KVUE

Kimberly-Clark stock has declined 11.1% over the past year, yet both its earnings multiples and a Discounted Cash Flow (DCF) intrinsic value estimate currently point to a cheaper valuation than the market price suggests. With the share price near US$110, the key issue for investors is whether this apparent discount fairly reflects the company’s cash generation and risk profile. The 11.1% share price decline over 1 year signals that investors have been cautious on Kimberly-Clark despite a positive return so far this year. Expectations for durable free cash flow and potential benefits from the planned Kenvue acquisition may support the valuation. At the same time, execution risks around integration and ongoing cost pressures can weigh on how much of that value is realized. A value score of 4 out of 6 gives a mixed picture rather than a clear bargain or clear overvaluation, even though both the intrinsic value estimate and market multiples currently suggest Kimberly-Clark is undervalued. The issue now is whether Kimberly-Clark’s share price already reflects these cash flow prospects and risks or if there is still a meaningful discount to intrinsic value. Spot 51 high quality undervalued stocks that, like Kimberly-Clark, show a gap between intrinsic value estimates and current market prices. The Discounted Cash Flow (DCF) model estimates what Kimberly-Clark is worth based on the cash it is expected to generate for shareholders. On this model, the company’s latest twelve month free cash flow is about $2.4b, and the projections assume relatively steady cash generation rather than aggressive growth or sharp decline. That stream of cash flows, discounted back using a 2 Stage Free Cash Flow to Equity approach, points to an intrinsic value around $157 per share. Compared with the recent share price near $110, the DCF output implies Kimberly-Clark screens roughly 29.9% undervalued on a pure cash flow basis. The recent focus on using technology to improve supply chain efficiency helps explain why some investors see room for the cash flows that underpin this valuation to remain resilient, even if short term sentiment has been cautious. Overall, the current DCF work suggests Kimberly-Clark stock appears undervalued relative to the cash it is projected to generate. Our Discounted Cash Flow (DCF) analysis suggests Kimberly-Clark is undervalued by 29.9%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Kimberly-Clark. The P/E ratio fits Kimberly-Clark well because earnings remain a key focus for a mature consumer staples business. Kimberly-Clark currently trades on a P/E of about 21.8x, which is below the peer average of 26.3x in the Household Products space but above the broader industry average of 17.0x. That mix suggests the stock is not priced as cheaply as the wider sector, yet it does not carry the same valuation as closest peers. The fair P/E ratio implied by the model is 24.3x. Compared with the current 21.8x, this points to a discount that the market is applying relative to what might be expected given Kimberly-Clark’s size, margins and risk profile. The gap is not extreme, but it does indicate that the stock trades below the level suggested by those fundamentals. On this earnings multiple, Kimberly-Clark stock appears undervalued relative to its modelled fair P/E level. See what the numbers say about this price — find out in our valuation breakdown. Kimberly-Clark’s valuation puzzle raises a simple question for you as an investor: Which version of the company’s future would justify today’s share price? Simply Wall St Narratives on the Community page aim to make those assumptions explicit by linking Kimberly-Clark’s possible paths for growth, margins and earnings to specific scenarios where the stock could be worth materially more or less than it is now. Each scenario ties a fair value to its own mix of potential catalysts and risks, so you can observe over time which storyline appears closer to reality. The community is split on Kimberly-Clark, with one side focused on long term margin potential and the other on Kenvue execution risk and category headwinds. Bull case: 6% undervalued Read the full Bull Case to see why Kimberly-Clark could be undervalued Bear case: 23% overvalued Read the full Bear Case to see why Kimberly-Clark could be overvalued Do you think there's more to the story for Kimberly-Clark? Head over to our Community to see what others are saying! For Kimberly-Clark, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple view currently point to an undervalued stock rather than a stretched one. The overall value checks are mixed, so the current discount is not a clear-cut signal on its own. The important consideration from here is whether Kimberly-Clark can sustain the cash generation and margins that underpin those models while managing Kenvue integration and cost pressures. The key question for investors is whether the present discount compensates sufficiently for those risks or whether it simply reflects them accurately. