Kenvue Inc. is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q2 2026 10-Q:
The all-stock-and-cash merger with K-C is expected to close in Q4 2026, with Kenvue shareholders to receive 0.14625 K-C shares and $3.50 cash per Kenvue share. Transaction-related costs of $16M were incurred in the quarter.
Management estimates gross annualized tariff exposure of approximately $80M from U.S. import tariffs, though internal mitigating actions are underway to partially offset the impact. The situation remains fluid following recent Supreme Court and executive actions.
A new restructuring program aimed at optimizing the operating model and supply chain was approved in February 2026. Restructuring expenses totaled $59M in Q2, similar to prior year, and are expected to drive future efficiencies.
Revenue
$3.96B
+3.02% YoY
EPS (Diluted)
$0.24
+9.09% YoY
Gross Margin
58.2%
-0.7 pts YoY
Operating Income
$699M
+1.01% YoY
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