Kimberly-Clark Corporation (NASDAQ:KMB) delivered a stronger-than-expected quarter on Tuesday, underscored by solid execution and expanding profit momentum, even as sales faced pressure from portfolio changes in the U.S. diaper business.
Management highlighted margin opportunities, particularly internationally, while expressing confidence in the company’s progress across global markets.
Kimberly-Clark is a global manufacturer of personal care and hygiene products, with a portfolio anchored by leading brands such as Huggies, Kleenex, Kotex, Depend, Scott, Cottonelle, Poise, and Viva.
Quarterly Metrics
The leading manufacturer in the tissue and hygiene sector reported fourth-quarter adjusted earnings per share of $1.86, beating the analyst consensus estimate of $1.81.
Quarterly sales of $4.08 billion missed the Street view of $4.09 billion. Revenues were down by 0.6%, with organic sales growth of 2.1%.
Gross margin was 35.9%, while adjusted gross margin was 37%, in line with the prior year. In the quarterly conference call, one of the company’s executives said international gross margin is a ‘big opportunity’.
Adjusted operating profit rose to $629 million, up 13.1% from a year earlier, driven by strong productivity gains and lower planned spending on marketing, research, and general expenses.
Net interest expense was $54 million, broadly in line with the prior year.
A Kimberly-Clark executive said the company’s conference call noted it is making very good progress across the board, citing performance in markets including Australia, Brazil, and South Korea.
“Acquiring Kenvue is a powerful next step in our transformation that will compound the momentum we’re already delivering across Kimberly-Clark. Importantly, it will also enable us to raise the standard of care for billions of people around the world,” said Kimberly-Clark Chairman and CEO Mike Hsu.
Kimberly-Clark exited the quarter with cash and equivalents worth $688 million. Inventories totaled $1.475 billion.
Dividend
The firm declared an increase in its regular quarterly dividend to $1.28 per share, up from $1.26 previously. The dividend is payable in cash on April 2, 2026.
2026 Outlook
Kimberly-Clark said it expects reported net sales to be pressured by a roughly 50-basis-point hit from exiting its U.S. private-label diaper business, with currency translation seen as largely neutral.
The company forecast mid- to high-single-digit adjusted operating profit growth on a constant-currency basis.
It also projected double-digit adjusted EPS growth from continuing operations on a constant-currency basis, driven by an expected jump in equity-company income, flat net interest expense, an adjusted effective tax rate of about 23% and essentially unchanged average shares outstanding versus 2025.
The firm said that earnings per share are expected to be favorably impacted by currency translation of approximately 130 basis points.
KMB Price Action: Kimberly-Clark shares were down 0.11% at $101.03 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by JHVEPhoto Shutterstock