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KMB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Kenvue stock has delivered a 9.3% gain year to date. Its current share price of US$18.93 still sits well below an intrinsic value estimate from a Discounted Cash Flow (DCF) model, which points to a 36.4% discount. At the same time, traditional earnings multiples suggest the shares look about fairly priced, leaving investors weighing a clear DCF upside signal against more neutral market ratios. Year to date, Kenvue is up 9.3%, indicating the market has already repriced the stock higher even as some valuation checks still flag potential upside. Expectations for steady cash generation from Kenvue's consumer brands can support the valuation. Any pressure on margins or cash flow conversion may limit how much of the indicated discount is realized. On Simply Wall St's broader checks, Kenvue is classified as a mixed case, scoring 3 out of 6. It is therefore neither an obvious bargain nor clearly expensive. The issue now is whether Kenvue's current price already reflects most of its fundamentals, or if the 36.4% DCF gap still points to meaningful undervaluation. Find out why Kenvue's -7.5% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values Kenvue based on the cash it is expected to generate for shareholders over time. For Kenvue, the model uses latest twelve month free cash flow of about $1.84b and assumes cash flows grow from this level rather than shrink. On that basis, the 2 Stage Free Cash Flow to Equity approach arrives at an estimated intrinsic value of about $29.76 per share. Compared with the current share price of $18.93, the DCF output points to a 36.4% intrinsic discount. That gap reflects the model's view that Kenvue can sustain solid cash generation from its consumer brands over the coming years. The key question for you is whether those assumptions on future free cash flow and required return are realistic given your own view of the business and its risks. On this DCF view, Kenvue stock currently screens as undervalued relative to its estimated intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Kenvue is undervalued by 36.4%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Kenvue. The P/E multiple is a straightforward way to think about what you are paying for each dollar of Kenvue earnings. For a mature consumer products business, it can give a clear view of how the market values its profitability. Kenvue currently trades on a P/E of about 21.9x, which is above the Personal Products industry average of 18.9x but below the peer group average of 33.6x. A fair P/E of 21.4x, based on factors such as the company’s margins, size and risk profile, sits very close to where the stock trades today. That leaves only a small gap between the present multiple and this tailored fair value marker. Put simply, the market is neither giving Kenvue a deep discount nor a heavy premium on earnings compared with what the model suggests is reasonable. On the P/E measure, Kenvue stock currently appears roughly fairly valued. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Kenvue pick up where this valuation puzzle leaves off by spelling out which assumptions on Kenvue's future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's price on the Community page. Each scenario links a fair value estimate to a specific story about Kenvue's potential catalysts and risks so you can later compare those stories with what actually happens. You can add your own Narrative on Kenvue to set out a clear, number driven view on where its growth, margins and execution go from here, and then see how that thesis tracks against future results. Share your case so other investors can weigh it alongside their own work on the stock. Do you think there's more to the story for Kenvue? Head over to our Community to see what others are saying! For Kenvue, the Discounted Cash Flow (DCF) view points to meaningful intrinsic value upside, while the P/E based check suggests the market price already lines up fairly closely with peer and tailored benchmarks. That split reflects a model that leans on sustained cash generation compared with a market view that prices Kenvue more on current earnings and sentiment. What matters most from here is whether Kenvue can keep converting its brand strength into reliable free cash flow without margin or execution setbacks, which will decide whether the current discount is an opportunity or simply compensation for risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KVUE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Kenvue (KVUE) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.13%. A quarter ago, it was expected that this consumer health company would post earnings of $0.27 per share when it actually produced earnings of $0.32, delivering a surprise of +18.52%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Kenvue, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $3.96 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.86%. This