Kimberly-Clark reports solid Q1 2026 performance and confirms full-year outlook
Kimberly-Clark reported solid first-quarter 2026 results, supported by resilient consumer demand, ongoing innovation, and sustained productivity improvements, while reaffirming its full-year outlook.
Net sales reached USD 4.2 billion, up 2.7% compared with the same period of the previous year, with organic sales growth of 2.5%. Growth was driven primarily by volume and product mix improvements, partially offset by lower pricing aimed at supporting product trials and strengthening value propositions.
Adjusted operating profit increased by 3.7% to USD 732 million, supported by productivity gains, lower overhead costs, and favourable currency effects. Adjusted earnings per share from continuing operations stood at USD 1.60, slightly below the previous year, mainly due to a higher effective tax rate.
Segment performance
North America reported net sales of USD 2.7 billion, slightly down by 0.6%, impacted by the exit from the private label diaper business in the United States. However, underlying organic sales increased by 1.8%, supported by innovation-driven volume growth.
The International Personal Care segment delivered strong performance, with net sales increasing by 9.1% to USD 1.5 billion. Organic growth reached 4.0%, driven by volume expansion and improved product mix, while operating profit increased by 21.9%.
Profitability and cost dynamics
Gross margin declined slightly to 36.8%, reflecting pricing investments and supply chain-related costs, partially offset by productivity savings. Operating profit reached USD 753 million, supported by insurance-related gains and ongoing cost efficiencies.
Cash flow from operations increased significantly to USD 745 million, while capital expenditure rose to USD 424 million. The company returned USD 418 million to shareholders through dividends, maintaining a solid financial position with total debt at USD 7.1 billion.
CEO comment
“Our first quarter results highlight the strength and resilience of the growth engine we’ve built through Powering Care,” said Mike Hsu, Chairman and Chief Executive Officer of Kimberly-Clark. “We continued to deliver solid volume-plus-mix performance while building share momentum despite continued geopolitical and macroeconomic uncertainty. We accomplished this by driving consumer-inspired innovation, growing brand affinity, and executing strongly across our operations.”
He added: “With our core business gaining momentum and one of the strongest innovation and commercial activation pipelines in our history set to launch in the second quarter, we are preparing to unlock the long-term value creation opportunity associated with the Kenvue acquisition. We have strong global momentum and are well positioned to accelerate into the next phase of growth.”
Outlook for 2026
Kimberly-Clark reaffirmed its 2026 outlook, expecting organic sales growth in line with or above category growth rates. Adjusted operating profit is forecast to grow at a mid-to-high single-digit rate on a constant currency basis, while adjusted earnings per share from continuing operations are expected to grow at a double-digit rate.
The outlook reflects continued productivity improvements, stable financing costs, and expected contributions from equity investments, although it remains subject to macroeconomic and geopolitical uncertainties.
