KVUE · Q1 2026 Earnings

Neutral

Kenvue

Reported May 7, 2026

30-second summary

Reported revenue rose 4.5% YoY to $3.91B with non-GAAP EPS of $0.32, helped meaningfully by a 3.8% FX tailwind that flipped the optics — strip currency out and organic sales were +0.7%, with Self Care organic still negative at -2.3%. Adjusted operating margin expanded to 24.0% (Q1 is seasonally the strongest margin quarter), and the company once again declined to provide forward guidance pending the Kimberly-Clark close expected in 2H 2026. With the deal mechanics doing the work, the operational read is: Skin Health & Beauty continued the Q4 recovery (+5.0% organic), Essential Health decelerated from Q4's +4.2% to +1.5%, and Self Care has not yet inflected.

Headline numbers

EPS

Q1 FY2026

$0.32

Revenue

Q1 FY2026

$3.91B

+4.5% YoY

Gross margin

Q1 FY2026

58.9%

Free cash flow

Q1 FY2026

$0.40B

Operating margin

Q1 FY2026

19.6%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$3.91B	+4.5%	$3.78B	+3.4%
EPS	$0.32	—	$0.27	+18.5%
Gross margin	58.9%	—	56.5%	+240bps
Operating margin	19.6%	—	14.2%	+540bps
Free cash flow	$0.40B	—	—	—

Guidance

No quantitative guidance provided either quarter due to pending Kimberly-Clark transaction; Q1 FY2026 actuals show modest 4.5% YoY revenue growth with 0.7% organic sales growth.

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Self Care	$1.699B	+1.9%
Skin Health and Beauty	$1.059B	+8.4%
Essential Health	$1.151B	+4.9%
Self Care Organic Sales Growth	-2.3%	—
Skin Health and Beauty Organic Sales Growth	5.0%	—
Essential Health Organic Sales Growth	1.5%	—

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Organic Sales Growth	0.7%
Foreign Currency Benefit	3.8%

Profitability

Q1 FY2026

Segment	Q1 FY2026
Adjusted Gross Profit Margin	60.8%
Adjusted Operating Income Margin	24.0%
EBITDA Margin (Adjusted)	26.0%

Management tone

No earnings call was held — Kenvue has not hosted a quarterly conference call since the Kimberly-Clark deal was announced in November. Disclosure is now press-release only, confirming the cadence compression flagged on the Q4 watch list.

Narrative arc: Self-induced complexity (Q2) → Decisive actions (Q3) → Deal closeout (Q4) → Deal-pending caretaker mode (Q1).

The Q1 press release is the thinnest strategic communication Kenvue has issued since the spin. Where Q4 still carried Perry's "decisive actions" language as a closeout flourish, Q1 reads as caretaker disclosure: segment numbers, margin lines, and the standardized Kimberly-Clark transaction paragraph. The brand portfolio review language is fully retired. The Self Care organic regression from -1.2% to -2.3% is not explained, defended, or contextualized in the release — a notable absence given that Self Care recovery was the operational thesis Perry built the Q3 and Q4 commentary around. With no call and no Q&A, there is no mechanism for analysts to test it.

Answers to last quarter's watch list

Kimberly-Clark transaction close timing and regulatory progress — The Q1 release reaffirms expected close in 2H 2026, subject to foreign regulatory approvals. No new approval milestones are disclosed beyond the HSR clearance and shareholder vote already captured in Q4.

Continue monitoring

North America trajectory — The press release discloses North America Q1 revenue of $1.86B but does not provide a YoY growth rate by region. Without the comparable, we cannot confirm whether the -4.5% Q4 decline narrowed.

Not resolved

Self Care organic recovery — Self Care organic worsened from -1.2% in Q4 to -2.3% in Q1. The Q4 thesis — that Tylenol consumption uptick and seasonal incidence normalization would carry the segment positive — did not play out in Q1.

Resolved negatively

Whether Kenvue continues quarterly reporting cadence pre-close — Confirmed press-release-only: no conference call, no prepared remarks, no Q&A. Disclosure has compressed as flagged. Status: Resolved (as expected)

Deal-related charges and adjustments — The Q1 release continues to break out Proposed Transaction costs as an adjustment to non-GAAP figures; the specific dollar amount for Q1 is not surfaced in the extraction data available.

Continue monitoring

What to watch into next quarter

Kimberly-Clark transaction regulatory progress: foreign approvals are the remaining gating items for a 2H 2026 close. Watch for EU and key APAC antitrust milestones in the Q2 release.

Self Care organic trajectory: -2.3% in Q1 is worse than Q4's -1.2%. Four consecutive quarters of decline. Watch whether Q2 stabilizes or whether the segment slips further — the deeper this goes pre-close, the more Kimberly-Clark inherits a turnaround rather than a stabilized asset.

Skin Health & Beauty sustainability: +5.0% organic is the strongest segment print in over a year. Watch whether Q2 sustains a +3% or better organic pace.

FX tailwind durability: +3.8% FX benefit drove most of the reported revenue beat over organic. If currency reverses, reported revenue growth could turn negative even with stable organic.

North America growth disclosure: the absence of regional YoY growth rates in the Q1 release is a step backward in disclosure quality. Watch whether Q2 restores it or whether the press release shrinks further.

Sources

Kenvue Q1 FY2026 press release (SEC filing): https://www.sec.gov/Archives/edgar/data/1944048/000194404826000097/q126earningspressrelease.htm
Kenvue Q4 FY2025 brief (prior-quarter context and watch list)
Kenvue Q3 FY2025 brief (Kimberly-Clark deal announcement context)

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.