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Kenvue edges past revenue growth, but misses Q2 estimates on margin pressure
Adjusted gross margin fell to 60.2% and Kenvue forecast about $250 million in 2026 pre tax restructuring charges.
Kenvue narrowly missed Wall Street estimates for second-quarter results as inflation, tariffs and currency-related costs squeezed margins, according to Reuters. The consumer-health company is also in the midst of a $40 billion buyout by Kimberly-Clark, which it expects to close in the fourth quarter of 2026.
Kenvue reported second-quarter adjusted profit of 31 cents per share, slightly below analysts’ average estimate of 32 cents, per LSEG data cited by Reuters. The company said quarterly sales rose 3% to $3.96 billion, just under the $3.97 billion estimate.
Margin performance weakened, with adjusted gross margin dropping to 60.2% from 60.9% a year earlier. Reuters reported that the decline reflected inflation, tariffs and currency-related costs outweighing benefits from supply-chain savings and higher prices.
In business updates, Self Care sales rose 2.2% to $1.59 billion, Skin Health and Beauty increased 5.1% to $1.11 billion, and Essential Health grew 2.3% to $1.25 billion. Kenvue also expects about $250 million in pre-tax charges in 2026 from a restructuring program focused on simplifying operations, improving its supply chain and lowering costs, Reuters said.