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Kimberly-Clark lags the S&P 500 as China disruption weighs on outlook

After Q2 FY2026 results, the company raised near-term operating and EPS targets but cut its 2026 outlook, setting organic sales growth about 1.0 percentage point below its category rate due to China-related social media disruption.

Saturday, August 15, 2026 · Written up by our desk · Previews

Kimberly-Clark has underperformed the broader market over the past year, with shares down 18.5% versus a 20.2% gain for the S&P 500, according to Yahoo Finance. Year-to-date, the stock has risen 8.0% while the index is up 13.2%. The article also notes KMB has lagged the Invesco S&P 500 Equal Weight Consumer Staples ETF, RSPS, which has declined slightly over the past year and gained 6.5% year-to-date.

In its latest update, Kimberly-Clark reported Q2 FY2026 earnings on August 4, when shares rose about 4% on resilient results despite a China-related social media disruption, the outlet said. Net sales increased marginally to $4.2 billion, supported by one-time tariff refunds and strong productivity savings.

Adjusted EPS from continuing operations rose 10.4% to $1.80, Yahoo Finance reported. The company lowered its 2026 outlook, now expecting organic sales growth about 100 basis points below its weighted average category growth rate, citing the impact from the China social media disruptions.

While the outlook was trimmed, Kimberly-Clark still expects adjusted operating profit to grow in the mid-single digits and adjusted EPS from continuing operations to grow in the high single digits on a constant-currency basis, according to the article. For the current fiscal year ending in December 2026, analysts expect diluted EPS of $7.43, down 1.3%.

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