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Kenvue
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Kenvue Reports Fourth Quarter and Full Year 2025 Results
February 17, 2026
Q4 Net Sales 3.2%; Organic Sales 1.2%
Q4 Diluted EPS was $0.17; Adjusted Diluted EPS was $0.27
FY'25 Net Sales (2.1)%; Organic Sales (2.2)%
FY'25 Diluted EPS was $0.76; Adjusted Diluted EPS was $1.08
SUMMIT, N.J.--(BUSINESS WIRE)-- Kenvue Inc. (NYSE: KVUE) today announced financial results for the fiscal fourth quarter and full year ended December 28, 2025.
"We ended 2025 with stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as a more favorable year-ago comparison on sales," said Kirk Perry, Chief Executive Officer. "As we look to 2026, we remain focused on continuing to enhance our performance, while progressing toward completion of our value-creating combination with Kimberly-Clark."
Fourth Quarter Summary
Net sales increased 3.2% vs the prior year period, primarily reflecting Organic sales growth of 1.2% and a foreign currency benefit of 2.1%.
Gross profit margin was flat year-over-year at 56.5%. Adjusted gross profit margin was 58.8% vs 58.7% in the prior year period.
Operating income margin was 14.2% vs 13.2% in the prior year period. Adjusted operating income margin was 19.9% vs 19.2% in the prior year period.
Diluted earnings per share were $0.17 vs $0.15 in the prior year period. Adjusted diluted earnings per share were $0.27 vs $0.26 in the prior year period.
Due to the pending transaction with Kimberly-Clark, the Company will not be providing forward-looking guidance.
Fourth Quarter 2025 Financial Results
Net Sales and Organic Sales
Fourth quarter 2025 Net sales increased 3.2% vs the prior year period, primarily reflecting Organic sales growth of 1.2% and a foreign currency benefit of 2.1%. Organic sales growth was driven by favorable value realization of 2.3%, partially offset by a 1.1% volume decrease. As expected, volumes in the current quarter benefited from lapping the impact of the go-to-market disruption the Company experienced in Asia Pacific in the prior year period. This tailwind was offset primarily by trade inventory reductions by certain customers and low seasonal incidences, particularly in the United States, which weighed on the global weighted category growth rate.
Gross Profit Margin and Operating Income Margin
Fourth quarter 2025 Gross profit margin was flat year-over-year at 56.5%. Adjusted gross profit margin expanded 10 basis points to 58.8% from 58.7% in the prior year period. The year-over-year change in both measures reflects the savings from productivity gains attributable to our global supply chain optimization initiatives and favorable value realization, which helped offset the impact from inflationary, tariff, and transactional foreign exchange headwinds.
Fourth quarter 2025 Operating income margin was 14.2%, including non-cash charges related to asset impairment, vs 13.2% in the prior year period. Fourth quarter 2025 Adjusted operating income margin was 19.9% vs 19.2% in the prior year period. The year-over-year improvement in both measures reflects the year-over-year change in Gross profit margin and Adjusted gross profit margin and savings from Our Vue Forward, partially offset by a year-over-year increase in brand support.
Interest Expense, Net and Taxes
Fourth quarter 2025 Interest expense, net was $98 million vs $95 million in the prior year period.
Fourth quarter Effective tax rate was 22.7% vs 15.3% in the prior year period. The Adjusted effective tax rate was 20.2% in the current period vs 17.7% in the prior year period. The year-over-year increase in both measures largely reflects a decrease in discrete tax benefits, partially offset by favorable jurisdictional mix of earnings in the current period.
Net Income Per Share ("Earnings Per Share")
Fourth quarter 2025 Diluted earnings per share were $0.17 vs $0.15 in the prior year period. Adjusted diluted earnings per share were $0.27 in the current period vs $0.26 in the prior year period.
