KMB — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
Kimberly-Clark's Q2 2026 sales rose 0.6% to $4.19B on currency alone and tariff refunds lifted adjusted EPS 10.4%, but Kenvue deal costs and tax charges tied to the tissue joint venture cut diluted EPS 32% to $1.04.
- Revenue
- $4.2B
- +0.6% YoY
- Net income
- $345M
- -32.2% YoY
- Diluted EPS
- $1.04
- -32.0% YoY
- Operating margin
- 15.1%
Overview
Kimberly-Clark's second quarter of 2026 (April 1 – June 30, 2026, reported August 4, 2026) showed an underlying business that is roughly flat on sales but more profitable, with reported earnings pulled down by deal costs and tax charges. Net sales rose 0.6% to $4,189 million, entirely from currency; organic sales were essentially flat (-0.1%). Gross margin jumped to 38.3% from 35.0%, helped by one-time tariff refunds and productivity savings. Diluted EPS from continuing operations fell to $1.22 from $1.33, and total diluted EPS fell 32% to $1.04. Those declines come from costs tied to the pending Kenvue acquisition and to the sale of a controlling stake in the international tissue business, not from weaker operations: adjusted EPS from continuing operations rose 10.4% to $1.80.
A structural note first: the International Family Care and Professional (IFP) business — Kimberly-Clark's tissue and professional-products business outside North America — is reported as a discontinued operation. The sales and operating profit figures below cover only the continuing business (North America and International Personal Care). The deal that moved IFP into a joint venture with Suzano, now called Arbex, closed on July 1, 2026, just after the quarter ended. Suzano paid about $1.7 billion for a 51% stake and Kimberly-Clark kept 49%.
Key figures
| Metric | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Net sales (continuing ops) | $4,189M | $4,163M | +0.6% |
| Organic sales growth | -0.1% | — | — |
| Gross margin | 38.3% |
Recent in Consumer Staples
- Kraft Heinz (KHC) · Q2 2026Revenue $6.3B (-1.4%) · EPS $-4.60
Kraft Heinz lost $5.46B in Q2 2026 on $7.35B of brand and goodwill write-downs; organic sales fell 1.3% as North American volumes dropped, and heavier ad spending cut adjusted EPS 18.8% to $0.56.
- Keurig Dr Pepper (KDP) · Q2 2026Revenue $7.3B (+75.6%) · EPS $0.04 (-90.0%)
The JDE Peet's acquisition lifted Q2 net sales 75.6% to $7.31 billion, but inventory step-up, deal costs, higher interest and new JV/preferred claims cut GAAP diluted EPS to $0.04 from $0.40; adjusted EPS rose 16.3% to $0.57 and 2026 guidance was reaffirmed.
- Kenvue (KVUE) · Q2 2026Revenue $4.0B (+3.0%) · EPS $0.24 (+9.1%)
Kenvue grew Q2 2026 sales 3.0% (organic +1.6%), but inflation, tariffs and higher marketing spend held operating income to +1.0%; EPS rose to $0.24 mainly on a lower tax rate, and a July appeals ruling revived federal Tylenol lawsuits ahead of the Kimberly-Clark deal expected to close in Q4.