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Key Takeaways Kenvue's leading brands support resilient demand across Self Care, Skin Health and Essential Health.Innovation, digital capabilities and portfolio optimization are key to strengthening Kenvue's growth.Kenvue's productivity efforts aim to support margins while creating flexibility for brand investments. Kenvue Inc. (KVUE - Free Report) holds a strong position in the consumer health market, backed by a portfolio of trusted brands, extensive global presence and continued investments in innovation. The company’s portfolio features well-established names, including Tylenol, Zyrtec, Nicorette, Neutrogena, Listerine, Aveeno, OGX and Johnson’s. The strength and broad recognition of these brands enable Kenvue to address evolving consumer needs while supporting sustainable growth opportunities across the global consumer health market.

Kenvue is focused on strengthening its portfolio around leading brands and attractive consumer health categories, supported by innovation, effective brand building and broad distribution capabilities. Its Self Care, Skin Health and Beauty, and Essential Health businesses provide exposure to diverse everyday health and wellness needs. The company continues to invest in its Power Brands through product innovation, marketing and consumer-focused offerings designed to respond to changing preferences and expand category opportunities.

The company remains focused on achieving growth by strengthening its leading brands, enhancing productivity and improving operational efficiency. Kenvue is pursuing innovation across its portfolio while simplifying its operations, optimizing its product mix and expanding the use of digital capabilities to drive better execution. Ongoing cost-saving and productivity initiatives are expected to support margins while providing greater flexibility to reinvest in its brands and pursue growth opportunities.

At its core, Kenvue is well-positioned to capitalize on resilient consumer demand for trusted, everyday health and personal care products, backed by a strong portfolio of iconic brands and a broad global presence. Brand strength, innovation, portfolio optimization, productivity initiatives and continued investment in consumer engagement provide important support for KVUE’s growth and long-term value creation.

KVUE’s Price Performance, Valuation & EstimatesShares of Kenvue have gained 5.6% in the past six months compared with the industry’s decline of 3.1%.

Image Source: Zacks Investment Research

From a valuation standpoint, KVUE trades at a forward price-to-earnings ratio of 15.57X compared with the industry’s average of 18.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KVUE’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 5.6% and 7.6%, respectively. The company’s EPS estimate for 2026 has moved south while that of 2027 has been stable in the past 30 days.

Image Source: Zacks Investment Research

Kenvue stock currently carries a Zacks Rank #3 (Hold).

Key Consumer Staple PicksThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Chefs' Warehouse's current financial-year sales indicates growth of 10.6% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Darling Ingredients Inc. (DAR - Free Report) , which produces sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1.

The consensus estimate for Darling Ingredients’ current financial-year sales is expected to rise 12.8% from the year-ago reported figure. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

Utz Brands, Inc. (UTZ - Free Report) , which is a leading manufacturer of a diverse portfolio of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.

The Zacks Consensus Estimate for UTZ’s current financial-year sales indicates a jump of 3.7% from the year-ago number.

Australia's competition regulator on Wednesday approved Kimberly-Clark's (KMB.O) proposed $40 billion takeover of Kenvue (KVUE.N), ​on condition the company divests Kenvue's Carefree ‌and Stayfree period care brands in the country to address competition concerns.

Here are the details:

The ​Australian Competition and Consumer Commission (ACCC) said ​the period care brands should be divested ⁠to an approved purchaser.

The regulator said ​without the divestment, the deal could lessen competition ​in period care products supply, with both companies being two of the three major suppliers of ​period care products in Australia.

The deal, announced ​in November, would allow Kimberly-Clark to bring in Kenvue's ‌famous ⁠global brands such as Listerine mouthwash and Neutrogena, but would expose the company to lawsuits Kenvue faces over Tylenol.

Kimberly-Clark has ​also sought approval ​from ⁠EU regulators for the takeover, documents on the EU Commission's website showed ​last week.

"The divestiture will preserve an ​independent ⁠competitor in the supply of period care products in Australia and maintain the competition ⁠that ​would otherwise be lost ​through the acquisition," ACCC Commissioner Philip Williams said.

Kimberly-Clark (KMB.O) has asked EU regulators permission ​for its proposed $40 billion takeover ‌of Tylenol maker Kenvue, documents on the EU ​Commission's website showed.

Kimberly-Clark ​announced the takeover in ⁠November last year.

The ​deal was expected to ​close in the second half of 2026, it said ​at the time.

Kimberly-Clark ​forecast $2.1 billion in annual cost savings ‌from ⁠the deal.

The addition of Kenvue's vast portfolio of brands from ​Listerine mouth ​wash ⁠to skincare names like Aveeno ​and Neutrogena is ​expected ⁠to bring in annual revenues of roughly $32 ⁠billion ​for the combined ​company, it said.

B & T Capital Management DBA Alpha Capital Management acquired a new stake in shares of Kenvue Inc. (NYSE:KVUE – Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm acquired 265,605 shares of the company’s stock, valued at approximately $5,076,000.

A number of other large investors also recently modified their holdings of the company. BlackRock Inc. bought a new position in Kenvue in the 2nd quarter worth approximately $2,882,279,000. Norges Bank bought a new stake in shares of Kenvue during the fourth quarter valued at approximately $756,862,000. Independent Franchise Partners LLP raised its position in shares of Kenvue by 56.3% during the fourth quarter. Independent Franchise Partners LLP now owns 48,146,476 shares of the company’s stock valued at $830,527,000 after buying an additional 17,343,785 shares during the last quarter. Sculptor Capital LP lifted its holdings in shares of Kenvue by 1,023.5% in the fourth quarter. Sculptor Capital LP now owns 12,886,328 shares of the company’s stock worth $222,289,000 after buying an additional 11,739,328 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Kenvue in the second quarter worth $192,080,000. Hedge funds and other institutional investors own 97.64% of the company’s stock.

Wall Street Analysts Forecast Growth Several equities analysts recently weighed in on the stock. Barclays raised their target price on shares of Kenvue from $18.00 to $19.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded shares of Kenvue from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, June 15th. Zacks Research downgraded shares of Kenvue from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. UBS Group cut their price objective on Kenvue from $20.00 to $19.00 and set a “neutral” rating for the company in a research report on Tuesday, August 11th. Finally, Wall Street Zen cut Kenvue from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Three equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $19.27.

View Our Latest Stock Analysis on Kenvue Kenvue Price Performance Kenvue stock opened at $18.83 on Tuesday. The company has a market cap of $36.17 billion, a price-to-earnings ratio of 21.64, a PEG ratio of 1.37 and a beta of 0.47. The firm’s fifty day moving average is $18.98 and its 200 day moving average is $18.15. The company has a quick ratio of 0.71, a current ratio of 1.01 and a debt-to-equity ratio of 0.67. Kenvue Inc. has a 52-week low of $14.02 and a 52-week high of $21.84.

Kenvue (NYSE:KVUE – Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.31 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.01). Kenvue had a net margin of 10.76% and a return on equity of 21.22%. The business had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.97 billion. During the same quarter last year, the business earned $0.29 EPS. Kenvue’s revenue for the quarter was up 3.0% compared to the same quarter last year. Sell-side analysts forecast that Kenvue Inc. will post 1.14 EPS for the current fiscal year.

Kenvue Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Wednesday, August 12th. This is a positive change from Kenvue’s previous quarterly dividend of $0.21. Kenvue’s dividend payout ratio is 96.55%.

Kenvue Company Profile (Free Report)

Kenvue is a consumer health company that was established as a standalone, publicly traded business after separating from Johnson & Johnson. Listed on the New York Stock Exchange under the symbol KVUE, Kenvue focuses on the development, manufacture, marketing and distribution of consumer health and personal care products across a range of categories including skin and beauty care, baby care, oral care, wound care and over‑the‑counter medicines.

The company owns and markets a portfolio of widely recognized consumer brands, including names familiar to global shoppers across retail and pharmacy channels.

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HomeStock IdeasLong IdeasConsumer Staples Analysis

SummaryKimberly-Clark is rated Buy, supported by a strong innovation pipeline, international growth, and upside from the Kenvue acquisition.KMB faces transient headwinds in North America and China, but these are expected to abate, with management forecasting mid- to high-single-digit EPS CAGR from 2026–2028.The Kenvue deal will initially dilute EPS, but synergy realization is tracking ahead of plan, with $1.9B cost and $1.4B revenue synergy targets.KMB trades at a forward P/E of 14.58x, below its 5-year average, and offers a 4.68% dividend yield, enhancing risk/reward.jfmdesign/iStock Unreleased via Getty Images

Investment Thesis Kimberly-Clark (KMB) is seeing some transient headwinds impacting its near-term results, especially in North America and China. However, I believe business fundamentals are good, and some of the pressures it is seeing should abate over time. The

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Kenvue's Q2 revenues and adjusted earnings increased year over year but missed the consensus estimate.KVUE's gross margin narrowed as inflation, tariffs and foreign exchange offset pricing.KVUE's Skin Health and Beauty led growth, while Self Care returned to organic growth in the U.S. Kenvue Inc. (KVUE - Free Report) reported second-quarter 2026 results, with both revenues and adjusted earnings increasing from the prior-year period. However, the reported figures came below the Zacks Consensus Estimate.

KVUE Q2 Performance: Key InsightsAdjusted earnings were 31 cents per share, up from 29 cents a year ago but missing the Zacks Consensus Estimate of 32 cents.

