Kenvue second quarter results fall short of expectations, sending shares lower
Published: 11:31 06 Aug 2026 EDT
Kenvue Inc (NYSE:KVUE) shares fell about 2% on Thursday after the consumer health company reported second quarter results that narrowly missed Wall Street expectations, while margins declined from a year earlier.
The company reported adjusted diluted earnings per share of $0.31, compared with the $0.32 consensus estimate.
Revenue was $3.96 billion, slightly below the $3.97 billion expected by analysts.
Kenvue said net sales increased 3% from the prior-year period, with organic sales growth of 1.6% and a 1.4% benefit from foreign currency. Organic growth was driven by favorable value realization of 0.9% and volume growth of 0.7%.
Gross profit margin declined to 58.2% from 58.9% a year earlier, while adjusted gross profit margin fell to 60.2% from 60.9%. The company attributed the changes primarily to inflation, tariffs and unfavorable transactional foreign exchange, partly offset by supply-chain productivity savings and favorable value realization.
Operating income margin was 17.7%, compared with 18.0% in the prior-year period. Adjusted operating income margin declined to 22.1% from 22.7%, reflecting the lower gross profit margin and higher brand support spending, partly offset by cost optimization savings.
Diluted earnings per share increased to $0.24 from $0.22, while adjusted diluted earnings per share rose to $0.31 from $0.29.
Kenvue CEO Kirk Perry said the company delivered its third consecutive quarter of net and organic sales growth, with gains across every segment and region.
“We also continued to drive operational efficiencies and increase strategic investment to fuel sustained momentum,” Perry said.
“Amidst a dynamic consumer and macro environment, our first-half 2026 results met or exceeded our expectations across key metrics, underscoring the strength and resilience of our people, brands, and new strategic plans.”
Kenvue did not provide forward-looking guidance due to its pending combination with Kimberly-Clark, which the company said it expects to complete in the fourth quarter of this year.
