Kenvue reports 3.2% Q3 sales growth, EPS up 5%

Kenvue (NYSE:KVUE) reported third-quarter 2026 net sales growth of 3.2% to $4.1 billion, marking its fourth consecutive quarter of net and organic sales growth, while diluted earnings per share increased 5% to $0.22.

Organic sales increased 2.9%, driven by 1.6% volume growth and 1.3% favorable value realization, while adjusted diluted EPS rose 4% to $0.29 from $0.28 a year earlier.

Gross profit margin increased to 59.5% from 59.1%, while operating income margin expanded to 18.2% from 16.7%; adjusted operating margin increased to 21.9% from 21.5%.

Self Care sales increased 5.9%, while Essential Health revenue rose 2.5%; Skin Health and Beauty sales increased 0.1%, although organic sales in that segment declined 0.5% during the quarter.

Kenvue generated $1.9 billion in operating cash flow during the first nine months of fiscal 2026, compared with $1.3 billion a year earlier, while free cash flow increased to $1.6 billion from $1 billion.

The company will not provide forward-looking financial guidance or host a quarterly earnings conference call because of its pending combination with Kimberly-Clark, while its 2026 restructuring initiative is expected to generate approximately $250 million in pre-tax charges.