Kenvue Inc. Price, Consensus and EPS SurpriseNet sales increased 3% to $3,955 million from $3,839 million, though they fell short of the consensus estimate of $3,989 million. Organic sales grew 1.6%, driven by 0.9% pricing and 0.7% volume growth.

KVUE Margin & Cost PerformanceAdjusted gross profit rose to $2,381 million from $2,338 million, while adjusted gross margin declined to 60.2% from 60.9%. Margin pressure from inflation, tariffs and transactional foreign exchange outweighed benefits from pricing actions and supply-chain productivity initiatives.

Selling, general and administrative expenses increased to $1,537 million from $1,504 million. Restructuring expenses edged down to $59 million from $60 million.

Adjusted operating income increased slightly to $873 million from $870 million. Adjusted operating margin narrowed 60 basis points to 22.1% from 22.7%, reflecting lower gross profitability and higher brand investment, partly offset by cost-saving initiatives.

Adjusted EBITDA rose to $941 million from $938 million, while adjusted EBITDA margin declined to 23.8% from 24.4%.

Self Care Returns to Organic GrowthSelf Care sales increased 2.2% to $1,589 million from $1,555 million, missing the Zacks Consensus Estimate of $1,617 million. Organic sales rose 0.6%, as 1.2% pricing more than offset a 0.6% decline in volume. Foreign currency added 1.6 percentage points to reported growth.

The segment returned to organic growth in the United States, supported by strong online demand, Zyrtec market share gains and Pepcid's continued outperformance. Tylenol consumption trends improved from recent quarters, while Nicorette contributed to growth across Europe, the Middle East and Africa and Asia Pacific.

Adjusted operating income declined to $512 million from $527 million despite higher sales.

Beauty Delivers Strongest Revenue GrowthSkin Health and Beauty sales increased 5.1% to $1,113 million from $1,059 million, exceeding the Zacks Consensus Estimate of $1,091 million. Organic sales increased 3.7%, driven by 2.7% pricing and 1% volume growth, while foreign exchange contributed 1.4 percentage points.

Growth was broad-based across all regions, led by Hair Care and Face Care. Continued strength in e-commerce, disciplined commercial execution and products such as OGX Pro Growth + Peptide and Neutrogena Ultra Sheer Sun supported results.

Adjusted operating income increased to $186 million from $149 million.

Essential Health Posts Higher Sales but Lower ProfitEssential Health sales increased 2.3% to $1,253 million from $1,225 million, missing the Zacks Consensus Estimate of $1,274 million. Organic sales rose 1.1%, as 1.9% volume growth more than offset 0.8% unfavorable pricing mix. Foreign currency added 1.2 percentage points.

Growth was led by Wound Care and Baby Care, which more than offset weakness in Oral Care. Online demand, additional U.S. distribution and initiatives involving Band-Aid, Listerine and Stayfree also supported performance.
Adjusted operating income declined to $315 million from $351 million.

Other Financial InformationDuring the first six months of 2026, operating cash flow increased to $1.2 billion from $1.0 billion. Capital expenditures declined to $0.2 billion from $0.3 billion, lifting free cash flow to $1.0 billion from $0.8 billion.

Cash and cash equivalents totaled $1.1 billion as of June 28, 2026, unchanged from year-end 2025. Total debt remained $8.5 billion, while net debt improved to $7.4 billion from $7.5 billion.

Zacks Rank and Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 11.2% over the past three months compared with the industry’s growth of 3.9%.

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Kenvue narrowly missed Wall Street estimates for second-quarter results on Thursday as inflation, tariffs ​and currency-related costs squeezed margins.

SUMMIT, N.J.--(BUSINESS WIRE)--Kenvue Inc. (NYSE: KVUE) today announced financial results for the fiscal second quarter ended June 28, 2026.

“We delivered our third consecutive quarter of net and organic sales growth, with broad-based gains across every segment and region,” said Kirk Perry, Chief Executive Officer. “We also continued to drive operational efficiencies and increase strategic investment to fuel sustained momentum. Amidst a dynamic consumer and macro environment, our first-half 2026 results met or exceeded our expectations across key metrics, underscoring the strength and resilience of our people, brands, and new strategic plans.”

Perry continued, “Our transformation is firmly on track. We remain focused on disciplined execution and continued business improvement while we work toward completing our value-creating combination with Kimberly-Clark in the fourth quarter of this year.”

Second Quarter Summary

Net sales increased 3.0% vs the prior year period, reflecting Organic sales growth of 1.6% and a foreign currency benefit of 1.4%. Gross profit margin was 58.2% vs 58.9% in the prior year period. Adjusted gross profit margin1 was 60.2% vs 60.9% in the prior year period. Operating income margin was 17.7% vs 18.0% in the prior year period. Adjusted operating income margin1 was 22.1% vs 22.7% in the prior year period. Diluted earnings per share were $0.24 vs $0.22 in the prior year period. Adjusted diluted earnings per share1 were $0.31 vs $0.29 in the prior year period. Due to the pending transaction with Kimberly-Clark, the Company will not be providing forward-looking guidance. Second Quarter 2026 Financial Results

Net Sales and Organic Sales

Second quarter 2026 Net sales increased 3.0% vs the prior year period, primarily reflecting Organic sales growth of 1.6% and a foreign currency benefit of 1.4%. Organic sales growth was driven by favorable value realization of 0.9% and volume growth of 0.7%.

Gross Profit Margin and Operating Income Margin

Second quarter 2026 Gross profit margin was 58.2% vs 58.9% in the prior year period. Adjusted gross profit margin was 60.2% vs 60.9% in the prior year period. The year-over-year change in both measures primarily reflects the impact from inflation, tariffs, as well as unfavorable transactional foreign exchange, partially offset by savings from productivity gains attributable to our global supply chain optimization initiatives and favorable value realization.

Second quarter 2026 Operating income margin was 17.7% vs 18.0% in the prior year period. Second quarter 2026 Adjusted operating income margin was 22.1% vs 22.7% in the prior year period. The year-over-year change in both measures reflects the year-over-year change in Gross profit margin and Adjusted gross profit margin, as well as a year-over-year increase in brand support, partially offset by savings from our cost optimization actions, including the 2026 Restructuring Initiative and Our Vue Forward.

Interest Expense, Net and Taxes

Second quarter 2026 Interest expense, net was $90 million vs $94 million in the prior year period.

Second quarter Effective tax rate was 23.7% vs 28.6% in the prior year period. The Adjusted effective tax rate1 was 22.9% in the current period vs 26.9% in the prior year period. The year-over-year reduction in both measures largely reflects the release of a valuation allowance, favorable jurisdictional mix of earnings in the current period, as well as the impact of tax law changes.

Net Income Per Share (“Earnings Per Share”)

Second quarter 2026 Diluted earnings per share were $0.24 vs $0.22 in the prior year period. Adjusted diluted earnings per share were $0.31 in the current period vs $0.29 in the prior year period.

Second Quarter 2026 Business Segment Results

Self Care

Second quarter 2026 Net sales increased 2.2% vs the prior year period, reflecting Organic sales growth of 0.6% and a foreign currency benefit of 1.6%. Organic sales growth was driven by favorable value realization of 1.2%, which was partially offset by a volume decrease of 0.6%. Organic sales grew vs the prior year period in the North America, Europe, Middle East and Africa (“EMEA”), and Asia Pacific regions. Return to Organic sales growth in the U.S., the Company’s largest market, was a key driver of this performance. It was enabled by strong eCommerce momentum, successful activation in Allergy behind Zyrtec®, which continued to gain share and strengthen its leadership position, strong commercial and innovation-driven execution in Digestive Health, which enabled Pepcid® to continue to outperform the market, as well as sequentially better performance in the Pain and Cough and Cold businesses, despite historically low out of season incidences. In the U.S., consumption trends for Tylenol® continued to improve sequentially, as the brand gained slight market share vs the prior year period. Organic sales growth in EMEA and Asia Pacific regions reflected continued gains in Smoking Cessation behind strong commercial execution on Nicorette®, which outperformed the category across major markets, as well as gains in Cough, Cold, & Flu, as the Company introduced Codral® Kids in Australia, the brand’s first range of products designed for children.

Skin Health and Beauty

Second quarter 2026 Net sales increased 5.1% vs the prior year period, reflecting Organic sales growth of 3.7% and a foreign currency benefit of 1.4%. Organic sales growth was driven by favorable value realization of 2.7% and a volume increase of 1.0%, as Organic sales grew vs the prior year period across every region, largely driven by Hair Care and Face Care. Strong eCommerce momentum, focused commercial execution and recent innovations, such as the OGX® Pro Growth + Peptide and Neutrogena® Ultra Sheer Sun, contributed to this strong performance globally. In the U.S., the Company’s brand building actions behind Neutrogena®, the largest brand in the segment, helped improve household penetration for the third consecutive quarter, with gains across all generational cohorts.

