KVUE · Q4 2025 Earnings

Neutral

Kenvue

Reported February 17, 2026

30-second summary

After three quarters of organic declines, Q4 organic sales inflected to +1.2% with reported revenue +3.2% to $3.78B, and FY2025 non-GAAP EPS landed at $1.08 — $0.03 above the high end of the $1.00–$1.05 range Perry reaffirmed in Q3. Essential Health led with organic +4.2% and Skin Health & Beauty returned to organic growth at +1.5%, while Self Care organic remained negative at -1.2%. With the Kimberly-Clark deal pending, the company withdrew all forward guidance, so the operational improvement matters mainly as deal optics rather than a standalone trajectory.

Headline numbers

EPS

Q4 FY2025

$0.27

Revenue

Q4 FY2025

$3.78B

+3.2% YoY

Gross margin

Q4 FY2025

56.5%

Operating margin

Q4 FY2025

14.2%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$3.78B	+3.2%	$3.76B	+0.4%
EPS	$0.27	—	$0.28	-3.6%
Gross margin	56.5%	—	59.1%	-260bps
Operating margin	14.2%	—	16.7%	-250bps

Guidance

Kenvue beat full-year non-GAAP EPS guidance ($1.08 vs. $1.00–$1.05 range) and maintained margin resilience despite revenue decline in line with guidance; forward guidance suspended pending Kimberly-Clark transaction.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
EPS (non-GAAP)	FY2025	$1.00–$1.05	$1.08	+$0.03 above the high end of guide	Beat
Revenue	FY2025	down low-single-digits	$15.124B (-2.1% YoY)	in-line with qualitative guidance	Met
Adjusted Operating Income Margin	FY2025	expected to decline year-over-year	21.0%	margin resilience despite revenue headwinds	Beat

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Guidance	Q1 FY2026	N/A (no prior Q1 FY2026 guidance provided)	Withdrawn — no replacement	—	Withdrawn

Segment performance

Q4 FY2025

Segment	Q4 FY2025	YoY
Self Care	$1.592B	+1.5%
Skin Health and Beauty	$1.04B	+2.9%
Essential Health	$1.148B	+6.1%

Platform metrics

Q4 FY2025

Segment	Q4 FY2025
Organic Sales Growth	1.2%
Volume Growth	-1.1%
Price/Mix (Value Realization)	2.3%
Foreign Currency Impact	2.1%

Profitability

Q4 FY2025

Segment	Q4 FY2025
Adjusted Gross Profit Margin	58.8%
Adjusted Operating Income Margin	19.9%
Full Year Free Cash Flow	$1.7B
Full Year Adjusted Operating Income Margin	21.0%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
North America	$1.759B	-4.5%
Europe, Middle East, and Africa	$0.949B	+10.0%
Asia Pacific	$0.703B	+10.7%
Latin America	$0.369B	+14.6%

Management tone

No earnings call was held — Kenvue did not host a quarterly conference call for Q4, consistent with the cancellation pattern that began after the Kimberly-Clark deal announcement in November. The Company posted a press release only; no prepared remarks or Q&A are available for tone analysis.

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

The Q4 release is materially shorter on strategy commentary than Q3, reflecting the now-routine reality that Kenvue is being absorbed. Where the Q3 press release still carried Perry's language about "decisive actions we are taking to accelerate Kenvue's performance," the Q4 release pivots to closeout framing — celebrating the EPS beat and margin resilience as final standalone deliverables rather than building blocks for a forward plan. The strategic review and brand portfolio optimization language that anchored Q2 and Q3 is gone; the asset base is now Kimberly-Clark's problem to optimize, not Kenvue's. The guidance withdrawal is the most concrete signal: a company that issued both quarterly and FY guidance every quarter through Q3 has now formally stepped out of that cadence, and will not re-enter it as a standalone entity.

Answers to last quarter's watch list

Kimberly-Clark deal mechanics — The Q4 release confirms shareholder approval (January 29, 2026) and HSR waiting period expiration (February 4, 2026), with close expected in 2H 2026 subject to foreign regulatory approvals. No updated exchange ratio or financial terms are disclosed.

Continue monitoring

Asia Pacific revenue trajectory — APAC reported net sales rose 10.7% in Q4 to $703M (vs. $635M prior year), supported by lapping the prior-year go-to-market disruption. The Self Care commentary explicitly notes an organic rebound in APAC, though segment-by-region organic detail is not disclosed.

Resolved positively

Volume vs. price/mix decomposition — Total volume drag narrowed to -1.1% in Q4 with price/mix at +2.3%. Self Care volume remained the weak spot at -3.1%; Essential Health turned volume-positive at +1.3%. Directional improvement supports the organic-sales inflection.

Resolved positively

FY2025 EPS landing in the range — Beat the high end: FY non-GAAP EPS $1.08 vs. guide of $1.00–$1.05, with Q4 non-GAAP EPS of $0.27.

Resolved positively

Adjusted operating margin in Q4 — Q4 adjusted operating margin came in at 19.9%, with FY at 21.0% beating the qualitative "decline YoY" guide. Proposed Transaction costs of $25M are explicitly broken out as an adjustment to Q4 adjusted operating income, so deal costs are being normalized out. Status: Resolved

What to watch into next quarter

Kimberly-Clark transaction close timing and regulatory progress: with guidance withdrawn, the deal is now the only thing that matters for KVUE shareholders. HSR is cleared and shareholders have approved; remaining gating items are foreign regulatory approvals, with close expected in 2H 2026.

North America trajectory: -4.5% reported in Q4 — the only region still in clear decline. Whether this stabilizes matters for the post-close integration plan and any synergy targeting Kimberly-Clark eventually discloses.

Self Care organic recovery: Q4 organic -1.2% with volume -3.1% — the narrative depends on U.S. seasonal incidences normalizing and the Tylenol consumption uptick observed in December extending.

Whether Kenvue continues quarterly reporting cadence pre-close: guidance is withdrawn, but earnings releases remain an SEC obligation while the company is public. Watch whether Q1 FY2026 is a press-release-only print or whether disclosure further compresses.

Deal-related charges and adjustments: Q4 already carries $25M of Proposed Transaction costs as an adjustment; expect this line to grow as close approaches.

Sources

Kenvue Q4 FY2025 press release (SEC filing): https://www.sec.gov/Archives/edgar/data/1944048/000194404826000016/q425earningspressrelease.htm
Kenvue Q3 FY2025 brief (prior-quarter context and watch list)
Kenvue Q2 FY2025 brief (CEO transition and strategic review context)
Kenvue / Kimberly-Clark definitive merger agreement announcement (November 2025)

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