Kimberly-Clark Q2 FY2026: flat sales, $1.04 GAAP EPS, low-single-digit EPS outlook
Kimberly-Clark's second quarter looks calm on the surface — sales of $4.19 billion, up 0.6% — but the engine underneath is uneven. Organic sales slipped 0.1%, GAAP EPS fell 32.2% to $1.04, and adjusted EPS from continuing operations of $1.80 came in below the $2.03 consensus estimate. What genuinely improved was margin and cash: adjusted gross margin rose 190 basis points and the quarter produced $908 million of free cash flow.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS from continuing operations was $1.22 and adjusted EPS from continuing operations was $1.80, up 10.4%, against a consensus estimate of $2.03. GAAP EPS attributable to shareholders was $1.04, down 32.2% from $1.53, dragged by a $107 million IFP-related tax charge plus separation and deal costs. Note the second adjusted figure management highlights — $2.12 attributable to Kimberly-Clark, up 10.4% — which is the one that includes discontinued operations.
Net sales were $4.19 billion, up 0.6% from $4.16 billion a year earlier, but that entire gain came from currency (1.1 points) and was partly offset by the exit of the US private label diaper business. Organic sales fell 0.1%, so the underlying business did not grow at all. Baby and child care products remained the biggest pool at $1.75 billion, ahead of Family Care at $1.02 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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