Kenvue ended 2025 with improved Q4 performance driven by disciplined execution and favorable year-ago comparisons. The company is focused on enhancing performance and progressing its value-creating combination with Kimberly-Clark, which is expected to close in the second half of 2026.
Q4 Net sales increased 3.2% year-over-year, with organic sales growing 1.2% and a foreign currency benefit of 2.1%.
positiveQ4 Operating income margin improved to 14.2% from 13.2% in the prior year period.
positiveQ4 Diluted EPS increased to $0.17 from $0.15 in the prior year period.
positiveFull year 2025 Net cash flows from operating activities increased to $2.2 billion from $1.8 billion in the prior year period, leading to a Free cash flow increase to $1.7 billion.
positiveFull year 2025 Net sales decreased 2.1% year-over-year, with organic sales declining 2.2% due to a 2.3% volume decrease.
negativeQ4 Organic sales declined 1.2%, driven by a 3.1% volume decrease, partially offset by favorable value realization.
attentionFull year 2025 Organic sales decline was driven by a 2.3% volume decrease, impacting the Self Care segment.
negativeQ4 Adjusted effective tax rate increased to 20.2% from 17.7% in the prior year period.
attentionFull year 2025 Adjusted gross profit margin declined 20 basis points to 60.2% from 60.4% in the prior year period.
attentionFull year 2025 Adjusted operating income margin decreased to 21.0% from 21.5% in the prior year period.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Self Care | N/A | — | — | — |
Skin Health and Beauty | N/A | — | — | — |
Essential Health | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Ended 2025 with stronger top- and bottom-line performance in the fourth quarter.
Reflected both disciplined execution against strategic priorities and a more favorable year-ago comparison on sales.
Focused on continuing to enhance performance while progressing toward completion of the value-creating combination with Kimberly-Clark.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.