Kenvue Inc (NYSE:KVUE) reported fourth quarter results that topped Wall Street expectations, while the consumer health company also outlined restructuring steps ahead of its planned combination with Kimberly-Clark.
For Q4, Kenvue posted adjusted earnings per share of $0.27, beating analyst estimates of $0.22.
Revenue came in at $3.78 billion, also above the $3.68 billion consensus.
Net sales rose 3.2% year over year, driven by organic sales growth of 1.2% and a 2.1% foreign currency benefit. The company said favorable pricing contributed to growth but was partly offset by a 1.1% decline in volume.
Profitability metrics showed modest improvement. Gross profit margin was flat at 56.5%, while adjusted gross margin edged up to 58.8% from 58.7% a year earlier. Operating income margin rose to 14.2% from 13.2%, with adjusted operating margin improving to 19.9% from 19.2%.
For the full year, Kenvue reported net sales down 2.1% and organic sales down 2.2%. Diluted EPS was $0.76, while adjusted diluted EPS was $1.08.
Kenvue CEO Kirk Perry said the company finished the year with improved momentum. “We ended 2025 with stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as a more favorable year-ago comparison on sales,” Perry said in a statement.
Further, Kenvue said its $48.7 billion acquisition by Kimberly-Clark (NYSE: KMB) has received shareholder approval and cleared US antitrust waiting requirements. The transaction is expected to close in the second half of 2026, subject to foreign regulatory approvals and other customary conditions. Due to the pending deal, the company said it will not provide forward-looking guidance.
Ahead of integration, Kenvue announced a workforce reduction of about 3.5% and expects to record roughly $250 million in restructuring charges tied to the move.
Shares of Kenvue were little changed on the update at about $18 before Wednesday’s opening bell.