Kimberly-Clark Corp
Q2 2026 Earnings
Market Reaction
Did KMB Beat Earnings? Q2 2026 Results
Kimberly-Clark delivered a mixed but broadly encouraging second quarter for fiscal 2026, posting adjusted EPS attributable to the company of $2.12, clearing the $2.01 consensus estimate by 5.68% and extending its streak of consensus EPS beats to five consecutive quarters, even as revenue came in at $4.19 billion, a narrow 0.82% below expectations but still 0.6% higher year-over-year. The headline beat was driven largely by a 190 basis point expansion in adjusted gross margin to 38.8%, fueled by one-time tariff refunds and productivity savings, which helped lift adjusted operating profit 6.2% to $757.00 million. Partially offsetting those gains, a viral social media misinformation campaign targeting diaper quality in China dragged on organic sales by roughly 50 basis points, a headwind the company expects to persist near-term. Looking ahead, Kimberly-Clark now anticipates organic sales growth approximately 100 basis points below its weighted average category growth, with adjusted operating profit seen rising mid-single digits on a constant-currency basis. The company also extended its dividend increase streak to 54 consecutive years, declaring a quarterly payout of $1.28 per share.
- Innovation-driven volume-plus-mix gains
- Industry-leading gross productivity savings
- One-time tariff refunds
- Favorable currency impacts
- Lower net interest expense
- Higher income from equity companies
“Our achievements in the first half of the year show that Kimberly-Clark's durable operating model is enabling us to accelerate our transformation while sustaining the momentum of our brands and businesses. Our team is executing with agility and addressing discrete headwinds that will moderate our growth and earnings potential in 2026. We continue to invest in our innovation-led growth agenda and superior brand propositions that win with consumers across the value spectrum. Combined with industry-leading gross productivity savings, we're ensuring that our base business is well positioned to drive sustainable growth in 2027 and beyond.”
Kimberly-Clark CEO, on the earnings call
Forward Guidance & Outlook
Kimberly-Clark updated its 2026 outlook. Organic sales growth is now expected to be approximately 100 basis points below its weighted average category growth (currently ~2% trailing twelve months), primarily reflecting realized and potential unfavorable impacts of approximately 100 basis points at a total company level from the China social media disruptions. Adjusted operating profit is now expected to grow mid-single digits on a constant-currency basis. Adjusted EPS from continuing operations is expected to grow high single digits on a constant-currency basis, including an approximately 30% increase in income from equity companies versus 2025. Adjusted EPS attributable to Kimberly-Clark is expected to see a low single digit decline on a constant-currency basis. The outlook reflects assumptions subject to change given the macro environment.
KMB YoY Financials
KMB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.