Kimberly-Clark Reports Solid Q1 2026 Results with Growth in Sales and Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Yahoo Finance
- Sales Growth: Kimberly-Clark reported Q1 2026 net sales of $4.2 billion, reflecting a 2.7% year-over-year increase, primarily driven by consumer-inspired innovation and volume-plus-mix growth, despite navigating macroeconomic uncertainties and ongoing portfolio transitions.
- Profitability Improvement: The company achieved an adjusted operating profit of $732 million, a 3.7% increase from the previous year, supported by significant productivity savings and lower overhead costs, demonstrating effective cost control measures.
- Earnings Per Share Changes: While adjusted EPS from continuing operations saw a slight decline of 1.2% due to tax factors, the overall adjusted EPS attributable to the total corporation rose by 2.1%, indicating an improvement in the company's overall financial health.
- Outlook Reaffirmation: Kimberly-Clark reaffirmed its 2026 outlook, expecting organic sales growth to remain consistent with or ahead of category averages, as management continues to focus on long-term value creation, including preparations for the upcoming Kenvue acquisition and ongoing investments in commercial activations and sustainable productivity.
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Analyst Views on KMB
Wall Street analysts forecast KMB stock price to rise
14 Analyst Rating
5 Buy
8 Hold
1 Sell
Moderate Buy
Current: 100.140
Low
95.00
Averages
127.71
High
162.00
Current: 100.140
Low
95.00
Averages
127.71
High
162.00
About KMB
Kimberly-Clark Corporation is a global company focused on delivering products and solutions that provide better care. The Company's segments include North America and International Personal Care. The North America segment consists of products encompassing each of its five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. International Personal Care segment consists of three core categories: Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. Its portfolio of brands includes Huggies, Kleenex, Scott, Kotex, Cottonelle, Depend, and Pull-Ups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kimberly-Clark's $49 Billion Kenvue Acquisition Faces Antitrust Scrutiny
- Antitrust Review Request: China's State Administration for Market Regulation has requested additional information regarding Kimberly-Clark's planned $49 billion acquisition of Kenvue following a formal complaint from antitrust expert Liu Xu, indicating heightened regulatory scrutiny that could impact the deal's timeline.
- Expert Complaint Context: Liu Xu's complaint has prompted the regulator to potentially slow down its fast-track review process, although it remains unclear whether this will significantly delay the review, introducing uncertainty for Kimberly-Clark ahead of the transaction's completion.
- Deal Size and Impact: The acquisition is expected to close in the second half of 2026, creating a projected $32 billion revenue leader in health and personal care by combining the strengths of two major global consumer goods players, which could reshape the market landscape.
- Market Reaction and Future Outlook: Kimberly-Clark is set to present at the Deutsche Bank Consumer Conference, and despite facing regulatory challenges, the strategic integration in the health and personal care sector is viewed as a long-term growth opportunity, warranting investor attention on subsequent developments.
See More
Comparing Investment Value of Kimberly-Clark and Clorox
- Kimberly-Clark Financial Performance: In FY 2025, Kimberly-Clark reported nearly $16.4 billion in revenue, down from $16.8 billion the previous year, with a net income of approximately $2.0 billion and a net margin of 12.2%, indicating profitability pressures amid shifting consumer demand, necessitating attention to its international business sale and potential merger impacts.
- Clorox Profit Recovery: Clorox generated about $7.1 billion in revenue for FY 2025, with net income significantly rising to approximately $810 million and a net margin of 11.4%, reflecting a gradual recovery in profitability post-pandemic, despite facing customer concentration risks and cybersecurity challenges.
- Competition and Risk Analysis: Kimberly-Clark faces intense competition from Procter & Gamble and generic brands, with geopolitical and currency fluctuations impacting its international sales, while Clorox's 27% sales dependency on Walmart poses pricing pressures, compounded by ongoing recovery from a recent cyberattack.
- Valuation Comparison: Kimberly-Clark's forward P/E ratio stands at 13.2x, making it more attractive compared to Clorox's 17.4x, although both are below sector averages, prompting investors to weigh potential merger risks against market performance.
See More
Kimberly-Clark Executives to Speak at Deutsche Bank Conference
- Executive Participation: Kimberly-Clark's CEO Mike Hsu and CFO Nelson Urdaneta will speak at the Deutsche Bank dbAccess Global Consumer Conference on June 4, highlighting the company's leadership in the consumer goods sector.
- Conference Timing: The event is scheduled for 11:45 a.m. CEST and 5:45 a.m. ET, with Kimberly-Clark providing a broadcast link through the Investors section of its website, ensuring real-time access for investors.
- Brand Influence: Kimberly-Clark's portfolio, including Huggies and Kleenex, holds the No. 1 or No. 2 market share in approximately 70 countries, demonstrating its strong competitive position across 175 countries and territories.
