Kenvue reported second-quarter results that fell slightly short of Wall Street expectations, with multiple cost pressures impacting profitability. The consumer-health company’s adjusted gross margin contracted to 60.2% from 60.9% in the year-earlier period, as inflationary pressures, tariff expenses, and currency-related headwinds outpaced gains from supply-chain efficiencies and pricing increases.
The company posted adjusted earnings of 31 cents per share, trailing the analyst consensus estimate of 32 cents. Revenue reached $3.96 billion, representing 3% growth but falling just short of the $3.97 billion projection. Performance varied across the company’s business segments, with Self Care sales increasing 2.2% to $1.59 billion, bolstered by stronger Tylenol results in the U.S. market and expanded market share for Zyrtec and Pepcid products.
The Skin Health and Beauty division posted 5.1% sales growth to $1.11 billion, driven by heightened demand for hair and face-care offerings under brands including OGX and Neutrogena. Essential Health, which encompasses products like Listerine and Band-Aid, saw sales rise 2.3% to $1.25 billion. The company is proceeding with restructuring efforts expected to generate approximately $250 million in pre-tax charges in 2026, focused on operational simplification, supply-chain enhancement, and cost reduction.
Kenvue remains in the process of being acquired by Kimberly-Clark in a transaction valued at $40 billion, with completion anticipated in the fourth quarter of 2026.
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