Kimberly-Clark (NASDAQ:KMB – Get Free Report) released its quarterly earnings data on Thursday. The company reported $1.70 EPS for the quarter, topping the consensus estimate of $1.65 by $0.05, FiscalAI reports. The company had revenue of $4.13 billion during the quarter, compared to the consensus estimate of $4.13 billion. Kimberly-Clark had a net margin of 11.79% and a return on equity of 143.92%. Kimberly-Clark’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same period last year, the firm earned $1.82 EPS.
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 Price Performance
Shares of KMB stock traded up $1.67 on Thursday, reaching $110.46. The company’s stock had a trading volume of 8,601,485 shares, compared to its average volume of 6,521,038. The company has a quick ratio of 0.69, a current ratio of 0.91 and a debt-to-equity ratio of 3.45. Kimberly-Clark has a 12-month low of $92.42 and a 12-month high of $116.82. The company has a market capitalization of $36.74 billion, a P/E ratio of 14.60, a PEG ratio of 6.28 and a beta of 0.25. The stock’s 50 day simple moving average is $102.62 and its 200-day simple moving average is $103.19.
Kimberly-Clark News Summary
Here are the key news stories impacting Kimberly-Clark this week:
- Positive Sentiment: Q3 adjusted earnings were $1.70 per share, ahead of the $1.65 analyst consensus. Kimberly-Clark reaffirmed its full-year 2026 outlook, offering reassurance amid the challenges. Kimberly-Clark Q3 Profit Surges; Reaffirms FY26 Outlook
- Neutral Sentiment: Revenue was $4.13 billion, in line with estimates, but declined 1.2% year over year. The earnings beat was helped by lower interest costs, while operating profit missed expectations, making the quality of the beat a point for investors to weigh. Kimberly-Clark Q3 Earnings Beat on Lower Interest Costs, Sales Miss
- Negative Sentiment: China-related diaper sales remain a headwind: disruption and lingering reputational damage from allegations the company says were unfounded are weighing on sales, alongside pricing pressures. The Kenvue acquisition also brings additional debt and integration considerations. Kimberly-Clark’s China diaper woes linger as it stands by annual outlook
Analyst Ratings Changes
A number of brokerages recently issued reports on KMB. Seaport Research Partners raised Kimberly-Clark to a “buy” rating in a report on Tuesday, August 4th. DA Davidson lifted their target price on Kimberly-Clark from $106.00 to $116.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Bank of America decreased their price target on Kimberly-Clark from $122.00 to $120.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. UBS Group increased their price target on shares of Kimberly-Clark from $106.00 to $113.00 and gave the stock a “neutral” rating in a report on Wednesday, October 28th. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on shares of Kimberly-Clark from $106.00 to $112.00 and gave the company a “hold” rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $110.67.
Get Our Latest Stock Report on KMB
About Kimberly-Clark
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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