Revenue growth has shifted from contraction to a 4.5% year-over-year increase in 2026Q1, supported by gross margins that have remained resilient near 58% over the last ten quarters.
| Sales/Revenue | 15.29B | 15.12B | 15.46B | 15.44B | 14.95B | 15.05B | 14.47B |
| Revenue Growth % | -0.07% | -2.14% | 0.07% | 3.3% | -0.69% | 4.06% | - |
| Cost of Goods Sold | 6.37B | 6.33B | 6.5B | 6.8B | 6.67B | 6.63B | 6.62B |
| COGS % of Revenue | - | 41.87% | 42.03% | 44.04% | 44.58% | 44.07% | 45.75% |
| Gross Profit | 8.93B | 8.79B | 8.96B | 8.64B | 8.29B | 8.42B | 7.85B |
| Gross Margin % | 58.37% | 58.13% | 57.97% | 55.96% | 55.42% | 55.93% | 54.25% |
| Gross Profit Growth % | - | -1.86% | 3.66% | 4.32% | -1.59% | 7.28% | - |
| Operating Expenses | 5.93B | 6.09B | 7.12B | 6.13B | 5.61B | 5.5B | 8.83B |
| OpEx % of Revenue | - | 40.25% | 46.06% | 39.7% | 37.53% | 36.53% | 61.01% |
| Selling, General & Admin | 6B | 6.09B | 6.03B | 6.14B | 5.63B | 5.48B | 4.96B |
| SG&A % of Revenue | - | 40.25% | 39% | 39.76% | 37.68% | 36.43% | 34.26% |
| Research & Development | 84M | 382M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.53% | - | - | - | - | - |
| Other Operating Expenses | 0 | -382M | 1.09B | -10M | -23M | 15M | 3.87B |
| Operating Income | 3B | 2.7B | 1.84B | 2.51B | 2.67B | 2.92B | -979M |
| Operating Margin % | 19.62% | 17.88% | 11.91% | 16.27% | 17.89% | 19.4% | -6.77% |
| Operating Income Growth % | - | 46.88% | -26.71% | -6.09% | -8.39% | 398.26% | - |
| EBITDA | 3.56B | 3.26B | 2.46B | 3.14B | 3.32B | 3.65B | -233M |
| EBITDA Margin % | 23.31% | 21.56% | 15.94% | 20.32% | 22.2% | 24.25% | -1.61% |
| EBITDA Growth % | 45.04% | 32.4% | -21.54% | -5.42% | -9.09% | 1666.95% | - |
| D&A (Non-Cash Add-back) | 564M | 557M | 622M | 627M | 644M | 731M | 746M |
| EBIT | 2.69B | 2.38B | 1.85B | 2.55B | 2.64B | 2.92B | 2.99B |
| Net Interest Income | -380M | -379M | -378M | -250M | 0 | 0 | 0 |
| Interest Income | 13M | 0 | 53M | 108M | 0 | 0 | 0 |
| Interest Expense | 393M | 379M | 431M | 358M | 0 | 0 | 0 |
| Other Income/Expense | -788M | -705M | -426M | -322M | -38M | 5M | -37M |
| Pretax Income | 2.21B | 2B | 1.42B | 2.19B | 2.64B | 2.92B | -1.02B |
| Pretax Margin % | 14.47% | 13.22% | 9.16% | 14.18% | 17.64% | 19.43% | -7.02% |
| Income Tax | 591M | 529M | 385M | 526M | 573M | 847M | -137M |
| Effective Tax Rate % | 26.71% | 26.46% | 27.21% | 24.02% | 21.73% | 28.96% | 13.48% |
| Net Income | 1.62B | 1.47B | 1.03B | 1.66B | 2.06B | 2.08B | -879M |
| Net Margin % | 10.61% | 9.72% | 6.66% | 10.77% | 13.81% | 13.8% | -6.08% |
| Net Income Growth % | 53.6% | 42.72% | -38.1% | -19.38% | -0.67% | 336.41% | - |
| Net Income (Continuing) | 1.62B | 1.47B | 1.03B | 1.66B | 2.06B | 2.08B | -879M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.84 | 0.76 | 0.54 | 0.87 | 1.08 | 1.10 | -0.47 |
| EPS Growth % | 54.49% | 40.74% | -37.93% | -19.44% | -1.82% | 334.04% | - |
| EPS (Basic) | - | 0.77 | 0.54 | 0.90 | 1.08 | 1.10 | -0.47 |
| Diluted Shares Outstanding | 1.92B | 1.92B | 1.92B | 1.92B | 1.91B | 1.89B | 1.89B |
| Basic Shares Outstanding | 1.92B | 1.92B | 1.92B | 1.85B | 1.91B | 1.89B | 1.89B |
| Dividend Payout Ratio | - | 107.55% | 150.68% | 874.64% | - | - | - |
Margin erosion from competition
According to recent financial filings, Kenvue's revenue growth has shifted from a period of contraction in 2024 to a 4.5% year-over-year increase in 2026Q1, suggesting that the company is beginning to stabilize its top-line performance following the complexities of its separation from Johnson & Johnson.
