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
KVUE delivered strong FY2025 profit growth despite a 2.1% revenue decline, with net income surging 42.7% to $1.47B and operating margin expanding 400 basis points to 16.0%, driven by significant cost discipline across SG&A and R&D.
Revenue
$15.12B
-2.14% YoY
EPS (Diluted)
$0.76
+40.74% YoY
Gross Margin
58.1%
+0.2 pts YoY
Operating Income
$2.41B
+31.12% YoY
Source: SEC XBRL
Kenvue (KVUE) reported FY2025 revenue of $15.12B, down 2.1% year over year. Operating margin was 16.0%, up 4.1 points from 11.9% a year earlier. Operating cash flow was $2.2B, up 24.2% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.31 | 0.33 | Miss -4.8% |
| Mar 2026 | 0.32 | 0.27 | Beat +19.6% |
| Dec 2025This filing | 0.27 | 0.23 | Beat +19.7% |
| Sep 2025 | 0.28 | 0.27 | Beat +3.5% |
Reported EPS of $0.27 versus the $0.23 analyst consensus — a +19.7% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue fell 2.1% YoY to $15.12B in FY2025, yet aggressive cost management drove operating income up 31.1% to $2.41B, reflecting a meaningful shift in profitability despite top-line pressure.
Source: 10-K Income Statement
SG&A expenses declined 3.8% YoY to $6.09B, and R&D expenses fell 6.4% to $382M, together contributing to a 400 bps improvement in operating margin from 11.9% to 16.0%.
Source: 10-K Income Statement
Operating cash flow grew 24.2% YoY to $2.20B, well above net income of $1.47B, indicating high earnings quality and strong cash conversion from operations.
Source: 10-K Cash Flow Statement
KVUE paid $1.58B in dividends in FY2025, representing a 1.9% increase YoY, underscoring the company's commitment to returning capital to shareholders even as share buybacks declined 16.2% to $197M.
Source: 10-K Cash Flow Statement
Stockholders' equity grew 11.3% YoY to $10.77B, and total assets increased 5.8% to $27.08B, reflecting improved retained earnings and a stronger equity base heading into the next fiscal year.
Source: 10-K Balance Sheet
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
KVUE's revenue declined 2.1% YoY to $15.12B, suggesting potential challenges in volume, pricing, or market share. Sustained top-line pressure could limit the company's ability to grow earnings through cost cuts alone, as further SG&A reductions may become increasingly difficult.
Source: 10-K Income Statement
KVUE's current ratio stands at 0.958, meaning current liabilities of $5.95B exceed current assets of $5.70B. This indicates the company may face short-term liquidity constraints and could need to rely on credit facilities or refinancing to meet near-term obligations.
Source: 10-K Balance Sheet
The debt-to-equity ratio of 1.52 indicates KVUE carries significantly more debt than equity, which increases financial risk, particularly in a rising interest rate environment. High leverage limits financial flexibility and could constrain future investment or acquisition activity.
Source: 10-K Balance Sheet
KVUE paid $1.58B in dividends in FY2025, which exceeds its net income of $1.47B, meaning the dividend is not fully covered by earnings. While operating cash flow of $2.20B provides coverage, this payout level may be difficult to sustain if earnings or cash flows deteriorate.
Source: 10-K Cash Flow Statement
R&D expenses fell 6.4% YoY to $382M, which may reflect cost discipline but could also signal reduced investment in product innovation. For a consumer health company, underinvestment in R&D over time could erode competitive positioning and long-term growth prospects.
Source: 10-K Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 15.12 $B | 15.46 $B | -2.14% |
Cost of Revenue $B | 6.33 $B | 6.50 $B | -2.52% |
Gross Profit $B | 8.79 $B | 8.96 $B | -1.86% |
Operating Income $B | 2.41 $B | 1.84 $B | +31.12% |
Net Income $B | 1.47 $B | 1.03 $B | +42.72% |
EPS (Basic) $ | 0.77 $ | 0.54 $ | +42.59% |
EPS (Diluted) $ | 0.76 $ | 0.54 $ | +40.74% |
R&D Expense $M | 382.00 $M | 408.00 $M | -6.37% |
SG&A Expense $B | 6.09 $B | 6.33 $B | -3.81% |
Answers draw on this SEC filing and the data on this page
Kenvue posted solid top-line growth in Q2 FY2026, with net income lifted by a lower tax rate, though gross margins narrowed under tariff and inflation pressures.
Kenvue (KVUE) delivered a strong Q1 2026 with revenue up 4.5% YoY to $3.91B, while operating income surged 37.5% and net income jumped 47.2% to $474M, driven by significant cost discipline and margin expansion.
Other companies in Personal Care Products