Essential Health

Second quarter 2026 Net sales increased 2.3% vs the prior year period, reflecting Organic sales growth of 1.1% and a foreign currency benefit of 1.2%. Organic sales growth was driven by a volume increase of 1.9%, partially offset by unfavorable value realization of 0.8%. Organic sales grew vs the prior year period in the Asia Pacific, Latin America, and North America regions, with Wound Care and Baby Care need states fueling growth and more than offsetting a decline in Oral Care. Strong momentum in the eCommerce channel, distribution gains in the U.S., as well as targeted activation behind innovations, such as Band-Aid PRO HEAL® 5 Day Protect in North America, the global restage of Listerine® and rollout of Listerine® On-The-Go Alcohol Free Mouthwash Sachets, as well as an upgrade from mid to mid-premium Stayfree® offerings in India, strengthened global consumption growth on a sequential basis. In Latin America, we continued to gain market share across major brands.

Cash Flow and Balance Sheet

Fiscal six months ended June 28, 2026 Net cash flows from operating activities were $1.2 billion vs $1.0 billion in the prior year period, with the improvement driven by an increase in net income, partially offset by higher use of working capital. Capital expenditures were $0.2 billion vs $0.3 billion in the prior year period, as Free cash flow1 increased to $1.0 billion vs $0.8 billion in the prior year period. Total cash and cash equivalents were $1.1 billion as of June 28, 2026 and December 28, 2025. Total debt was $8.5 billion as of June 28, 2026 and December 28, 2025.

FDA Approves Tylenol® with Naproxen

Kenvue received U.S. Food and Drug Administration approval for Tylenol® with Naproxen, the first and only over-the-counter (“OTC”) fixed-dose combination of acetaminophen and naproxen sodium. Building on more than 70 years of Tylenol® leadership in pain relief innovation, the product expands OTC pain management options for consumers and healthcare providers by combining the fast-acting relief of 650 mg of acetaminophen with the long-lasting analgesic power of 220 mg naproxen sodium (a non-steroidal anti-inflammatory drug) in one dose, which begins working in under 30 minutes and provides relief for 12 hours.

Supported by eight clinical studies and granted a three-year exclusivity period, Tylenol® with Naproxen is expected to be available soon at major U.S. retailers nationwide.

Pending Transaction with Kimberly-Clark

As previously announced, the Company entered into a definitive merger agreement on November 2, 2025, under which Kimberly-Clark will acquire all of the outstanding shares of Kenvue common stock in a cash and stock transaction. Shareholders of each company voted overwhelmingly to approve all of the proposals necessary for Kimberly-Clark to complete its acquisition of the Company at their respective Special Meetings of Stockholders held on January 29, 2026. Additionally, the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on February 4, 2026. The transaction is expected to close in the fourth quarter of 2026, subject to receipt of foreign regulatory approvals and satisfaction of other customary closing conditions as described in the merger agreement.

2026 Restructuring Initiative

As previously disclosed, on February 17, 2026, the Company’s Board of Directors approved an initiative (the “2026 Restructuring Initiative”) that aims to optimize its operating model, transform its supply chain, reduce complexity, and drive operational efficiencies, while strengthening core capabilities. The Initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $250 million in fiscal year 2026.

No Conference Call

Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call. This press release will be posted on the Company’s website at investors.kenvue.com.

About Kenvue

Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at kenvue.com.

1Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. There are limitations to the use of the non-GAAP financial measures presented herein. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP, nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Accordingly, the non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. The Company cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.

The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry.

Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release.

Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time.

Adjusted EBITDA margin: We define EBITDA as U.S. GAAP Net income adjusted for interest, provision for taxes, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for restructuring expenses and operating model optimization initiatives, costs incurred in connection with our establishment as a standalone public company (“Separation-related costs”), conversion of stock-based awards, stock-based awards granted to individuals employed by Kenvue as of October 2, 2023 (“Founder Shares”), expenses incurred in connection with the pending transaction with Kimberly-Clark (“Pending Transaction and other related costs”), costs associated with the Skillman sale-leaseback, and the impact of the deferred transfer of certain assets and liabilities from Johnson & Johnson in certain jurisdictions (the “Deferred Markets”). We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Adjusted effective tax rate: We define Adjusted effective tax rate as U.S. GAAP Effective tax rate adjusted for the tax effects on special item adjustments including amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, and costs associated with the Skillman sale-leaseback. We also exclude taxes related to the Deferred Markets. Management believes this non-GAAP measure is useful to investors as it provides a supplemental measure of the Company’s performance over time.

Adjusted gross profit margin: We define Adjusted gross profit margin as U.S. GAAP Gross profit margin adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, operating model optimization initiatives, and Pending Transaction and other related costs. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Adjusted net income: We define Adjusted net income as U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, the impact of the Deferred Markets, and their related tax impacts (i.e., special items). Adjusted net income excludes the impact of items that may obscure trends in our underlying performance. Management believes this non-GAAP measure is useful to investors as the Company uses Adjusted net income for strategic decision making, forecasting future results, and evaluating current performance.

Adjusted operating income: We define Adjusted operating income as U.S. GAAP Operating income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, Pending Transaction and other related costs, costs associated with the Skillman sale-leaseback, and the impact of the Deferred Markets. Management believes this non-GAAP measure is useful to investors as management uses Adjusted operating income to assess the Company’s financial performance.

Adjusted operating income margin: We define Adjusted operating income margin as Adjusted operating income as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Free cash flow: We define Free cash flow as U.S. GAAP Net cash flows from operating activities adjusted for purchases of property, plant, and equipment. Management believes this non-GAAP measure is useful to investors as it provides a view of the Company’s liquidity after deducting capital expenditures, which are considered a necessary component of our ongoing operations.

Organic sales: We define Organic sales as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures. We report changes in Organic sales on a period-over-period basis. Management believes reporting period-over-period changes in Organic sales provides investors with supplemental information that is useful in assessing the Company’s results of operations by excluding the impact of certain items that we believe do not directly reflect our underlying operations.

Market Share Information

The Company uses market share and related metrics, including Average Weekly Recommendations, as indicators to assess business performance and trends. Market share references in this press release are derived from a combination of consumption and market share data provided by third-party vendors and internal estimates. Unless otherwise indicated, such references represent the percentage of the dollar value of sales of our products, relative to all product sales in the category in the countries in which the Company operates and purchases data.

Market share data is subject to inherent limitations, including the availability and timing of underlying information. In particular, market share data is not generally available for certain retail channels. The Company measures market share through the most recent period for which market share data is available, which generally reflects a lag time of one or two months. While the Company believes the third-party vendors it uses to provide data are reliable, it has not independently verified the accuracy or completeness of such data or its underlying assumptions. In addition, the Company’s reported market share data may differ from that reported by other companies due to differences in category definitions, geographic scope, internal estimates and other factors.

Cautions Concerning Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position, and business strategy. Such forward-looking statements include statements regarding the pending transaction with Kimberly-Clark. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and other words of similar meaning. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; inflation and other economic factors, such as interest rate and currency exchange rate fluctuations, as well as existing or proposed tariffs and other constraints on trade both in the U.S. and in foreign markets; the ability to successfully manage local, regional, or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any dividend payments; Kenvue’s ability to maintain satisfactory credit ratings and access capital markets, which could adversely affect its liquidity, capital position, and borrowing costs; competition, including technological advances, new products, and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections, including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including the 2026 Restructuring Initiative and any other restructuring or cost-saving initiatives; the impact of business combinations and divestitures, including any ongoing or future transactions; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations and other stakeholder requirements; changes in behavior and spending patterns of consumers; natural disasters, acts of war, or terrorism, catastrophes, or epidemics, pandemics, or other disease outbreaks; financial instability of international economies and legal systems and sovereign risk; the inability to realize the benefits of the separation from Kenvue’s former parent, Johnson & Johnson; the risk of disruption or unanticipated costs in connection with the separation; the Company’s inability to consummate the pending transaction with Kimberly-Clark due to, among other things, market, regulatory, and other factors; the potential for disruption to the Company’s business resulting from the pending transaction with Kimberly-Clark; and potential adverse effects on the Company’s stock price from the announcement, suspension, or consummation of the pending transaction with Kimberly-Clark. A further list and descriptions of these risks, uncertainties, and other factors can be found in Kenvue’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other filings, available at investors.kenvue.com or on request from Kenvue. Any forward-looking statement made in this release speaks only as of the date of this release. Kenvue undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or developments or otherwise.

Kenvue Inc.

