Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Kimberly-Clark (KMB) delivered a strong Q1 2026 with revenue up 2.7% to $4.16B, operating income surging 19.3% to $753M, and operating cash flow more than doubling to $745M, reflecting improved operational efficiency despite modest gross margin compression.
Revenue
$4.16B
+2.69% YoY
EPS (Diluted)
$2.00
+17.65% YoY
Gross Margin
36.8%
-0.4 pts YoY
Operating Income
$753M
+19.33% YoY
Source: SEC XBRL
Kimberly Clark (KMB) reported Q1 FY2026 revenue of $4.16B, up 2.7% year over year. Operating margin was 18.1%, up 2.5 points from 15.6% a year earlier. Operating cash flow was $745M, up 127.8% year over year. KMB's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.12 | 2.03 | Beat +4.2% |
| Mar 2026This filing | 1.97 | 1.91 | Beat +3.1% |
| Dec 2025 | 1.86 | 1.83 | Beat +1.7% |
| Sep 2025 | 1.82 | 1.77 | Beat +2.6% |
Adjusted (non-GAAP) EPS of $1.97 versus the $1.91 analyst consensus — a +3.1% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.00.
Compiled by AI from this SEC filing
Net sales increased 2.7% year-over-year to $4.16B in Q1 2026 (vs. $4.05B in Q1 2025), suggesting continued consumer demand for KMB's personal care and tissue products despite a challenging macro environment.
Source: 10-Q Income Statement, Q1 2026
Operating income jumped 19.3% to $753M, with operating margin expanding approximately 252 basis points to 18.1% from 15.6%, indicating meaningful cost discipline and operational efficiency improvements beyond simple revenue growth.
Source: 10-Q Income Statement & Key Ratios, Q1 2026
Gross margin declined slightly by approximately 37 basis points to 36.8% (from 37.2%), as cost of revenue grew 3.3%—faster than revenue growth of 2.7%—suggesting input cost or mix headwinds at the product level.
Source: 10-Q Income Statement & Key Ratios, Q1 2026
Operating cash flow surged 127.8% year-over-year to $745M (vs. $327M in Q1 2025), a dramatic improvement that signals stronger working capital management and higher-quality earnings conversion in the quarter.
Source: 10-Q Cash Flow Statement, Q1 2026
Stockholders' equity rose 63.1% year-over-year to $1.80B from $1.10B, reflecting retained earnings accumulation and improved balance sheet health, even as the company paused share buybacks entirely (vs. $61M in Q1 2025).
Source: 10-Q Balance Sheet, Q1 2026
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
KMB's current ratio stands at 0.77, meaning current liabilities of $6.90B significantly exceed current assets of $5.29B. This structural liquidity gap requires the company to continuously access capital markets or generate strong operating cash flow to meet near-term obligations, which could be strained in a credit tightening environment.
Source: 10-Q Balance Sheet & Key Ratios, Q1 2026
Cost of revenue grew 3.3% versus revenue growth of 2.7%, causing gross margin to slip to 36.8% from 37.2%. If commodity prices (pulp, superabsorbent polymers, energy) remain elevated or accelerate, further gross margin erosion could offset the operating leverage gains seen this quarter.
Source: 10-Q Income Statement, Q1 2026
Investing cash outflows nearly tripled to -$355M from -$119M year-over-year, suggesting significant capital expenditure or acquisition activity. Sustained high capex could pressure free cash flow and limit financial flexibility for dividends or debt reduction.
Source: 10-Q Cash Flow Statement, Q1 2026
With total assets of $17.18B and stockholders' equity of only $1.80B, KMB operates with substantial financial leverage. While equity improved 63.1% YoY, the debt-to-equity ratio remains elevated, making the company sensitive to interest rate increases and refinancing risk.
Source: 10-Q Balance Sheet, Q1 2026
Share repurchases dropped to $0 in Q1 2026 from $61M in Q1 2025, a 100% decline. While this may reflect prudent capital conservation, it could disappoint income-oriented investors who rely on buybacks as a component of total shareholder return.
Source: 10-Q Cash Flow Statement, Q1 2026
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.16 $B | 4.05 $B | +2.69% |
Cost of Revenue $B | 2.63 $B | 2.55 $B | +3.30% |
Gross Profit $B | 1.53 $B | 1.51 $B | +1.66% |
Operating Income $M | 753.00 $M | 631.00 $M | +19.33% |
Net Income $M | 665.00 $M | 567.00 $M | +17.28% |
EPS (Basic) $ | 2.00 $ | 1.71 $ | +16.96% |
EPS (Diluted) $ | 2.00 $ | 1.70 $ | +17.65% |
Answers draw on this SEC filing and the data on this page
Kimberly-Clark’s Q2 FY2026 earnings showcased strong margin expansion and adjusted profit growth, overshadowed by a China social‑media disruption and heavy acquisition‑related costs.
Kimberly-Clark (KMB) reported a challenging FY2025 with revenue declining 2.1% to $16.45B and net income falling 20.6% to $2.02B, pressured by higher costs and restructuring-related headwinds despite maintaining strong operating cash flow of $2.78B.
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