Kimberly-Clark Corporation 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."

Quarter Highlights

• Unless otherwise noted, reported results in this release are based on continuing operations and exclude the International Family Care and Professional ("IFP") business, which is reported as discontinued operations.
• Delivered net sales of $4.2 billion, up 2.7 percent, with organic sales growth of 2.5 percent.
• Gross margin was 36.8 percent; adjusted gross margin was 37.9 percent, down 60 basis points versus the prior year.
• Operating profit for the quarter was $753 million, while adjusted operating profit was $732 million, up 3.7 percent versus the prior year driven by strong productivity savings, lower marketing, research and general expenses reflecting overhead savings, and favorable currency translation.
• Diluted earnings per share ("EPS") from continuing operations were $1.70; adjusted EPS from continuing operations were $1.60, down 1.2 percent versus the prior year.
• Diluted EPS attributable to Kimberly-Clark were $2.00; adjusted EPS attributable to Kimberly-Clark were $1.97, up 2.1 percent versus the prior year.

First Quarter 2026 Detailed Results

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.

Business Segment Performance

• North America (NA): Net sales of $2.7 billion decreased 0.6 percent. Operating profit of $623 million decreased 8.1 percent, hindered by a 490 basis point headwind from business exits and increased advertising investments. Organic sales grew 1.8 percent through broad-based volume growth.
• International Personal Care (IPC): Net sales rose 9.1 percent to $1.5 billion, with organic sales growth of 4.0 percent. Growth was fueled by a 4.1 percent increase in volume and a 1.4 percent improvement in product mix, which offset 1.5 percent in price investments. Operating profit surged 21.9 percent to $245 million.

Cash Flow, Balance Sheet, and Dividends

• Cash Flow: Cash provided by operations reached $745 million, compared to $327 million last year.
• Capital Spending: Year-to-date spending increased to $424 million, up from $204 million in 2025.
• Shareholder Returns: The company returned $418 million to shareholders via dividends.
• Debt: Total debt stood at $7.1 billion as of March 31, 2026, down from $7.2 billion at year-end 2025.

2026 Outlook

Kimberly-Clark continues to expect 2026 Organic Sales Growth to grow in line to ahead of the weighted average growth in its categories, approximately 2.5 percent. Adjusted Operating Profit is expected to grow at a mid-to-high single-digit rate on a constant-currency basis.

The company anticipates a 40 percent increase in income from equity companies compared to 2025. Furthermore, the pending IFP joint venture transaction with Suzano is expected to close in mid-2026. Proceeds from this sale will partially fund the Kenvue acquisition. This outlook remains subject to the macro environment, including monitoring currency risks in Argentina and Türkiye and regional hostilities such as the war in Iran.