- Company name
- Kenvue
- Sector
- Consumer health
- About
- Until November 2, 2026, Kenvue was the largest pure-play consumer health company in the world by revenue, with net sales of $15.1 billion in fiscal 2025. Johnson & Johnson separated it in 2023. It sells over-the-counter medicines and personal care products, and it makes money from the margin on these branded products, with an adjusted gross margin of about 60% in Q2 2026. The Self Care segment includes Tylenol, Motrin, Zyrtec, Benadryl and Nicorette. The Skin Health and Beauty segment includes Neutrogena, Aveeno and OGX. The Essential Health segment includes Listerine, Band-Aid, Johnson's baby products and Stayfree. It sells through retailers, pharmacies and online stores in North America, Europe, Asia Pacific and Latin America. Kimberly-Clark agreed in November 2025 to buy Kenvue and completed the purchase on November 2, 2026. Kenvue is now Kenvue LLC, a subsidiary of Kimberly-Clark.
- Thesis
- Kenvue's price was set by its sale to Kimberly-Clark, which closed on November 2, 2026. For each Kenvue share, holders received 0.14625 Kimberly-Clark shares and $3.50 in cash. The NYSE stopped trading in Kenvue shares before the market opened on November 2, 2026, and the shares will be delisted. The deal value was the value that investors give to Kimberly-Clark with Kenvue inside it, which includes the Tylenol litigation risk, a large integration and the sale of Kimberly-Clark's feminine care business in Europe that the EU required. The analysts' intrinsic value is a standalone value for Kenvue, and the deal did not pay it. Because Kenvue shares no longer trade, the gap to the standalone value will not close. Former Kenvue holders now own about 46% of Kimberly-Clark, so their result depends on the Kimberly-Clark share price and on the planned cost savings of the combined company after the closing.
- Risks
- Kenvue shares became Kimberly-Clark shares and cash on November 2, 2026. Former Kenvue holders now own about 46% of a combined company that must complete a large integration, and a fall in Kimberly-Clark shares lowers the value of what they received.
Lawsuits claim that the use of acetaminophen (Tylenol) during pregnancy is associated with autism and ADHD. A US federal court entered judgment for the sellers in February 2024. In October 2025, the State of Texas sued Kenvue, and most claims were dismissed in November 2025, but Texas filed an appeal in December 2025.
Kenvue keeps the liability for talc products sold outside the US and Canada. Group claims about Johnson's Baby Powder started in Australia in February 2026 and in Scotland in March 2026, and Kenvue cannot yet estimate the possible cost.
Organic sales growth was only 0.7% in Q1 2026, 1.6% in Q2 2026 and 2.9% in Q3 2026. Inflation and tariffs lowered the gross margin in Q2 2026.
- Balance sheet
- Cash: $1.1B
Debt: $8.4B
Net debt: $7.3B
EBITDA, last 12 months: $3.2B
Net debt / EBITDA: 2.3× (medium)
Interest cover: 7.9×
Undrawn credit line: $4.0B, to March 2029
Debt due within 12 months: $1.4B
Last debt due: 2063
Debt is mostly unsecured senior notes that mature from 2028 to 2063, plus commercial paper. Kenvue repaid $750 million of 5.35% notes due 2026 in the first half of 2026 and used more commercial paper, which rose to $1.4 billion at June 28, 2026 from $0.7 billion at December 28, 2025. The debt figure excludes $134 million of finance lease liabilities. Almost all cash ($1,089 million) was held by foreign subsidiaries at June 28, 2026. The $4.0 billion revolving credit facility was undrawn, and Kenvue ended it when the Kimberly-Clark purchase closed on November 2, 2026. EBITDA is operating income plus depreciation and amortization for the 12 months to June 28, 2026. Interest cover uses net interest expense for the first half of 2026. Kenvue has investment grade ratings from Moody's and S&P. In its exchange offer, Kimberly-Clark offered its own new notes for up to $7.0 billion of Kenvue notes, and holders gave enough consents to remove most covenants of the Kenvue notes when the offer settles. At the closing, Kenvue LLC, a subsidiary of Kimberly-Clark, took on the obligations of the Kenvue notes. Dividends used $796 million of cash in the first half of 2026.
