Kenvue 2025 Q2 Earnings Strong Performance as Net Income Surges 624%

Kenvue reported its Q2 2025 earnings, delivering strong net income growth despite a revenue decline. The company lowered its 2025 guidance, reflecting ongoing challenges in key markets.

Revenue
Kenvue’s total revenue for fiscal 2025 Q2 fell 4.0% year-over-year to $3.84 billion. The Self Care segment accounted for the largest portion, contributing $1.55 billion, followed by Essential Health with $1.23 billion. The Skin Health and Beauty segment generated $1.06 billion in revenue, rounding out the performance across key business lines.

Earnings/Net Income
Earnings per share (EPS) surged 633.3% to $0.22 in 2025 Q2 from $0.03 in the same period a year ago. Net income jumped to $420 million, up 624.1% from $58 million in 2024 Q2. The significant EPS growth highlights Kenvue’s ability to improve profitability despite declining revenue.

Price Action
The stock price of Kenvue rose 1.78% on the most recent trading day, 1.49% for the week, and climbed 5.12% over the past month.

Post-Earnings Price Action Review
A post-earnings investment strategy of purchasing Kenvue shares after quarterly revenue growth and holding for 30 days has underperformed significantly over the past three years. The approach yielded a -16.50% return, far below the 51.48% benchmark. The strategy showed a CAGR of -7.77%, a maximum drawdown of 0.00%, and a Sharpe ratio of -0.29, reflecting high volatility and poor risk-adjusted returns.

CEO Commentary
Interim CEO Kirk L. Perry acknowledged Q2’s organic sales decline of 4.2% and outlined a plan to streamline operations and focus on consumer needs. He emphasized the importance of leadership, strategic execution, and operating model optimization. Perry cited past successes in digital transformation and turnaround efforts as strengths for future growth.

Guidance
Kenvue revised its 2025 outlook, now anticipating low single-digit organic sales declines and adjusted diluted EPS of $1 to $1.05. The guidance accounts for soft demand in North America and APAC, with a focus on disciplined reinvestment and productivity gains.

Additional News
Kenvue recently announced the appointment of Kirk L. Perry as Interim CEO, following the departure of the previous CEO in late July. Perry brings extensive experience in digital transformation and operational efficiency, having previously led successful turnarounds. The company also confirmed it is exploring potential strategic partnerships to enhance innovation and market expansion. Additionally, Kenvue announced a board refreshment initiative, appointing two new independent directors to bolster governance and oversight.