compares to year-ago revenues of $3.84 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kenvue shares have added about 14% since the beginning of the year versus the S&P 500's gain of 12.8%. While Kenvue has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kenvue was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $3.9 billion in revenues for the coming quarter and $1.16 on $15.6 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ollie's Bargain Outlet (OLLI), another stock in the same industry, has yet to report results for the quarter ended July 2026. This retailer is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of +16.2%. The consensus EPS estimate for the quarter has been revised 2.4% lower over the last 30 days to the current level. Ollie's Bargain Outlet's revenues are expected to be $761.06 million, up 12% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kenvue Inc. (KVUE) : Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kenvue Inc. KVUE reported second-quarter 2026 results, with both revenues and adjusted earnings increasing from the prior-year period. However, the reported figures came below the Zacks Consensus Estimate. Adjusted earnings were 31 cents per share, up from 29 cents a year ago but missing the Zacks Consensus Estimate of 32 cents. Kenvue Inc. price-consensus-eps-surprise-chart | Kenvue Inc. Quote Net sales increased 3% to $3,955 million from $3,839 million, though they fell short of the consensus estimate of $3,989 million. Organic sales grew 1.6%, driven by 0.9% pricing and 0.7% volume growth. Adjusted gross profit rose to $2,381 million from $2,338 million, while adjusted gross margin declined to 60.2% from 60.9%. Margin pressure from inflation, tariffs and transactional foreign exchange outweighed benefits from pricing actions and supply-chain productivity initiatives. Selling, general and administrative expenses increased to $1,537 million from $1,504 million. Restructuring expenses edged down to $59 million from $60 million. Adjusted operating income increased slightly to $873 million from $870 million. Adjusted operating margin narrowed 60 basis points to 22.1% from 22.7%, reflecting lower gross profitability and higher brand investment, partly offset by cost-saving initiatives. Adjusted EBITDA rose to $941 million from $938 million, while adjusted EBITDA margin declined to 23.8% from 24.4%. Self Care sales increased 2.2% to $1,589 million from $1,555 million, missing the Zacks Consensus Estimate of $1,617 million. Organic sales rose 0.6%, as 1.2% pricing more than offset a 0.6% decline in volume. Foreign currency added 1.6 percentage points to reported growth. The segment returned to organic growth in the United States, supported by strong online demand, Zyrtec market share gains and Pepcid's continued outperformance. Tylenol consumption trends improved from recent quarters, while Nicorette contributed to growth across Europe, the Middle East and Africa and Asia Pacific. Adjusted operating income declined to $512 million from $527 million despite higher sales. Skin Health and Beauty sales increased 5.1% to $1,113 million from $1,059 million, exceeding the Zacks Consensus Estimate of $1,091 million. Organic sales increased 3.7%, driven by 2.7% pricing and 1% volume growth, while foreign exchange contributed 1.4 percentage points. Growth was broad-based across all regions, led by Hair Care and Face Care. Continued strength in e-commerce, disciplined commercial execution and products such as OGX Pro Growth + Peptide and Neutrogena Ultra Sheer Sun supported results. Adjusted operating income increased to $186 million from $149 million. Essential Health sales increased 2.3% to $1,253 million from $1,225 million, missing the Zacks Consensus Estimate of $1,274 million. Organic sales rose 1.1%, as 1.9% volume growth more than offset 0.8% unfavorable pricing mix. Foreign currency added 1.2 percentage points. Growth was led by Wound Care and Baby Care, which more than offset weakness in Oral Care. Online demand, additional U.S. distribution and initiatives involving Band-Aid, Listerine and Stayfree also supported performance.Adjusted operating income declined to $315 million from $351 million. During the first six months of 2026, operating cash flow increased to $1.2 billion from $1.0 billion. Capital expenditures declined to $0.2 billion from $0.3 billion, lifting free cash flow to $1.0 billion from $0.8 billion. Cash and cash equivalents totaled $1.1 billion as of June 28, 2026, unchanged from year-end 2025. Total debt remained $8.5 billion, while net debt improved to $7.4 billion from $7.5 billion. Shares of this Zacks Rank #3 (Hold) company have gained 11.2% over the past three months compared with the industry’s growth of 3.9%. