Kimberly-Clark Announces First Quarter 2026 Results, Reaffirms 2026 Outlook; Delivers solid volume-plus-mix performance fueled by consumer-inspired innovation and strong in-market execution/Headline>

Published: 2026-04-29 11:34:20 ET KMB

Published on 04/29/2026 at 11:34 am EDT

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Release date- 28042026 - DALLAS, -- Kimberly-Clark Corporation (Nasdaq: KMB) today reported first quarter 2026 results driven by resilient consumer demand for the company's brands, the introduction of pioneering innovative new products, and leveraging sustained, industry-leading productivity.

'Our first quarter results highlight the strength and resilience of the growth engine we've built through Powering Care,' said Kimberly-Clark Chairman and CEO Mike Hsu. 'We continued to deliver solid volume-plus-mix performance while building share momentum despite continued geopolitical and macroeconomic uncertainty. We accomplished this by driving consumer-inspired innovation, growing brand love, and executing exceptionally well as a team. Simultaneously, we continue to generate meaningful cost savings that reinforce our strong financial foundation and enable us to invest in our exciting future.'

Hsu continued, 'With our core business gaining momentum and one of the strongest innovation and commercial activation lineups in our history set to launch in the second quarter, we're preparing Kimberly-Clark to unlock the unique, generational value creation opportunity ahead with the acquisition of Kenvue. We have industry-leading momentum thanks to our teams around the world, and we're excited to accelerate into our next chapter and build a company unlike any other in our industry today.'

Quarter Highlights

Unless otherwise noted, reported results in this release are based on continuing operations and exclude the International Family Care and Professional ('IFP') business, which is reported as discontinued operations.

Delivered net sales of $4.2 billion, up 2.7 percent, with organic sales growth of 2.5 percent.

Gross margin was 36.8 percent; adjusted gross margin was 37.9 percent, down 60 basis points versus the prior year.

Operating profit for the quarter was $753 million, while adjusted operating profit was $732 million, up 3.7 percent versus the prior year driven by strong productivity savings, lower marketing, research and general expenses reflecting overhead savings, and favorable currency translation.

Diluted earnings per share ('EPS') from continuing operations were $1.70; adjusted EPS from continuing operations were $1.60, down 1.2 percent versus the prior year.

Diluted EPS attributable to Kimberly-Clark were $2.00; adjusted EPS attributable to Kimberly-Clark were $1.97, up 2.1 percent versus the prior year.

First Quarter 2026 Results

Net sales of $4.2 billion increased 2.7 percent, as organic sales growth of 2.5 percent and favorable currency impacts of 2.0 percent were partially offset by a 1.8 percent decline from the exit of the company's private label diaper business in the US. Organic sales growth was driven by volume-plus-mix growth of 3.0 percent, partially offset by lower pricing of 0.5 percent to drive trial of new products and enhance value propositions.

Gross margin was 36.8 percent compared to 37.2 percent in the prior year, inclusive of $42 million, or 110 basis points, and $53 million, or approximately 130 basis points, respectively, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 37.9 percent, a decrease of 60 basis points versus the prior year as strong productivity savings were more than offset by unfavorable pricing net of cost inflation, reflecting planned investments to drive new product trial and improve price:value tiers across the portfolio, and supply chain related investments.

First quarter operating profit was $753 million compared to $631 million in the prior year. Current quarter results included a $120 million benefit related to the settlement of insurance claims from a previous acquisition, and $99 million of charges related to the 2024 Transformation Initiative and Kenvue acquisition. Prior year results included $75 million of charges related to the 2024 Transformation Initiative. Excluding these items, adjusted operating profit was $732 million compared to $706 million, an increase of 3.7 percent driven by strong productivity savings, lower marketing, research and general expenses, and favorable currency translation.

Net interest expense was $53 million versus $57 million in the prior year primarily driven by lower interest expense.

The first quarter effective tax rate was 23.9 percent, compared to 23.5 percent in the prior year. On an adjusted basis, the effective rate was 26.2 percent compared to 20.7 percent in the prior year, primarily reflecting discrete unfavorable factors in the current year compared to discrete tax benefits in the first quarter of 2025 related to the resolution of certain tax matters as well as a change in the US tax law effective July 2025.

Net income of equity companies was $53 million compared to $44 million in the prior year driven primarily by favorable currency translation.

Income from discontinued operations, net of income taxes was $101 million, inclusive of pre-tax separation costs of $32 million, compared to $103 million in the prior year. Adjusted income from discontinued operations was $125 million compared to $103 million in the prior year, an increase of 21.4 percent primarily driven by lower depreciation and amortization expense of approximately $30 million in the current year due to reporting requirements for discontinued operations.

Diluted EPS from continuing operations were $1.70 compared to $1.39 in the prior year. These reported amounts are inclusive of a $0.10 net benefit and $0.23 of charges, respectively, for the certain items discussed above that management doesn't believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS from continuing operations were $1.60, a decline of 1.2 percent primarily due to the higher adjusted effective tax rate discussed above.

Diluted EPS attributable to Kimberly-Clark in the quarter were $2.00 compared to $1.70 in the prior year. These reported amounts are inclusive of $0.03 of net benefit and $0.23 of charges, respectively, for certain items discussed above that management doesn't believe reflect our underlying and ongoing operations. Excluding these items, adjusted EPS attributable to Kimberly-Clark were $1.97, up 2.1 percent driven by higher adjusted operating profit and income from discontinued operations, partially offset by a higher adjusted effective tax rate.

Business Segment Results

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