Condensed Consolidated Statements of Operations

(Unaudited; Dollars in Millions, Except Per Share Data; Shares in Millions)

Fiscal Three Months Ended

Fiscal Six Months Ended

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Net sales

$

3,955

$

3,839

$

7,864

$

7,580

Cost of sales

1,654

1,578

3,261

3,151

Gross profit

2,301

2,261

4,603

4,429

Selling, general, and administrative expenses

1,537

1,504

2,990

3,041

Restructuring expenses

59

60

130

120

Other operating expense, net

6

5

17

18

Operating income

699

692

1,466

1,250

Other expense, net

11

10

11

16

Interest expense, net

90

94

185

188

Income before taxes

598

588

1,270

1,046

Provision for taxes

142

168

340

304

Net income

$

456

$

420

$

930

$

742

Net income per share

Basic

$

0.24

$

0.22

$

0.48

$

0.39

Diluted

$

0.24

$

0.22

$

0.48

$

0.39

Weighted-average number of shares outstanding

Basic

1,920

1,919

1,918

1,917

Diluted

1,923

1,928

1,922

1,927

Organic Sales Change

The following tables present a reconciliation of the change in Net sales, as reported, to the change in Organic sales, a non-GAAP measure, for the periods presented:

Fiscal Three Months Ended June 28, 2026 vs. June 29, 2025(1)

Reported Net
Sales Change

Impact of
Foreign Currency

Organic Sales Change

(Unaudited)

Total Organic
Sales Change

Price/Mix(2)

Volume

Self Care

2.2

%

1.6

%

0.6

%

1.2

%

(0.6

)%

Skin Health and Beauty

5.1

1.4

3.7

2.7

1.0

Essential Health

2.3

1.2

1.1

(0.8

)

1.9

Total

3.0

%

1.4

%

1.6

%

0.9

%

0.7

%

Fiscal Six Months Ended June 28, 2026 vs. June 29, 2025(1)

Reported Net
Sales Change

Impact of
Foreign Currency

Organic Sales Change

(Unaudited)

Total Organic
Sales Change

Price/Mix(2)

Volume

Self Care

2.0

%

2.9

%

(0.9

)%

1.4

%

(2.3

)%

Skin Health and Beauty

6.7

2.3

4.4

1.8

2.6

Essential Health

3.5

2.2

1.3

(0.4

)

1.7

Total

3.7

%

2.5

%

1.2

%

1.0

%

0.2

%

Total Segment Net Sales and Adjusted Operating Income

Segment Net sales for the periods presented were as follows:

Net Sales

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Self Care

$

1,589

$

1,555

$

3,288

$

3,222

Skin Health and Beauty

1,113

1,059

2,172

2,036

Essential Health

1,253

1,225

2,404

2,322

Total segment net sales

$

3,955

$

3,839

$

7,864

$

7,580

Segment Adjusted operating income for the periods presented was as follows:

Adjusted Operating Income

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Self Care Adjusted operating income

$

512

$

527

$

1,137

$

1,093

Skin Health and Beauty Adjusted operating income

186

149

354

241

Essential Health Adjusted operating income

315

351

614

590

Total

$

1,013

$

1,027

$

2,105

$

1,924

Reconciliation to Adjusted operating income (non-GAAP):

Depreciation(1)

79

78

157

151

General corporate/unallocated expenses

70

90

139

169

Other operating expense, net

6

5

17

18

Other—impact of Deferred Markets

(15

)

(16

)

(21

)

(25

)

Adjusted operating income (non-GAAP)

$

873

$

870

$

1,813

$

1,611

Reconciliation to Income before taxes:

Amortization of intangible assets(2)

64

64

129

127

Separation-related costs(4)

7

24

10

62

Restructuring expenses and operating model optimization initiatives(3)

69

68

147

135

Conversion of stock-based awards

—

1

1

4

Other—impact of Deferred Markets

15

16

21

25

Founder Shares

1

5

3

8

Pending Transaction and other related costs(5)

16

—

32

—

Skillman sale-leaseback

2

—

4

—

Operating income

$

699

$

692

$

1,466

$

1,250

Other expense, net

11

10

11

16

Interest expense, net

90

94

185

188

Income before taxes

$

598

$

588

$

1,270

$

1,046

Non-GAAP Financial Information

The following tables present reconciliations of GAAP to non-GAAP for the periods presented:

Fiscal Three Months Ended June 28, 2026

(Unaudited; Dollars in Millions)

As Reported

Adjustments

Reference

As Adjusted

Net sales

$

3,955

—

$

3,955

Gross profit

$

2,301

80

(a)

$

2,381

Gross profit margin

58.2

%

60.2

%

Operating income

$

699

174

(a)-(c)

$

873

Operating income margin

17.7

%

22.1

%

Net income

$

456

139

(a)-(d)

$

595

Net income margin

11.5

%

15.0

%

Interest expense, net

$

90

Provision for taxes

$

142

Depreciation and amortization

$

143

EBITDA (non-GAAP)

$

831

110

(b)-(c), (e)

$

941

EBITDA margin (non-GAAP)

21.0

%

23.8

%

Detail of Adjustments

Cost of Sales

SG&A/Restructuring Expenses

Other Operating Expense, Net

Provision for Taxes

Total

Amortization of intangible assets(2)

$

64

$

—

$

—

$

—

$

64

Restructuring expenses(3)

—

59

—

—

59

Operating model optimization initiatives(3)

9

1

—

—

10

Separation-related costs, conversion of stock-based awards, and Founder Shares(4)

6

2

—

—

8

Pending Transaction and other related costs(5)

1

15

—

—

16

Skillman sale-leaseback

—

2

—

—

2

Impact of Deferred Markets—minority interest expense

—

—

6

—

6

Impact of Deferred Markets—provision for taxes

—

—

9

(9

)

—

Tax impact on special item adjustments

—

—

—

(26

)

(26

)

Total

$

80

$

79

$

15

$

(35

)

$

139

(a)

(b)

(c)

(d)

Cost of sales less amortization

$

16

(e)

Fiscal Three Months Ended June 29, 2025

(Unaudited; Dollars in Millions)

As Reported

Adjustments

Reference

As Adjusted

Net sales

$

3,839

—

$

3,839

Gross profit

$

2,261

77

(a)

$

2,338

Gross profit margin

58.9

%

60.9

%

Operating income

$

692

178

(a)-(c)

$

870

Operating income margin

18.0

%

22.7

%

Net income

$

420

140

(a)-(d)

$

560

Net income margin

10.9

%

14.6

%

Interest expense, net

$

94

Provision for taxes

$

168

Depreciation and amortization

$

142

EBITDA (non-GAAP)

$

824

114

(b)-(c), (e)

$

938

EBITDA margin (non-GAAP)

21.5

%

24.4

%

Detail of Adjustments

Cost of Sales

SG&A/Restructuring Expenses

Other Operating Expense, Net

Provision for Taxes

Total

Amortization of intangible assets(2)

$

64

$

—

$

—

$

—

$

64

Restructuring expenses(3)

—

60

—

—

60

Operating model optimization initiatives(3)

6

2

—

—

8

Separation-related costs, conversion of stock-based awards, and Founder Shares(4)

7

23

—

—

30

Impact of Deferred Markets—minority interest expense

—

—

6

—

6

Impact of Deferred Markets—provision for taxes

—

—

10

(10

)

—

Tax impact on special item adjustments

—

—

—

(28

)

(28

)

Total

$

77

$

85

$

16

$

(38

)

$

140

(a)

(b)

(c)

(d)

Cost of sales less amortization

$

13

(e)

Fiscal Six Months Ended June 28, 2026

(Unaudited; Dollars in Millions)

As Reported

Adjustments

Reference

As Adjusted

Net sales

$

7,864

—

$

7,864

Gross profit

$

4,603

154

(a)

$

4,757

Gross profit margin

58.5

%

60.5

%

Operating income

$

1,466

347

(a)-(c)

$

1,813

Operating income margin

18.6

%

23.1

%

Net income

$

930

280

(a)-(d)

$

1,210

Net income margin

11.8

%

15.4

%

Interest expense, net

$

185

Provision for taxes

$

340

Depreciation and amortization

$

286

EBITDA (non-GAAP)

$

1,741

218

(b)-(c), (e)

$

1,959

EBITDA margin (non-GAAP)

22.1

%

24.9

%

Detail of Adjustments

Cost of Sales

SG&A/Restructuring Expenses

Other Operating Expense, Net

Provision for Taxes

Total

Amortization of intangible assets(2)

$

129

$

—

$

—

$

—

$

129

Restructuring expenses(3)

—

130

—

—

130

Operating model optimization initiatives(3)

14

3

—

—

17

Separation-related costs, conversion of stock-based awards, and Founder Shares(4)

8

6

—

—

14

Pending Transaction and other related costs(5)

3

29

—

—

32

Skillman sale-leaseback

—

4

—

—

4

Impact of Deferred Markets—minority interest expense

—

—

9

—

9

Impact of Deferred Markets—provision for taxes

—

—

12

(12

)

—

Tax impact on special item adjustments

—

—

—

(55

)

(55

)

Total

$

154

$

172

$

21

$

(67

)

$

280

(a)

(b)

(c)

(d)

Cost of sales less amortization

$

25

(e)

Fiscal Six Months Ended June 29, 2025

(Unaudited; Dollars in Millions)

As Reported

Adjustments

Reference

As Adjusted

Net sales

$

7,580

—

$

7,580

Gross profit

$

4,429

154

(a)

$

4,583

Gross profit margin

58.4

%

60.5

%

Operating income

$

1,250

361

(a)-(c)

$

1,611

Operating income margin

16.5

%

21.3

%

Net income

$

742

283

(a)-(d)

$

1,025

Net income margin

9.8

%

13.5

%

Interest expense, net

$

188

Provision for taxes

$

304

Depreciation and amortization

$

278

EBITDA (non-GAAP)

$

1,512

234

(b)-(c), (e)

$

1,746

EBITDA margin (non-GAAP)

19.9

%

23.0

%

Detail of Adjustments

Cost of Sales

SG&A/Restructuring Expenses

Other Operating Expense, Net

Provision for Taxes

Total

Amortization of intangible assets(2)

$

127

$

—

$

—

$

—

$

127

Restructuring expenses(3)

—

120

—

—

120

Operating model optimization initiatives(3)

12

3

—

—

15

Separation-related costs, conversion of stock-based awards, and Founder Shares(4)

15

59

—

—

74

Impact of Deferred Markets—minority interest expense

—

—

10

—

10

Impact of Deferred Markets—provision for taxes

—

—

15

(15

)

—

Tax impact on special item adjustments

—

—

—

(63

)

(63

)

Total

$

154

$

182

$

25

$

(78

)

$

283

(a)

(b)

(c)

(d)

Cost of sales less amortization

$

27

(e)

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Employee-related costs (one-time severance and other termination benefits)

$

29

$

21

$

77

$

46

Information technology and project-related costs

40

47

70

87

Other implementation costs

—

—

—

2

Total restructuring expenses and operating model optimization initiatives

$

69

$

68

$

147

$

135

Restructuring expenses and operating model optimization initiatives include accelerated depreciation expense on assets related to the 2026 Restructuring Initiative for the fiscal three and six months ended June 28, 2026.