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: WD-40 Company WDFC engages in the provision of maintenance products and homecare and cleaning products in North America, Central and South America, Asia, Australia, Europe, India, the Middle East, and Africa. At present, WDFC carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for WDFC’s current fiscal-year sales earnings suggests growth of 9.9% and 7.2%, respectively, from the year-ago reported figures. WDFC reported a trailing four-quarter average earnings surprise of 18.3%. BBB Foods Inc. TBBB provides spot products comprising food and non-food products, such as clothing, electronics, household goods, and others. At present, TBBB carries a Zacks Rank of 2. The Zacks Consensus Estimate for TBBB’s current fiscal-year sales and earnings implies growth of 44.6% and 52.7%, respectively, from the year-ago reported figures. TBBB delivered a trailing four-quarter negative earnings surprise of 98.9%, on average. Ryohin Keikaku Co., Ltd. RYKKY engages in the retail of household goods and food items in Japan and internationally. RYKKY currently carries a Zacks Rank #2. The Zacks Consensus Estimate for RYKKY's current fiscal-year sales and earnings implies growth of 6.9% and 8.3%, respectively, from the year-ago actuals. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kenvue Inc. (KVUE) : Free Stock Analysis Report WD-40 Company (WDFC) : Free Stock Analysis Report BBB Foods Inc. (TBBB) : Free Stock Analysis Report Ryohin Keikaku Co. Ltd. (RYKKY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered Third Consecutive Quarter of Net and Organic Sales1 Growth Net Sales Increased 3.0%; Organic Sales Increased 1.6% Diluted EPS Increased 9% to $0.24; Adjusted Diluted EPS1 Increased 7% to $0.31 Results Met or Exceeded the Company’s Plans Across Key Metrics SUMMIT, N.J., August 06, 2026--(BUSINESS WIRE)--Kenvue Inc. (NYSE: KVUE) today announced financial results for the fiscal second quarter ended June 28, 2026. "We delivered our third consecutive quarter of net and organic sales growth, with broad-based gains across every segment and region," said Kirk Perry, Chief Executive Officer. "We also continued to drive operational efficiencies and increase strategic investment to fuel sustained momentum. 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." Perry continued, "Our transformation is firmly on track. We remain focused on disciplined execution and continued business improvement while we work toward completing our value-creating combination with Kimberly-Clark in the fourth quarter of this year." Second Quarter Summary Net sales increased 3.0% vs the prior year period, reflecting Organic sales growth of 1.6% and a foreign currency benefit of 1.4%. Gross profit margin was 58.2% vs 58.9% in the prior year period. Adjusted gross profit margin1 was 60.2% vs 60.9% in the prior year period. Operating income margin was 17.7% vs 18.0% in the prior year period. Adjusted operating income margin1 was 22.1% vs 22.7% in the prior year period. Diluted earnings per share were $0.24 vs $0.22 in the prior year period. Adjusted diluted earnings per share1 were $0.31 vs $0.29 in the prior year period. Due to the pending transaction with Kimberly-Clark, the Company will not be providing forward-looking guidance. Second Quarter 2026 Financial Results Net Sales and Organic Sales Second quarter 2026 Net sales increased 3.0% vs the prior year period, primarily reflecting Organic sales growth of 1.6% and a foreign currency benefit of 1.4%. Organic sales growth was driven by favorable value realization of 0.9% and volume growth of 0.7%. Gross Profit Margin and Operating Income Margin Second quarter 2026 Gross profit margin was 58.2% vs 58.9% in the prior year period. Adjusted gross profit margin was 60.2% vs 60.9% in the prior year period. The year-over-year change in both measures primarily reflects the impact from inflation, tariffs, as well as unfavorable transactional foreign exchange, partially offset by savings from productivity gains attributable to our global supply chain optimization initiatives and favorable value realization. Second quarter 2026 Operating income margin was 17.7% vs 18.0% in the prior year period. Second quarter 2026 Adjusted operating income margin was 22.1% vs 22.7% in the prior year period. The year-over-year change in both measures reflects the year-over-year change in Gross profit margin and Adjusted gross profit margin, as well as a year-over-year increase in brand support, partially offset by savings from our cost optimization actions, including the 2026 Restructuring Initiative and Our Vue Forward. Interest Expense, Net and Taxes Second quarter 2026 Interest expense, net was $90 million vs $94 million in the prior year period. Second quarter Effective tax rate was 23.7% vs 28.6% in the prior year period. The Adjusted effective tax rate1 was 22.9% in the current period vs 26.9% in the prior year period. The year-over-year reduction in both measures largely reflects the release of a valuation allowance, favorable jurisdictional mix of earnings in the current period, as well as the impact of tax law changes. Net Income Per Share ("Earnings Per Share") Second quarter 2026 Diluted earnings per share were $0.24 vs $0.22 in the prior year period. Adjusted diluted earnings