Fourth Quarter 2025 Business Segment Results
Self Care
Fourth quarter 2025 Net sales increased 1.5% vs the prior year period, reflecting a foreign currency benefit of 2.7%, partially offset by Organic sales decline of 1.2%. Organic sales decline was driven by a volume decrease of 3.1%, which was partially offset by favorable value realization of 1.9%. Subdued seasonal incidences in the United States weighed on the overall Self Care category, which contracted year-over-year. In aggregate, Kenvue gained slight share in its seasonal businesses in the United States, with continued strong contribution from innovations. While a late quarter spike in flu incidences in the United States was not enough to offset the impact of weak incidences throughout the quarter, both consumption and share performance trends for Tylenol improved in December.
$1,592 vs $1,569 in the prior year period.
$496 vs $481 in the prior year period.
Skin Health and Beauty
Fourth quarter 2025 Net sales increased 2.9% vs the prior year period, primarily reflecting a foreign currency benefit of 1.6% and Organic sales growth of 1.5%. Organic sales growth was driven by favorable value realization of 2.3%, partially offset by a volume decrease of 0.8%. Innovations, along with strong commercial execution drove Organic sales growth vs the prior year period across every geographic region outside North America.
$1,040 vs $1,011 in the prior year period.
$99 vs $105 in the prior year period.
Essential Health
Fourth quarter 2025 Net sales increased 6.1% vs the prior year period, reflecting Organic sales growth of 4.2% and a foreign currency benefit of 1.9%. Organic sales growth was driven by favorable value realization of 2.9% and volume growth of 1.3%, with broad based growth across the major need states, propelled by the Asia Pacific, Latin America and Europe, Middle East and Africa regions, with sequential improvement in performance in North America.
$1,148 vs $1,082 in the prior year period.
$279 vs $248 in the prior year period.
Full Year 2025 Financial Results
Net sales decreased 2.1% vs the prior year period, primarily reflecting Organic sales decline of 2.2%, partially offset by foreign currency benefit of 0.2%.
Full year 2025 Gross profit margin expanded 10 basis points to 58.1% from 58.0% in the prior year period. Adjusted gross profit margin declined 20 basis points to 60.2% from 60.4% in the prior year period.
Full year 2025 Operating income margin was 16.0% vs 11.9% in the prior year period. Adjusted operating income margin was 21.0% vs 21.5% in the prior year period.
Full year 2025 Diluted earnings per share were $0.76 vs $0.54 in the prior year period. Adjusted diluted earnings per share were $1.08 vs $1.14 in the prior year period.
Cash Flow and Balance Sheet
Full year 2025 Net cash flows from operating activities were $2.2 billion vs $1.8 billion in the prior year period.
Capital expenditures were $0.5 billion vs $0.4 billion in the prior year period.
Free cash flow increased to $1.7 billion vs $1.3 billion in the prior year period.
Total cash and cash equivalents were $1.1 billion as of December 28, 2025.
Total debt was $8.5 billion as of December 28, 2025 vs $8.6 billion as of December 29, 2024.
Financial Statements
Condensed Consolidated Statements of Operations (Unaudited; Dollars in Millions)
Fiscal Three Months Ended December 28, 2025 vs December 29, 2024:
$3,780 vs $3,662
$1,643 vs $1,592
$2,137 vs $2,070
Selling, general, and administrative expenses: $1,535 vs $1,525
$86 vs $65
$23 vs $0
$535 vs $483
Interest expense, net: $98 vs $95
$427 vs $346
$97 vs $53
$330 vs $293
$0.17 vs $0.15
$2,224 (margin 58.8%)
$751 (margin 19.9%)
$513 (margin 13.6%)
$0.27
Geographic Net Sales (Q4 2025 vs Q4 2024):
$1,759 vs $1,842
Europe, Middle East, and Africa: $949 vs $863
$703 vs $635
$369 vs $322
As previously announced, the Company entered into a definitive merger agreement on November 2, 2025, under which Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction. Shareholders of each company voted overwhelmingly to approve all of the proposals necessary for Kimberly-Clark to complete its acquisition of the Company at their respective Special Meetings of Stockholders held on January 29, 2026. The transaction is expected to close in the second half of 2026, subject to receipt of foreign regulatory approvals and satisfaction of other customary closing conditions.
No Conference Call
Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call.
Kenvue Inc. press release, February 17, 2026