April 28, 2026 - Kimberly-Clark today reported first quarter 2026 results driven by resilient consumer demand for the company's brands, the introduction of pioneering innovative new products, and leveraging sustained, industry-leading productivity.
"Our first quarter results highlight the strength and resilience of the growth engine we've built through Powering Care," said Kimberly-Clark Chairman and CEO Mike Hsu. "We continued to deliver solid volume-plus-mix performance while building share momentum despite continued geopolitical and macroeconomic uncertainty. We accomplished this by driving consumer-inspired innovation, growing brand love, and executing exceptionally well as a team. Simultaneously, we continue to generate meaningful cost savings that reinforce our strong financial foundation and enable us to invest in our exciting future."
Hsu continued, "With our core business gaining momentum and one of the strongest innovation and commercial activation lineups in our history set to launch in the second quarter, we're preparing Kimberly-Clark to unlock the unique, generational value creation opportunity ahead with the acquisition of Kenvue. We have industry-leading momentum thanks to our teams around the world, and we're excited to accelerate into our next chapter and build a company unlike any other in our industry today."
Net sales of $4.2 billion increased 2.7 percent, as organic sales growth of 2.5 percent and favorable currency impacts of 2.0 percent were partially offset by a 1.8 percent decline from the exit of the company's private label diaper business in the US. Organic sales growth was driven by volume-plus-mix growth of 3.0 percent, partially offset by lower pricing of 0.5 percent to drive trial of new products and enhance value propositions.
Gross margin was 36.8 percent compared to 37.2 percent in the prior year, inclusive of $42 million, or 110 basis points, and $53 million, or approximately 130 basis points, respectively, of charges related to the 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 37.9 percent, a decrease of 60 basis points versus the prior year as strong productivity savings were more than offset by unfavorable pricing net of cost inflation, reflecting planned investments to drive new product trial and improve price:value tiers across the portfolio, and supply chain related investments.
First quarter operating profit was $753 million compared to $631 million in the prior year. Current quarter results included a $120 million benefit related to the settlement of insurance claims from a previous acquisition, and $99 million of charges related to the 2024 Transformation Initiative and Kenvue acquisition. Prior year results included $75 million of charges related to the 2024 Transformation Initiative. Excluding these items, adjusted operating profit was $732 million compared to $706 million, an increase of 3.7 percent driven by strong productivity savings, lower marketing, research and general expenses, and favorable currency translation.
Net sales of $2.7 billion decreased 0.6 percent in the quarter, driven by a 2.7 percent impact from the exit of the company's private label diaper business in the US that was partially offset by solid, underlying organic net sales growth. Organic sales increased 1.8 percent primarily driven by broad-based volume growth reflecting the strength of innovations and activations in the quarter.
Operating profit of $623 million decreased 8.1 percent driven by a 490 basis point headwind from business exits and higher advertising investments that were partially offset by strong productivity savings.
Net sales of $1.5 billion increased 9.1 percent driven by organic sales growth of 4.0 percent and favorable currency impacts. Organic sales benefited from strong volume-led growth of 4.1 percent and enhanced portfolio mix of 1.4 percent that reflected improvements in consumer value propositions across the portfolio, partially offset by price investments of 1.5 percent.
Operating profit of $245 million increased 21.9 percent reflecting volume- and mix-led gains, strong productivity savings, favorable currency impacts, and lower overhead costs that were partially offset by investments in price:value tiers resulting in negative pricing net of cost inflation.
Consistent with the Company's long term growth algorithm, it continues to expect 2026 Organic Sales Growth to grow in line to ahead of the weighted average growth in the categories and countries it competes, which for the latest twelve months grew at approximately two-and-a-half percent.
Reported Net Sales are forecast to reflect a negative impact of 50 basis points from the exit of the company's private label diaper business in the US and an approximately 50 basis points favorable impact from currency translation.
Adjusted Operating Profit is expected to grow at a mid-to-high single-digit rate on a constant-currency basis.
Adjusted Earnings Per Share from Continuing Operations are expected to grow at a double-digit rate on a constant-currency basis driven by an approximately 40 percent increase in income from equity companies versus 2025, expectations of flat net interest expense, an Adjusted Effective Tax Rate of approximately 23 percent, and average shares outstanding essentially unchanged versus 2025.
Adjusted Earnings Per Share Attributable to Kimberly-Clark are expected to be flat on a constant-currency basis reflecting a reduction in Income from Discontinued Operations in line with the expected close of the IFP transaction in mid-2026, th
e proceeds from which will be held to fund, in part, the Kenvue acquisition. Earnings Per Share are expected to be favorably impacted by currency translation of approximately 170 basis points.This outlook reflects assumptions subject to change given the macro environment.
Kimberly-Clark (NYSE: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. The company's portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries.
SOURCE: Kimberly-Clark