KVUE US S&P 500Russell 1000 Earnings call
Kenvue (KVUE) · Q2 2025 results and valuation
Share price: $19.31
Kenvue is a consumer health company that offers products in the categories of self-care, skin health and beauty, and essential health. The company sells its portfolio of brands to consumers in markets across North America, Europe, Asia Pacific, the Middle East, and Africa. Source: 10-K annual report (2026-02-20)
Results Q2 2025 vs Q1 2025 · previous quarter · published 7 Aug 2025 and 8 May 2025
Net income up 30.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+30.4%
Net income vs Q1 2025
Outlook given
Net income 420.0M vs 322.0M
Revenue +2.6%
Against the same quarter last year (Q2 2024) it is +624.1%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 53% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Kenvue provided a full year adjusted diluted EPS guidance range of $1 to $1.05, which includes a low single-digit drag from currency.
Valuation
Is Kenvue undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-28), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.4% growth a year (3-year revenue growth), the model's fair value is $6.68 a share — the stock trades 162% above it. Today's price assumes 10.1% growth a year.
Current price
$17.53
close of 2026-10-07
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.1% for 10 yrs
Fair value / share
$6.68
Buy below
$5.01
Price vs fair value
Overvalued 162%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Organic sales declined 4.2% in quarter 2, which was below the company's expectations.
Source quote
“As we shared several weeks ago, in quarter 2, organic sales declined 4.2%, which was below our expectations, and I'll discuss the drivers shortly.”
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Figure
Self Care is where Kenvue saw the largest gap between consumption, which grew year-over-year and organic sales, which contracted 5.9% largely due to lower volumes.
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Figure
While Kenvue has 115 brands in the company, 41 play a role across one or more regions and account for over 3/4 of its sales.
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Figure
The top 10 brands in each region account for more than 2/3 of sales, while the top 10 markets account for more than 3/4 of sales.
Source quote
“Our 10 biggest brands in each region account for more than 2/3 of our sales and our 10 biggest markets account for more than 3/4 of our sales.”
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Figure
Organic sales declined 4.2% while global consumption grew year-over-year and outpaced organic sales across each segment.
Source quote
“While organic sales declined 4.2%, global consumption grew year-over-year and outpaced organic sales across each segment.”
4 more
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Guidance
The company provided a full year adjusted diluted EPS guidance range of $1 to $1.05, which includes a low single-digit drag from currency.
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Key theme
KVUE aims to improve profitability by driving efficiencies and reaching peer benchmark levels across the P&L.
Source quote
“Another priority will be driving efficiencies and getting to appropriate peer benchmark levels across the P&L.”
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Key theme
The company expects adjusted operating margin to contract compared to last year due to strategic price investments, fixed cost deleverage, and inflationary pressures that productivity initiatives will not fully offset.
Source quote
“We are assuming adjusted operating margin will contract versus last year, largely as a result of strategic price investments, fixed cost deleverage and inflationary pressures, which we do not expect to be fully offset with productivity initiatives.”
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Key theme
The Board is making leadership changes and accelerating growth while progressing a comprehensive review of strategic alternatives for the company.
Source quote
“Our full Board is acting with urgency, making changes in leadership, working Kenvue on an accelerated growth trajectory in progressing our comprehensive review of strategic alternatives.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2025. Ring: Q1 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Tylenol, which is the #1 health care professional recommended brand continues to expand our pain leadership position through impactful brand campaigns and communications, increased total distribution points and strong innovation.”
“Equally important and relevant to us today is my strong background in leading businesses through transformation and strategy evolution.”
“However, we are not satisfied with the performance of our mouthwash business in the U.S., where despite gaining share online, we are losing share across the total universe, even as...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2025-06-29)
| Metric | Q2 2025period end 2025-06-29 | Q1 2025period end 2025-03-30 | Change | Q2 2024 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.84B | 3.74B | +2.6% | 4.00B | −4.0% |
| Gross profit | 2.26B | 2.17B | +4.3% | 2.37B | −4.4% |
| Operating income | 692.0M | 558.0M | +24.0% | 154.0M | +349.4% |
| Net income | 420.0M | 322.0M | +30.4% | 58.0M | +624.1% |
| EPS | 0.22 | 0.17 | +29.4% | 0.03 | +633.3% |
| P/E today 21.9 | — | — | — | — | — |
Topics
Most discussed now
- Similarly to Kirk, I have extensive experience in global consumer packaged goods companies, having spent more than 30 years working...
- While Kenvue is encouraged by these improvements, it also recognizes there is considerable work to do to get back on...
- Kenvue has a significant opportunity to improve its overall integrated business planning process with a particular focus on…
- Enhancing operating rigor and discipline will be a key priority for me.
- Kenvue's team in Brazil has done exactly that with Johnson's Baby, the world's #1 baby care brand that elevates precious...
Faded since Q1 2025
- Fading As such, Kenvue is maintaining its organic sales growth outlook for the year and it is updating its adjusted operating...
- Fading From a macro point of view on consumer confidence, Kenvue sees some deceleration in some categories and geographies.
- Dropped It’s not a victory lap today, but it’s really encouraging signs that the actions, the cumulative impact of actions is...
- Fading Kenvue has an enviable portfolio of leading and resilient consumer health brands where efficacy and trust matter to consumers.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Change to shareholder rights · SEC 8-K
- Agreement terminated; Acquisition or disposal; Listing notice; Change to shareholder rights; 5.01; Director or officer change; Articles or bylaws amended; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement · SEC 8-K
Kenvue Inc. entered into a Third Supplemental Indenture on October 9, 2026, to amend terms for existing notes and facilitate Kimberly-Clark's offer to exchange notes for up to $7,000,000,000 in new notes and cash.
- Results of operations · SEC 8-K
Kenvue reported net sales increased 3.0% and diluted earnings per share rose to $0.24 from $0.22 in the prior year period.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Kenvue reported net sales increased 4.5% and diluted earnings per share rose to $0.25 from $0.17 in the first quarter of 2026 compared to the prior year.
- Director or officer change · SEC 8-K
Kenvue Inc. appointed Heather Howlett as interim Chief Financial Officer and Chief Accounting Officer effective May 12, 2026, following the resignation of Amit Banati.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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this fall
bring new product innovation to the market
Source quote
“As we continue to focus on turning around this important business and bring new product innovation to the market this fall, we will be agile and disciplined with our investments to ensure they drive strong returns.”
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2025
organic sales to be down low single digits with about neutral impact from currency
Source quote
“For 2025, we currently expect organic sales to be down low single digits with about neutral impact from currency.”
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2025
gross annualized impact to be around $150 million and below that
Source quote
“The tariff backdrop remains very fluid, but based on what is currently in effect, we expect gross annualized impact to be around $150 million and below that in 2025, given the timing of tariffs.”
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full year
adjusted diluted EPS in the range of $1 to $1.05
Source quote
“Taking these factors into account and maintaining the same below-the-line assumptions gets us to a full year adjusted diluted EPS in the range of $1 to $1.05, including a low single-digit drag from currency.”