As of Jun 28, 2026.
- Checkpoints
- Oct 30, 2026: Q3 2026 results: organic sales growth. Passed. Watch: Positive organic sales growth and a stable adjusted operating margin pass; a return to falling sales fails. Outcome: Organic sales grew 2.9%, the fourth quarter of growth in a row, and the adjusted operating margin rose to 21.9% from 21.5%.
Nov 2, 2026: Closing of the Kimberly-Clark acquisition. Passed. Watch: The deal closes in the fourth quarter of 2026 on the agreed terms; a new delay past 2026 or a failed regulatory approval fails. Outcome: Kimberly-Clark completed the purchase on November 2, 2026, on the agreed terms of 0.14625 Kimberly-Clark shares and $3.50 in cash for each Kenvue share.
2027 (estimate): Combined company: cost savings and Kimberly-Clark share price. Pending. Watch: Kimberly-Clark reports cost savings on plan and its shares rise after the closing; integration problems or a lower share price fail.
- Recent events
- Nov 4, 2026: Kimberly-Clark completed its exchange offers for the $7.0 billion of Kenvue senior notes. Holders exchanged about $6.38 billion of Kenvue notes for new Kimberly-Clark notes and cash, and Kimberly-Clark canceled them. About $0.62 billion of Kenvue notes stay outstanding. These notes lost most of their restrictive covenants and the SEC reporting covenant.
Nov 2, 2026: Kimberly-Clark completed its purchase of Kenvue. Each Kenvue share became 0.14625 Kimberly-Clark shares and $3.50 in cash. The NYSE stopped trading in Kenvue shares before the market opened on November 2, 2026, and filed to delist them. The delisting takes effect 10 days after that filing. Kenvue ended its $4.0 billion credit facility, which had no borrowings, and Kenvue LLC, now a subsidiary of Kimberly-Clark, took on the obligations of Kenvue's senior notes.
Oct 30, 2026: Kenvue reported Q3 2026 results. Net sales rose 3.2%, and organic sales rose 2.9%, with volume up 1.6%. This was the fourth quarter of growth in a row. Diluted EPS was $0.22, and adjusted EPS was $0.29, up 4%. The adjusted operating margin rose to 21.9% from 21.5%, helped by productivity savings and US tariff refunds. Kenvue gave no guidance because of the pending Kimberly-Clark deal.
Oct 13, 2026: The European Commission cleared Kimberly-Clark's purchase of Kenvue on the condition that Kimberly-Clark sells its feminine care business in the European Economic Area, including Kotex, Lidie, Camelia and Record, to Dilek Gida Uretim of Turkey. On the same day, Kimberly-Clark said that Kenvue noteholders gave enough consents to amend the Kenvue indenture in its exchange offer, which expires on October 27, 2026.
Oct 9, 2026: Kenvue signed a supplemental indenture that removes most covenants of its senior notes. The changes take effect when Kimberly-Clark's exchange offer for the notes settles, at about the closing of the acquisition.
Aug 6, 2026: Kenvue reported Q2 2026 results. Net sales rose 3.0%, and organic sales rose 1.6%, the third quarter of growth in a row. Diluted EPS was $0.24, and adjusted EPS was $0.31, up 7%. The adjusted operating margin fell to 22.1% from 22.7% because of inflation, tariffs and higher brand support. Kenvue gave no guidance because of the pending deal, and it said that it works to close the deal in the fourth quarter of 2026.
May 12, 2026: CFO Amit Banati left the company, as announced in February 2026. Chief Accounting Officer Heather Howlett became interim CFO.
May 7, 2026: Kenvue reported Q1 2026 results. Net sales rose 4.5%, and organic sales rose 0.7%. Diluted EPS was $0.25, up 47%, and adjusted EPS was $0.32, up 33%.