per share were $0.31 in the current period vs $0.29 in the prior year period. Second Quarter 2026 Business Segment Results Self Care Second quarter 2026 Net sales increased 2.2% vs the prior year period, reflecting Organic sales growth of 0.6% and a foreign currency benefit of 1.6%. Organic sales growth was driven by favorable value realization of 1.2%, which was partially offset by a volume decrease of 0.6%. Organic sales grew vs the prior year period in the North America, Europe, Middle East and Africa ("EMEA"), and Asia Pacific regions. Return to Organic sales growth in the U.S., the Company’s largest market, was a key driver of this performance. It was enabled by strong eCommerce momentum, successful activation in Allergy behind Zyrtec®, which continued to gain share and strengthen its leadership position, strong commercial and innovation-driven execution in Digestive Health, which enabled Pepcid® to continue to outperform the market, as well as sequentially better performance in the Pain and Cough and Cold businesses, despite historically low out of season incidences. In the U.S., consumption trends for Tylenol® continued to improve sequentially, as the brand gained slight market share vs the prior year period. Organic sales growth in EMEA and Asia Pacific regions reflected continued gains in Smoking Cessation behind strong commercial execution on Nicorette®, which outperformed the category across major markets, as well as gains in Cough, Cold, & Flu, as the Company introduced Codral® Kids in Australia, the brand’s first range of products designed for children. Skin Health and Beauty Second quarter 2026 Net sales increased 5.1% vs the prior year period, reflecting Organic sales growth of 3.7% and a foreign currency benefit of 1.4%. Organic sales growth was driven by favorable value realization of 2.7% and a volume increase of 1.0%, as Organic sales grew vs the prior year period across every region, largely driven by Hair Care and Face Care. Strong eCommerce momentum, focused commercial execution and recent innovations, such as the OGX® Pro Growth + Peptide and Neutrogena® Ultra Sheer Sun, contributed to this strong performance globally. In the U.S., the Company’s brand building actions behind Neutrogena®, the largest brand in the segment, helped improve household penetration for the third consecutive quarter, with gains across all generational cohorts. Essential Health Second quarter 2026 Net sales increased 2.3% vs the prior year period, reflecting Organic sales growth of 1.1% and a foreign currency benefit of 1.2%. Organic sales growth was driven by a volume increase of 1.9%, partially offset by unfavorable value realization of 0.8%. Organic sales grew vs the prior year period in the Asia Pacific, Latin America, and North America regions, with Wound Care and Baby Care need states fueling growth and more than offsetting a decline in Oral Care. Strong momentum in the eCommerce channel, distribution gains in the U.S., as well as targeted activation behind innovations, such as Band-Aid PRO HEAL® 5 Day Protect in North America, the global restage of Listerine® and rollout of Listerine® On-The-Go Alcohol Free Mouthwash Sachets, as well as an upgrade from mid to mid-premium Stayfree® offerings in India, strengthened global consumption growth on a sequential basis. In Latin America, we continued to gain market share across major brands. Cash Flow and Balance Sheet Fiscal six months ended June 28, 2026 Net cash flows from operating activities were $1.2 billion vs $1.0 billion in the prior year period, with the improvement driven by an increase in net income, partially offset by higher use of working capital. Capital expenditures were $0.2 billion vs $0.3 billion in the prior year period, as Free cash flow1 increased to $1.0 billion vs $0.8 billion in the prior year period. Total cash and cash equivalents were $1.1 billion as of June 28, 2026 and December 28, 2025. Total debt was $8.5 billion as of June 28, 2026 and December 28, 2025. FDA Approves Tylenol® with Naproxen Kenvue received U.S. Food and Drug Administration approval for Tylenol® with Naproxen, the first and only over-the-counter ("OTC") fixed-dose combination of acetaminophen and naproxen sodium. Building on more than 70 years of Tylenol® leadership in pain relief innovation, the product expands OTC pain management options for consumers and healthcare providers by combining the fast-acting relief of 650 mg of acetaminophen with the long-lasting analgesic power of 220 mg naproxen sodium (a non-steroidal anti-inflammatory drug) in one dose, which begins working in under 30 minutes and provides relief for 12 hours. Supported by eight clinical studies and granted a three-year exclusivity period, Tylenol® with Naproxen is expected to be available soon at major U.S. retailers nationwide. Pending Transaction with Kimberly-Clark 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. Additionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 4, 2026. The transaction is expected to close in the fourth quarter of 2026, subject to receipt of foreign regulatory approvals and satisfaction of other customary closing conditions as described in the merger agreement. 