- Sustainability Commitment: The company is committed to sustainable practices that support a healthy planet and strong communities, aiming to lay the groundwork for business prosperity for decades to come, reflecting its mission of delivering Better Care for a Better World.
See More
Transformation of India's Global Capability Centers
- Global Center Scale: India has emerged as the world's largest hub for Global Capability Centers (GCCs), with over 2,100 centers employing 2.36 million people and generating nearly $100 billion in revenue, highlighting its significant role and attractiveness in the global market.
- Functional Transformation: GCCs are evolving from mere back-office support units to integrated hubs closely aligned with their parent companies, managing a range of functions from technology to product support, reflecting a shift towards outcome-based evaluations.
- Intensified Talent Competition: Bengaluru faces dual pressures of talent shortages and rising costs as demand for AI and machine learning skills surges, with some tech roles experiencing annual salary increases of 40% to 50%, threatening India's cost advantage in the sector.
- AI Impact: AI is reshaping work dynamics, enabling increased output without additional headcount, although adoption lags; many firms are reallocating workers to higher-value roles, marking a pivotal moment for India's GCC sector as it adapts to rising costs and global competition.
See More
India's Tech Hubs Accelerate AI-Driven Innovation
- Enhanced Innovation Role: Global companies like Daimler Truck and Kimberly-Clark indicate that India's Global Capability Centers (GCCs) are accelerating the creation of intellectual property and patents through AI technology, highlighting India's growing significance as an innovation hub.
- Significant Revenue Growth: According to a report by Nasscom and Zinnov, Indian GCCs generated $98.4 billion in revenue last fiscal year, achieving industry projections four years ahead of schedule, demonstrating their increasing competitiveness in the global market.
- Patent Application Challenges: Although patent filings in India rose by 11.3% to over 90,000 in fiscal 2024, many companies still prefer to file through their U.S. parent entities due to slow approval processes and high legal costs, leading to an underestimation of India's contributions.
- Improved Policy Outlook: The Indian Patent Office is enhancing the application process through online functionalities and video hearings, and while facing manpower shortages and backlogs, these reforms are expected to facilitate future growth in intellectual property.
See More
Kimberly-Clark Reports Solid Q1 2026 Results with Growth in Sales and Profit
- Sales Growth: Kimberly-Clark reported Q1 2026 net sales of $4.2 billion, reflecting a 2.7% year-over-year increase, primarily driven by consumer-inspired innovation and volume-plus-mix growth, despite navigating macroeconomic uncertainties and ongoing portfolio transitions.
- Profitability Improvement: The company achieved an adjusted operating profit of $732 million, a 3.7% increase from the previous year, supported by significant productivity savings and lower overhead costs, demonstrating effective cost control measures.
- Earnings Per Share Changes: While adjusted EPS from continuing operations saw a slight decline of 1.2% due to tax factors, the overall adjusted EPS attributable to the total corporation rose by 2.1%, indicating an improvement in the company's overall financial health.
- Outlook Reaffirmation: Kimberly-Clark reaffirmed its 2026 outlook, expecting organic sales growth to remain consistent with or ahead of category averages, as management continues to focus on long-term value creation, including preparations for the upcoming Kenvue acquisition and ongoing investments in commercial activations and sustainable productivity.
See More
Kimberly-Clark's $49 Billion Kenvue Acquisition Faces Antitrust Scrutiny
- Antitrust Review Request: China's State Administration for Market Regulation has requested additional information regarding Kimberly-Clark's planned $49 billion acquisition of Kenvue following a formal complaint from antitrust expert Liu Xu, indicating heightened regulatory scrutiny that could impact the deal's timeline.
- Expert Complaint Context: Liu Xu's complaint has prompted the regulator to potentially slow down its fast-track review process, although it remains unclear whether this will significantly delay the review, introducing uncertainty for Kimberly-Clark ahead of the transaction's completion.
- Deal Size and Impact: The acquisition is expected to close in the second half of 2026, creating a projected $32 billion revenue leader in health and personal care by combining the strengths of two major global consumer goods players, which could reshape the market landscape.
- Market Reaction and Future Outlook: Kimberly-Clark is set to present at the Deutsche Bank Consumer Conference, and despite facing regulatory challenges, the strategic integration in the health and personal care sector is viewed as a long-term growth opportunity, warranting investor attention on subsequent developments.
See More
Comparing Investment Value of Kimberly-Clark and Clorox
- Kimberly-Clark Financial Performance: In FY 2025, Kimberly-Clark reported nearly $16.4 billion in revenue, down from $16.8 billion the previous year, with a net income of approximately $2.0 billion and a net margin of 12.2%, indicating profitability pressures amid shifting consumer demand, necessitating attention to its international business sale and potential merger impacts.