The return to positive growth in early 2026 indicates that the company may be successfully navigating the destocking headwinds that plagued its previous quarters. Investors should monitor whether this trajectory is driven by sustainable volume gains or merely reflects easier year-over-year comparisons against the post-spin-off transition period.
Based on reported figures, Kenvue has maintained gross margins consistently near 58% over the last ten quarters, demonstrating a resilient pricing strategy that appears to insulate the company from the inflationary pressures affecting its broader consumer staples peer group during the same operational timeframe.
This stability in gross margin suggests that the company's core brands retain significant consumer loyalty, allowing for the successful pass-through of input cost increases. However, the sustainability of these margins warrants further investigation as the company faces increasing pressure from private-label alternatives in the essential health category.
As reported in recent income statements, Kenvue's operating margins have fluctuated significantly, reaching 21.9% in 2026Q1, which suggests that the company is still in the process of rightsizing its standalone cost structure following the termination of various transition service agreements with its former parent company.
The volatility in operating income implies that the company has yet to achieve a steady-state efficiency in its SG&A expenses. Analysts should scrutinize whether the recent improvement in operating margins is a permanent structural shift or a temporary result of reduced administrative overhead post-separation.
Based on the provided data, Kenvue's net income has shown a marked improvement, rising to $474 million in 2026Q1, while stock-based compensation expenses have trended toward zero, indicating a cleaner earnings profile as the company moves further away from its initial public offering and spin-off accounting adjustments.
The reduction in non-operating noise and stock-based compensation suggests that reported EPS is becoming a more reliable indicator of core operational performance. Investors should remain cautious, however, as the company's net income remains sensitive to the ongoing resolution of legacy legal and separation-related liabilities.
Data from the last ten quarters suggests that despite stable gross margins, Kenvue's operating income remains vulnerable to high SG&A requirements, which may indicate that the company is forced to spend aggressively on marketing to defend its market share against agile, digital-first beauty and health competitors.
Short-term margin expansion may be misleading if it comes at the expense of long-term brand equity and R&D investment. If the company fails to innovate, the current reliance on legacy brand strength may prove insufficient to prevent long-term erosion of its competitive moat.
Quick answers to the most common questions about buying KVUE stock.
For fiscal year 2025, Kenvue Inc. (KVUE) reported total revenue of $15.12B. This represents a 4.5% increase compared to $14.47B in 2020.
Kenvue Inc. (KVUE) is profitable, generating $1.47B in net income for the fiscal year ending 2025 with a net profit margin of 9.7%.
Kenvue Inc. (KVUE) reported an operating income of $2.70B, resulting in an operating profit margin of 17.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Kenvue Inc. (KVUE) generated $8.79B in gross profit for the year, representing a gross profit margin of 58.1%. This demonstrates the company's core pricing power and production efficiency.