Kenvue second quarter results fall short of expectations, sending shares lower

Kenvue Inc (NYSE:KVUE) shares fell astir 2% connected Thursday aft the user wellness institution reported 2nd 4th results that narrowly missed Wall Street expectations, portion margins declined from a twelvemonth earlier.

The institution reported adjusted diluted net per stock of $0.31, compared with the $0.32 statement estimate.

Revenue was $3.96 billion, somewhat beneath the $3.97 cardinal expected by analysts.

Kenvue said nett income accrued 3% from the prior-year period, with integrated income maturation of 1.6% and a 1.4% payment from overseas currency. Organic maturation was driven by favorable worth realization of 0.9% and measurement maturation of 0.7%.

Gross nett borderline declined to 58.2% from 58.9% a twelvemonth earlier, portion adjusted gross nett borderline fell to 60.2% from 60.9%. The institution attributed the changes chiefly to inflation, tariffs and unfavorable transactional overseas exchange, partially offset by supply-chain productivity savings and favorable worth realization.

Operating income borderline was 17.7%, compared with 18.0% successful the prior-year period. Adjusted operating income borderline declined to 22.1% from 22.7%, reflecting the little gross nett borderline and higher marque enactment spending, partially offset by outgo optimization savings.

Diluted net per stock accrued to $0.24 from $0.22, portion adjusted diluted net per stock roseate to $0.31 from $0.29.

Kenvue CEO Kirk Perry said the institution delivered its 3rd consecutive 4th of nett and integrated income growth, with gains crossed each conception and region.

"We besides continued to thrust operational efficiencies and summation strategical concern to substance sustained momentum," Perry said.

"Amidst a dynamic user and macro environment, our first-half 2026 results met oregon exceeded our expectations crossed cardinal metrics, underscoring the spot and resilience of our people, brands, and caller strategical plans."

Kenvue did not supply forward-looking guidance owed to its pending operation with Kimberly-Clark, which the institution said it expects to implicit successful the 4th fourth of this year.