KVUE · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Kenvue Inc. · 2026-10-30 · Importance 25 · Surprise 14

For the nine months ended September 27, 2026, gross profit margin expanded 20 basis points to 58.9% from 58.7%, while cost of sales increased 3.1% to $4.833 billion. Supply chain optimization benefits and favorable value realization supported margin, partially offset by net input cost inflation, Middle East conflict impacts, and unfavorable transactional foreign exchange; translational foreign exchange also increased cost of sales. In the third quarter, gross margin expanded 40 basis points to 59.5%, with supply chain optimization and refunds on U.S. tariffs contributing to improvement. Third-quarter benefits were partly offset by input-cost inflation and unfavorable transactional foreign exchange.

Key facts

• For the fiscal three months ended September 27, 2026, Kenvue gross profit margin expanded 40 basis points to 59.5% from 59.1%; drivers included supply-chain optimization benefits and U.S. tariff refunds, partially offset by net input cost inflation, Middle East conflict effects, and unfavorable transactional FX. source
• For the fiscal nine months ended September 27, 2026, Kenvue gross profit margin expanded 20 basis points to 58.9% from 58.7%; supply-chain optimization benefits were partly offset by input inflation, Middle East conflict effects, and unfavorable transactional FX. source