2026 Restructuring Initiative As previously disclosed, on February 17, 2026, the Company’s Board of Directors approved an initiative (the "2026 Restructuring Initiative") that aims to optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies, while strengthening core capabilities. The Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026. No Conference Call Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call. This press release will be posted on the Company’s website at investors.kenvue.com. About Kenvue Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at kenvue.com. 1Non-GAAP Financial Measures The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. There are limitations to the use of the non-GAAP financial measures presented herein. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP, nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Accordingly, the non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. The Company cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP. The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry. Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release. Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time. Adjusted EBITDA margin: We define EBITDA as U.S. GAAP Net income adjusted for interest, provision for taxes, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for restructuring expenses and operating model optimization initiatives, costs incurred in connection with our establishment as a standalone public company ("Separation-related costs"), conversion of stock-based awards, stock-based awards granted to individuals employed by Kenvue as of October 2, 2023 ("Founder Shares"), expenses incurred in connection with the pending transaction with Kimberly-Clark ("Pending Transaction and other related costs"), costs associated with the Skillman sale-leaseback, and the impact of the deferred transfer of certain assets and liabilities from Johnson & Johnson in certain jurisdictions (the "Deferred Markets"). We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Adjusted effective tax rate: We define Adjusted effective tax rate as U.S. GAAP Effective tax rate adjusted for the tax effects on special item adjustments including amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, and costs associated with the Skillman sale-leaseback. We also exclude taxes related to the Deferred Markets. Management believes this non-GAAP measure is useful to investors as it provides a supplemental measure of the Company’s performance over time. Adjusted gross profit margin: We define Adjusted gross profit margin as U.S. GAAP Gross profit margin adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, operating model optimization initiatives, and Pending Transaction and other related costs. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Adjusted net income: We define Adjusted net income as U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, the impact of the Deferred Markets, and their related tax impacts (i.e., special items). Adjusted net income excludes the impact of items that may obscure trends in our underlying performance. Management believes this non-GAAP measure is useful to investors as the Company uses Adjusted net income for strategic decision making, forecasting future results, and evaluating current performance. Adjusted operating income: We define Adjusted operating income as U.S. GAAP Operating income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, and the impact of the Deferred Markets. Management believes this non-GAAP measure is useful to investors as management uses Adjusted operating income to assess the Company’s financial performance. Adjusted operating income margin: We define Adjusted operating income margin as Adjusted operating income as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time. Free cash flow: We define Free cash flow as U.S. GAAP Net cash flows from operating activities adjusted for purchases of property, plant, and equipment. Management believes this non-GAAP measure is useful to investors as it provides a view of the Company’s liquidity after deducting capital expenditures, which are considered a necessary component of our ongoing operations. Organic sales: We define Organic sales as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures. We report changes in Organic sales on a period-over-period basis. Management believes reporting period-over-period changes in Organic sales provides investors with supplemental information that is useful in assessing the Company’s results of operations by excluding the impact of certain items that we believe do not directly reflect our underlying operations. Market Share Information The Company uses market share and related metrics, including Average Weekly Recommendations, as indicators to assess business performance and trends. Market share