KMB US S&P 500Russell 1000 Earnings call

Kimberly-Clark (KMB) · Q2 2026 results and valuation

Share price: $108.86 · 2026-11-11

Kimberly-Clark manufactures and markets a wide range of products made from natural or synthetic fibers, including baby, adult, feminine, and family care products. The company sells these goods to retail outlets and professional customers in more than 175 countries and territories. Source: 10-K annual report (2026-02-12)

Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 28 Apr 2026

Net income down 48.1% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.

1 · Numbers

−48.1%

Net income vs Q1 2026

Outlook given

Net income 345.0M vs 665.0M

Revenue +0.6%

Against the same quarter last year (Q2 2025) it is −32.2%, so it is not just seasonal.

2 · How management spoke

Cautious

Among the least upbeat of all company calls

Answers to analysts: typical, in line with the script.

Last call it was different: the answers were less upbeat than the script.

3 · What stood out

Kimberly-Clark gained share in 70% of its North American sales base over the trailing 12-month period.

Valuation

Is Kimberly-Clark undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At −6.6% growth a year (3-year revenue growth), the model's fair value is $17.66 a share — the stock trades 517% above it. Today's price assumes 11.1% growth a year.

Current price

$108.86

close of 2026-11-11

Market implies growth of i

+11.1% for 10 yrs

Fair value / share

$17.66

Buy below

$13.24

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

KMB expects roughly $70 million of headwind in operating profit for the back half, which will be split roughly half and half.
Guidance

Management stated that the factors causing the lower stand-alone 2026 earnings outlook do not materially change the underlying earnings potential of the stand-alone businesses or the combined company.
Figure

The company gained share in 70% of its North American sales base over the trailing 12-month period.

Source quote
“The trailing 12-month share, we've gained share in 70% of our sales base in North America.”
Key theme

The program aims to reduce exposure to natural forest fiber cost volatility and advance the company's natural forest fiber-free ambition to strengthen long-term growth trajectory.

Source quote
“We believe the program will enhance product performance for consumers, strengthen our long-term growth trajectory, reduce exposure to natural forest fiber cost volatility and advance our natural forest fiber-free ambition.”
Figure

KMB delivered its 10th consecutive quarter of solid volume plus mix performance, maintaining global weighted share and industry-leading gross productivity.

Source quote
“We delivered our 10th consecutive quarter of solid volume plus mix performance, held global weighted share, posted another quarter of industry-leading gross productivity and continued to invest for impact.”

4 more

Key theme

Execution on a tariff refund received in the second quarter drove better-than-expected operating profit growth and EPS performance.

Source quote
“However, strong execution on the tariff refund that we received in the second quarter drove the better-than-expected and solid operating profit growth and EPS performance in the quarter.”
Figure

This is primarily due to the tariff refund benefit and the really solid productivity Kimberly-Clark delivered in the quarter, which was 6.4%, which both more than offset the higher levels of brand investment year-over-year.
Guidance

The company remains confident that the second half outlook will grow in line with its categories despite the elements Nelson experienced.
Guidance

KMB expects to offset incremental costs through mitigation actions and tariff refunds to maintain pricing net of cost inflation at roughly neutral levels for the full year.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Cautious (was upbeat)

Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“And if you look at the share in the quarter, the majority of the weighted average share decline was driven by that club distribution loss, which we talked about previously...”

“And so it has the potential for us to enhance margins and then, obviously, Michael, further reduce volatility.”

“I think it was it was a 50 basis point headwind in 2Q, the guidance assumed a 100 basis point headwind for the year.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	4.19B	4.16B	+0.6%	4.16B	+0.6%
Gross profit	1.60B	1.53B	+4.5%	1.46B	+10.1%
Operating income	633.0M	753.0M	−15.9%	592.0M	+6.9%
Net income	345.0M	665.0M	−48.1%	509.0M	−32.2%
EPS	1.04	2.00	−48.0%	1.53	−32.0%
P/E today 10.9	18.7	15.1	+3.6	17.8	+0.9

Topics

Most discussed now

New Kimberly-Clark is focused on developing compelling value propositions at every tier every day
Russ will chime in on why its conviction in the acceleration of the business as Kimberly-Clark goes through Q3 and...
New Distribution center fire would represent a headwind of around 80 basis points to top line...
New Kimberly-Clark is delivering superior science-backed innovation and value propositions around the world through its proven repeatable…
New Yesterday, Kimberly-Clark unveiled a proprietary alternative natural fiber innovation program, which has the potential to reshape the…

Faded since Q1 2026

Fading The supplemental materials posted at investor.Kimberly-clark.com
Fading In the first quarter, innovation helped fuel Kimberly-Clark's delivery of solid organic sales growth with volume plus mix growth…
Fading The 1 thing I will say is that the underlying assumption Kimberly-Clark is making is that it knows what the cost...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Results of operations · SEC 8-K
2026-11-04 Material agreement; New financial obligation; Change to shareholder rights; Other events · SEC 8-K
2026-11-02 Acquisition or disposal; Restructuring costs; Director or officer change; Articles or bylaws amended; Regulation FD disclosure · SEC 8-K
2026-10-29 Material agreement; New financial obligation; Other events · SEC 8-K
2026-10-28 Other events · SEC 8-K
2026-10-20 Other events · SEC 8-K
2026-10-15 Results of operations; Regulation FD disclosure · SEC 8-K
Kimberly-Clark reported preliminary 2026 results with organic sales growth expected to be 100 basis points below its weighted average category growth of 1.7 percent.
2026-10-13 Other events · SEC 8-K
Kimberly-Clark received sufficient consents and early tenders for the exchange of Kenvue Notes for up to $7 billion in new notes and cash.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

over the next few months

provide an update on the overall view for 2027 and beyond

Source quote
“As we get closer to the close of the transaction and we have further clarity on all these moving items over the next few months, we will provide an update on the overall view for 2027 and beyond.”
the second half

scaling innovations and revenue growth management actions

Source quote
“And in the second half, we'll be scaling those innovations and we've got some very good activation planning as well as some revenue growth management actions coming.”
the next 3 years

confidence in the future based on quality of consumer insights and the Powering Care matrix

Source quote
“You may have recalled our Chief R&D Officer, Craig Slavtcheff talking about the pipeline development and that's one of the reasons why we're very confident as we can see into the future, the next 3 years, and the quality of our consumer insights has gotten better and then the Powering Care matrix has really enabled us to scale innovations around the world much more quickly.”
in '25

promotion activity was below both pre-COVID levels and the category

Source quote
“And in fact, in '25, our promo activity was below both pre-COVID levels and the category.”
through the first half of '26

promotional levels were down versus the prior year and the category in the majority of our categories

Source quote
“And through the first half of '26, our promotional levels were down versus the prior year and the category in the majority of our categories.”