Did Kenvue beat earnings in Q4 2025?

Yes, Kenvue beat both revenue and EPS estimates. Revenue came in at $3.78B vs $3.69B consensus (+2.6% beat), and adjusted EPS was $0.27 vs $0.22 expected (+21% beat).

What is happening with the Kenvue Kimberly-Clark merger?

Kimberly-Clark's acquisition of Kenvue is expected to close in H2 2026. Shareholders approved the deal on January 29, 2026, and HSR antitrust clearance was received on February 4, 2026. Foreign regulatory approvals are still pending.

Why did Kenvue stock drop after earnings?

Despite beating estimates, KVUE shares fell 1.6% on February 17, 2026, likely due to a new restructuring initiative cutting 3.5% of the workforce (~$250M in charges) and the lack of forward guidance given the pending Kimberly-Clark merger.

Kenvue (KVUE)·Q4 2025 Earnings Summary

Kenvue Beats Q4 Estimates but Stock Slides on Restructuring Announcement

February 17, 2026 · by Fintool AI Agent

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Kenvue (NYSE: KVUE) delivered a solid Q4 2025, beating both revenue and earnings estimates in what CEO Kirk Perry called "disciplined execution against strategic priorities" . The consumer health giant—home to Tylenol, Neutrogena, and Listerine—reported revenue of $3.78 billion (+3.2% YoY) and adjusted EPS of $0.27, exceeding Wall Street expectations on both metrics. However, shares fell 1.6% to $18.41 as the company simultaneously announced a restructuring initiative cutting 3.5% of its workforce .

The results mark Kenvue's strongest quarterly performance in FY25, aided by easier year-over-year comparisons following last year's Asia Pacific go-to-market disruption. With the Kimberly-Clark merger expected to close in H2 2026, the company provided no forward guidance and held no earnings call .

Did Kenvue Beat Earnings?

Yes—Kenvue beat on both revenue and EPS.

Metric	Actual	Consensus	Surprise
Revenue	$3.78B	$3.69B	+2.6%
Adjusted EPS	$0.27	$0.22	+21.2%
GAAP EPS	$0.17	—	—

The revenue beat was driven by 1.2% organic sales growth (2.3% value realization, offset by 1.1% volume decline) and a 2.1% foreign currency tailwind . Adjusted operating margin expanded 70 basis points to 19.9%, reflecting productivity gains and "Our Vue Forward" cost savings .

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How Did the Stock React?

Despite the double beat, KVUE shares dropped 1.6% on earnings day, closing at $18.41. The stock has traded in a $14.02-$25.17 range over the past year.

Why the sell-off? Three factors likely weighed on sentiment:

Restructuring announcement: A new initiative targeting 3.5% workforce reduction with ~$250M in FY26 charges
No guidance: Due to the pending Kimberly-Clark merger, management provided no forward outlook
No conference call: Investors had no opportunity for Q&A with management

The stock is currently trading below its 200-day moving average ($19.17) but above its 50-day average ($17.38).

What Changed From Last Quarter?

Metric	Q3 2025	Q4 2025	Change
Net Sales	$3.76B	$3.78B	+0.5%
Organic Growth	-0.6%	+1.2%	+180 bps
Adj. Op. Margin	20.4%	19.9%	-50 bps
Adj. EPS	$0.29	$0.27	-6.9%

Q4 marked a return to positive organic growth after three consecutive quarters of declines . The improvement was aided by lapping last year's Asia Pacific disruption and sequential improvement in North America .

Segment Performance

Segment Breakdown

Essential Health: The Star Performer

Essential Health delivered the strongest results with 6.1% net sales growth and 4.2% organic growth . Broad-based growth across Listerine, Band-Aid, and Johnson's baby products drove performance, with particular strength in Asia Pacific, Latin America, and EMEA .

Skin Health & Beauty: International Strength

The segment grew 2.9% with 1.5% organic growth, driven by innovations and strong execution outside North America . Neutrogena and Aveeno contributed across all regions except North America.

