KMB FY2025 Q4 In line

Kimberly-Clark Corporation earnings call

Jan 27, 2026 · 08:00 ET Chris JakubikMike HsuNelson earningscall_biz

Buzzberg read

Kenview acquisition shareholder vote expected to pass overwhelmingly

Kimberly-Clark reported a strong Q4 with volume/mix growth, though currency and pricing were headwinds. Management guided to a neutral 2026 with flat EPS, expecting margins to expand on productivity. A key negative was the loss of partial diaper distribution at a major club channel (Costco), which will be a ~60bps growth headwind. 8th consecutive quarter of volume/mix growth, with Q4 vol/mix up 1.7% and a 4.1% two-year stack in North America.

Buzzberg read Kenview acquisition shareholder vote expected to pass overwhelmingly Kimberly-Clark reported a strong Q4 with volume/mix growth, though currency and pricing were headwinds. Management guided to a neutral 2026 with flat EPS, expecting margins to expand on productivity. A key negative was the loss of partial diaper distribution at a major club channel (Costco), which will be a ~60bps growth headwind. 8th consecutive quarter of volume/mix growth, with Q4 vol/mix up 1.7% and a 4.1% two-year stack in North America. Read full analysisCollapse analysis

Management expects 2026 category growth of ~2%, with organic sales growth in line with this.
Adjusted EPS for 2026 expected to be flat on a constant currency basis.
Gross and operating margins expected to expand in 2026, driven by record productivity and flat input costs.

Revenue$4.08BReported

EPS$1.86Reported

Gross margin35.91%Reported

Operating margin12.43%Reported

6 grounded callouts

What matters now

The highest-signal changes from the call.

M&A

Kenview acquisition shareholder vote expected to pass overwhelmingly

Guidance

Partial loss of club diaper distribution is a 60bps headwind

Innovation

Strongest innovation pipeline in years expected for 2026

Show 3 more callouts

Margins

Gross margin on pace to reach 40% before 2030

Demand

Volume growth driven by multi-tier value proposition strategy

Macro

Consumer focus on value expected to persist

Reported period

Actuals

Metric	Reported	Change
Revenue	$4.08B	Reported
EPS	$1.86	Reported
Gross margin	35.91%	Reported
Operating margin	12.43%	Reported
Free cash flow	$0.575B	Reported
Capex	$0.397B	Reported

Forward-looking

Forward guidance

Metric	Period	Range	Midpoint	Status
Operating margin	FY2030	18%–20%	19%	Maintained

AI, capex & demand read

Management read

Tone

Confident

Management emphasizes strong execution, momentum, and confidence in strategy and innovation pipeline, despite headwinds.

all 3 named companies below

Companiesreturns since call

Customers

ANDURIL

Customers

Mentions of 'partners' in the context of the Kenvue acquisition and broader strategy, likely referring to commercial partners rather than specific companies like Anduril. Low confidence.

Evidence

“We are excited to seize the vast opportunity ahead and confident we will create significant value for our consumers, our partners, and our shareholders.”

Mike Hsu

COST -2.4%

Customers

KMB will lose partial distribution of diapers and pull-ups at a major club (implied Costco) starting Q1 2026, a headwind that is built into guidance.

Evidence

“However, you know, we did see a major club player has moved away from, you know, branded exclusivity in our category. And so we'll see, you know, partial loss of diapers and pull-ups distribution in the North America club channel. And”

Russ

Competitors

PG -0.2%

Competitors

The $200M input cost inflation in 2025, including tariffs, is not expected to recur in 2026, but management isn't planning for inflation either, seeing costs as largely flat. — If input costs are flat, competitive pressure to lower prices may come from KMB's productivity savings, and the lack of a tailwind from input costs could moderate promotional pushes but also signals a stable cost environment.

Evidence

“In terms of diapers, again, we're growing by driving innovation and brand building that grows the category and cascading that to all tiers.”

Mike Hsu

External signals

Supply-chain alpha · 4returns since call

KMB is losing exclusive branded placement for diapers and pull-ups at a major US club (Costco), with the loss starting in Q1 2026 and creating a ~60bps headwind to growth.

Nelson

PG-0.2%

Evidence

“As I mentioned, that'll be a headwind of around 60 basis points of growth on the year that is reflected in our outlook.”

Management plans to take market share in China (+270 bps in diapers), Indonesia, Korea, and Brazil, indicating underlying momentum in international markets despite a soft North American consumer.

Mike Hsu

PG-0.2%

Evidence

“China was up 270 basis points on diapers. And then outside China, you know, Femcare in Indonesia was up almost 200 basis points. Korea was up 60. Australia up 50. Brazil up 40.”

Management expects 2026 to be 'one of its best years for innovation' and will step up new product activation, indicating high reinvestment in marketing and innovation.

Mike Hsu

PG-0.2%

Evidence

“And I agree with Mike, 26 should probably be one of our best years for innovation. And we're going to continue executing that strategy and are optimistic we'll continue to be able to deliver what consumers are looking for.”

The $200M input cost inflation in 2025, including tariffs, is not expected to recur in 2026, but management isn't planning for inflation either, seeing costs as largely flat.

Nelson

PG-0.2%

Evidence

“As a reminder, we had around $200 million of input costs that we dealt with last year, and that included the headwinds, which were unexpected, related to tariffs. As we go into this year, though, we're not expecting that.”

Methodology & coverage

Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.