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Information technology and other

$

2

$

18

$

2

$

51

Legal entity name change

5

6

8

11

Total separation-related costs

$

7

$

24

$

10

$

62

Conversion of stock-based awards

—

1

1

4

Founder Shares

1

5

3

8

Total separation-related costs, conversion of stock-based awards, and Founder Shares

$

8

$

30

$

14

$

74

The following table presents reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented:

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Effective tax rate

23.7

%

28.6

%

26.8

%

29.1

%

Adjustments:

Tax-effect on special item adjustments

(0.9

)

(1.9

)

(1.7

)

(2.2

)

Taxes related to Deferred Markets

0.1

0.2

0.1

0.2

Adjusted Effective tax rate (non-GAAP)

22.9

%

26.9

%

25.2

%

27.1

%

The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented:

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Diluted earnings per share

$

0.24

$

0.22

$

0.48

$

0.39

Adjustments:

Separation-related costs

—

0.01

0.01

0.03

Restructuring expenses and operating model optimization initiatives

0.04

0.04

0.08

0.07

Amortization of intangible assets

0.03

0.03

0.07

0.07

Pending Transaction and other related costs

0.01

—

0.02

—

Tax impact on special item adjustments

(0.01

)

(0.01

)

(0.03

)

(0.03

)

Adjusted diluted earnings per share (non-GAAP)

$

0.31

$

0.29

$

0.63

$

0.53

The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented:

Fiscal Six Months Ended

(Unaudited; Dollars in Billions)

June 28, 2026

June 29, 2025

Net cash flows from operating activities

$

1.2

$

1.0

Purchases of property, plant, and equipment

(0.2

)

(0.3

)

Free cash flow (non-GAAP)

$

1.0

$

0.8

Note: Numbers may not foot due to rounding.

Other Supplemental Financial Information

The following table presents the Company’s Net sales by geographic region for the periods presented:

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Net sales by geographic region

North America

$

1,905

$

1,878

$

3,765

$

3,735

Europe, Middle East, and Africa

956

929

1,948

1,813

Asia Pacific

723

706

1,423

1,400

Latin America

371

326

728

632

Total Net sales by geographic region

$

3,955

$

3,839

$

7,864

$

7,580

The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses.

Fiscal Three Months Ended

Fiscal Six Months Ended

(Unaudited; Dollars in Millions)

June 28, 2026

June 29, 2025

June 28, 2026

June 29, 2025

Research & Development

$

94

$

91

$

178

$

190

The following table presents the Company’s Cash and cash equivalents, Total debt, and Net debt balance as of the periods presented:

(Unaudited; Dollars in Billions)

June 28, 2026

December 28, 2025

Cash and cash equivalents

$

1.1

$

1.1

Total debt

(8.5

)

(8.5

)

Net debt

$

(7.4

)

$

(7.5

)

Note: Numbers may not foot due to rounding.

Posted by Defense World Staff on Aug 5th, 2026

Cetera Investment Advisers reduced its stake in shares of Kenvue Inc. (NYSE:KVUE – Free Report) by 24.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 241,189 shares of the company’s stock after selling 78,966 shares during the quarter. Cetera Investment Advisers’ holdings in Kenvue were worth $4,158,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of KVUE. Oak Thistle LLC purchased a new position in shares of Kenvue in the 4th quarter worth about $1,563,000. Mirae Asset Global Investments Co. Ltd. raised its holdings in Kenvue by 25.8% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 410,874 shares of the company’s stock worth $7,088,000 after buying an additional 84,219 shares during the last quarter. Calamos Advisors LLC raised its holdings in Kenvue by 24.1% in the first quarter. Calamos Advisors LLC now owns 3,351,000 shares of the company’s stock worth $57,771,000 after buying an additional 651,000 shares during the last quarter. State of Wyoming lifted its stake in shares of Kenvue by 233.5% in the fourth quarter. State of Wyoming now owns 97,992 shares of the company’s stock worth $1,690,000 after buying an additional 68,609 shares in the last quarter. Finally, Nomura Asset Management Co. Ltd. grew its holdings in shares of Kenvue by 21.5% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 3,491,548 shares of the company’s stock valued at $60,229,000 after buying an additional 618,720 shares during the last quarter. 97.64% of the stock is owned by hedge funds and other institutional investors.

Kenvue Trading Up 2.8% Shares of KVUE opened at $19.54 on Wednesday. The company has a current ratio of 0.98, a quick ratio of 0.70 and a debt-to-equity ratio of 0.67. The company has a market cap of $37.51 billion, a P/E ratio of 22.98, a P/E/G ratio of 1.44 and a beta of 0.47. Kenvue Inc. has a twelve month low of $14.02 and a twelve month high of $22.22. The company’s fifty day simple moving average is $18.66 and its 200-day simple moving average is $18.05.

Kenvue (NYSE:KVUE – Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.05. The firm had revenue of $3.91 billion for the quarter, compared to analysts’ expectations of $3.84 billion. Kenvue had a return on equity of 20.81% and a net margin of 10.61%.The company’s quarterly revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.24 earnings per share. As a group, analysts expect that Kenvue Inc. will post 1.16 EPS for the current year.

Kenvue Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th will be paid a dividend of $0.21 per share. This is an increase from Kenvue’s previous quarterly dividend of $0.21. This represents a $0.84 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Wednesday, August 12th. Kenvue’s payout ratio is presently 97.65%.

Wall Street Analyst Weigh In Several equities analysts have issued reports on the stock. Zacks Research cut shares of Kenvue from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 7th. Citigroup dropped their target price on shares of Kenvue from $20.00 to $19.00 and set a “neutral” rating on the stock in a report on Wednesday, April 15th. UBS Group increased their price target on Kenvue from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, July 16th. Barclays upped their price objective on Kenvue from $18.00 to $19.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 21st. Finally, Wall Street Zen raised Kenvue to a “buy” rating in a research report on Sunday, July 12th. Three equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Kenvue has a consensus rating of “Hold” and an average target price of $19.58.

View Our Latest Research Report on KVUE

Insider Activity at Kenvue In other news, General Counsel Matthew Orlando sold 38,491 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $17.66, for a total value of $679,751.06. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.59% of the company’s stock.

About Kenvue (Free Report)

Kenvue is a consumer health company that was established as a standalone, publicly traded business after separating from Johnson & Johnson. Listed on the New York Stock Exchange under the symbol KVUE, Kenvue focuses on the development, manufacture, marketing and distribution of consumer health and personal care products across a range of categories including skin and beauty care, baby care, oral care, wound care and over‑the‑counter medicines.

The company owns and markets a portfolio of widely recognized consumer brands, including names familiar to global shoppers across retail and pharmacy channels.

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Key Takeaways Kenvue's diverse portfolio spans self-care, skin health and essential health categories.Kenvue's adjusted operating margin improved to 24% in Q1'26 on efficiency gains.Kimberly-Clark transaction could expand scale, distribution reach and cost opportunities. Kenvue Inc. (KVUE - Free Report) remains a closely watched consumer health name as investors weigh trusted brands, improving margins and a major pending transaction.

The company’s mix of self-care, beauty and everyday health products gives it a broad demand base, but uneven organic growth and execution risks keep the outlook balanced.

Kenvue Builds a Diverse Health PortfolioKenvue operates through Self Care, Skin Health and Beauty, and Essential Health. Its brand lineup includes Tylenol, Zyrtec, Neutrogena, Aveeno, Listerine, Nicorette, Johnson’s and BAND-AID Brand, giving the company exposure to pain care, allergy, smoking cessation, oral care, baby care, wound care, skin care and beauty categories.

That range reduces dependence on one product line and supports repeat-purchase behavior across everyday health needs. Global reach through retailers, pharmacies and digital channels further helps Kenvue serve recurring consumer demand across developed and international markets.

Kenvue Improves Margins Through EfficiencyProfitability has become a central part of the Kenvue story. In the first quarter of 2026, adjusted gross margin expanded 80 basis points to 60.8%, while adjusted operating margin improved 420 basis points to 24%.

The gains reflected supply-chain productivity, favorable value realization and cost optimization actions, including Our Vue Forward and the 2026 Restructuring Initiative. Lower selling, general and administrative expenses also helped offset inflation, tariffs and lower volumes, showing that disciplined spending can support earnings even when sales growth is modest.

Image Source: Zacks Investment Research

Skin Health Drives Kenvue Recovery EffortsSkin Health and Beauty delivered the strongest segment growth in the first quarter. Net sales increased 8.4%, while organic sales rose 5%, supported by 4.2% volume growth and 0.8% favorable value realization.

