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Kenvue beats quarterly estimates, announces job cuts amid Kimberly-Clark acquisition
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Kenvue beats quarterly estimates, announces job cuts amid Kimberly-Clark acquisition
Mar 11, 2026 4:29 AM

Feb 17 (Reuters) - Tylenol-maker Kenvue ( KVUE ) on Tuesday beat Wall Street estimates for fourth-quarter results and announced a global workforce reduction, as it proceeds toward a planned takeover by Kimberly-Clark ( KMB ).

Kenvue ( KVUE ) said its ​board has approved a plan to optimize ‌its operating model, resulting in a net reduction of its global workforce by about 3.5%. ⁠The company had about 22,000 employees as of last year.

Kleenex-maker ⁠Kimberly-Clark in early November proposed buying Kenvue ( KVUE ) for more ‌than $40 billion to ‌create a global consumer health company with brands like Band-Aid and Huggies diapers.

The merger ​is expected to close in the ‌second half of 2026.

The company's quarterly results highlight a turnaround for the company, on strength in its self-care ​and essential health segments.

"We ended ​2025 with ‌stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as ⁠a more favorable year-ago comparison on sales," said CEO Kirk ⁠Perry.

Kenvue's ( KVUE ) largest segment, self-care - home to brands such as Tylenol and Benadryl - reported a 1.5% increase in net sales to $1.59 billion, beating estimates of $1.52 billion, according to data compiled by LSEG.

The company said ⁠consumption ‌and share performance trends for Tylenol improved in ‌December.

Its essential health unit, which houses brands such as Listerine and Band-Aid, ⁠brought in net sales of $1.15 billion in the quarter, a 6.1% rise year-over-year. This compares to the analysts' average estimate of $1.12 billion.

The company's fourth-quarter net sales rose 3.2% to $3.78 billion, above analysts' consensus of $3.68 billion.

The Band-Aid maker posted a quarterly adjusted profit of 27 cents per share, while analysts ​estimated 22 cents per share.

The planned job cuts are expected to result in pre-tax restructuring expenses and other charges totaling about $250 million ​in 2026, Kenvue ( KVUE ) said.

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