KMB · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
KIMBERLY CLARK CORP · 2026-08-04 · Importance 62 · Surprise 58 · No source text
Second-quarter gross profit increased 10.1% to $1.6 billion and gross margin expanded 330 basis points to 38.3%. Six-month gross profit increased 5.8% to $3.1 billion and gross margin expanded 150 basis points to 37.6%. Excluding Transformation Initiative charges, adjusted gross margin increased to 38.8% in the quarter and 38.3% year to date. One-time tariff refunds and gross productivity savings of approximately $120 million in the quarter and $235 million year to date drove the improvement, partly offset by unfavorable pricing net of cost inflation and supply-chain investments.
Key facts
- Gross profit for the three months ended June 30, 2026 was $1,603 compared to $1,456 in the prior year, an increase of 10.1%, and gross margin was 38.3%, up 330 basis points. source
- Adjusted gross margin for the six months ended June 30, 2026, excluding Transformation Initiative charges, increased 60 basis points to 38.3% primarily due to one-time tariff refunds and gross productivity savings of approximately $235, partially offset by supply chain investments and unfavorable pricing net of cost inflation. source
- Gross profit for the six months ended June 30, 2026 was $3,137 compared to $2,965 in the prior year, an increase of 5.8%, and gross margin was 37.6%, up 150 basis points. source
- Excluding 2024 Transformation Initiative charges, adjusted gross margin for the three months ended June 30, 2026 increased 190 basis points to 38.8% due primarily to one-time tariff refunds and gross productivity savings of approximately $120, partially offset by unfavorable pricing net of cost inflation. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +5.6% | Adjusted gross margin for the six months ended June 30, 2026, excluding Transformation Initiative charges, increased 60 basis points to… |
| operating_income | positive | realized | +4.1% | Gross profit for the six months ended June 30, 2026 was $3,137 compared to $2,965 in the prior year, an increase of 5.8%, and gross margin… |
| operating_income | positive | realized | +3.5% | Gross profit for the three months ended June 30, 2026 was $1,603 compared to $1,456 in the prior year, an increase of 10.1%, and gross… |
| margin | positive | realized | +3.3% | Gross profit for the three months ended June 30, 2026 was $1,603 compared to $1,456 in the prior year, an increase of 10.1%, and gross… |
| margin | positive | realized | +1.5% | Gross profit for the six months ended June 30, 2026 was $3,137 compared to $2,965 in the prior year, an increase of 5.8%, and gross margin… |