Kimberly-Clark (NASDAQ:KMB) Posts Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Kimberly-Clark reported quarterly EPS of $1.70, beating the $1.65 consensus, while revenue of $4.13 billion matched estimates but declined 1.2% year over year.
• The company maintained its 2026 outlook and completed its Kenvue acquisition, targeting about $1.9 billion in cost synergies. Management expects the deal to dilute adjusted EPS by a mid-single-digit percentage in 2027 before returning to its growth trajectory in 2028.
• Key headwinds include continued weakness in China Huggies sales, pricing pressure and roughly $250 million in expected 2026 inflationary costs; management says rebuilding trust and market share in China will take time.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) released its earnings results on Thursday. The company reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.65 by $0.05, FiscalAI reports. Kimberly-Clark had a return on equity of 143.92% and a net margin of 11.79%. The company had revenue of $4.13 billion during the quarter, compared to the consensus estimate of $4.13 billion. During the same quarter in the previous year, the company posted $1.82 earnings per share. The firm's quarterly revenue was down 1.2% on a year-over-year basis.

Here are the key takeaways from Kimberly-Clark's conference call:

• Kimberly-Clark completed its Kenvue acquisition, bringing together consumer and healthcare brands. Management outlined a phased integration focused first on uninterrupted operations, with about $1.9 billion in targeted cost synergies from overhead, supply-chain and marketing efficiencies.
• Management expects the combined company’s 2027 adjusted EPS to be mid-single-digit dilutive versus standalone Kimberly-Clark, partly reflecting acquired-asset amortization; it expects to return to its growth algorithm in 2028 on a two-year compounded basis.
• Kimberly-Clark maintained its 2026 outlook, citing underlying business momentum, planned fourth-quarter commercial activity, cost-mitigation actions and an easier North America comparison. Executives said Q3 performance was solid despite one-off headwinds, and highlighted strength in tissue and professional products.
• The Huggies business in China remains under pressure after false allegations, although management said authorities confirmed product safety and demand has stabilized. Executives expect the business to remain subdued in Q4 and said rebuilding consumer trust and share will take time.
• Management cited roughly $250 million in gross inflationary impacts for 2026, including elevated North American freight costs, and acknowledged softer recent North America performance amid inventory changes, club-channel distribution shifts and a postponed product launch.

Kimberly-Clark Stock Up 1.5%

NASDAQ:KMB traded up $1.67 during mid-day trading on Thursday, hitting $110.46. The stock had a trading volume of 8,601,485 shares, compared to its average volume of 4,982,522. Kimberly-Clark has a twelve month low of $92.42 and a twelve month high of $116.82. The stock has a 50-day simple moving average of $102.62 and a two-hundred day simple moving average of $103.19. The company has a current ratio of 0.91, a quick ratio of 0.69 and a debt-to-equity ratio of 3.45. The company has a market capitalization of $36.74 billion, a PE ratio of 18.79, a PEG ratio of 6.03 and a beta of 0.25.

Kimberly-Clark News Roundup

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: Third-quarter EPS was $1.70, ahead of the $1.65 consensus estimate. Kimberly-Clark also stood by its full-year 2026 outlook, offering reassurance despite uneven results. Kimberly-Clark Q3 Profit Surges; Reaffirms FY26 Outlook
• Neutral Sentiment: Revenue of $4.13 billion was in line with estimates, but fell 1.2% year over year. Lower interest costs helped the earnings comparison, while operating profit reportedly missed forecasts, tempering the headline EPS beat. Kimberly-Clark Q3 Earnings Beat on Lower Interest Costs, Sales Miss
• Negative Sentiment: China diaper sales remain a headwind: the company said earlier allegations were unfounded, but the resulting disruption continues to weigh on sales. Pricing pressure is also challenging performance. Kimberly-Clark's China diaper woes linger as it stands by annual outlook
• Negative Sentiment: The Kenvue acquisition adds integration and debt considerations, which investors may monitor alongside the company’s ability to sustain earnings and manage its balance sheet. Kimberly-Clark Q3 2026: Six Straight Beats, Now Carrying Kenvue's Debt

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Wells Fargo & Company cut their target price on shares of Kimberly-Clark from $105.00 to $100.00 and set an "equal weight" rating on the stock in a research note on Monday, October 5th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Kimberly-Clark from $106.00 to $112.00 and gave the stock a "hold" rating in a research note on Wednesday, August 5th. Canaccord Genuity Group assumed coverage on shares of Kimberly-Clark in a research note on Friday, October 23rd. They issued a "hold" rating and a $105.00 price target for the company. Rothschild & Co Redburn cut their price objective on Kimberly-Clark from $138.00 to $129.00 and set a "buy" rating on the stock in a research report on Friday, October 9th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Kimberly-Clark in a research note on Monday, October 26th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $110.67.

Kimberly-Clark Company Profile

Kimberly-Clark Corporation NASDAQ: KMB is a global consumer products company that develops and markets personal care, tissue and professional hygiene products. Its portfolio includes products for babies and children, feminine care, adult care, family care and workplace hygiene.

The company's well-known brands include Huggies diapers and wipes, Kleenex facial tissue, Cottonelle bathroom tissue, Scott toilet paper and paper towels, Kotex feminine care products, and Depend, Poise and GoodNites products.

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