KVUE · 8-K · 20260806PR000141

Income Tax Rate Changes

Kenvue Inc. · 2026-08-06 · Importance 38 · Surprise 58

The second-quarter effective tax rate fell to 23.7% from 28.6% year over year, reducing the rate by 4.9 percentage points. The adjusted effective tax rate declined to 22.9% from 26.9%, a 4.0-point decrease. Kenvue attributed the reductions primarily to the release of a valuation allowance, a more favorable jurisdictional earnings mix, and tax-law changes. For the six months, the reported effective tax rate was 26.8% versus 29.1% in the prior year.

Key facts

• Second quarter 2026 Effective tax rate was 23.7% vs 28.6% in the prior year period. source
• Second quarter 2026 Adjusted effective tax rate was 22.9% vs 26.9% in the prior year period. source
• The year-over-year reduction in effective tax rates largely reflects the release of a valuation allowance, favorable jurisdictional mix of earnings, and the impact of tax law changes. source