Key facts
- Kenvue reported second-quarter adjusted profit of 31 cents per share, below the estimated 32 cents.
- Quarterly sales of $3.96 billion slightly missed analyst expectations of $3.97 billion.
- Adjusted gross margin declined to 60.2% from 60.9% year-over-year.
- Inflation, tariffs, and currency-related costs squeezed margins.
- The company anticipates approximately $250 million in pre-tax charges in 2026 due to a restructuring program.
Kenvue narrowly missed Wall Street's earnings and sales expectations for the second quarter, as rising inflation, tariffs, and currency-related costs pressured its profit margins. The consumer-health company reported adjusted earnings per share of 31 cents, slightly below the average analyst estimate of 32 cents. Quarterly sales reached $3.96 billion, marginally missing the consensus estimate of $3.97 billion.
Despite the misses, Kenvue's adjusted gross margin fell to 60.2% from 60.9% in the prior year, as cost pressures offset benefits from supply-chain savings and higher pricing. Sales in its Self Care segment, which includes Tylenol, rose 2.2% to $1.59 billion, while Skin Health and Beauty sales increased 5.1% to $1.11 billion, and Essential Health sales grew 2.3% to $1.25 billion.
The company is currently involved in a $40 billion buyout by Kimberly-Clark, with the deal expected to close in the fourth quarter of 2026. Kenvue also anticipates incurring approximately $250 million in pre-tax charges in 2026 related to a restructuring program aimed at streamlining operations, enhancing its supply chain, and reducing costs.