Kenvue Inc. announced its financial results for the fiscal third quarter ended September 27, 2026, reporting a 3.2% increase in net sales compared to the prior year period. The company reported diluted earnings per share of $0.22 and adjusted diluted earnings per share of $0.29, marking increases of 5% and 4%, respectively, over the same timeframe. This marks the fourth consecutive quarter of net and organic sales growth for the consumer health company.
Key financial metrics for the quarter included a gross profit margin of 59.5% and an operating income margin of 18.2%. Adjusted gross profit margin was 61.5%, while adjusted operating income margin reached 21.9%. The company attributed the margin expansion to productivity gains from global supply chain optimization, U.S. tariff refunds, and favorable value realization.
Segment performance varied across the company's three main business areas. Self Care net sales increased by 5.9%, driven by strong performance in Pain Care, Smoking Cessation, and the Pepcid brand. Conversely, Skin Health and Beauty net sales increased by 0.1%, while Essential Health net sales increased by 2.5%, supported by growth in Baby Care, Women’s Health, and Wound Care.
Regarding its balance sheet, Kenvue reported net cash flows from operating activities of $1.9 billion for the fiscal nine months ended September 27, 2026. Free cash flow increased to $1.6 billion for the period, compared to $1.0 billion in the prior year. As of September 27, 2026, the company held $1.0 billion in cash and cash equivalents and had total debt of $8.2 billion.
The company noted that due to the pending transaction with Kimberly-Clark, it will not be providing forward-looking guidance or hosting a quarterly conference call. In February 2026, the company’s Board of Directors approved the 2026 Restructuring Initiative, which is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million for the fiscal year.
