Kenvue’s adjusted earnings per share fell short of expectations as rising costs offset supply-chain savings and pricing gains.
Kenvue reported second-quarter adjusted earnings of 31 cents per share, missing analysts’ estimate of 32 cents. Inflation, tariffs, and currency-related costs eroded margins, which declined to 60.2% from 60.9% a year earlier.
Revenue rose 3% to $3.96 billion but fell slightly below the $3.97 billion consensus. Sales growth was driven by U.S. Tylenol demand and market share gains for Zyrtec and Pepcid, while Skin Health and Beauty segment revenue climbed 5.1%.
The company anticipates $250 million in pre-tax restructuring charges in 2026 as part of a cost-cutting initiative. A $40 billion buyout by Kimberly-Clark remains on track for late 2026 closure.