The segment benefited from innovation, sharper brand activation and targeted e-commerce initiatives. Neutrogena’s entry into sun care in select EMEA markets and the launch of OGX Pro Growth in North America and EMEA supported demand. Adjusted operating income rose to $168 million from $92 million, making the segment an important contributor to the company’s recovery profile.

Kimberly-Clark Deal Creates Strategic PotentialKenvue’s pending cash-and-stock combination with Kimberly-Clark Corporation (KMB - Free Report) adds another strategic dimension. Kenvue shareholders are expected to receive 0.14625 Kimberly-Clark shares plus $3.50 in cash for each Kenvue share, subject to closing conditions.

Shareholders of both companies have approved the required proposals, and the U.S. antitrust waiting period has expired. Foreign regulatory approvals remain outstanding, with closing expected in the second half of 2026. If completed, the transaction could combine Kenvue’s consumer health brands with Kimberly-Clark’s global personal-care platform, creating broader scale, distribution reach and cost opportunities.

The transaction also places Kenvue in a wider consumer staples context. The Procter & Gamble Company (PG - Free Report) , with major beauty, health care and household product categories, remains a useful comparison for investors watching branded consumer product scale and global distribution.

Kenvue’s Market Position Faces Mixed SignalsKenvue’s long-term setup combines durable brands, better profitability and a potential deal catalyst. Still, the stock’s profile is not without offsets, including modest organic growth, Self Care volume pressure, restructuring costs, debt, litigation exposure and limited earnings visibility while the Kimberly-Clark transaction remains pending.

The stock currently carries a Zacks Rank #3 (Hold), which fits a balanced near-term view rather than a clear bullish or bearish signal. Its Value Score of C, Growth Score of C and VGM Score of C suggest average characteristics across valuation, growth and combined style measures, while its Momentum Score of D points to weaker share-price and estimate-revision support.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For investors, the scores reinforce the need to weigh operating improvements against unresolved risks. Kenvue has credible drivers in brands, efficiency and Skin Health momentum, but broader stock strength may require clearer organic growth, transaction resolution and sustained execution.

Key Takeaways Kenvue's Skin Health and Beauty organic sales rose 5%, led by volume growth and innovation.Kenvue's adjusted operating margin expanded 420 basis points to 24% on productivity and cost actions.Kenvue's free cash flow rose to about $350 million, while deal uncertainty limits visibility. Investors evaluating Kenvue Inc. (KVUE - Free Report) must balance better execution with uneven growth. The company has trusted consumer health brands, recovering beauty trends and improving profitability, but demand is not accelerating evenly across categories.

Deal uncertainty adds another layer. The pending Kimberly-Clark Corporation (KMB - Free Report) transaction could reshape Kenvue’s strategic profile, while the lack of 2026 financial guidance limits near-term visibility.

Kenvue Adapts To Changing Health DemandKenvue’s business spans Self Care, Skin Health and Beauty, and Essential Health, giving it exposure to recurring needs across medicine cabinets, personal care and everyday health. Tylenol, Zyrtec, Nicorette, Neutrogena, Aveeno, Listerine and BAND-AID Brand anchor a repeat-use portfolio.

Demand trends are not uniform. Self Care remains sensitive to cold, flu and allergy seasons, which pressured recent volumes. Skin Health and Beauty and Essential Health have seen better support from innovation, e-commerce initiatives and category-specific brand activations.

Beauty Innovation Strengthens Kenvue GrowthSkin Health and Beauty was Kenvue’s strongest growth business in the first quarter of 2026. Segment net sales rose 8.4%, while organic sales increased 5%, supported by 4.2% volume growth and favorable value realization of 0.8%.

Innovation helped drive the recovery. Neutrogena entered sun care in selected Europe, Middle East and Africa markets, and OGX Pro Growth was introduced in North America and Europe, the Middle East and Africa. Segment adjusted operating income rose to $168 million from $92 million.

Haleon plc (HLN - Free Report) , another company focused on everyday health, offers a useful peer reference for consumer-led health demand. Its presence in oral health, pain relief and wellness highlights how brand trust and innovation matter across the broader category.

Kenvue Advances Supply Chain TransformationMargin expansion shows how operational change is becoming central to Kenvue’s story. First-quarter adjusted gross margin expanded 80 basis points to 60.8%, while adjusted operating margin improved 420 basis points to 24%.

The improvement reflected supply-chain productivity, favorable value realization and cost optimization. Our Vue Forward and the 2026 Restructuring Initiative are intended to simplify operations, transform the supply chain, reduce complexity and strengthen efficiency.

Those gains helped offset inflation, tariffs and lower volumes. The benefit was visible in earnings, as adjusted earnings increased 33% to 32 cents per share even though organic sales grew only 0.7%.

Kenvue Navigates Consolidation and Financial ChangeThe proposed Kimberly-Clark combination is a major strategic development. Kenvue shareholders are expected to receive 0.14625 Kimberly-Clark shares plus $3.50 in cash for each Kenvue share, subject to closing conditions.

Shareholders of both companies approved the necessary proposals, and the U.S. antitrust waiting period expired. Foreign regulatory approvals and other customary closing conditions remain, with the deal expected to close in the second half of 2026.

If completed, the transaction would combine Kenvue’s consumer health portfolio with Kimberly-Clark’s personal-care platform. That could create broader scale, distribution reach and cost opportunities, although integration and regulatory timing remain key variables.

Kenvue generated $489 million in operating cash flow in the first quarter, up from $428 million a year earlier, while free cash flow rose to roughly $350 million from about $249 million. Stronger cash generation can support dividends, debt management and brand investment, but total debt of about $8.7 billion keeps financial flexibility in focus.

Kenvue’s Trend Position Reflected In RatingsKenvue’s emerging trends point to a business that is improving operationally but not yet showing broad-based growth momentum. Beauty innovation, supply-chain productivity and stronger cash flow support the long-term narrative, while seasonal Self Care demand, restructuring costs and litigation exposure keep the outlook balanced.

The stock currently carries a Zacks Rank #3 (Hold). That ranking fits a cautious investment profile, where improving margins and brand strength are offset by modest organic growth and limited earnings visibility until the Kimberly-Clark transaction is resolved.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kenvue also has a Value Score of C, Growth Score of C, Momentum Score of D and VGM Score of C. The C scores suggest a middle-ground profile across value, growth and combined style factors, while the Momentum Score of D points to weaker price and estimate trend signals. For investors, the ratings reinforce a measured view rather than a clear bullish setup.

Posted by Defense World Staff on Jul 27th, 2026

Gabelli Funds LLC increased its stake in Kenvue Inc. (NYSE:KVUE – Free Report) by 71.2% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 724,635 shares of the company’s stock after acquiring an additional 301,350 shares during the period. Gabelli Funds LLC’s holdings in Kenvue were worth $12,493,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. GABELLI & Co INVESTMENT ADVISERS INC. raised its holdings in shares of Kenvue by 77.3% in the 1st quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 742,600 shares of the company’s stock worth $12,802,000 after purchasing an additional 323,650 shares during the period. Compound Planning Inc. acquired a new stake in Kenvue during the 1st quarter worth approximately $184,000. Modern Wealth Management LLC increased its position in Kenvue by 23.0% during the 1st quarter. Modern Wealth Management LLC now owns 29,777 shares of the company’s stock worth $518,000 after purchasing an additional 5,568 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in Kenvue in the first quarter valued at approximately $2,083,000. Finally, Caxton Associates LLP purchased a new position in Kenvue in the first quarter valued at approximately $57,635,000. Institutional investors and hedge funds own 97.64% of the company’s stock.

Kenvue Trading Down 0.1% NYSE KVUE opened at $19.25 on Monday. The company has a market capitalization of $36.97 billion, a price-to-earnings ratio of 22.65, a price-to-earnings-growth ratio of 1.46 and a beta of 0.47. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.98 and a quick ratio of 0.70. Kenvue Inc. has a 12 month low of $14.02 and a 12 month high of $22.87. The company’s fifty day moving average price is $18.38 and its two-hundred day moving average price is $17.92.

Kenvue (NYSE:KVUE – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.05. The firm had revenue of $3.91 billion for the quarter, compared to analysts’ expectations of $3.84 billion. Kenvue had a return on equity of 20.81% and a net margin of 10.61%.Kenvue’s revenue for the quarter was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.24 earnings per share. As a group, research analysts predict that Kenvue Inc. will post 1.16 earnings per share for the current fiscal year.

Kenvue Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th were paid a dividend of $0.2075 per share. This represents a $0.83 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend was Wednesday, May 13th. Kenvue’s payout ratio is presently 97.65%.

Analyst Ratings Changes KVUE has been the subject of several recent research reports. Zacks Research lowered shares of Kenvue from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 7th. Citigroup decreased their price target on shares of Kenvue from $20.00 to $19.00 and set a “neutral” rating for the company in a research report on Wednesday, April 15th. Weiss Ratings upgraded Kenvue from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, June 15th. UBS Group raised their price objective on Kenvue from $18.00 to $20.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Finally, Wall Street Zen upgraded Kenvue to a “buy” rating in a research note on Sunday, July 12th. Three equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $19.58.

Get Our Latest Analysis on Kenvue

Insider Buying and Selling In other news, General Counsel Matthew Orlando sold 38,491 shares of Kenvue stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $17.66, for a total transaction of $679,751.06. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 1.59% of the company’s stock.

