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Kimberly-Clark Q1 Earnings Beat Estimates, Sales Up 2.7% Y/Y
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Key Takeaways
KMB Q1 earnings beat estimates, with EPS up 2.1% and sales rising 2.7% year over year.
KMB growth was driven by volume gains, currency benefits and productivity improvements.
KMB expects 2026 organic sales in line with markets and mid to high-single-digit profit growth.
Kimberly-Clark Corporation (KMB - Free Report) posted first-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Taking a Closer Look at KMB’s Q1 Results
The adjusted earnings were $1.97 per share, which beat the Zacks Consensus Estimate of $1.92. The bottom line increased 2.1% year over year, driven by higher adjusted operating profit and income from discontinued operations, partially offset by a higher tax rate.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
Kimberly-Clark’s sales were $4,163 million, marking 2.7% growth from $4,054 million in the prior-year quarter. The figure beat the Zacks Consensus Estimate of $4,106 million. The increase was driven by organic growth of 2.5% and a 2% benefit from currency, partly offset by a 1.8% decline due to exiting the U.S. private label diaper business. Organic growth was supported by a 3% increase in volume and mix, though pricing declined 0.5% as the company invested in product trials and value positioning.
The adjusted gross margin fell 60 basis points to 37.9%, as productivity gains were outweighed by unfavorable pricing relative to cost inflation and continued supply-chain investments.
Adjusted operating profit increased 3.7% to $732 million, driven by productivity improvements, lower overhead costs and favorable currency effects.
KMB Provides Q1 Insights by Segment
North America (“NA”) segment’s net sales reached $2,651 million, down 0.6% year over year, caused by a 2.7% decline from exiting the U.S. private label diaper business, which was partly offset by solid underlying performance. Organic sales grew 1.8%, driven mainly by broad-based volume gains supported by strong innovation and in-market execution.
NA’s operating profit fell 8.1% to $623 million, reflecting a 490-basis-point headwind from business exits and increased advertising spend, partially offset by strong productivity savings.
The International Personal Care (“IPC”) segment’s net sales were $1,512 million, up 9.1%, driven by 4% organic growth and favorable currency impacts. Organic growth was led by a 4.1% increase in volume and a 1.4% improvement in mix, reflecting stronger consumer value propositions, partially offset by a 1.5% decline in pricing due to strategic investments.
IPC’s operating profit increased 21.9% to $245 million, driven by volume and mix gains, strong productivity savings, favorable currency and lower overhead costs. These benefits were partially offset by pricing investments that resulted in negative pricing relative to cost inflation.
Kimberly-Clark’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $542 million, long-term debt of $6,475 million and total stockholders’ equity of $1,914 million.
For the three months ended March 31, cash provided by operations was $745 million. Management incurred capital spending of $424 million in the same time frame. The company returned $418 million to its shareholders via dividends.
What to Expect From KMB in 2026
The company expects organic sales growth in 2026 to be in line with or slightly ahead of the weighted average growth of its categories and markets, which grew about 2.5% over the past year.
Net sales are projected to include a roughly 50-basis-point headwind from the exit of the U.S. private label diaper business, offset by a similar 50-basis-point benefit from favorable currency translation.
Adjusted operating profit is anticipated to grow at a mid to high-single-digit rate on a constant-currency basis.
Adjusted EPS from continuing operations is expected to increase at a double-digit rate. However, adjusted EPS attributable to Kimberly-Clark is expected to remain flat on a constant-currency basis due to lower income from discontinued operations, indicating the anticipated mid-2026 close of the IFP transaction, with proceeds partly funding the Kenvue acquisition.
This Zacks Rank #3 (Hold) company has lost 1.3% in the past three months compared with the industry’s 2.9% decline.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2. US Foods Holding delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4%, from the prior-year reported levels.
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Kimberly-Clark Q1 Earnings Beat Estimates, Sales Up 2.7% Y/Y
Key Takeaways
Kimberly-Clark Corporation (KMB - Free Report) posted first-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Taking a Closer Look at KMB’s Q1 Results
The adjusted earnings were $1.97 per share, which beat the Zacks Consensus Estimate of $1.92. The bottom line increased 2.1% year over year, driven by higher adjusted operating profit and income from discontinued operations, partially offset by a higher tax rate.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote
Kimberly-Clark’s sales were $4,163 million, marking 2.7% growth from $4,054 million in the prior-year quarter. The figure beat the Zacks Consensus Estimate of $4,106 million. The increase was driven by organic growth of 2.5% and a 2% benefit from currency, partly offset by a 1.8% decline due to exiting the U.S. private label diaper business. Organic growth was supported by a 3% increase in volume and mix, though pricing declined 0.5% as the company invested in product trials and value positioning.
The adjusted gross margin fell 60 basis points to 37.9%, as productivity gains were outweighed by unfavorable pricing relative to cost inflation and continued supply-chain investments.
Adjusted operating profit increased 3.7% to $732 million, driven by productivity improvements, lower overhead costs and favorable currency effects.
KMB Provides Q1 Insights by Segment
North America (“NA”) segment’s net sales reached $2,651 million, down 0.6% year over year, caused by a 2.7% decline from exiting the U.S. private label diaper business, which was partly offset by solid underlying performance. Organic sales grew 1.8%, driven mainly by broad-based volume gains supported by strong innovation and in-market execution.
NA’s operating profit fell 8.1% to $623 million, reflecting a 490-basis-point headwind from business exits and increased advertising spend, partially offset by strong productivity savings.
The International Personal Care (“IPC”) segment’s net sales were $1,512 million, up 9.1%, driven by 4% organic growth and favorable currency impacts. Organic growth was led by a 4.1% increase in volume and a 1.4% improvement in mix, reflecting stronger consumer value propositions, partially offset by a 1.5% decline in pricing due to strategic investments.
IPC’s operating profit increased 21.9% to $245 million, driven by volume and mix gains, strong productivity savings, favorable currency and lower overhead costs. These benefits were partially offset by pricing investments that resulted in negative pricing relative to cost inflation.
Kimberly-Clark’s Financial Health Snapshot
The company ended the quarter with cash and cash equivalents of $542 million, long-term debt of $6,475 million and total stockholders’ equity of $1,914 million.
For the three months ended March 31, cash provided by operations was $745 million. Management incurred capital spending of $424 million in the same time frame. The company returned $418 million to its shareholders via dividends.
What to Expect From KMB in 2026
The company expects organic sales growth in 2026 to be in line with or slightly ahead of the weighted average growth of its categories and markets, which grew about 2.5% over the past year.
Net sales are projected to include a roughly 50-basis-point headwind from the exit of the U.S. private label diaper business, offset by a similar 50-basis-point benefit from favorable currency translation.
Adjusted operating profit is anticipated to grow at a mid to high-single-digit rate on a constant-currency basis.
Adjusted EPS from continuing operations is expected to increase at a double-digit rate. However, adjusted EPS attributable to Kimberly-Clark is expected to remain flat on a constant-currency basis due to lower income from discontinued operations, indicating the anticipated mid-2026 close of the IFP transaction, with proceeds partly funding the Kenvue acquisition.
This Zacks Rank #3 (Hold) company has lost 1.3% in the past three months compared with the industry’s 2.9% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2. US Foods Holding delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4%, from the prior-year reported levels.