Revenue turned positive at 3.0% YoY in Q2 2026, with gross margin holding at 58.2% and operating margin expanding to 17.7% from 3.9% in Q2 2024, though TTM growth remains -2.1%.
Kenvue Inc. (KVUE) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 15.41B | 15.12B | 15.46B | 15.44B | 14.95B | 15.05B | 14.47B |
| Revenue Growth % | 1.76% | -2.14% | 0.07% | 3.3% | -0.69% | 4.06% | - |
| Cost of Goods Sold | 6.44B | 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 | 8.97B | 8.79B | 8.96B | 8.64B | 8.29B | 8.42B | 7.85B |
| Gross Margin % | 58.19% | 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 | 5.96B | 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 | 4.5B | 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 | 3.01B | 2.7B | 1.84B | 2.51B | 2.67B | 2.92B | -979M |
| Operating Margin % | 19.52% | 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 | 3.58B | 3.26B | 2.46B | 3.14B | 3.32B | 3.65B | -233M |
| EBITDA Margin % | 23.2% | 21.56% | 15.94% | 20.32% | 22.2% | 24.25% | -1.61% |
| EBITDA Growth % | 19.29% | 32.4% | -21.54% | -5.42% | -9.09% | 1666.95% | - |
| D&A (Non-Cash Add-back) | 567M | 557M | 622M | 627M | 644M | 731M | 746M |
| EBIT | 2.6B | 2.38B | 1.85B | 2.55B | 2.64B | 2.92B | 2.99B |
| Net Interest Income | -376M | -379M | -378M | -250M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 53M | 108M | 0 | 0 | 0 |
| Interest Expense | 376M | 379M | 431M | 358M | 0 | 0 | 0 |
| Other Income/Expense | -785M | -705M | -426M | -322M | -38M | 5M | -37M |
| Pretax Income | 2.22B | 2B | 1.42B | 2.19B | 2.64B | 2.92B | -1.02B |
| Pretax Margin % | 14.43% | 13.22% | 9.16% | 14.18% | 17.64% | 19.43% | -7.02% |
| Income Tax | 565M | 529M | 385M | 526M | 573M | 847M | -137M |
| Effective Tax Rate % | 25.42% | 26.46% | 27.21% | 24.02% | 21.73% | 28.96% | 13.48% |
| Net Income | 1.66B | 1.47B | 1.03B | 1.66B | 2.06B | 2.08B | -879M |
| Net Margin % | 10.76% | 9.72% | 6.66% | 10.77% | 13.81% | 13.8% | -6.08% |
| Net Income Growth % | 16.93% | 42.72% | -38.1% | -19.38% | -0.67% | 336.41% | - |
| Net Income (Continuing) | 1.66B | 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) | 0.86 | 0.76 | 0.54 | 0.87 | 1.08 | 1.10 | -0.47 |
| EPS Growth % | 17.57% | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
Skin Health volume pressure
Metrics are mathematically derived from official filings.
Sequential Momentum Offsets TTM Decline
Kenvue's revenue turned positive in the last three quarters, with Q2 2026 up 3.0% year-over-year, yet trailing twelve-month growth remains -2.1%, suggesting stabilization rather than acceleration.
The sequential improvement from -4.0% in Q2 2025 to +3.0% in Q2 2026 indicates a potential inflection, but the still-negative TTM figure implies the recovery is nascent. Organic growth, as noted in recent filings, was broad-based, but the sustainability depends on whether this momentum can offset prior declines. Investors should monitor if this trajectory persists, especially given the Skin Health segment's volume pressures.
Gross Margin Resilience Amid Inflation
Gross margin held near 58-59% over the past year, with Q2 2026 at 58.2%, reflecting pricing power and cost discipline, though slightly below the 59.1% peak in Q3 2025.
The stability of gross margins despite raw material inflation suggests effective pricing and mix management, a key competitive advantage. However, the slight dip in Q2 2026 may indicate input cost pressures or promotional activity. Compared to peers like PG (50.2%) and CL (60.1%), KVUE's gross margin is competitive, but the operating margin gap (17.7% vs PG's 22.7%) highlights higher SG&A intensity, likely due to standalone costs.
Operating Leverage Emerging Post-Spin
Operating income scaled from $154M in Q2 2024 to $699M in Q2 2026, with operating margin expanding from 3.9% to 17.7%, indicating improved cost absorption as revenue stabilized.
The dramatic margin expansion from the trough in Q2 2024 (3.9%) to current levels suggests that separation-related costs are fading and the company is realizing operating leverage. SG&A has remained relatively flat around $1.5B, while revenue grew, implying overhead efficiency. However, the Q2 2026 operating margin of 17.7% is below the 21.9% in Q1 2026, possibly due to seasonal marketing spend, so investors should watch for consistency.
Earnings Quality Marred by One-Time Items
Net income in Q2 2026 of $456M includes a $29M negative SBC adjustment, while Q2 2024's net income of $58M was depressed by separation costs, distorting EPS trends.
The negative SBC in Q2 2026 is unusual and may reflect a reversal or adjustment, warranting scrutiny. Excluding one-time items, underlying earnings power appears stronger, as evidenced by the Q3 2025 EPS beat. The tax rate and non-operating items have caused volatility, with net margin swinging from 1.5% in Q2 2024 to 12.1% in Q1 2026. Investors should adjust for these anomalies to assess normalized profitability.
SG&A Discipline Offsets R&D Absence
SG&A has been held at approximately $1.5B per quarter, while R&D is only disclosed in Q1 2026 at $84M, suggesting a lean innovation spend relative to peers.
The lack of R&D disclosure in most quarters is notable, but the Q1 2026 figure of $84M implies an annualized run-rate of ~$336M, which is modest for a consumer health company. SG&A stability indicates cost control, but the high SG&A-to-revenue ratio (~38%) compared to peers like PG (27.5%) suggests ongoing standalone overhead. Management's expense discipline appears solid, but the low R&D investment may limit long-term innovation, particularly in Skin Health.
Q2 2024 Trough Marks Turning Point
The lowest operating margin of 3.9% in Q2 2024, driven by separation costs, was the inflection point, with margins recovering to 17.7% by Q2 2026, signaling the end of the spin-off drag.
The Q2 2024 quarter was distorted by one-time charges, but the subsequent recovery in operating income and margins indicates that the company has successfully navigated the transition to standalone operations. This inflection is critical because it demonstrates the underlying profitability of the core business. The lasting impact is a leaner cost structure, though the absence of R&D in most quarters suggests that innovation spending may have been cut to achieve these margins, which could be a concern for future growth.
What Could Invalidate the Base Case
Despite margin recovery, the persistent volume decline in Skin Health and Beauty, coupled with a low R&D run-rate, may undermine long-term growth and pricing power.
The recent quarters show revenue growth, but the trailing twelve-month growth remains negative, and the Skin Health segment has faced sustained volume pressure, as noted in recent context flags. The company's R&D spend appears minimal, which could limit its ability to innovate and defend against digital-first competitors. Additionally, the unresolved Kimberly-Clark transaction introduces strategic uncertainty, and any regulatory scrutiny on consumer health products could pressure margins. If these risks materialize, the current margin expansion may prove unsustainable.