Kenvue’s Q2 earnings, revenue beat expectations

Investing.com -- Kenvue Inc. reported second-quarter earnings that surpassed analyst estimates, while updating its full-year 2025 guidance to account for tariffs and currency headwinds.

The company’s shares are up over 3% premarket.

The consumer health company posted adjusted earnings per share of $0.24, exceeding the analyst consensus of $0.23. Revenue for the quarter came in at $3.74 billion, topping expectations of $3.68 billion.

Despite the earnings beat, Kenvue (NYSE: KVUE)’s stock dipped 0.9% following the release, suggesting a muted market reaction to the results.

For the full year 2025, Kenvue now expects net sales growth of 1% to 3% year-over-year, including organic sales growth of 2% to 4% and a roughly 1% headwind from foreign currency translation. The company anticipates its adjusted operating income margin will decline compared to the previous year, reflecting the estimated impact of tariffs.

"In Q1, our teams executed our plans while continuing to navigate an evolving macro and consumer environment," said CEO Thibaut Mongon. "We are committed and focused on activating our brands while staying agile and flexible to accelerate sustainable profitable growth."

Kenvue’s first quarter net sales decreased 3.9% compared to the prior year period, with organic sales declining 1.2% and a 2.7% foreign currency headwind. The organic sales decline was attributed to a 0.3% unfavorable value realization due to planned strategic price investments and a 0.9% volume decline.

The company’s gross profit margin expanded 40 basis points to 58.0%, while adjusted gross profit margin contracted 20 basis points to 60.0% compared to the same period last year.

Kenvue also announced it had successfully completed its Transition Services Agreement exits in April, marking a significant milestone in its separation process.

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