Kimberly-Clark 2025 Q3 Earnings EPS Dips 50.4% Despite Revenue Beat

Kimberly-Clark (KMB) reported fiscal 2025 Q3 earnings on October 31, 2025, with revenue exceeding estimates and guidance adjusted to align with market growth. The company’s stock edged up slightly in the short term, though earnings declined sharply due to margin pressures.

Revenue

Kimberly-Clark’s total revenue rose 0.1% to $4.15 billion in Q3 2025, outperforming the $4.12 billion estimate. The Baby and Child Care segment led with $1.69 billion, followed by Family Care contributing $1.04 billion. Professional and Adult Care segments generated $474 million and $490 million respectively, while Feminine Care added $431 million. Smaller segments accounted for $34 million, rounding out the total.

Earnings/Net Income

The company’s EPS plummeted 50.4% to $1.34, with net income falling to $454 million from $915 million in the prior year. Despite the sharp decline, Kimberly-Clark has maintained profitability for over two decades, demonstrating resilience amid operational challenges. The EPS decline reflects margin compression from tariffs, pricing actions, and higher costs.

Price Action

Kimberly-Clark’s stock gained 0.47% in the latest trading day and 0.66% over the past week, but declined 2.86% month-to-date. Post-earnings, the stock’s performance aligns with historical patterns where revenue beats correlate with modest short-term gains.

Post-Earnings Price Action Review

Historical data from 2018 to 2025 indicates that buying Kimberly-Clark stock after revenue beats and holding for 30 days yields positive returns in 70% of cases, averaging +2.8%. However, volatility ranges from -5.3% to +8.1%, with sensitivity to macroeconomic factors like tariffs and supply chain disruptions. The strategy’s Sharpe ratio of 0.8 suggests moderate risk-adjusted returns, making it suitable for risk-averse investors. <visualization dataurl="https://cdn.ainvest.com/news/visual/visual_components/viz_5x7nmi53.json"></visualization>

CEO Commentary

James Urie, CEO, highlighted inflation-driven consumer shifts toward private-label products and strategic pricing adjustments to retain affordability. He emphasized operational restructuring, including the $3.4 billion divestiture of the international tissue business to Suzano, to streamline operations and mitigate margin pressures. Urie expressed cautious optimism for 2025, aligning growth expectations with market averages amid ongoing cost management.

Guidance

Kimberly-Clark revised 2025 organic sales growth to match the 2% industry benchmark, down from earlier outperformance forecasts. The company anticipates continued margin pressures from tariffs and pricing actions but remains focused on cost control and portfolio optimization.

Additional News

In late October, Kimberly-Clark finalized a $3.4 billion deal to sell a majority stake in its international tissue business to Suzano, marking a strategic pivot to reduce debt and focus on core markets. The company also announced restructuring initiatives to simplify operations, including workforce reductions and facility consolidations. Meanwhile, executives reiterated commitments to maintaining dividend payouts despite earnings declines, citing long-term cash flow stability.

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