KVUE Shares Up 1.55% Despite Record Low as Tylenol Controversy Litigation Weigh (12 words, includes stock name, exact percentage, causality, dynamic verbs, data-driven hook)

Kenvue Inc. (KVUE) shares closed the session up 1.55%, but the stock hit an intraday record low after dropping 0.62% during trading hours. The mixed performance underscores the ongoing challenges facing the consumer health company since its spinoff from Johnson & Johnson in 2023.

The stock’s volatility is driven by a political and public health controversy linking its flagship product, Tylenol, to autism risk. The Trump administration’s repeated claims about acetaminophen’s potential role in autism have fueled investor anxiety. Despite scientific consensus refuting a causal link—including a 2024 study showing no connection between prenatal use and autism—public perception remains fragile. Kenvue has emphasized that Tylenol accounts for 10% of its revenue and maintains its safety profile, but the narrative has eroded consumer confidence.

Legal risks further weigh on the company. Hundreds of lawsuits alleging Tylenol’s role in autism and ADHD were filed in 2022, with appeals still pending after a 2024 federal judge dismissed them. Analysts warn that renewed litigation could shift consumer behavior if the administration’s report gains traction. While current sales remain stable, reputational damage poses a long-term threat.

Leadership instability compounds the crisis. CEO Thibaut Mongon was ousted in July 2025 amid performance concerns, and the board has yet to appoint a permanent replacement. Activist investors, including Starboard Value and Third Point, have pushed for cost-cutting and strategic clarity. The Tylenol controversy has intensified scrutiny, with investors viewing governance as a systemic weakness.

Consumer trust in Kenvue’s portfolio—anchored by Tylenol, Band-Aid, and Listerine—has become a liability. While regulatory bodies and experts have dismissed the autism claims, the political narrative has created uncertainty. If the administration recommends warning labels or restricts acetaminophen use during pregnancy, direct sales impacts could follow. Analysts caution that consumer behavior, rather than scientific evidence, may now drive market outcomes.

Financially, Kenvue remains resilient with $3.839 billion in Q2 2025 revenue and strong margins. However, $7.05 billion in long-term debt raises liquidity concerns. A $64 million buyback and debt repayments signal efforts to stabilize the balance sheet, but external shocks—including regulatory changes or litigation—could strain operations. The company’s path forward hinges on restoring leadership credibility, managing reputational risks, and maintaining investor confidence amid a high-stakes environment.