KMB · NASDAQ-GS
Consensus is $1.76 EPS for Sep 2026 across 6 estimates, ranging $1.66 to $1.88.
No consensus figures are available, so the quarter cannot be assessed against an external earnings expectation. Results were mixed: revenue reached $4.189 billion, up 0.6% year over year versus $4.163 billion, but organic sales were relatively flat at negative 0.1%, slower than the first-half organic increase of 1.2%. IPC carried the top line, with sales up 4.0% to $1.491 billion, while North America declined 1.2% to $2.698 billion. Both segments improved operating profit, led by North America’s 10.7% increase to $725 million, compared with IPC’s 2.2% increase to $186 million. Gross margin expanded to 38.3% from 35.0%, helped by tariff refunds and productivity savings of approximately $120 million, although unfavorable pricing net of cost inflation remained a drag. Adjusted EPS rose 10.4% to $1.80, but GAAP continuing-operations EPS fell 8.3% to $1.22 because the effective tax rate rose to 37.9%.
The material gives no formal revenue, earnings, margin, or cash-flow guidance ranges. Management did disclose several forward-looking assumptions and caveats: the China diaper social-media disruption significantly hurt second-quarter sales and is expected to pressure sales and profits in the near term. Assuming oil prices remain at current levels for the rest of 2026, the company estimates approximately $150 million of incremental input costs before mitigation actions. The 2024 Transformation Initiative has been extended through 2028, with expected gross productivity savings of $3.0 billion and approximately $1.5 billion of total pre-tax costs. Following the July IFP closing, management expects a pre-tax discontinued-operations gain of more than $1.0 billion in the third quarter.