About Kenvue (Free Report)

Kenvue is a consumer health company that was established as a standalone, publicly traded business after separating from Johnson & Johnson. Listed on the New York Stock Exchange under the symbol KVUE, Kenvue focuses on the development, manufacture, marketing and distribution of consumer health and personal care products across a range of categories including skin and beauty care, baby care, oral care, wound care and over‑the‑counter medicines.

The company owns and markets a portfolio of widely recognized consumer brands, including names familiar to global shoppers across retail and pharmacy channels.

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Posted by Defense World Staff on Jul 26th, 2026

Kenvue Inc. (NYSE:KVUE – Get Free Report) has been given an average recommendation of “Hold” by the sixteen research firms that are covering the firm, MarketBeat.com reports. Thirteen equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $19.5833.

Several equities research analysts have commented on KVUE shares. UBS Group boosted their price objective on Kenvue from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Thursday, July 16th. Citigroup dropped their price target on Kenvue from $20.00 to $19.00 and set a “neutral” rating for the company in a research report on Wednesday, April 15th. Wall Street Zen upgraded Kenvue to a “buy” rating in a report on Sunday, July 12th. Weiss Ratings raised shares of Kenvue from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, June 15th. Finally, Barclays increased their target price on shares of Kenvue from $18.00 to $19.00 and gave the company an “equal weight” rating in a research report on Tuesday.

Read Our Latest Analysis on Kenvue

Kenvue Stock Performance NYSE:KVUE opened at $19.25 on Thursday. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.70 and a current ratio of 0.98. The stock has a market capitalization of $36.97 billion, a PE ratio of 22.65, a P/E/G ratio of 1.46 and a beta of 0.47. Kenvue has a fifty-two week low of $14.02 and a fifty-two week high of $22.87. The company has a fifty day moving average of $18.38 and a two-hundred day moving average of $17.92.

Kenvue (NYSE:KVUE – Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.05. Kenvue had a net margin of 10.61% and a return on equity of 20.81%. The business had revenue of $3.91 billion during the quarter, compared to analysts’ expectations of $3.84 billion. During the same quarter in the previous year, the company earned $0.24 earnings per share. The company’s quarterly revenue was up 4.5% on a year-over-year basis. As a group, research analysts forecast that Kenvue will post 1.16 earnings per share for the current fiscal year.

Kenvue Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th were paid a $0.2075 dividend. This represents a $0.83 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend was Wednesday, May 13th. Kenvue’s dividend payout ratio (DPR) is 97.65%.

Insider Buying and Selling at Kenvue In other news, General Counsel Matthew Orlando sold 38,491 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $17.66, for a total value of $679,751.06. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.59% of the stock is currently owned by corporate insiders.

Institutional Trading of Kenvue Several large investors have recently added to or reduced their stakes in KVUE. Merit Financial Group LLC boosted its holdings in Kenvue by 15.7% in the 2nd quarter. Merit Financial Group LLC now owns 77,208 shares of the company’s stock valued at $1,475,000 after purchasing an additional 10,483 shares during the last quarter. Corecam AG purchased a new position in Kenvue in the second quarter worth approximately $344,000. Rosenberg Matthew Hamilton increased its stake in Kenvue by 341.9% during the second quarter. Rosenberg Matthew Hamilton now owns 3,045 shares of the company’s stock worth $58,000 after acquiring an additional 2,356 shares during the last quarter. Farther Finance Advisors LLC raised its position in Kenvue by 6.5% in the second quarter. Farther Finance Advisors LLC now owns 68,743 shares of the company’s stock valued at $1,314,000 after purchasing an additional 4,184 shares during the period. Finally, Ballentine Partners LLC lifted its stake in shares of Kenvue by 6.0% in the 2nd quarter. Ballentine Partners LLC now owns 18,477 shares of the company’s stock valued at $353,000 after purchasing an additional 1,052 shares during the last quarter. 97.64% of the stock is currently owned by hedge funds and other institutional investors.

Kenvue Company Profile (Get Free Report)

Kenvue is a consumer health company that was established as a standalone, publicly traded business after separating from Johnson & Johnson. Listed on the New York Stock Exchange under the symbol KVUE, Kenvue focuses on the development, manufacture, marketing and distribution of consumer health and personal care products across a range of categories including skin and beauty care, baby care, oral care, wound care and over‑the‑counter medicines.

The company owns and markets a portfolio of widely recognized consumer brands, including names familiar to global shoppers across retail and pharmacy channels.

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A Dividend King is a company that has increased its dividend for at least 50 years in a row. There are currently only 57 that can wear this crown.

One of them is Kimberly-Clark (KMB +0.06%), the venerable company that makes tissues, paper towels, diapers, and other paper-based family-care products. It has increased its dividend for 54 straight years, making its stock a Dividend King. But it also pays out one of the highest yields among Dividend Kings -- 4.7% right now. The combination makes it one of the best, most reliable dividend stocks you can buy.

But the stock is not just a buy for its royal dividend -- it's also positioned to deliver some solid returns. Here's why.

Image source: Getty Images.

A strategic shift toward higher-margin products Kimberly-Clark stock is up about 11% year to date (with dividends reinvested), but its total returns are down about 10% over the past 12 months. Its long-term returns aren't great either, as it averaged a drop of 1% over the past five years and a total rise of only 1% over the past decade.

Its main utility for investors has been to provide excellent dividend income, and some downside protection when markets go south. But some recent developments could position the company to generate some decent returns.

Earlier this month, Kimberly-Clark struck a deal with pulp supplier Suzano (SUZ +0.24%) to form a new paper products company, Arbex. This benefits Kimberly-Clark by offloading its lower-margin paper-towel and tissue business, allowing it to focus on its higher-margin personal-care products. Kimberly-Clark also has a licensing agreement with Arbex to license its paper brands, so that will generate some licensing royalties.

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A greater focus on absorbing its Kenvue acquisition More importantly, it frees up resources for Kimberly-Clark to integrate its pending acquisition of Kenvue (KVUE +0.16%).

Kenvue, which makes skincare products like Aveeno and consumer health products like Band-Aid, Tylenol, and Listerine (to name just a few), spun off from Johnson & Johnson in 2023. Kimberly-Clark sees it as a complementary fit, creating a global health and wellness leader, and expects the combination to maximize each company's strengths and accelerate growth.

Kimberly-Clark anticipates approximately $1.9 billion in cost synergies and roughly $500 million in profit from revenue synergies, within three to four years of the deal closing. It also expects to spend about $2.5 billion to realize these benefits in the first two years.

Long live the Dividend King Analysts are generally bullish on the acquisition, with several raising their price targets for the stock in recent weeks. They have a median price target of $113 per share, suggesting 5% upside. Shares are also cheap, trading at 14 times earnings.

I think Kimberly-Clark is a buy for its dividend alone. But investors may also see the added benefit of solid long-term returns following the major shift from this 154-year-old company.

Healthcare has been an unloved corner of the market in 2026, but that neglect has created a rare setup: quality names trading in single-digit and low-double-digit territory while still throwing off cash, growing earnings, and reaffirming guidance. For retail investors scanning for value, the sub-$30 shelf in healthcare currently offers exposure to a pending strategic buyout, a 7% dividend yield backed by a reaffirmed outlook, and a restructuring story with multiple near-term FDA catalysts. That is a lot of optionality for very little share price.

With that in mind, here are three healthcare stocks trading under $30 that look attractively priced heading into the back half of 2026.

Kenvue (NYSE: KVUE) Kenvue (NYSE:KVUE | KVUE Price Prediction) is the consumer health company spun off from Johnson & Johnson (NYSE:JNJ), home to Tylenol, Neutrogena, Aveeno, Listerine, BAND-AID, Zyrtec, and Nicorette. Shares closed the last session at $19.83, comfortably under the $30 ceiling and up 17.65% year to date, which still leaves the stock below its 52-week high of $21.85.

The fundamentals are firming quickly. Q1 FY26 delivered adjusted EPS of $0.32 versus $0.26 expected, a 23.08% beat, on revenue of $3.91 billion, up 4.49% year over year. Gross margin expanded 90 basis points to 58.9% and adjusted operating margin reached 24.0%, while free cash flow climbed 60.64% to $400 million. Kenvue carries a forward P/E of 17 and a 4.28% dividend yield, with an analyst consensus price target of $19.50.

The bull case is anchored by the pending acquisition by Kimberly-Clark (NYSE:KMB), structured as $3.50 cash per share plus 0.14625 Kimberly-Clark shares, expected to close in the second half of 2026 with shareholder approval already secured and the HSR waiting period expired. That gives holders a defined takeout floor while the underlying business keeps expanding margins. CEO Kirk Perry said the company is “confident in our ability to navigate ongoing macro uncertainty” as it works toward closing the combination.

The key risk is deal execution: foreign regulatory approvals could delay the timeline, and total debt has risen to $8.7 billion. Even so, with a takeout premium, margin momentum, and defensive brands, Kenvue looks like a low-volatility way to earn a return under $20. Pfizer (NYSE:PFE) is one such name.

Pfizer (NYSE: PFE) Pfizer is one of the largest global biopharmaceutical companies, with a portfolio spanning oncology, vaccines, specialty care, and primary care. The stock last traded at $24.32, up just 0.97% year to date, keeping it well inside the under-$30 zone and near the low end of its $21.97 to $28.28 52-week range.

