KMB · News · 20260804N

Operating Margin Drivers

KIMBERLY CLARK CORP · 2026-08-04 · Importance 30 · Surprise 40

Second-quarter adjusted EPS increased 10.4% year over year despite lower reported profit, supported by gross-margin expansion and productivity gains. Cost savings and industry-leading productivity offset several one-time disruptions, including the China diaper controversy and North American adult-care inventory reductions. The company also cited input-cost headwinds, tariff refunds and productivity gains as key factors in its 2026 outlook.

Key facts

• Reported diluted EPS of $1.04, a decrease of 32% year-over-year. source
• Adjusted EPS rose 10.4% in Q2 while net sales increased 0.6% to $4.2 billion. source
• North American adult care inventory reductions were cited as a challenge in Q2 results. source
• Q2 adjusted EPS: $2.12 per share (exceeded FactSet estimate of $2.01). source