Self Care: Flu Season Headwinds

Self Care grew just 1.5% with organic sales declining 1.2% . Weak seasonal flu incidences in the United States weighed on Tylenol and cold/flu products, though a late December spike in flu cases improved consumption trends heading into 2026 .

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Full Year 2025 Summary

Metric	FY 2025	FY 2024	YoY Change
Net Sales	$15.12B	$15.46B	-2.1%
Organic Sales	—	—	-2.2%
Adj. Op. Margin	21.0%	21.5%	-50 bps
Adj. Diluted EPS	$1.08	$1.14	-5.3%
Free Cash Flow	$1.7B	$1.3B	+30.8%

FY25 was a challenging year for Kenvue, with organic sales declining 2.2% due to trade inventory reductions, weak seasonal incidences, and Asia Pacific disruptions . However, free cash flow improved significantly to $1.7 billion, driven by working capital improvements .

What About the Kimberly-Clark Merger?

The acquisition by Kimberly-Clark remains on track for an H2 2026 close . Key milestones completed:

✅ November 2, 2025: Definitive merger agreement signed
✅ January 29, 2026: Shareholders of both companies approved the transaction
✅ February 4, 2026: HSR antitrust waiting period expired
⏳ Pending: Foreign regulatory approvals

The cash and stock transaction will combine Kenvue's consumer health portfolio with Kimberly-Clark's personal care brands (Huggies, Kleenex, Scott). Management called it a "value-creating combination" .

New Restructuring Initiative

On the same day as earnings, Kenvue's Board approved a new cost optimization program targeting :

Workforce reduction: ~3.5% of global employees
Total charges: ~$250 million in FY 2026
Charge breakdown:
- IT and project costs: ~59%
- Employee severance: ~35%
- Other implementation: ~6%

The initiative aims to "optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies" . This follows the ongoing 2024 Multi-Year Restructuring Initiative, which incurred $335 million in charges during FY25 .

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Balance Sheet & Cash Flow

Metric	Q4 2025	Q4 2024
Cash & Equivalents	$1.1B	$1.1B
Total Debt	$8.5B	$8.6B
Net Debt	$7.5B	$7.5B
FY Operating Cash Flow	$2.2B	$1.8B
FY CapEx	$0.5B	$0.4B

Kenvue's balance sheet remains stable with net debt of $7.5 billion unchanged year-over-year. The company generated $2.2 billion in operating cash flow during FY25, a significant improvement from $1.8 billion in FY24 .

Geographic Performance (Q4 2025)

Region	Q4 Net Sales	YoY Change
North America	$1.76B	-4.5%
EMEA	$949M	+10.0%
Asia Pacific	$703M	+10.7%
Latin America	$369M	+14.6%

North America remained challenged (-4.5% YoY), while international markets delivered strong growth. Asia Pacific rebounded (+10.7%) after lapping last year's go-to-market disruption .

Key Takeaways

Solid beat, but no celebration: Q4 beat estimates on both revenue (+2.6%) and EPS (+21%), but management couldn't take a victory lap with no call or guidance due to the pending merger
Organic growth returns: +1.2% organic growth breaks a 3-quarter decline streak, though volume remains negative (-1.1%)
Essential Health is the bright spot: +4.2% organic growth shows Listerine, Band-Aid, and Johnson's still have growth potential
Self Care dragged by weather: Weak flu season hurt Tylenol and seasonal products, though December trends improved
More cuts coming: New restructuring adds ~$250M in charges on top of existing multi-year restructuring
Merger on track: Kimberly-Clark deal progressing toward H2 2026 close

What to Watch

Merger closing: Foreign regulatory approvals still pending for H2 2026 close
Restructuring execution: Can Kenvue deliver savings without disrupting operations?
Self Care recovery: Will Q1 2026 see seasonal product recovery after late-quarter flu spike?
Integration planning: How will Kenvue's brands fit into Kimberly-Clark's portfolio?

Data sourced from Kenvue's Q4 2025 8-K filing (February 17, 2026) and S&P Global consensus estimates.