- Clorox Profit Recovery: Clorox generated about $7.1 billion in revenue for FY 2025, with net income significantly rising to approximately $810 million and a net margin of 11.4%, reflecting a gradual recovery in profitability post-pandemic, despite facing customer concentration risks and cybersecurity challenges.
- Competition and Risk Analysis: Kimberly-Clark faces intense competition from Procter & Gamble and generic brands, with geopolitical and currency fluctuations impacting its international sales, while Clorox's 27% sales dependency on Walmart poses pricing pressures, compounded by ongoing recovery from a recent cyberattack.
- Valuation Comparison: Kimberly-Clark's forward P/E ratio stands at 13.2x, making it more attractive compared to Clorox's 17.4x, although both are below sector averages, prompting investors to weigh potential merger risks against market performance.
See More
Kimberly-Clark Executives to Speak at Deutsche Bank Conference
- Executive Participation: Kimberly-Clark's CEO Mike Hsu and CFO Nelson Urdaneta will speak at the Deutsche Bank dbAccess Global Consumer Conference on June 4, highlighting the company's leadership in the consumer goods sector.
- Conference Timing: The event is scheduled for 11:45 a.m. CEST and 5:45 a.m. ET, with Kimberly-Clark providing a broadcast link through the Investors section of its website, ensuring real-time access for investors.
- Brand Influence: Kimberly-Clark's portfolio, including Huggies and Kleenex, holds the No. 1 or No. 2 market share in approximately 70 countries, demonstrating its strong competitive position across 175 countries and territories.
- Sustainability Commitment: The company is committed to sustainable practices that support a healthy planet and strong communities, aiming to lay the groundwork for business prosperity for decades to come, reflecting its mission of delivering Better Care for a Better World.
See More
Transformation of India's Global Capability Centers
- Global Center Scale: India has emerged as the world's largest hub for Global Capability Centers (GCCs), with over 2,100 centers employing 2.36 million people and generating nearly $100 billion in revenue, highlighting its significant role and attractiveness in the global market.
- Functional Transformation: GCCs are evolving from mere back-office support units to integrated hubs closely aligned with their parent companies, managing a range of functions from technology to product support, reflecting a shift towards outcome-based evaluations.
- Intensified Talent Competition: Bengaluru faces dual pressures of talent shortages and rising costs as demand for AI and machine learning skills surges, with some tech roles experiencing annual salary increases of 40% to 50%, threatening India's cost advantage in the sector.
- AI Impact: AI is reshaping work dynamics, enabling increased output without additional headcount, although adoption lags; many firms are reallocating workers to higher-value roles, marking a pivotal moment for India's GCC sector as it adapts to rising costs and global competition.
See More
India's Tech Hubs Accelerate AI-Driven Innovation
- Enhanced Innovation Role: Global companies like Daimler Truck and Kimberly-Clark indicate that India's Global Capability Centers (GCCs) are accelerating the creation of intellectual property and patents through AI technology, highlighting India's growing significance as an innovation hub.
- Significant Revenue Growth: According to a report by Nasscom and Zinnov, Indian GCCs generated $98.4 billion in revenue last fiscal year, achieving industry projections four years ahead of schedule, demonstrating their increasing competitiveness in the global market.
- Patent Application Challenges: Although patent filings in India rose by 11.3% to over 90,000 in fiscal 2024, many companies still prefer to file through their U.S. parent entities due to slow approval processes and high legal costs, leading to an underestimation of India's contributions.
- Improved Policy Outlook: The Indian Patent Office is enhancing the application process through online functionalities and video hearings, and while facing manpower shortages and backlogs, these reforms are expected to facilitate future growth in intellectual property.
See More
Kimberly-Clark Reports Solid Q1 2026 Results with Growth in Sales and Profit
- Sales Growth: Kimberly-Clark reported Q1 2026 net sales of $4.2 billion, reflecting a 2.7% year-over-year increase, primarily driven by consumer-inspired innovation and volume-plus-mix growth, despite navigating macroeconomic uncertainties and ongoing portfolio transitions.
- Profitability Improvement: The company achieved an adjusted operating profit of $732 million, a 3.7% increase from the previous year, supported by significant productivity savings and lower overhead costs, demonstrating effective cost control measures.
- Earnings Per Share Changes: While adjusted EPS from continuing operations saw a slight decline of 1.2% due to tax factors, the overall adjusted EPS attributable to the total corporation rose by 2.1%, indicating an improvement in the company's overall financial health.
- Outlook Reaffirmation: Kimberly-Clark reaffirmed its 2026 outlook, expecting organic sales growth to remain consistent with or ahead of category averages, as management continues to focus on long-term value creation, including preparations for the upcoming Kenvue acquisition and ongoing investments in commercial activations and sustainable productivity.
See More