At current levels, Pfizer trades at a trailing P/E of 19 and a forward P/E of 8, with a dividend yield of 7.2% supported by a quarterly payout of $0.43 that has held steady since Q1 2025. Q1 FY26 marked the fifth consecutive EPS beat, with adjusted EPS of $0.75 versus $0.72 expected on revenue of $14.45 billion, up 5.4% year over year. Growth drivers included Padcev +39%, Nurtec ODT/Vydura +41%, Eliquis +13%, and Abrysvo +37%. The analyst consensus price target sits at $29.15, with 11 buy or strong buy ratings against 16 holds.

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The bull case rests on three pillars. First, the Vyndamax patent settlement extends U.S. exclusivity to June 2031, removing a major overhang on one of the company’s most profitable franchises. Second, management reaffirmed FY26 guidance of $59.5 to $62.5 billion in revenue and $2.80 to $3.00 in adjusted EPS. Third, the pipeline is loaded, with roughly 20 key pivotal trial starts planned in 2026, including 10 obesity assets from the Metsera acquisition. CEO Albert Bourla said Pfizer is “particularly encouraged by what we’re seeing in oncology and obesity.”

The risk profile is real. Pfizer faces a $1.5 billion expected revenue headwind from generics and biosimilars in 2026, ongoing COVID product declines (Comirnaty -59%, Paxlovid -63%), and pricing pressure from Most Favored Nation policy discussions. On Polymarket, traders currently give a 13% implied probability that the U.S. federal government takes a stake in Pfizer this year, a low-odds tail risk worth acknowledging. For income-oriented value investors, Pfizer offers a rare combination of a 7% yield, single-digit forward multiple, and a rebuilding growth story.

Viatris (NASDAQ: VTRS) Viatris (NASDAQ:VTRS) is a global pharmaceutical company blending generics and branded drugs, including Lipitor, Lyrica, EpiPen, Viagra, and Creon. Shares last changed hands at $16.70, up a remarkable 36.24% year to date and 85.74% over the past year, yet still trading materially below the $30 ceiling.

Even after the rally, valuation remains compressed. Viatris trades at a forward P/E of 7, a price-to-book of 1.327, and offers a 2.97% dividend yield from a $0.12 quarterly payout that has held steady for 16 consecutive quarters. Q1 FY26 delivered adjusted EPS of $0.59 versus $0.50 expected, a 17.53% beat, on revenue of $3.52 billion, up 8.1% year over year. Greater China net sales surged 22% to $680.1 million, brands grew 10% to $2.33 billion, and adjusted EBITDA rose 14% to $1.05 billion. The analyst consensus target of $17.81 is now within striking distance.

The bull case combines cost discipline with catalysts. Management is executing an enterprise-wide restructuring targeting $600 to $700 million in annualized cost savings with up to a 10% workforce reduction, and reaffirmed FY26 guidance of $14.45 to $14.95 billion in revenue, $2.33 to $2.47 in adjusted EPS, and $1.95 to $2.35 billion in free cash flow. The pipeline offers three near-term decisions: the contraceptive patch PDUFA on July 30, 2026, the MR-141 presbyopia PDUFA on October 17, 2026, and the non-opioid pain therapy MR-107A-02 decision expected December 27, 2026. CEO Scott Smith said the company is “well positioned to deliver on our full-year guidance.”

The risks are meaningful. Viatris posted a FY25 GAAP net loss of $3.51 billion including $2.9 billion in Q1 25 goodwill impairment, and continues to work through the Indore FDA warning letter and a $71.9 million writedown tied to the Nashik India facility fire. Generic pricing pressure in North America and Japan remains a persistent headwind. Still, with a mid-single-digit forward multiple, reaffirmed guidance, and three catalysts before year-end, Viatris looks like the highest-optionality name of the three.

The Bottom Line Kenvue, Pfizer, and Viatris each carry real risks, from deal timing and regulatory hurdles to patent cliffs, pricing policy, and manufacturing issues. What makes them interesting today is that their sub-$30 quotes come attached to reaffirmed 2026 guidance, expanding margins, and identifiable catalysts, not just cheap headline multiples. Investors should dig into the filings, weigh each risk against their own time horizon, and decide whether the setup matches their portfolio needs before acting.

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Kenvue (KVUE +0.61%) was a part of Johnson & Johnson until the parent company spun off its consumer health division to form the company nearly three years ago. As a spun-off entity, Kenvue retained the title of Dividend King, an elite group of public companies that have raised their dividend annually for 50 or more consecutive years.

Since the spinoff, Kenvue has continued to increase its dividend, including a 1.2% bump last year to $0.275 per share. That's 63 consecutive years of increases. The dividend yield is a sizable 4.53% at its current share price.

Here are three reasons to buy the healthcare stock hand over fist right now, either for income-oriented investors or as a short-term move:

Image source: Getty Images.

1. The impending Kimberly-Clark merger play The biggest catalyst on the horizon is Kenvue's pending $40 billion mega-merger with Kimberly-Clark (KMB +1.07%), which is also a Dividend King, with 54 consecutive years of dividend increases. This deal could transform Kenvue from a slow-growth spinoff into a lean, optimized consumer goods powerhouse.

Consumer staples company Kimberly-Clark said it expects the combined company to capture roughly $2.1 billion in run rate cost synergies. Instead of a centralized corporate bureaucracy, local markets are being given full profit-and-loss ownership, allowing them to move quickly while leveraging Kimberly-Clark's massive global supply chain and distribution network to expand margins.

Kenvue shareholders will receive $3.50 per share in cash, plus 0.14625 Kimberly-Clark shares for each Kenvue share held, for a total consideration of $21.01 per share. When the deal was announced, Kenvue's stock, not surprisingly, went to $21 per share, but now it trades around $18.32, so buying the stock before the merger finalizes offers investors a clear benefit of nearly $3 per share.

The deal has already been approved by stockholders at both companies, though it still must be approved by foreign regulators.

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2. A fortress portfolio of iconic brands Even in economic downturns, consumers rarely cut back on essential health and self-care items. Kenvue owns some of the most dominant, trusted pure-play consumer health products in the world, including pain medicines Tylenol and Motrin, allergy medicines Zyrtec and Benadryl, Listerine mouthwash, skin and beauty products Neutrogena and Aveeno, and first-aid stalwarts Band-Aid and Neosporin.

These are all household names, giving Kenvue significant pricing power to combat inflation. They have consistently demonstrated an ability to protect gross margins because customers prefer paying for trusted efficacy over generic store brands when it comes to their health.

If the Kimberly-Clark deal goes through, those iconic brands will benefit from the larger consumer company's supply chain. If the deal doesn't succeed, Kenvue is doing fine financially. In the first quarter, it reported revenue of $3.9 billion, up 4.5% year over year, and earnings per share (EPS) of $0.25, up 47% over the same period last year.

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3. A good dividend will get even better In a volatile market, Kenvue acts as an excellent ballast. The stock features an exceptionally low beta of 0.50, meaning it experiences only a fraction of the wild swings seen in the broader S&P 500.

More importantly for income investors, it boasts a hefty dividend yield. The best part is that high yield may even go up after the merger. Kimberly-Clarke's dividend yield is slightly higher at around 4.9%, while its payout yield is lower.

The one complication of the merger is that to realize the full benefit of the higher dividend, investors will need to spend the cash they receive from their Kenvue shares on additional Kimberly-Clark stock.

Kimberly-Clark's lean new regional structure is built for speed as it prepares to integrate Kenvue in a $48.7B deal closing in H2 2026.

After its product lineup faced a long-lasting headwind, beverage outfit PepsiCo may finally be back on track. Johnson & Johnson spinoff Kenvue is built for reliable recurring income.

SUMMIT, N.J.--(BUSINESS WIRE)--Kenvue Inc. (NYSE: KVUE) will announce its first quarter 2026 financial results before the market opens on May 7, 2026. Due to the pending transaction with Kimberly-Clark, Kenvue will not be hosting a quarterly conference call to review its financial results. The press release will be available on the company's website at investors.kenvue.com. About Kenvue Kenvue Inc. is the world's largest pure-play consumer health company by revenue. Built on more than a century.

SUMMIT, N.J.--(BUSINESS WIRE)--Kenvue Inc. (NYSE: KVUE) today announced that its Board of Directors declared a quarterly dividend of $0.2075 per share on its common stock. The quarterly dividend is payable on May 27, 2026, to shareholders of record as of the close of business on May 13, 2026. About Kenvue Kenvue Inc. is the world's largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson's®, Li.

Tylenol-maker Kenvue on Thursday beat Wall Street estimates for first-quarter revenue and profit helped by strong sales in its ​skin health and beauty brands.

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KVUE, BP and CIVB made it to the Zacks Rank #1 (Strong Buy) income stocks list on May 11th, 2026.

Kimberly-Clark Corp (NYSE:KMB, XETRA:KMY) has earned a repeat ‘Buy' rating and $120 price objective from Bank of America analysts, who believe that the company's acquisition of Kenvue assets could create long-term value despite near-term integration challenges. The analysts said the deal appears opportunistic, noting the acquisition multiple of about 14 times Kenvue's last-twelve-month adjusted EBITDA and a purchase price of $21.01 per share, roughly in line with Kenvue's market value before Tylenol-related headlines weighed on the stock in September 2025.

GECC, KVUE and TNET made it to the Zacks Rank #1 (Strong Buy) income stocks list on May 26, 2026.