KMB · 10-Q · 2026Q3 · Full report
Operating Profit and Margins
KIMBERLY CLARK CORP · 2026-11-05 · Importance 36 · Surprise 40 · From source text
Third-quarter operating profit was $516 million versus $621 million a year earlier, including $55 million of 2024 Transformation Initiative charges and $106 million of Kenvue acquisition costs; adjusted operating profit was $677 million, down 0.9%. Nine-month operating profit rose to $1.902 billion from $1.844 billion, including $160 million of transformation charges, $263 million of Kenvue costs, a $120 million insurance recovery, and $37 million of Brazil tax credits. Adjusted operating profit increased 3.0% for the nine months to $2.166 billion, while adjusted operating profit declined 0.9% for the quarter. North America operating profit increased 2.7% for the quarter and 1.6% for the nine months, whereas International Personal Care operating profit decreased 32.7% and 3.7%, respectively.
Key facts
- Nine-month 2026 operating profit was $1.9 billion versus $1.8 billion in the prior year, including $160 million in transformation charges, $263 million in Kenvue charges, a $120 million insurance settlement benefit, and a $37 million Brazil business tax credit benefit. source
- Adjusted operating profit for the three months ended September 30, 2026 was $677 million, compared with $683 million in the prior year. source
- Three-month 2026 operating profit was $516 million versus $621 million in the prior year; the period included $55 million of 2024 Transformation Initiative charges and $106 million of Kenvue Acquisition charges. source
- North America operating profit increased 2.7% in the third quarter and 1.6% for the first nine months of 2026; quarterly growth reflected productivity savings and lower advertising, partly offset by pricing, inflation and supply-chain investment. source
- Three-month 2026 adjusted operating profit decreased 0.9%, driven by unfavorable pricing net of cost inflation and approximately 530 basis points of China social media disruption headwinds, partly offset by lower marketing, research and general expenses. source
- Nine-month 2026 adjusted operating profit increased 3.0%, primarily due to favorable currency impacts, partly offset by approximately 210 basis points of China social media disruption headwinds. source
- North America nine-month operating profit growth was driven by productivity savings and one-time tariff refunds, partly offset by unfavorable pricing net of cost inflation and approximately 200 basis points of business-exit impacts. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.9% | Nine-month 2026 operating profit was $1.9 billion versus $1.8 billion in the prior year, including $160 million in transformation charges,… |
| operating_income | positive | realized | +2.4% | Nine-month 2026 operating profit was $1.9 billion versus $1.8 billion in the prior year, including $160 million in transformation charges,… |
| operating_income | positive | realized | +0.9% | Nine-month 2026 operating profit was $1.9 billion versus $1.8 billion in the prior year, including $160 million in transformation charges,… |