Kimberly-Clark Reports Q3 Earnings Above Forecasts as China Disruptions Affect Organic Sales

Kimberly-Clark Corporation (NASDAQ:KMB) reported third-quarter adjusted earnings and revenue above analysts’ expectations, although organic sales declined amid disruptions in China and retailer inventory adjustments in North America.

The consumer products company posted adjusted earnings of $1.70 per share, exceeding the consensus estimate of $1.61. Revenue reached $4.13 billion, slightly above expectations of $4.11 billion, but declined 0.4% year over year.

Kimberly-Clark shares fell approximately 1% following the results.

China Disruptions Affect Sales and Profitability

Organic sales declined 1.3% during the quarter, including an estimated 270-basis-point impact from social media disruptions in China. Retailer inventory movements in North America also affected sales performance.

Adjusted gross margin decreased 130 basis points to 35.5%, reflecting pricing pressures relative to cost inflation and supply chain investments, partially offset by productivity savings.

Adjusted operating profit declined 0.9% to $677 million. The company estimated that the China disruption reduced operating profit growth by approximately 530 basis points.

“Our third quarter results reflect a dynamic operating environment and several discrete impacts,” said Chairman and CEO Mike Hsu. “Our team continues to execute with agility, and the underlying momentum of our business remains strong.”

North America Sales Rise as International Personal Care Declines

Kimberly-Clark’s North America segment reported net sales of $2.7 billion, an increase of 0.9% from the previous year.

Organic sales in the region increased 0.4%, despite the impact of retailer inventory adjustments.

International Personal Care recorded net sales of $1.4 billion, down 2.8% year over year. Organic sales declined 4.6%, primarily reflecting the disruption in China.

Full-Year 2026 Outlook Reaffirmed

Kimberly-Clark maintained its standalone financial guidance for 2026, forecasting organic sales growth approximately 100 basis points below weighted average category growth of 1.7%.

The company also expects adjusted operating profit to increase at a mid-single-digit rate on a constant-currency basis.

Adjusted earnings per share from continuing operations are projected to grow at a high-single-digit rate, also on a constant-currency basis.

The unchanged outlook follows third-quarter results in which adjusted earnings exceeded expectations despite lower organic sales and operating margin pressures.

Kimberley-Clark stock price