Kenvue 2025 Q3 Earnings EPS Grows 5% Despite Revenue Miss

Kenvue reported Q3 2025 earnings with a 5% increase in EPS to $0.21, surpassing expectations, while revenue fell 3.5% to $3.76 billion, missing estimates. The company reaffirmed full-year guidance, citing improved profitability and strategic cost management.

Revenue

Kenvue’s total revenue declined 3.5% year-over-year to $3.76 billion in Q3 2025. The Self Care segment contributed $1.56 billion, followed by Skin Health and Beauty at $1.04 billion, and Essential Health at $1.16 billion. Weakness in OTC products and inventory adjustments across all segments drove the decline, though gross margins expanded to 59.1% due to productivity gains.

Earnings/Net Income

Earnings per share rose 5% to $0.21, with adjusted EPS at $0.28, beating estimates. Net income grew 3.9% to $398 million, supported by a 9.4% net profit margin—a 2.1 percentage point increase year-over-year. However, a $595 million one-off loss cast doubt on the quality of earnings, despite the EPS beat.

Post-Earnings Price Action Review

The stock surged 20% pre-market on merger news, driven by the $21.01/share acquisition offer from Kimberly-Clark, rather than revenue performance. While Q3 EPS beat estimates, revenue missed by 1.6%, and historical data gaps—such as revenue beat dates and 30-day post-earnings performance—prevent validating a buy-and-hold strategy. Recent events like the merger overshadow traditional earnings-driven price trends. <visualization dataurl="https://cdn.ainvest.com/news/visual/visual_components/viz_l7kfqiwc.json"></visualization>

CEO Commentary

Kimberly-Clark’s CEO Mike Hsu highlighted the strategic fit of combining Kenvue’s health portfolio with KMB’s commercial expertise, creating a $32 billion global leader. Kenvue’s new CEO Kirk Perry emphasized innovation and category leadership post-merger.

Guidance

The combined entity projects 2026 adjusted EPS accretion and $2.1 billion in synergies. Kenvue’s full-year 2025 guidance of $1.00–$1.05 EPS remains intact.

Additional News

1. M&A Activity: Kenvue’s $48.7 billion acquisition by Kimberly-Clark, valued at $21.01/share, closed a strategic review initiated in June 2025. The merger creates a consumer health giant with $32 billion in annual sales.

2. C-Level Changes: CEO Kirk Perry was named permanent CEO in July 2025, following the ouster of Thibaut Mongon. Leadership reshuffles included a new North America president to bolster regional execution.

3. Dividend: Kenvue maintained its quarterly dividend of $0.2075 per share, yielding ~5.8% at pre-deal prices, signaling commitment to shareholder returns despite rising payout ratios.

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