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’s Q2 FY2026 was defined by flat organic sales (–0.1%) as a 50‑basis‑point headwind from false social‑media allegations in China offset demand elsewhere. Gross margin surged on one‑time tariff refunds and productivity gains, driving adjusted EPS up 10.4% to $1.80. Reported net income, however, fell 32% after a loss from discontinued IFP operations and $109 million in Kenvue acquisition costs. The quarter’s strength rested on cost execution, but the top line remained stalled and the Kenvue deal introduced sizable below‑the‑line charges.
Revenue
$4.19B
+0.62% YoY
EPS (Diluted)
$1.04
-32.03% YoY
Gross Margin
38.3%
+3.3 pts YoY
Operating Income
$633M
+6.93% YoY
Source: SEC XBRL
Kimberly Clark (KMB) reported Q2 FY2026 revenue of $4.19B, up 0.6% year over year. Operating margin was 15.1%, up 0.9 points from 14.2% a year earlier. KMB's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.80 | 2.03 | Miss -11.5% |
| Mar 2026 | 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 $1.80 versus the $2.03 analyst consensus — a -11.5% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.04.
2 reported segments · SEC XBRL
Segment revenue totals $4.19B, which is the $4.19B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure KMB itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
False allegations on social media regarding diaper quality caused a significant drop in China diaper sales, creating an estimated 50 bps drag on total organic sales and a 140 bps headwind for the IPC segment. The impact is expected to persist in the near term.
Source: 10-Q Item 2 MD&A
The pending acquisition of Kenvue incurred $109 million in costs during Q2. The deal is expected to require ~280 million shares and $6.7 billion in cash, backed by $7.7 billion in bridge financing.
Source: 10-Q Item 2 MD&A
The IFP joint venture with Suzano closed on July 1, 2026. Pre‑tax separation charges of $72 million and a net tax charge of $107 million were recognized in discontinued operations during the quarter.
Source: 10-Q Item 2 MD&A
Gross profit benefited from approximately $120 million in one‑time tariff refunds and productivity savings from the 2024 Transformation Initiative, which lifted adjusted gross margin by 190 basis points.
Source: 10-Q Item 2 MD&A
The restructuring program was extended through 2028, targeting $3.0 billion in pre‑tax savings and $1.5 billion in costs. Cumulative pre‑tax charges now total $913 million, with selling and administrative savings nearly 95% realized.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
False allegations on social media regarding product quality in China significantly reduced diaper sales in Q2 FY2026, with an estimated 50 bps drag on total organic sales and 140 bps on IPC organic growth. The situation is expected to continue adversely affecting sales and profits in the near term.
Source: 10-Q Item 2 MD&A
The acquisition of Kenvue involves issuing approximately 280 million shares and paying $6.7 billion in cash, exposing the company to integration, financing, and synergy realization risks. $109 million in deal costs were incurred in Q2, and failure to complete or integrate the acquisition could harm results.
Source: 10-Q Item 2 MD&A
Ongoing geopolitical conflicts in the Middle East have caused volatile energy and raw material prices. The company estimates $150 million in incremental input costs for the remainder of 2026, which could offset margin gains if mitigation actions are insufficient.
Source: 10-Q Item 2 MD&A
With approximately 31% of revenue from outside North America, adverse currency movements—particularly in hyperinflationary markets like Argentina and Turkey—can materially impact reported sales and profits, as seen in Q2 where currency translation added to revenue but also introduced volatility.
Source: 10-Q Item 2 MD&A
The multi‑year restructuring program, now extended through 2028, targets $3.0 billion in savings but carries execution risks including workforce reductions of 4–5%, asset write‑offs, and potential failure to achieve cost savings, which could disrupt operations and financial performance.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.19 $B | 4.16 $B | +0.62% |
Cost of Revenue $B | 2.59 $B | 2.71 $B | -4.47% |
Gross Profit $B | 1.60 $B | 1.46 $B | +10.10% |
Operating Income $M | 633.00 $M | 592.00 $M | +6.93% |
Net Income $M | 345.00 $M | 509.00 $M | -32.22% |
EPS (Basic) $ | 1.04 $ | 1.53 $ | -32.03% |
EPS (Diluted) $ | 1.04 $ | 1.53 $ | -32.03% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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