host a quarterly conference call in light of the pending transaction with Kimberly-Clark.
• 2026 Restructuring Initiative: Board-approved restructuring plans targeting operating model optimization and supply chain transformation are expected to generate pre-tax charges of approximately $250 million in FY 2026.