Kimberly-Clark beat second quarter EPS estimates with $2.12, but a 0.1% organic sales decline missed expectations, leading to a lowered FY2026 outlook.

Kimberly-Clark reported second quarter 2026 net sales of $4.2 billion, a 0.6% increase year-over-year, while adjusted EPS of $2.12 rose 10.4%. The company beat earnings estimates but missed on revenue, with a significant miss on organic sales, which declined 0.1%. As a result, Kimberly-Clark lowered its full-year 2026 organic sales growth outlook, citing disruptions in its China diaper business.

Key Highlights

• Organic sales declined 0.1%, missing the 2.5% consensus estimate, significantly impacted by false social media allegations regarding diaper quality in China which had a 50 basis point negative impact.
• Adjusted EPS grew 10.4% to $2.12, beating expectations, driven by a 190 basis point expansion in adjusted gross margin to 38.8% due to one-time tariff refunds and productivity savings.
• Full-year 2026 organic sales growth guidance was lowered and is now expected to be approximately 100 basis points below category growth, citing the ongoing impact from the China disruption.