references in this press release are derived from a combination of consumption and market share data provided by third-party vendors and internal estimates. Unless otherwise indicated, such references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company operates and purchases data. Market share data is subject to inherent limitations, including the availability and timing of underlying information. In particular, market share data is not generally available for certain retail channels. The Company measures market share through the most recent period for which market share data is available, which generally reflects a lag time of one or two months. While the Company believes the third-party vendors it uses to provide data are reliable, it has not independently verified the accuracy or completeness of such data or its underlying assumptions. In addition, the Company’s reported market share data may differ from that reported by other companies due to differences in category definitions, geographic scope, internal estimates and other factors. Cautions Concerning Forward-Looking Statements This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position, and business strategy. Such forward-looking statements include statements regarding the pending transaction with Kimberly-Clark. Forward-looking statements may be identified by the use of words such as "plans," "expects," "will," "anticipates," "estimates," and other words of similar meaning. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; inflation and other economic factors, such as interest rate and currency exchange rate fluctuations, as well as existing or proposed tariffs and other constraints on trade both in the U.S. and in foreign markets; the ability to successfully manage local, regional, or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any dividend payments; Kenvue’s ability to maintain satisfactory credit ratings and access capital markets, which could adversely affect its liquidity, capital position, and borrowing costs; competition, including technological advances, new products, and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections, including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including the 2026 Restructuring Initiative and any other restructuring or cost-saving initiatives; the impact of business combinations and divestitures, including any ongoing or future transactions; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations and other stakeholder requirements; changes in behavior and spending patterns of consumers; natural disasters, acts of war, or terrorism, catastrophes, or epidemics, pandemics, or other disease outbreaks; financial instability of international economies and legal systems and sovereign risk; the inability to realize the benefits of the separation from Kenvue’s former parent, Johnson & Johnson; the risk of disruption or unanticipated costs in connection with the separation; the Company’s inability to consummate the pending transaction with Kimberly-Clark due to, among other things, market, regulatory, and other factors; the potential for disruption to the Company’s business resulting from the pending transaction with Kimberly-Clark; and potential adverse effects on the Company’s stock price from the announcement, suspension, or consummation of the pending transaction with Kimberly-Clark. A further list and descriptions of these risks, uncertainties, and other factors can be found in Kenvue’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other filings, available at investors.kenvue.com or on request from Kenvue. Any forward-looking statement made in this release speaks only as of the date of this release. Kenvue undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or developments or otherwise. Organic Sales Change The following tables present a reconciliation of the change in Net sales, as reported, to the change in Organic sales, a non-GAAP measure, for the periods presented: Total Segment Net Sales and Adjusted Operating Income Segment Net sales for the periods presented were as follows: Segment Adjusted operating income for the periods presented was as follows: Non-GAAP Financial Information The following tables present reconciliations of GAAP to non-GAAP for the periods presented: The following table presents reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented: The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented: The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented: Other Supplemental Financial Information The following table presents the Company’s Net sales by geographic region for the periods presented: The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses. The following table presents the Company’s Cash and cash equivalents, Total debt, and Net debt balance as of the periods presented: View source version on businesswire.com: https://www.businesswire.com/news/home/20260806649656/en/ Contacts Investor Relations: Sofya [email protected] Media Relations: Melissa [email protected]